DAYTON — General Electric Co.’s plan to establish a research and development center in the Dayton area for electric power systems for planes, ships and hybrid automobiles is an important step, industry analysts said.

It is reassuring that GE chose to establish the center in the United States, rather than a foreign country as some manufacturers have done, said Loren Thompson, a defense analyst with the Lexington Institute in Arlington, Va.

“The fact that it is investing in Ohio, in the nation’s industrial heartland, is a good sign,” Thompson said Wednesday, March 31. “They must have looked at the numbers and decided it made business sense to invest in Ohio.”

The results of the GE research center and what the company does with them is equally important, said William Storey, who follows GE for Teal Group Corp., an aerospace industry analyst in Fairfax, Va.

“An R&D center is basically just that,” Storey said. “If promising technologies are developed for production, then when does that happen — and where?”

GE said it will establish the center in the Dayton area, but won’t announce the exact site until late this year after evaluating various locations.

Vandalia city officials have said they would like to see GE establish the center at its Electrical Power Systems business in the city, along Interstate 75. But having it in the Dayton area is still important for this region, city spokesman Rich Hopkins said.

GE’s definition of the Dayton area would not extend to its jet engine plant in the Cincinnati suburb of Evendale, company spokeswoman Jennifer Villarreal said. GE has about 1,000 employees in the Dayton area, including 350 at its Electrical Power Systems operation.

GE has told the state it would commit $50.75 million to the electric power R&D center. It initially would employ 10 to 15 people, but that eventually could increase to 100 to 300 people if the company’s Electrical Power Systems unit approaches its goal of doubling annual sales to $700 million by 2019.

The University of Dayton Research Institute will be a research partner of GE.

Ohio’s offer to GE of a $7.6 million Third Frontier grant is the type of support intended to encourage technology innovation, Gov. Ted Strickland said.

With the Air Force Research Laboratory as a catalyst, the Dayton region has developed expertise in propulsion and sensors R&D and is striving to build fluency in support of technology development for unmanned aircraft.

In September, Ohio Gov. Ted Strickland designated Dayton as the state’s hub of aerospace innovation, clearing the way for state funding for development of aerospace business and R&D in the region.

Contact this reporter at (937) 225-2242 or jnolan@DaytonDailyNews.com.