Akron’s “Patented” Formula for Success

Last month’s Business & Economy Day provided a glimpse of hope for the Akron area during this time of economic crisis. First, there is no mistaking that Akron is experiencing the economic downturn that our nation is facing. Yet, data from the 2000’s indicate that, due to our culture of invention, Akron may weather the storm with more resilience than other Great Lakes cities? On Business & Economy Day, Guhan Venkatu, a senior economist at the Cleveland Fed, showed us why this might be the case.

Somewhere in the 2002-04 time period, the employment trends for Akron pivoted and began behaving more like Columbus and Cincinnati than Cleveland, Dayton, and Toledo. Why? This reflects Akron’s ability to neutralize its dependency on traditional manufacturing, even as it leverages its industrial heritage to generate new products and industries.

We saw this first-hand on Business & Economy Day. Veyance Technologies is drawing on its strengths in chemistry and materials to tap new markets, having grown significantly in the 18 months since it spun off from Goodyear. Lockheed Martin is leveraging strengths in materials and aerospace to create airships for the next century. And Akron’s biomedical corridor will combine the region’s strengths in chemistry, materials, and health care to create new products and companies.

This is evident in Akron’s patent activity. In recent years, Summit County ranks #1 in the state for new patents, according to the U.S. Patent and Trademark Office. This includes over 1,000 new patents in the field of chemistry. Venkatu pointed to the importance of clustering in economic development—the creation of a “critical mass” of expertise, producers, and other organizations that sustain an industry and economy over time. This accelerates the development of new products, the crucial ingredient for sustained economic growth. It seems that in the field of chemistry and materials, this formula has given the Akron area a crucial economic mainstay that moderates the tough times and sets it apart from its Great Lakes neighbors. 

To comment on LeaderLog, e-mail Mark at mscheffler@lakron.com.