Pat Riley, regarded as one of the greatest basketball coaches of all time, knows a thing or two about team sports, and about winning. Riley once said, “When a great team loses through complacency, it will constantly search for new and more intricate explanations to explain away defeat.”

At the risk of losing what many would consider an enviable position in the innovation economy, even in the face of its current budgetary woes Minnesota can ill afford complacency when it comes to economic development. Warning signs abound: According to the 2010 State New Economy Index, Minnesota recently ranked 42nd among all states in entrepreneurial activity and new business formation, and the number of science and technology jobs declined 1.2 percent here in Minnesota while growing 1.9 percent nationwide. Jay Kiedrowski outlined other troubling signs in a Jan. 10 Star Tribune op-ed (“Just how has Minnesota been doing?”).

 
Meanwhile, some 30 states across the nation have created well-researched game plans for economic development and made targeted investments to help propel them toward the front of the pack. For example, Ohio’s “Third Frontier” program, launched in 2005, is a 10-year state-funded science and technology investment plan designed to forge an economic development partnership between government, universities, non-profits and business. Among other ambitious goals, this initiative aims to create nearly 100,000 jobs by 2013. Just six years later they are already halfway to meeting that goal. In the midst of economic hard times, last fall Ohio voters even went so far as to pass a referendum that provided additional funding. They’re fielding a pretty competitive team.

Research productivity of their universities is a key weapon in each state’s play book. Recognizing an opportunity to better contribute to Minnesota’s own team effort, the University of Minnesota has stepped up its historically strong performance. Since 2004 research expenditures at the U have increased 42 percent, the third-largest growth rate among all universities in the country. Already ranked among the nation’s top 10 research universities, last year the U topped its previous personal best by attracting $823 million in outside research funding.

A key source of highly trained talent
Recent changes in the U’s tech transfer operation have resulted in improved commercialization of its innovations and contributed to the launch of eight new companies in the past year. Through its graduates and ongoing training opportunities, the U continues to be a key source of highly trained talent for Minnesota’s workforce.

A proven starter with stats like these is certainly deserving of continued support.

But the U is just one member of an economic team that includes government, business and industry, and other higher-ed institutions. As is true of all team sports, to advance in the economic playoffs each member of Minnesota’s team has to take its game to a higher level.
 
Encouraging signs
There are encouraging signs that the Minnesota team spirit is catching on. Last year the Legislature approved angel investor tax credits to help spur the formation of startup companies here in Minnesota. The Legislature also established the Minnesota Science and Technology Authority, which includes representatives from government, higher education, research institutions and business. The Authority’s advisory commission has developed a comprehensive science and technology economic development strategy that aims to increase Minnesota’s economic competitiveness.

Minnesota’s economic development is a team sport that will require long-term dedication from all the players involved and continued strong support of the team, including the University of Minnesota. Recent teamwork efforts must continue in earnest, for the only other option will indeed be the search for new and more intricate explanations to explain away our losses.

R. Timothy Mulcahy is vice president for research at the University of Minnesota.