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Department of Trade and Economic Development Rebecca Yanisch, Commissioner

Mission: To advance the economic vitality of Minnesota. The department will employ all available resources to generate high quality jobs; stimulate workforce development; expand Minnesota exports; and encourage domestic and international travel within Minnesota.

See a profile of the Department of Trade and Economic Development at: http://www.budget.state.mn.us/profiles/b22.shtml


Goal: Improve Minnesota's high-tech competitiveness.

Minnesota's high-tech job growth (rate and actual number) compared with U.S.

High tech job creation facilitated by the Department

Goal: Improve perception of Minnesota's business climate.

Grades on state's report card from the Corporation for Enterprise Development.

Goal: Upgrade the skills of Minnesota's under- and unemployed.

Placement rate and wage replacement rate of dislocated workers.

Goal: Increase Minnesota's export performance.

Minnesota and U.S. manufacturing export growth rates.

MTO customer satisfaction. (Indicator under development)

Number of new-to-export companies served by MTO. (Indicator under development)

Goal: Increase tourism activity in the state.

Sales generated by Minnesota's tourism industry.

Sales to people whose travel decisions were influenced by the Office of Tourism (spring/summer season)

Goal: Improve the economic diversity of Greater Minnesota.

Economic diversity in the six regions of Greater Minnesota.

DTED facilitated expansions by businesses in under-represented sectors.

Goal: Improve technology transfer from academia to industry.

Number of University of Minnesota licensing agreements with the private sector.

 

 

Minnesota's high-tech job growth (rate and actual number) compared with U.S.

Graph depicting Minnesota's rate of high tech job growth.

Actual number of high-tech jobs added or lost (Minnesota and U.S.)

  1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Minnesota -1,341 -977 1,718 528 4,163 7,148 10,558 7,880 4,152 1,299
United States -273,195 -188,575 -77,809 -9,642 132,793 247,428 326,251 344,478 165,812 380,152

Source: U.S. Department of Labor, Bureau of Labor Statistics.

Click for data on Minnesota's share of high tech jobs in the U.S. and Minnesota's share of U.S. high-tech job growth.

Why is this indicator important?  High-tech industries employ educated, skilled workers in high-paying jobs. As Minnesota increases its share of high-tech jobs, we improve wage levels, become more technology-oriented and compete more effectively with other states and nations.

What is DTED doing? DTED provides a variety of proactive services and products geared to assist high-tech job development including technical and financial assistance to established businesses and start-ups, export education and promotion, and international trade missions. These efforts include ensuring that expanding business are aware of available public and private resources. The department also works with these businesses to ensure that state and local services are delivered in a timely and efficient manner.

The Department also forms strategic alliances and partnerships with the academic research community, as well as with targeted business and professional organizations, to promote Minnesota as an attractive environment to create, grow and expand key high-tech industries. DTED has a particular emphasis on attracting high-tech businesses and employees to communities in Greater Minnesota. To that end, DTED recently awarded nine technology catalyst grants to assist communities in providing high-speed Internet access throughout Greater Minnesota.

Is DTED meeting the indicator target? Data needed to evaluate indicator performance will be available in early 2003. However, Minnesota ranked among the top 10 states in high-tech job creation during the 1990s and Cyberstates 2002 ranked Minnesota 10th among states in the concentration of high-tech jobs. That performance and the recent ranking by the Milken Institute ranking Minnesota as the 10th best state to succeed in the technology-led information age suggest that the department and the state should fare relatively well in high-tech job creation despite the current industry slump.

Learn more at http://www.dted.state.mn.us/big-pl-prog-rpt-f.asp or http://www.dted.state.mn.us

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High tech job creation facilitated by DTED

Graph depicting Minnesota's share of high tech job growth.

Minnesota's Share of U.S. High Tech Job Growth
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2002 2003
0.5% 0.5% -2.2% -5.5% 3.1% 2.9% 3.2% 2.3% 2.5% 0.3% 1.0% target 3.0% target
Why is this indicator important? Businesses increasingly require economic development assistance when considering an expansion in a state. The department’s efforts to facilitate high-tech job creation are important to demonstrate that the department’s services and programs are targeted toward businesses that are growing and pay high wages.

What is DTED doing? The department proactively works to ensure that business that are considering an expansion anywhere in Minnesota are aware of available public and private resources. The department also works with these businesses to ensure that state and local services are delivered in a timely and efficient manner. DTED provides a variety of direct services and products geared to assist high-tech job development including technical and financial assistance to established businesses and entrepreneurs, export education and promotion, and international trade missions.

The Department also forms strategic alliances and partnerships with the academic research community, as well as with targeted business and professional organizations, to promote Minnesota as an attractive environment to create, grow and expand key high-tech industries. DTED has a particular emphasis on attracting high-tech businesses and employees to communities in Greater Minnesota. To that end, DTED recently awarded nine technology catalyst grants to assist communities in providing high-speed Internet access throughout Greater Minnesota.

