Staying on top

BY DELORE ZIMMERMAN

North Dakota’s recent good fortune has put it at the top of national rankings of economic performance. The western oil boom, a robust agriculture market and a highly capable manufacturing sector that is increasingly adept at reaching out to international markets are the primary ingredients of this recipe for success.

For those of us who have been involved in economic development initiatives over the last few decades this admittedly comes as a somewhat unexpected but welcome turn of events. Now, however, we must ask the question: What will it take to stay on top, not only here in North Dakota but also in the adjacent states and provinces that are integral parts of our larger regional economy? Some of the answers to this question can be gleaned by looking at rankings where we have not fared so well.

The U.S. Chamber of Commerce Foundation’s 2013 Enterprising States study, for example, ranked North Dakota No. 1 for overall economic performance among the 50 states. Yet, North Dakota ranks 48th for its share of high-tech businesses and 38th for its concentration of jobs in science, technology, engineering and math (STEM) occupations. Neighboring South Dakota fares just as poorly, ranking 46th for STEM job concentration and 40th for its share of high-tech businesses. Minnesota does much better, ranking 9th for STEM job concentration and 14th for its share of hightech businesses. It’s not a stretch, however, to conclude that Minnesota’s higher standing is due primarily to what is going on in the Twin Cities and that the regions bordering the Dakotas share their lower rankings.

Our state’s technology enterprise and career shortfall is confirmed by other nationally recognized studies.

The Milken Institute’s 2012 State Technology and Science Index ranked North Dakota 40th for its technology and science workforce and 33rd for technology concentration and dynamism. The good news is that since 2002 North Dakota has improved from an overall index ranking of 45th to 32nd, which is primarily attributed to investments in human capital and inputs into research and development. Risk capital and entrepreneurial infrastructure has also improved (from 50th to 38th) but together these rankings show that we have probably plateaued instead of surged forward compared to other states.

But does it really matter that our state and neighboring regional economies are underperforming in sprouting and growing science and technology-based ventures and careers? Is it worth our time and resources to go from a third-tier to second-tier state when we seem to be doing quite well already? If it is indeed worthy, which I fervently believe, then what steps must be taken?

A North Dakota Science and Technology Business Plan that builds on our existing, competitive industry sectors is a good first step. It would develop forwardlooking, integrated policies and an investment strategy for promoting invention, innovation and entrepreneurial activity, transferring technology from our universities and, most importantly, capture the imagination and aspirations of our young and seasoned scientists, technologists and entrepreneurs. PB

Delore Zimmerman President, Praxis Strategy Group Executive Director, Red River Valley Research Corridor delore@praxissg.com Twitter: @DeloreZimmerman

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