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Clinic Can Learn from Cable, Too Health Care Giant’S Innovation Team Is Building Diverse Array of Corporate Partnerships DAN SHINGLER by CHUCK SODER [email protected]

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Clinic Can Learn from Cable, Too Health Care Giant’S Innovation Team Is Building Diverse Array of Corporate Partnerships DAN SHINGLER by CHUCK SODER Csoder@Crain.Com 20150223-NEWS--1-NAT-CCI-CL_-- 2/20/2015 2:57 PM Page 1 $2.00/FEBRUARY 23 - MARCH 1, 2015 STACK is bigger and better than ever, thanks to acquisitions and rapidly increasing audience — P. 5 SPECIAL REPORT: Nela Park is showing the way for lighting industry and community — Pages 13-18 A 6.5% tax on oil and gas extracted in Ohio would amount to about $3 on each barrel and about 15 cents on each mcf of gas. Clinic can learn from cable, too Health care giant’s innovation team is building diverse array of corporate partnerships DAN SHINGLER By CHUCK SODER [email protected] Maybe the next big medical breakthrough will come from a cable company? Big companies from all sorts of industries are helping the Cleveland Clinic come up with big ideas — and turn Taxing time for oil them into products. And none of them are health care companies. In fact, one is a cable company: Last week, Cox Com- munications became the fourth major corporation to Kasich’s plan to raise burden comes at a difficult period for industry form an alliance with Cleveland Clinic Innovations, the Clinic’s business development team. By DAN SHINGLER Kasich contends that drillers in Ohio Ohio Tax Commissioner Joe Testa, a Why would the Clinic want to work with a cable com- [email protected] have received what amounts to a “free staunch proponent of increasing the pany? ride,” because Ohio’s severance taxes severance tax, conceded that the low- Cox could help the Clinic figure out how to deliver Ohio Gov. John Kasich might have are much lower than other producing price environment for oil and gas is not health care services to the home, said Brian Kolonick, run up against his toughest opponent states. helping the administration to win sup- general manager of the Clinic’s Global Healthcare Inno- yet in terms of raising the state’s sever- The governor proposes to increase port. Cutbacks at steel mills that supply vations Alliance program. After all, Cox serves roughly 6 ance tax on oil and gas, and it isn’t the the tax on oil and gas extracted in Ohio the industry, reductions in drillers’ million homes and businesses in the United States. Republican-controlled Legislature to 6.5% of the commodities’ value, up budgets and low prices at the gasoline Thus, the Clinic and Cox have formed Vivre Health, a that’s opposed to the idea philosophi- from the current flat tax of 20 cents per pump all drive home the point that joint venture company that would commercialize tech- cally. barrel of oil and 3 cents on each thou- prices are low, Testa said. nologies and services related to home health care deliv- It’s low oil and gas prices, which are sand cubic feet (mcf). At recent prices, But he said the impact on Ohio’s ery. giving the drilling industry more the 6.5% rate would amount to a tax of drillers