ST. PAUL, Minn., March 7 /PRNewswire/ -- The Minnesota High Tech
Association (MHTA) today called for a portion of the budget surplus to be set
aside for a "sunny day" fund to be invested in the state's technology
expansion at a press conference held at the State Office Building in St. Paul.
Recent studies by respectable sources such as the Milken Institute,
PricewaterhouseCoopers, Progressive Policy Institute, Wall Street Journal, and
Christian Science Monitor are predicting winners and losers in the new economy
using a variety of measures-many contradictory. Minnesota's media are also
looking at the issue and asking how Minnesota is positioned for the high tech
future. Their findings all conclude the same thing: no matter what measures
you use, Minnesota's technology economy is losing ground.
While Minnesota has been a high tech center of activity since the 1970's
with a strong computer-manufacturing sector, the increased power of the
personal computer and the decreased demand for super computers has
necessitated changes to our technology environment. All the while, other
states and regions are quickly moving in to displace Minnesota from its
top-ranked leadership position. Last year alone, more than a dozen state
legislatures set aside portions of their budget surpluses to implement various
strategies in hopes of becoming the next high tech Mecca.
Clearly California, Washington, Massachusetts -- the coasts -- are the
giants, but now with increasing state leadership and investment, states like
Texas, Pennsylvania and Illinois are moving ahead. According to R. Jane
Brown, MHTA President, "The competition is on, and MHTA wants to see Minnesota
back in the top ten as a great place to do high tech business."
One of the indicators raising concern is Minnesota's share of venture
capital. According to PricewaterhouseCoopers' Internet Partner, Jay Hare,
venture capital investments grew 129 percent nationally from 1995 through
1998; at the same time, Minnesota's grew by only 28 percent. Our share of the
national venture capital pie dropped from 3 percent in 1995 to 1.3 in 1999.
At their late 1999 strategic planning session, MHTA's Board of Directors
tackled the bad news and immediately set a course of action to reverse the
negative trend. Larry Jodsaas, CEO of VTC, Inc., and chairman of the MHTA
Board says we must act now. "The State must partner with the high tech
industry to chart a course of action and develop a plan of investment in
Minnesota's future," Jodsaas says.
Jodsaas outlined a three pronged strategy:
-- A cabinet-level state agency is necessary to provide leadership and
focus to this extremely dynamic industry. Currently public technology issues
are scattered throughout government and there is little or no focus on the
economic viability of the industry itself.
-- Set aside a portion of the state surplus for technology-related
investments to be determined by a "blue ribbon" panel of government and
business experts. Potential investments should include strengthening the
University of Minnesota's research capability, developing a high tech
incubator for technology transfer, ensuring high-speed Internet access
throughout Minnesota, expanding information technology offerings at all higher
education institutions, and establishing a venture capital pool or tax
incentives for venture capital investments in Minnesota companies.
-- Fully fund the University of Minnesota and Minnesota State Colleges and
Universities (MnSCU) capital bonding requests. Their requests focus on
strategic academic investments, and we can not underestimate the importance of
providing quality minds with the right facilities to achieve the best results.
Appearing at the press conference with Brown and Jodsaas was Christine
Maziar, Vice President of Research and Dean, Graduate School, University of
Minnesota.
The Minnesota High Tech Association (MHTA) is the largest technology trade
association in the state of Minnesota, representing small, medium, and large
companies across a variety of industries. The MHTA has nearly 20 years
experience with the high tech community and is the leading resource for
technology-based companies in public policy advocacy, economic development,
community outreach, and education and training. The MHTA works in partnership
with the American Electronics Association (AEA), representing organizations
that contribute to technology in the state of Minnesota.
For additional information visit http://www.mhta.org
SOURCE Minnesota High Tech Association
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Related links:
http://www.mhta.org
CONTACT:
R. Jane Brown, 651-683-3889, or Jennifer
O'Brien, 651-683-3887, both of the Minnesota High Tech
Association
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