Mayor Don Plusquellic today joined in a grand reopening for what used to be known as the Akron Industrial Incubator. Born in 1983, and one of the first in the country, the incubator nurtured mostly manufacturing businesses along until they were successful enough to "graduate" and stand on their own.

The Accelerator has graduated 64 companies with entry level employment of 125 original employees. Employment at these companies now numbers 747.

Today, Plusquellic unveiled the new--- Akron-owned---Akron Global Business Accelerator. Still in Canal Place, the Accelerator takes what was the incubator and adds to it several new floors and 60,000 square feet.

"This exemplifies Akron," said the Mayor. "We have moved from incubating mostly manufacturing to now also growing the kinds of businesses we’ll be seeing as the makeup of our new economic base."

"What used to be only hard machining, dirty work is now making way for clean, medical research, product development and wet laboratories," said Bob Bowman, Akron’s deputy mayor for economic development. "The Accelerator still has a strong presence with manufacturing, but now we’re adding new, cutting-edge technology driven and biomed companies to the mix here."

It was one year ago Mayor Don Plusquellic unveiled his plans for the new Biomedical Corridor in downtown Akron. Since then, five biomedical companies, along with several other data entry and technology-driven companies have chosen to establish themselves in the Accelerator. (attached: company profiles 11k pdf)

"The response to our casting a net for these high-tech firms, some via our Biomedical Corridor, has been tremendous," said Plusquellic. "In fact, we have 33 more companies actively interested in coming into the Accelerator now."

This success, in a relatively short period of time, is reason for celebration to those working diligently on economic development in Akron.

"Perfect," Plusquellic said, for Akron’s new economy and for a strong start on the Corridor initiative.

Four years ago, Senator George Voinovich came to Akron with a check for $1.7 million, a grant from the nation’s Economic Development Administration to build out the space at the Industrial Incubator to accommodate new businesses.

Today, the Akron Global Business Accelerator has room for 54 companies. Mike Lehere, its chief executive officer says it’s filling up fast.

"We are extremely enthusiastic with the response and never anticipated the Accelerator taking off like this," he said. "What’s going on in here is the point of the spear in many ways for the high-tech economy, the Biomedical Corridor and its future. These companies are excited to be in Akron."

The total payroll of the businesses, primarily in manufacturing, in the Accelerator last year was $4.8 million with an average annual salary of $40,500 and payroll taxes of $129,400. Lehere said the private sector investment in the Accelerator is somewhere around $9 million. The city’s investment was in the purchase of the building. Today, revenue comes from the rent paid by the companies and from grants to help with the $700,000 operational budget.

Also percolating at the Accelerator is the international influence arriving from Israel. Akron is the first American city to place its faith in Israeli technology by investing directly in an Israeli technological incubator.

Last year, Akron earmarked a $1.5 million investment from local public and private sources in the Israel-based Targetech incubator.

In exchange for the investment, companies that emerge from Targetech and come to this country will base their US headquarters in Akron, providing local jobs and income tax to the city, plus dividends from part ownership in the companies.

The consortium that made the investment is called the Greater Akron Investment Partners, LLC. This includes the city and business leaders in the community who have recently been joined by Summit County. The deal gives the consortium anywhere from a third to a half-ownership in the incubator, which retains approximately half ownership in the companies it sponsors.