Innovation + Job News

Ohio isn't well known for its abundance of sunshine. And that's just fine for Replex Plastics.

The Mount Vernon-based supplier of domes and mirrors is working to commercialize solar components that utilize mirrors onto photovoltaic cells in areas that don't have optimal solar conditions. Places like Ohio.

The company � founded in 1991 � got its start manufacturing optical domes and mirrors. For the last two years, Replex has been tinkering with mirrors that collect solar energy. And in another two years, the company expects to have a product ready for commercialization.

Replex President Mark Schuetz says the technology could be deployed even on cloudy days using "the diffuse part of the sunlight." That's something not many companies can claim.

"We've been making mirrors for almost 20 years. We're trying to adapt to solar applications," Schuetz says. "This is a major leap for us."
The company was awarded a $1.2 million grant from the Ohio Third Frontier Photovoltaic Program for its innovative work. The goal is to reduce the cost of solar power by reducing the cost per watt of the most expensive component � the photovoltaic cells. Replex has collaborated the University of Toledo, the Ohio State University and Dovetail Solar and Wind for research, testing and evaluation.

In 2009, the recession hit Replex hard, whittling the staff to 17 from 25. But Schuetz says the company will most likely gain those positions back this year. There are plans to manufacture the modules in the Mount Vernon facility � adding as many as 500 jobs, Schuetz adds.

"We really think renewable energy is here to stay � and its only going to get bigger," he says. "And we want to be a part of that."

Source: Mark Schuetz, Replex Plastics
Writer: Colin McEwen

As founder of the American Migraine Center, Bahman Guyuron sees about 3,000 migraine sufferers per year. Potential treatments range from pain medications and Botox injections to full-blown surgery, the latter of which Dr. Guyuron pioneered as Chair of the Department of Plastic Surgery at University Hospitals.

But not all of his patients desire medication or are good candidates for surgical intervention. For those migraine sufferers, the doctor developed a portable heating and cooling device that relieves pain on contact. "The efficacy of heating and cooling therapy in alleviating pain has been recognized for years within the medical community and amongst patients," explains Guyuron.

Along with Brad Pulver, the doctor founded Innovative Medical Equipment, the Cleveland-based company that sells the SootheAway Thermal Therapy System. Unlike traditional heat and ice packs, which are messy, clumsy and inconsistent, this small device -- it measures in at just 11 inches by four inches by four inches -- circulates thermostatically controlled water through therapeutic pads. Various pads target specific areas of the body, such as the forehead, eyes and neck.

Started just six months ago with two principles, Innovative Medical recently launched a website and is already filling orders from around the country.

"We're growing rapidly," says Pulver. "We are already up to five employees, and will be adding sales and marketing staff soon."

As SootheAway expands into other markets, namely orthopedics, physical therapy, and pre- and post-surgical, additional jobs will likely follow.

The company also markets Laser-Seal, a gel-based wound dressing that Guyuron invented.

Sources: Brad Pulver and Bahman Guyuron, Innovative Medical Equipment
Writer: Douglas Trattner

Innova once made the delivery boxes that kept your pizza warm. Today, it's developing systems designed to keep the heat off of American military personnel.

Formed in 1994 as the offspring of CJ Laser Corp., Innova has its hands in numerous high-tech applications based on its expertise in lasers and other photonics applications.

Innova President Nilesen Gokay and her husband, Cem Gokay -- the firm's executive vice president -- say their relationship with researchers at the University of Dayton, Wright-Patterson Air Force Base and a number of startup companies in the instruments- controls-and electronics industry has powered the firm's growth.

"We have a 7,000 square foot facility, and its going to grow to a 11,000-square-foot facility," says Cem Gokay. "(A year ago), we had five employees; now we have 17."

Innova is working with companies like FLIR Systems, which makes thermal imaging cameras, and Carl Zeiss Inc., which makes advanced optical lenses, to build systems needed for stabilized gimbals -- technology used in the noses of aircraft or ships to home in on military targets. Innova is also working with fellow Daytonian STAN Solutions to add capabilities to a mega-pixel camera STAN is refining for military applications.

Yet, the Gokays describe their main goal during the past two years as working to bring in larger defense companies to the Dayton region -- and lay groundwork for additional training capabilities for the industry.

Those efforts have led to Portland, Ore.,-based FLIR establishing a sales office in the community as a precursor to setting up production operations, says Cem Gokay. He says similar efforts are under way with Zeiss, and that "we hope that by end of 2010 we will be in the manufacturing phase with both."