is being overblown, largely be- Indeed, all four of the major corporations that have rhetoric and evidence of hardship to about $3 on each barrel of oil brought cause Ohio is a natural gas play for formed alliances with Cleveland Clinic Innovations bring combat the tax proposal — and which up in Ohio, and about 15 cents on each drillers, and it’s the price of oil that has different capabilities to the table. could sap the proposal’s potential rev- mcf of gas. taken the biggest hit over the last six Lubrizol is a specialty chemicals company. Parker Han- enues. The collapsing prices of the com- If Kasich gets his way, Ohio would go months. He does not think the state will nifin makes mechanical products. IBM sells hardware, modity already have caused drillers to from having the lowest severance taxes see a sharp cutback in drilling. software and technology consulting services. pull back in Ohio, and a tax increase in the United States to having a rate “A lot of it, I think, is more rhetoric However, they all see opportunity in the health care would only exacerbate the situation, that is higher than West Virginia’s rate than reality,” Testa said. “Production sector. And they can help the Clinic develop new prod- they say. of 5%, but still lower than the 7.5% rate will increase, and we were really very ucts, Kolonick said. Some would be commercialized by The governor, however, remains firm. that Texas collects. Kasich said other conservative on the production (as- the partner companies, and some would be spun off into “It’s never the right time,” Kasich shot governors just shake their heads in dis- sumptions). Our production projec- joint venture companies. back recently, when asked by a reporter belief when he tells them Ohio’s cur- tions really mirror the industry’s pretty “We can learn a lot from somebody working in a com- at a Columbus event whether it was a rent tax rate, because it’s so low. well.” pletely different space,” he said. bad time to propose a tax increase on But is now the time to try to raise the Much of the pushback against the The Clinic is working on specific projects with each of the industry. rate? See OIL, page 30 See CLINIC, page 27 08 7 ALSO INSIDE: HIGHER EDUCATION NEWSPAPER Local professionals amp up efforts to get more Entire contents © 2015 74470 83781 women involved in STEM fields ■ Pages 19-24 by Crain Communications Inc. Vol. 36, No. 8 0 PLUS: WOMEN IN STEM STORIES ■ COLLEGE INCENTIVES ■ & MORE 20150223-NEWS--2-NAT-CCI-CL_-- 2/20/2015 12:05 PM Page 1 Small Business Matters i Want more information and resources on this week's topics, ideas and events? Go to www.cose.org/smallbizmatters. PRESENTED BY 52 TIPS FOR YOUR BUSINESS #8: Leverage Mobile Technology 4VIPSL [LJOUVSVN` OHZ LɈLJ[P]LS` JOHUNLK MVJ\ZLK I\ZPULZZLZ SPRL YL[HPSLYZ HUK ZLY]PJL February 23 [OL ^H` JVUZ\TLYZ HJJLZZ PUMVYTH[PVU HUK WYV]PKLYZ^OVZLJ\Z[VTLYZTHRLW\YJOHZLZVU THRL W\YJOHZPUN KLJPZPVUZ (Z ZTHY[WOVULZ HSS[`WLZVMKL]PJLZ¹ZH`Z@V\UN(ɈVYKHISL[VVSZ [HISL[ZHUKHWWZJVU[PU\L[VNYV^PUWVW\SHYP[` SPRL:OVWPM`HUK4VIPM`JHUOLSW`V\JYLH[L P[»Z PTWVY[HU[ MVY ZTHSS I\ZPULZZLZ [V SL]LYHNL mobile shopping platforms that easily TVIPSL [LJOUVSVN` VɈLYPUNZ [V IL[[LY TLL[ [OL PU[LNYH[LPU[VJ\YYLU[KPNP[HSZ[VYLMYVU[Z By The Numbers ULLKZVMJ\Z[VTLYZHUKH[[YHJ[UL^VULZ Mobile Payment Options¶6ɈLYPUN ¸5V^ PZ H NYLH[ [PTL [V KLWSV` TVIPSL mobile payment options can boost sales [LJOUVSVN`¹ZH`Z+HUPLS@V\UNTHUHNPUNWHY[ULY HUK IYHUK L_WLYPLUJLZ I` VɈLYPUN J\Z[VTLYZ H[+?