Case launches Cleveland NanoCrystals, first nanotechnology company

Company receives $50,000 seed investment from Case Technology Ventures

July 7, 2004 | For more information: jeffrey [dot] bendix [at] case [dot] edu (216)-368-6070

REI has scheduled a REALNEO orientation session from 2 - 4 PM for anyone interested in becoming more familiar with our Regional Economy Action Links for North East Ohio. We'll walk through basic site administration, like setting up a user account and adding content, and setting up a Drupal site from scratch. We'll discuss how to best use this transformational technology to transform the NEO economy. This is of course free and open to the public - when you sign in with the security desk at the PBL building (the Gehry) the guard will tell you how to find the session... room 401

Immediately following is Tuesday@REI: "Unique
Value: Cleveland & Northeast Ohio,"
with
Guest Moderator Charles D. Weller, Cleveland Author, Lawyer
and Health Care Entrepreneur. Chuck is Editor and Contributor of the new book
(Released 12/04) "Unique Value:
Competition Based On Innovation Creating Unique
Value

Any questions, please email norm [at] icearth [dot] com

Location

ECHO is a Northeast Ohio region-wide initiative to support the leaders, residents and enterprises of East Cleveland who are proactively working to bridge the community's digital divide - ECHO stands for East Cleveland Homes Online. Representatives of the University Collaboration are driving this initiative, with prominent leadership from Case and Cleveland State. These efforts are supported by the Mayor of East Cleveland, and will help him reinvent the great community he serves.

ECHO will bridge East Cleveland's digital divide by compiling donated computers and distributing them and open source software and wifi Internet access and communications devices to insure each household, business and organization in East Cleveland has a computer with Internet access and optimal software and information services. The Intention is for computers and Internet access, training, education and support services to be made affordable for everyone living and working in East Cleveland, so life there is bettered by enhanced Internet and information technology, including Voice over Internet Protocol, social networking, eLearning, eMedicine, eCommerce and eGovernment. As East Clevelanders become experienced using these new economy tools and services, they will become more powerful forces in the local and regional economy, making NEO a stronger and better community for all.

Posted below are timely articles on technical, social and political developments related to deployment of such "socialized" information services via ECHO. The computer donation, processing and distribution initiative will be described in a different document - this write-up addresses providing Internet access. ECHO will deploy WiFi (Wireless Fidelity) as the core technology for Internet access with a "mesh", which you can visualize like a safety net. Also posted here are articles on alternative access technologies: Powerline Carrier, enabling communications via the power transmission infrastructure already interconnecting everything in East Cleveland, and WiMAX, which uses microwave to bring high bandwidth communications to target locations. Technology needed for ECHO is available in the marketplace and is reliable, cost effective, and getting better daily.

Adding a WiFi router to a cable or DSL Internet access modem (or Powerline or WiMAX access device) allows the wireless transmission of the Internet signal to and from WiFi ready computers within range of the signal, allowing many computers to access a single Internet connection. Range is determined by the WiFi technologies employed ("b", "g" or emerging "n"), and may be enhanced by optimal placement of antennas, amplifiers, and repeaters and diminished by physical obstructions, distance, and other interference. While the least expensive WiFi routers and other devices are "b", the extended range of "g" and "n" may justify using those broader range technologies for the benefit of providing service to more households per access point. It is also possible to add repeaters and amplifiers that extend range further. The deployment schema of these technologies determines the scope of the signal of each access point on the mesh. The objective is to distribute a combination of these technologies so all Internet access areas overlap, forming a mesh providing complete coverage throughout the city.

The greatest technical challenge is determining how loose a mesh is possible - how great a distance may be configured between hard-wire access points. Physical DSL, cable or other Internet access points must be contracted for homes, businesses, churches, schools and other structures distributed throughout the community - the WiFi mesh will radiate from those points. For initial modeling purposes, we'll estimate 1,000 physical Internet access connections must be contracted, for interconnecting all the WiFi technologies needed to provide coverage for 11,000 households in East Cleveland.

Computers in structures with direct access points may connect to the Internet via Ethernet. Unwired computers access the mesh and so wireless Internet by using WiFi cards/devices. By leveraging Voice over Internet Protocol (VoIP), people may also use WiFi capable telephones and computers for telephone communications throughout the internetworked community and via the Internet world-wide. Costs for computer WiFi cards have become quite low - a "b" card costs under $20 retail - bulk wholesale purchases could drive that cost to around $10. "g" and "n" cards cost somewhat more. The "g" and "n" cards and routers are backwards compatible to connect with "b" devices so a combination of all these WiFi standards will be used, as is most cost effective.

To complete a cost analysis, we must determine the availability of DSL and Cable Internet access in East Cleveland. Areas where households are physically isolated or where there is not any broadband service available will be the most costly and difficult to include in the mesh - perhaps requiring WiMAX and higher strength WiFi deployments. A map must be developed of all addresses in East Cleveland needing Internet access, on which we'll overlay available Internet service options and the optimal mesh of technology solutions. This is not an especially difficult challenge - the data should all be available.