Sources: Nilesen and Cem Gokay, Innova
Writer: Gene Monteith

Melody Management is helping music artists to get seen, get heard and get paid. Sound like a pitch from a giant record label? Not so fast.

The Columbus-based company is part of a drastically changing landscape for the music industry � and it hopes to be at the forefront of that movement when the company officially launches Feb. 1.

Melody is filling a niche with the widespread mobility of technology and music. The company distributes, markets and offers copyright protection in the way a traditional record label would � but it offers those services online in a way it claims is cheaper and more profitable for the artist.

The company offers something else that labels do not: A buy button. "You never know when someone is ready to buy," says CEO Glen Johnson.

Johnson says artists using Melody earn 90 percent of the profits � instant profit. "We take what labels and net-labels do and try to simplify them through technology," he says.

The company has an internal central management system that allows the artists more time to focus on other things � like music.
The music industry has been turned on its head in the last decade. CD sales are down as file-sharing becomes more popular � even as record labels flex their muscles with lawsuits.

"The college kids are smarter than us," Johnson says. "They'll just write the next music sharing program. (The labels) said 'Geez, we'd better start figuring out the next business model.' I think Melody Management is on the cusp of that next business model."

There are 28 artists currently working with Melody, but Johnson says the company's success is limitless.

"We're just getting started," he says. "We're hoping to rock the world."

Source: Glen Johnson, Melody Management
Writer: Colin McEwen

Art Fritts says the market for nanomaterials wasn't completely clear when he launched his fledging company in 2004.

Luckily for Fritts and NanoSperse, the value has become crystal clear since then. In July, the Dayton-based firm moved from production space at the University of Dayton Research Institute (UDRI) to an 8,000-square-foot production facility at the National Composite Center in Kettering. Production capacity? A million pounds of material per year.

The move has prompted an increase in payroll, too. The company, which ended 2009 with two employees, now has eight and is expected to at least double that number within the next two years, says Fritts, NanoSperse's president.

NanoSperse has made its way commercializing a unique method of distributing nano-size carbon particles throughout materials to improve durability, reliability and functionality of composites for the defense, aerospace, and industrial marketplaces. The technology was developed at the University of Dayton, and Fritts -- with 30 years in the polymer industry -- started NanoSperse to commercialize it.

Fritz says that material is tailor-made for a desert environment by becoming the actual surface of the part, eliminating the need for more traditional coatings. He adds that the composite can be expected to hold up three to five times longer than traditional coatings. The company is now producing the material for aerospace uses and shipped its first big order in July.

Fritts says the relationship with UDRI was a godsend for the young company because it allowed NanoSperse to fill orders immediately while learning how to scale production to bigger orders -- and to work with cross industry teams as part of the Ohio Third Frontier's Research Commercialization Program.

Source: Art Fritts, NanoSperse
Writer: Gene Monteith

Disney, Abercrombie & Fitch, and Advance Auto Parts know what's hot. This trio of major companies is among many who've tapped Youngstown's SenSource to count "people traffic" through thermal imaging technology.

SenSource was founded in 2002 by President Joseph Varacalli and Vice-President Kevin Stefko. Varacalli, an electrical engineer, has more than two decades experience in sensor manufacturing, while Stefko is a veteran district sales manager.

In SenSource's short life, the company has developed a variety of high-tech counters that track people, retail traffic and pedestrians through body heat. Companies use these counters for a variety of reasons like monitoring staffing needs, measuring the effectiveness of marketing campaigns and identifying effective sales people. SenSource also offers vehicle counters and environmental counters that monitor temperature and humidity.

A number of well-known retailers have used this thermal imaging technology, including Famous Footware, Lacoste, Vera Bradley, Skechers and Vitamin World. Libraries, too, use counters to monitor library traffic.

Disney is one of SenSource's latest clients. SenSource declined to divuldge exactly why Disney is using the product, but it's been reported that one use is to gauge wait times in lines at amusement parks.

"Disney is known for being particular about every detail of its business, making us pleased that they would chose to work with SenSource," says company Marketing Coordinator Jessica Sferra.

SenSource has grown from two employees at its founding to 12, including two hired in 2009 in product support and marketing. The company plans to hire two more sometime this year.

Source: Jessica Sferra, SenSource
Writer: Feoshia Henderson

Supported by a $500 loan from an uncle, Swagelok was founded in 1947 by Fred Lennon as the Crawford Fitting Company. Shortly afterward, the business began manufacturing Swagelok tube fitting.