@:VS\[PVUZPU*SL]LSHUK¸>P[OTPSSPVUZVM WH`TLU[ ÅL_PIPSP[` 4VIPSL WVPU[VMZHSL [VVSZ HWWZV\[[OLYLMVYQ\Z[HIV\[L]LY`RPUKVMULLK SPRL :X\HYL 9LHKLY [OH[ HSSV^ `V\ [V HJJLW[ HYVI\Z[TVIPSLWSH[MVYTJHUOH]LHUL_[YLTLS` JYLKP[ JHYK WH`TLU[Z HU`^OLYL MYVT H ZTHY[ WVZP[P]L PTWHJ[ VU I\ZPULZZ (UK [OL LU[Y` KL]PJL HYL LHZ` [V PTWSLTLU[ HUK OH]L SV^ IHYYPLYZ SPRL JVZ[ HUK PTWSLTLU[H[PVU KPɉJ\S[PLZ [YHUZHJ[PVUMLLZ 19% OH]LKYVWWLKZPNUPÄJHU[S`¹ZH`Z@V\UN 5V[HSSTVIPSL[LJOUVSVN`ZVS\[PVUZHYLJYLH[LK Here are just a few ways to embrace mobile LX\HSHUKZVTLWYV]PKLJSLHYHK]HU[HNLZV]LY technology: V[OLYZ@V\UNHK]PZLZZTHSSI\ZPULZZV^ULYZ[V Mobile Websites – Ensure your website looks YLZLHYJO ^OH[ PZ H]HPSHISL MVY [OLPY PUK\Z[Y` HUK NVVK HUK M\UJ[PVUZ VU HU` KL]PJL I` JYLH[PUN ZLLRHK]PJLMYVTV[OLYI\ZPULZZV^ULYZ^OVOH]L HUVW[PTPaLK]LYZPVUMVYTVIPSLKL]PJLZ4VIPSL LTIYHJLK TVIPSL [LJOUVSVN` ILMVYL KLJPKPUN ZP[LZ HYL KLZPNULK [V HJJVTTVKH[L ZTHSSLY ^OH[PZTVZ[HWWYVWYPH[LMVY[OLPYI\ZPULZZ ZJYLLUZHUKHYLLHZPLY[VUH]PNH[LI`[V\JOVY -VYTVYL^H`Z[VSL]LYHNLTVIPSL[LJOUVSVN` (WWYV_PTH[L5,6;LJO-PYTZ>P[O RL`WHKVU[OLNV HUK ZVTL OHUK` SPURZ [V LJVTTLYJL HUK 4VYL;OHU,TWSV`LLZ E-Commerce Solutions ¸,*VTTLYJL TVIPSL WH`TLU[ ZVS\[PVU WYV]PKLYZ JOLJR V\[ solutions are particularly important for consumer- ^^^JVZLVYNZTHSSIPaTH[[LYZ i Up from 8% in 2010. SOURCE: NEOSA Deadline for Goldman Sachs Initiative Extended The deadline to apply for the next Goldman Sachs 10,000 Small Businesses initiative series for entrepreneurs has been extended to February 28. Classes, which are held at Tri-C’s Metro campus, begin on May 14. For more information or an application, logon to www.tri-c.edu/10ksb. Connection Calendar CLEVELAND STARTUP: IDEA TO IPO – INTERNET MARKETING 2015 COSE ANNUAL MEETING Latest trends and case studies with Sage Lewis of SageRock Digital Marketing THURSDAY, MARCH 5 JUSTIN 3:15 – 3:45 PM, FREE BEND COLLEEN Webinar THE CARSON Platform Beer Co. & MIKE Register at MILLER www.meetup.com/Cleveland-Startup-Idea-to-IPO RULES THE PROMOTER Music Box Supper Club SMALL BUSINESS BOOT CAMP #1 THE NATURALS “MONEY MATTERS” JAMES BREAK WEDNESDAY, MARCH 11 THE VAUGHAN III 11:30 AM – 1:30 PM WINSTON *YVW)PZ[YV JDD Inc. BREEDEN *VZ[! *6:,4LTILYZ MOLD THE RISK TAKER 5VU4LTILYZ3\UJO0UJS\KLK Winston Products 9LNPZ[LYH[^^^JVZLVYNL]LU[Z THE INNOVATOR Thursday, February 26 4:30 PM - 9:00 PM TECHFUTURES: PROMINENT TECH TRENDS Music Box Supper Club Panel Moderated by THURSDAY, MARCH 12 1148 MAIN AVE. JOHN CAMPANELLI OF 11:30 AM – 1:30 PM CLEVELAND, OHIO 44113 CRAIN’S CLEVELAND BUSINESS 3VJR2LLWLYZ=HSSL`=PL^ Members $30 Nonmembers $50 PRESENTING SPONSOR SUPPORTING SPONSORS Streaming Live: )\YU[^VVK;H]LYU*\`HOVNH-HSSZ RSVP by calling 216.592.2390 9LNPZ[LYH[^^^JVZLVYNL]LU[Z or visit COSE.ORG/ANNUALMEETING *VZ[!5,6:(4LTILY 5VU4LTILY Check out www.cose.org/events CONTENT PROVIDED AND PAID FOR BY THE COUNCIL OF SMALLER ENTERPRISES for all the latest happenings.
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