It must still be determine what level of broadband is available in East Cleveland via existing DSL service providers and via cable Internet access. Where available, monthly charges quoted by SBC for DSL in Northeast Ohio range from a minimum of $19.95, if bundled with other SBC telecommunications services (like long distance phone), to an unbundled $29.95, if signing a one year contract. To receive SBC DSL, customers must also subscribe to their POTS - Plain Old Telephone Service - which costs a minimum of $12.67, for those eligible for SBC's low-income "lifeline" program, meaning monthly DSL related access costs/customer total a minimum of $42.62. If available in East Cleveland, cable internet access typically costs around $49/month, after any trial period discounts offered by carriers. With a one year contract, DSL and cable service providers typically provide a DSL or Cable modem at no additional cost - carriers may charge for installation and equipment shipping. These figures are estimates and all this information will be validated by contacting all carriers servicing East Cleveland. Further, pricing may be reduced through strategic planning and negotiation for service in bulk contracts.

For initial modeling purposes, project up-front cost of $50/modem and recurring cost of $20/access point/month X 1,000 access points = $50,000 up front and $20,000 per month for all of East Cleveland. In addition, there will be an up-front cost for the hardware to configure the WiFi transmission mesh for the 10,000 wireless access households projected in this model for East Cleveland - estimate 1,000 routers, at $50/router, and 1,000 amplifiers/repeaters, at $50 each - totaling $100,000 in additional up front hardware costs. The 1,000 households with cable or DSL modems will be able to access the Internet using ethernet, and ethernet cards are preinstalled in enough computers to assume that will not add any costs. The computers accessing the Internet mesh via WiFi will need WiFi cards, which will be estimated at $20/card, adding $200,000 to the up front hardware costs for 10,000 households. Thus, the up-front hardware cost to interconnect 11,000 households will be around $350,000 - about $32/household. Monthly access service costs will then be around $20,000 for the community of 11,000 households, being under $2/month/household. Even if costs are twice those estimated here, they are quite affordable - most households can afford $2-4/month for high speed Internet access, especially as that also enables VoIP (to optimize this capability, some computers may need headsets, which are available for under $10/headset). Households in East Cleveland already contracting for broadband Internet service will be able to participate in this mesh pricing model, allowing those residents to save or be compensated $30-40/month.

While $350,000 may seem like a lot of up-front money to spend in this community, it provides Internet access to 11,000 households and thus comes to around $32/household, which should be a manageable one-time expense for most households. If some East Cleveland households can't afford that cost up front, there should be a way to finance that over a year, as each household can afford $3-4/month for hardware, on top of $2-3/month for access. It is reasonable to project the entire mesh, with financed access hardware and recurring monthly service, is thus viable for less than $10/household/month. Consider, this distributed mesh cost is about 50% the minimum cost for any of these households to contract just local POTS - Plain Old Telephone Service - and 10 - 20% of what it would cost them for either cable or DSL Internet service, if they qualify. As a strategic planning option, each household could be expected to pay $10/month, which would generate $110,000 per month community wide, totaling $1,320,000/year, which would generate around $500,000 for other development and support costs and cover any losses from non-payments, customer hardships, stolen equipment and such.

To make the process as cost-efficient as possible, a not-for-profit organization should be used to deploy the mesh and enabling hardware and support services, as that may accept donated hardware and services - every device donated and service volunteered represents dollars saved from the costs to the people of the community. This 501c3 should be able to contract advantageous Internet access pricing for the entire community as an umbrella service contract, and should be able to acquire all hardware and contract services in bulk buying agreements for everyone, while negotiating every other advantage possible for a charitable organization. Options to pursue are grants, gifts and charitable donations, and collaborative relationships with schools, government, and other charitable organizations.

It is important to realize the mesh will serve East Cleveland businesses, government, and other organizations as well, making all of them more effective. As an example of the value of that, the Director of East Cleveland's largest employer, Huron Hospital, apparently wanted to initiate a buy-in-East Cleveland program but found few East Cleveland businesses are available on-line, so it is functionally impossible for a sophisticated enterprise to buy local. But as local businesses and residents move into the New Economy, it is a minor task to develop directories of their services, and enable eCommerce capabilities. Thus, local businesses and organizations like Huron Hospital can better serve their community, as is their desire. And all other East Cleveland residents will become more employable and be better served by their local business community, and East Cleveland will be a better place to base a business.

Huron Hospital and other service providers will be able to provide better service to an interconnected community. East Cleveland government and schools will be able to better serve their community. Organizations, businesses, and individuals within and outside East Cleveland will be better able to serve East Cleveland residents, and residents will be better prepared to serve their community and the entire region in every way imaginable. All the great benefits will become clearer each day East Cleveland is undivided.