In the beginning, there were just two employees: Fred Lennon and Cullen Crawford, the original design engineer of the Swagelok tube fitting.

Today, the Solon-based company's products are delivered at more than 200 authorized facilities in 57 countries on six continents � by approximately 4,000 employees.

Swagelok products are still designed to provide leak-tight operation, reducing the possibility of fugitive emissions. Its newest product � the Swagelok compact gauge valve � is designed with a purge valve and tube-fitting-end connections to reduce leaking. That allows customers to save on both energy and maintenance costs.

"Swagelok's skill sets are in precision manufacturing," says Jim Francis, the company's vice president of human resources.

The company's special expertise was recognized in late 2006, when Swagelok, along with research collaborator Case Western Reserve University, received a three-year, $5.5-million grant from Ohio's Third Frontier initiative to research and commercialize a new method for heat-treating stainless steels to dramatically improve hardness and other performance characteristics.

"Because of Cleveland's history of precision metal fabrication and machining, we've always been able to rely on its diverse pool of talent," he says. "And the education system in Ohio has produced great engineers and business candidates."

But the learning doesn't stop when people are hired. The company hosts almost 100 classroom courses on a number of topics � including personal development, management and technical training.

Source: Jim Francis, Swagelok
Writer: Colin McEwen

The Garland Company began manufacturing and marketing environmentally-conscious roofing and flooring solutions long before the term "sustainable design" became stylish. Today, sustainability is Garland doctrine.

The company that began with just one employee more than 100 years ago now employs more than 500 people across 12 sister companies under the umbrella organization of Garland Industries Inc.

Founded in 1895 as an oil, grease and paint supplier, Garland today is 100 percent employee-owned, manufacturing high-performance products for commercial, industrial and public properties.

The product line includes reflective, modified bitumen, metal, vegetative and photovoltaic solutions.

"Garland is at the forefront of our industry in the area of sustainable technology for the total building envelope," says Tom Bauer, a Garland Company product Manager. "We've built our entire family of technologies around the belief that longevity is the primary attribute of sustainable design."

Garland's earliest vegetative roofs were introduced to the market in 1991. And in 2008 the company launched "Garland Greenhouse" branding to identify its growing family of sustainable offerings.

Last year, Garland was recognized as one of the fastest growing companies in Northeast Ohio, receiving the Weatherhead Centurion award from the Case Western Reserve University Weatherhead School of Management and the Council Of Smaller Enterprises.

Bauer says there are no plans to leave the area.

"(Cleveland) has been hospitable to the numerous expansions we have undertaken over the years," he says. "We have been fortunate enough to have benefited at times from various economic development initiatives offered by the city, and (we) are proud to call Cleveland our home."

Sources: Michelle Sweitzer and Tom Bauer, The Garland Company
Writer: Colin McEwen

Better. Faster. Cheaper. That's the credo in most industries, and especially the mega-dollar energy and chemical segments around the world � segments that keep all the others humming.

Velocys Inc., of Plain City, helps processors speed their products to market in the most efficient way. The key is proprietary "microchannel process technology" covered by more than 100 patents.

"Velocys chemical processors are characterized by parallel arrays of microchannels, with typical dimensions in the 0.01- to 0.20-inch range. Processes are intensified by decreasing transfer resistance between process fluids and channel walls. This structure allows use of more active catalysts than conventional systems, greatly increasing the throughput per unit volume. Overall system volumes can be reduced by ten- to one hundred- fold compared to conventional hardware," the company says on its web site.

In the area of next-generation biofuels, for example, Velocys' smaller, modular systems streamline procedures at refineries. Likewise, "microchanneling" helps makers of pharmaceuticals, food products, adhesives, and personal care products improve the emulsification steps of manufacturing.

A group of scientists and engineers developed that technology at the Pacific Northwest National Laboratory, a U.S. Department of Energy facility operated by Battelle Memorial Institute. They founded Velocys in 2001, and seven years later became part of Oxford Catalysts Group plc, a UK corporation which designs and develops specialty catalysts for the generation of clean fuels from biomass and waste, as well as fossil sources.

Last year Velocys earned a $5-million Third Frontier Research Commercialization Program grant for improving biomass-to-liquid facilities. Also, the company was part of a consortium awarded $2.7 million from the U.S. Department of Agriculture to advance processing of biomass feedstock.

The company employs 60. Its growth plans for 2010 include beginning operations of its first field demonstration unit.

