9/1/2015 10:14:43 AM
When CNBC named Minnesota America's Top State for Business 2015, it mentioned three well-known inventions that were born here: Spam, Scotch Tape and the supercomputer. Over the years since these were invented, Minnesota's culture of innovation has produced a steady stream of trailblazing patents, products and breakthroughs.
Minnesota is a standout when it comes to technology and innovation, finishing sixth in this category, one of 10 measures CNBC examined in determining the best state for business.
CNBC gave Minnesota 179 points out of a possible 250 points in this category. Washington finished first in this category with 213 points, followed by California, Massachusetts, New York and Colorado.
"Succeeding in the new economy-or any economy-takes innovation," said CNBC. "The top states for business prize innovation, nurture new ideas and have the infrastructure to support them."
Minnesota is the fastest-growing state for technology jobs in 2015, according to Forbes, which referenced a new report by Dice.com, a leading site for technology job postings. Hiring in Minnesota for technology workers increased by 8.36 percent during the first six months of 2015, based on Bureau of Labor Statistics. This growth is happening both at technology-specific companies and at other companies with technology needs.
Minnesota is home to more than 136,000 tech workers with a total payroll of over $12 billion, said the Minnesota High Tech Association, citing research from CompTIA. Within the next decade, Minnesota is forecasted to have nearly 200,000 technology jobs, not including those in the health care sector.
When it comes to nurturing new ideas, Minnesota is a patent powerhouse. According to the U.S. Patent and Trademark Office and the Battelle Institute, Minnesota ranks:
Innovation depends on research - and Minnesota companies and universities are engaged in plenty of both. For instance, Mayo Clinic spent $648 million on research in 2014 - and has 3,317 full-time research personnel.
Meanwhile, at the University of Minnesota, research funding topped $741 million in 2014. Those investments produced 343 invention disclosures, 138 new U.S. patents and 15 startup companies. The University's Venture Center - designed to transform research breakthroughs into solutions to improve health, the environment and quality of life - has launched 84 startups since it formed in 2006, including a record 16 startups in fiscal 2015.
Minnesota has one of the strongest life-science, biotechnology and health technology clusters in the world, which generates billions of dollars in revenue each year. It's made up of 1,700 companies in fields that include medical devices and equipment; drugs and pharmaceuticals; research, testing and medical labs; agricultural feedstock and bio-agriculture. When it comes to medical devices, Minnesota has the second-largest industry in the nation - and the largest per capita.
We're also ranked in the top five states for clean technology and renewable energy. Minnesota has taken a leading role in developing sustainable products and energy sources of the future, including biofuels and biomass innovation. Minnesota has 22 ethanol plants in operation and was the first state to require a 5-percent biodiesel blend in most diesel fuels.
Innovation is a hallmark of Minnesota's advanced manufacturing sector. Companies are using new technologies to design and manufacture a diverse range of products, including aircraft, complex machinery, electronics, abrasives, windows and footwear. Manufacturing giant 3M, for example, is opening a $150 million, state-of-the-art research and development lab on its Maplewood campus this fall.
Minnesota also has become a hub for data centers and information technology services, thanks to its combination of high-skill workers, high-tech environment and relatively low energy costs. About 360 companies employ about 7,000 workers in this growing field.
To help promote innovation and technology, Minnesota offers various incentive programs, including loans, grants and tax credits. These include the Angel Tax Credit for high-tech startups and the Research and Development Tax Credit.
We've been looking at each of the 10 categories that CNBC used in naming Minnesota the top state for business. You'll find other write-ups on our blog.