The only obstacles to making this happen would be obstruction by businesses that hope to sell competing information technology and services in East Cleveland. But, as the preponderance of good to come from ECHO far eclipses the self-interests of any businesses hoping to profit off the struggling residents and small businesses of this community, it is safe to assume no socially responsible businesses will obstruct this transformative initiative.

Some related links:

CoolCleveland mentioned REALNEO in their 12/1/04 issue, and that is appreciated. As a driver behind this effort, I appreciate anything that creates awareness of this virtual community - please know it is not "my site" or owned by anyone - it is provided freely to everyone in the region interested in enhancing our value of economic development and entrepreneurship... everyone in the world is welcome to visit, register and add content.

 If you haven't been to REALNEO recently, you've missed lots of exciting developments in our virtual and real community. For a chance to get up to speed, and become more involved in the REALNEO development process, join folks supporting this effort at Case/REI for a hands on orientation (and can get involved with the developing Wind Power industry right after - see below).

BizArt is a Weatherhead School of
Management based community dedicated to developing the synergies that exist
between the worlds of business and art. Along with many area development
leaders and professionals, this initiative is exploring the value of the creative
class in this community, and breaking down walls found in traditional economies
and organizations – everyone is creative – everyone has entrepreneurial
instincts – everyone should learn to leverage both sides of the equation. It is
exciting to see this free forum provided to students from both Case and the
Cleveland Institute of Art, allowing for sharing of knowledge and perspectives
among NEO’s emerging economic drivers.

Over the past day or so, I've been having an interesting e-mail exchange with my colleagues, Mark Chupp at CSU and David Cooperrider at Case. We are exploring what the next steps will be for our Universities Collaborative.

Earlier in 2004, Peter Lewis offered to provide funding for a proposal to improve Northeast Ohio. Not that he hasn't already done his share - CEO of Progressive Insurance, Peter employs many people in the region, has been a major contributor to our arts and social program, and literally gave us the region's finest landmark building - the Gehry at University Circle - he has offered to do more. Unfortunately, on 11/16/04, Peter explained to area leaders that the proposals he received for the community were not sufficient. Rather than complain about Peter not funding proposals his wisdom rejects, REALNEO is getting the entire community involved to develop for and with Peter solutions that will lead to sustainable development for the region. Add pages to this book with your proposals, and comment on others - no whining... just winning!

A book of ideas, responding to Peter Lewis' request for proposals and continuing generosity in offering to help fund the future development of Northeast Ohio. Please add your proposals and build on others here.

My thanks
to Ed Morrison and Betsey Merkel of REI for leading a vibrant discussion last Tuesday@REI
on the importance of international human capital (students, entrepreneurs,
knowledge workers, venture capitalists, etc.) to the future of NE Ohio. I am
pleased by their further interest in a potential collaboration between CASE/REI
and CSU/URBAN AFFAIRS COLLEGE in holding a national conference/workshop
entitled: â€œAttraction, Integration,
Retention of International Talent to Post-Industrial, Depopulating Cities.�

Regarding
this issue, Harvard Business Review and American Demographics Magazine this
month feature articles by/about Richard Florida who argues that nations and
regions that do the best job in attracting international talent (the best minds
the world has to offer, and very mobile) will prosper in the new global
market. 

The 11/16/04 Tuesday@REI session surfaced one of the most serious problems being confronting by America, our region, and Case today - the fact foreigners are not interested to visit, work, and study in America at levels seen in the past. This is in fact a reason for the most pressing and escalating outsourcing issues surfacing today, that American knowledge-based jobs and important innovations are being realized in foreign regions having greater talent than here - its not just about cheap labor.

Enlightened economic strategy appreciates diversity in population, education and workforce development, including attracting and retaining excellent international inputs through promoting immigration and visas for foreign entrepreneurs, students and workers. Because of current national and local economic, political and global conflict issues, America is facing a crisis of poor inflow of international talent - the world's best and brightest are not coming to America at previous levels, and that is of concern for USA and NEO universities, employers, and overall economic development. Addressing these issues in NEO offers opportunities and competitive advantages here. Read and post related information in this area of REALNEO.

Sponsored by:
The Weatherhead School of Management, Case Western Reserve Univeristy

Location

Case's Center for Regional Economic Issues (REI) has lead a movement in Northeast Ohio called "Making Change", and this is where related links, content and insight post on REALNEO.

Link to Preliminary Attendee List

Please go to this link to register with REALNEO for updates

1:00 – 2:00 -Close of Seminar - Networking

Comments from this session - Overview - post your comments below 

12:45-1:00 Next steps - 15 minutes

Work group reports, wrap-up and next steps

Comments from this session - Overview - post your comments below 

12:00 – 12:45 Panel Discussion - 45 minutes
Moderator: Ed Morrison

During lunch Ed Morrison led a panel discussion where he read to the panel questions/issued by the break-out groups for their feedback 

10:00-11:45 Applications 3: Sustainable Business Development

Assistant passes out participant folders

Moderator provides small group introductory comments and orientation - 10 minutes