Source: Jeff McDaniel, Velocys
Writer: Gabriella Jacobs

More than $1 billion in venture capital has been invested in northeast Ohio companies during the past five years -- a commitment to growing firms that, in time, could result in more than 40,000 jobs.

Not just that, but 2009 seed funding for the newest northeast Ohio firms was the highest in four years.

That's the lowdown as presented Tuesday by the Venture Capital Advisory Task Force, a group of regional venture community members who have been formally tracking such investments since 2006.

While the report isn't all rosy -- total venture capital investment was down significantly between 2008 and 2009 -- VC leaders said they're encouraged by the fact that 2009 seed stage investment -- $18 million spread among 27 companies -- is rising while national numbers remain flat. They call it a sign that state job-creation programs are working.

The regional task force report shows that the largest single investment sector in northeast Ohio was in healthcare, in which $729 million was invested in 69 companies. The second largest sector was "cleantech," in which 33 companies benefited from $115 in equity capital.

Cathy Belk, chief marketing officer for Jumpstart, a venture development organization that accelerates the progress of early-stage businesses in northeast Ohio, says the report demonstrates the important role the Ohio Third Frontier, the Ohio Investment Tax Credit Program and the Ohio Capital Fund have played in growing Ohio jobs. She says it also points to the need to keep those funding sources available for future entrepreneurs.

The report mirrors an announcement by the Ohio Third Frontier Tuesday that seed and early stage investments in Ohio increased by 67 percent in 2008 while national numbers declined about 20 percent.

Source: Cathy Belk, Jumpstart, and wire sources
Writer: Gene Monteith

Like many start ups, Dayton's Applied Optimization Inc. was a case of smart folks deciding to work for themselves.

"I always worked very, very long hours, and was never home. So my wife said If you're going to work this much, you should start your own business," says company founder and Principal Scientist Anil Chaudhary, an MIT grad.

Chaudhary left a job in Air Force-related research to launch Applied Optimization in 1995. The specialized company uses computational mathematics to develop new generation manufacturing processes for the aerospace and manufacturing industries, eliminating trial and error. These new processes can reduce manufacturing costs while increasing efficiency. Clients include the Air Force Research Laboratory, Boeing and Edison Welding Institute.

A more off-the-beaten-path application for the company's mathematical wizardry is in space sciences. Tamara Payne, the company's principal scientist, noted in December that the company has catalogued 36,000 pieces of space junk that can now be tracked in a less expensive and more timely manner.

The company has 11 full- and part-time employees, including three who were hired last year. Chaudhary says the company's move into the Dayton Entrepreneur Center in 2002 has helped it grow.

"The ability to speak with people in the corridor who have similar problems is very helpful. Also there are support services that are provided; if I have a question they will point me to right person," Chaudhary says.

"The federal customers and Air Force base are here in Dayton, and those were important factors. But the support that is here in the city for this kind of work is very encouraging and positive," he says.

Source: Anil Chaudhary and Tamara Payne, Applied Optimization
Writer: Feoshia Henderson and Gene Monteith

Stem cell research is a hot topic, both scientifically and politically, and nowhere is it hotter than at the Center for Stem Cell & Regenerative Medicine in Cleveland.

Founded in 2003 with a $19.4-millon Ohio Third Frontier grant as a Wright Center of Innovation, CSCRM now conducts research that may someday lead to new treatments for cancer and all sorts of blood, neurodegenerative, musculoskeletal, orthopedic and cardiovascular disorders.

"The center has a huge amount of intelligence behind it," says Director Stan Gerson. "We have about 90 investigators with funding. It's fair to argue that we have as many different types of stem cells in clinical trials as anywhere in the world."

The center is not one entity, but a collaboration of six: Case Western Reserve University, The Cleveland Clinic, University Hospitals Case Medical Center, The Ohio State University and Athersys, Inc., a leading company in development of therapeutic stem cell treatments.

CSCRM has continually received support for its work from the State of Ohio, including an additional $8-million award in 2006 from Ohio's Biomedical Research and Commercialization Program and a $5-million award last June from the Ohio Third Frontier Commission.

Despite progress being made, Gerson cautions that cures arising from stem cell research may not come as quickly as some would like.

"If you've heard of early phase technology, this is it," he says. Creating new drugs from stem cells "is a 25-year process."

In early December, the National Institutes of Health announced approval of 13 new cell lines for study using tax dollars.

"It's going to be very helpful to us to have access to additional cell lines," Gerson says.

Source: Stan Gerson, Center for Stem Cell & Regenerative Medicine
Writer: Gene Monteith

Born out of tragedy, Dayton-based STAN Solutions believes the work it's doing will lessen the chances of similar incidents in the future.

