EDITORIAL: Regional challenge

If southern Minnesota is to enjoy continued prosperity, it needs to change. The mainstay economic engines of food and agriculture, manufacturing and health care won’t be enough to sustain the 38 counties stretching across the southern third of the state.

That’s one finding of a major study released a couple weeks ago by the Southern Minnesota Competitiveness Project. The project, funded by 16 private-sector partners, is aimed at improving the region’s competitiveness and bolstering its long-term well-being.

Sherry Ristau, president of the Southwest Initiative Foundation, brought the study to our attention because the foundation’s 18 counties make up about half of the region studied. The other 20 counties are served by the Southern Minnesota Initiative Foundation, led by former Minnesota Congressman Tim Penny.

Southern Minnesota faces significant challenges. Unlike the Twin Cities area and some parts of Minnesota, 35 of our 38 counties have lost people during the past 25 years. We also earn less here. Per-capita incomes in the region are about 82 percent of the state average.

We need to change to thrive
Fortunately, we have many things already going for us. We have made progress in some areas. Our region’s efforts in renewable energy are laudable. We have been an early leader in ethanol production and wind energy. We also can brag about our efforts in bioscience because of local expertise in animal and plant genetics.

But opportunities are being missed. The study recommends that we build strong connections between our “agricultural powerhouse” and our “world-class institutions in medical research and practice.”

It also recommends doing more in a sixth strategic opportunity: high technology (the other five, in case you haven’t been counting, are food and agriculture, manufacturing, health care, renewable energy and bioscience). Hutchinson is often considered a high-tech town, as is Rochester. Yet the reports points out that we’re not harnessing our full potential

“There is a surprising lack of equity capital to fuel business start-ups in southern Minnesota,” the report states. “This is a great irony because the region possesses significant wealth. Much of it, however, is in the form of farmland.”

Steps toward innovation
On the positive side, southern Minnesota has a history of strong partnerships and collaboration. Yet there is no organization that spans the entire 38-county region.

The report recommends an economic game plan to transform the region’s economy. Here are a sample of ideas to spark innovation:
< Map the region’s current pipeline of innovation. The idea is that existing innovation fosters more innovation, and synergistic connections can be drawn.

< Present region-wide awards to celebrate innovation in schools, business, civil society and high education.

< Open a Southern Minnesota Innovation Institute.

< Create an equity fund to launch more business starts.

The report, prepared by the Rural Policy Research Institute’s Center for Competitiveness, contains many more ideas to promote growth in bioscience, renewable energy and manufacturing. To read them, visit www.smifoundation.org/files/SMRCP%20Report.pdf.

What ideas do you have to better prepare southern Minnesota for the global economic race? We’d like to hear them. Jot them down and send them to us, or post them online at www.hutchinsonleader.com.