"Stan Harriman was a friend of my brother's," explains J. Tony Manuel, president of the Dayton company that now bears Harriman's name. "He was on patrol in Afghanistan with my brother. There was an insurgency in the area, and an air strike was called in to provide assistance. They saw my brother, but they didn't see Stan."

Manuel said the loss spurred Chris Manuel to ask Tony if something could be done to prevent friendly-fire casualties in the future.

Manuel, a former engineering instructor at Sinclair Community College, launched STAN Solutions in 2002 to do just that, starting with three questions that have dogged militaries for centuries: Where am I? Where are my buddies? And where is the enemy?

Today, the answers are coming for the first time using a real-time network using video, data and text -- a system that now allows military personnel in places like Afghanistan and Iraq lessen friendly-fire casualties and civilian deaths.

Meanwhile, the company has continued to branch out into new network capabilities and sensor technologies that show promise in both military and civilian applications. STAN currently has the sole licensing rights to a super-camera developed by Israel-based Adaptive Imaging Technologies. STAN is making refinements to the instrument's capabilities to provide 360-degree giga-pixel resolution from 6.5 miles away, Manuel says. The camera has potential not just for the military uses, he says, but for such things as spotting the cause of smoke in a forest or allowing a rural doctor to transmit crucial medical images to a specialist.

The company currently employs about 50, Manuel says, but continues to grow.

Source: J. Tony Manuel, STAN Solutions
Writer: Gene Monteith

Ninety-five percent of American businesses have nine or fewer employees. But until recently it was almost impossible to find a single source of information about them.

Today, that's changing, thanks in large part to Manta, which bills itself as the "largest free source of information on small companies."

The Columbus-based website, which launched in September 2005 as the offspring of ECNext, has sometimes been described as "the fastest-growing business site you've never heard of." But these days, plenty of people are hearing about Manta.

Launched with a data base encompassing 24 million companies, the online resource now covers 64 million -- 20 million of which are U.S. companies -- and was cited in September as the fifth-largest business/finance/news site according to ComScore, recognized within the industry as the Nielsens of the digital world.

Manta's Internet audience penetration of 5.8 million outranked even Forbes Property, CNBC.COM, Reuters, CNN Money and BusinessWeek.com. And its October visitor count topped 14 million, up 34 percent from the year before.

Pamela Springer, president and CEO, says Manta's appeal is simple: give information away for free and let listed companies update and add to the information that's there. Revenue comes from advertising, she says.

"We have democratized this information and leveled the playing field," she says. "It's not just the big guys anymore."

She says Manta's primary target audiences are small-business owners, account executives and business development professionals, senior executives, researchers and analysts who are looking not just for information, but to connect.

Boosted by a $1.2-million Ohio Third Frontier Innovation Loan in 2006, Manta continues to report breakneck growth, both in audience and employment. When ECNext launched in 2003, the company employed 12; Manta now employs 45, with plans for an additional 10 this year.

Source: Pamela Springer, Manta
Writer: Gene Monteith

Novolyte Technologies blew the candles out a little early to mark its first year in business, but the eagerness could be well understood: There was plenty to celebrate.

The manufacturer of products such as lithium battery electrolytes hired five people in Ohio (14 worldwide) in its first year, added $561,000 to the local payroll and plans to invest $750,000 at its Independence headquarters in 2010.

Spun off of from the chemical division of Ferro Corp., Novolyte consists of two business platforms: energy storage products (battery materials) and performance materials, says CEO Edward Frindt.

Among the uses for the performance materials are solvents and other specialty materials for pharmaceuticals, agricultural, coatings, inks and gas scrubbing. Frindt is also excited about the company's new green product line.

Those products are shaped at the Independence location, which doubles as a headquarters and a research/development facility.

Novolyte was awarded a $20.6-million grant from the Department of Energy and a $1.2-million Ohio Third Frontier Grant for the company's work on the "electrification of the auto industry."

"The company built its reputation on quality and service through custom manufacturing and established a loyal customer base by consistently meeting specific technical requirements," Frindt says.

Novolyte employes about 165 people, with 24 people in Independence, 90 at its Baton Rouge, La., facility and about another 50 at the company's plant in China.

"We have added 14 jobs in 2009, five in Ohio, during one of the worst recessions in several generations as we have continued to fund our growth plans," Frindt says.

Source: Edward Frindt, Novolyte
Writer: Colin McEwen