Is DTED meeting the indicator target? This indicator was created in late 2002 and performance targets for subsequent years will be developed in coming months. In 2001, DTED assisted Minnesota companies in creating 4,500 jobs, 25 percent of which were in the high-tech category.

 

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Grades on state's report card from the Corporation for Enterprise Development.

Graph depicting development report card grades.

Why is this indicator important? The Corporation for Enterprise Development’s annual report card provides an objective assessment of each state’s economy and potential for future growth based on more than 70 measures. These measures are factored into three overall grades for Performance, Business Vitality and Development Capacity. “Performance” measures how well states provide opportunities for employment, income and an improving quality of life. “Business Vitality” assesses the health of the businesses in a state. “Development Capacity” examines the quality and availability of the building blocks of successful economies; these include education, roads, banking and technological resources. High grades highlight the quality of the state’s economic development activities and business climate.

What is DTED doing? Although the 70 measures cut across state government agencies and reflect investments the state had made in many different areas, DTED has provided leadership by marketing the state’s assets as a business location and leading several initiatives designed to improve the state’s business climate and create jobs. These initiatives include a reduction in state-imposed business costs, technology catalyst grants spurring private sector telecommunication investment, and an analysis of underemployment in the state. DTED also has focused on specific needs, such as creation of high-tech industrial employment, and strategies that address critical shortcomings that prevent the state’s economy from meeting its full potential.

Is DTED meeting the target? CFED’s 2002 report card should be available before the end of 2002.

 

Learn more at: http://www.dted.state.mn.us/big-pl-prog-rpt-f.asp or http://www.dted.state.mn.us

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Placement rate and wage replacement rate of dislocated workers.

Graph depicting placement and wage replacement rates for dislocated workers.

Program Year Placement Rate Percent of Previous Wage at Placement
2001 79% 96%
2000 84% 93%
1999 83% 93%

Why is this indicator important? A well-trained, flexible workforce is a critical component of a competitive state economy. Assisting unemployed and underemployed workers in finding new jobs at comparable or higher wages helps spur economic growth.

What is DTED doing? The department has substantially increased its outreach to workers who have lost their jobs and to businesses that want to upgrade the skills of their employees. The Dislocated Worker Program offers opportunities for retraining, tells the story behind the employment numbers to workers who’ve been laid off, and makes connections with social service agencies. The Minnesota Job Skills Partnership (JSP) works with businesses and educators to develop customized training to upgrade the skills of incumbent workers. In addition, the 2001 labor force assessments that were completed by nine regional partners provided new information on the skills, knowledge and experience of the state’s workers.

Is DTED meeting the target? The indicator’s first target is 2003 performance and the department appears to be well-positioned to achieve the stated goal. Since 1999, about 80 percent of assisted workers have located new jobs, earning wages at least 93 percent of the wages they were paid in their former job. And the numbers say Minnesotans stick to it: In the last two years, 89 percent of dislocated workers in Minnesota (the federal standard is 86 percent) were still working in their new job six months later.
 

Learn more at: http://www.dted.state.mn.us/big-pl-prog-rpt-f.asp or http://www.dted.state.mn.us

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Minnesota and U.S. manufacturing export growth rates

Graph depicting MN and US export growth rates.
Export Growth Rate
1998 1999 2000 2001 2002 Target 2003 Target
Minnesota -2.5% 1.7% 12.5% 2.4% 3.0% 10.0%
United States -0.1% 2.4% 12.8% -7.2%

Source: University of Massachusetts, Amherst; Massachusetts Institute for Social and Economic Research (MISER) database.

Why is this indicator important? Minnesota companies are finding that international customers are the fastest-growing markets. For Minnesota, that means that one in six manufacturing jobs is export related. On average, companies that export also are more productive, offer higher wages and more benefits, and experience greater job growth than non-exporters. Export growth indicates a dynamic increase in Minnesota’s involvement in the global marketplace which helps the state’s overall competitiveness.

What is DTED doing? While continuing to build on our strengths in Minnesota’s top export markets and industries, the department is placing a new emphasis on identifying and developing emerging markets industries. Recognizing that information and education are the central tools for encouraging new exporters, the department has greatly increased its educational programs in the Twin Cities and Greater Minnesota. Since January of 2000, the department has provided export training to 1,400 individuals, provided export counseling to 1,000 companies, and completed nine trade missions involving 141 companies. The department has also developed a quarterly electronic export newsletter and has made detailed market and industry information available on its website.

Is DTED meeting the target? With $17 billion in export sales of goods and services (up from $15 billion in 1999), Minnesota is an international player. The state mirrored an upswing in national exports between 1999 and 2000. A greater testament to Minnesota’s export strength is that it has not suffered the same dramatic downturn as the nation as a whole during the last two years. While the state has experienced modest export declines in the weakening economy, Minnesota’s exports consistently outperform the nation as a whole and the state looks to be in good position to achieve the 2002 and 2003 performance targets.
 

Learn more at: http://www.dted.state.mn.us/big-pl-prog-rpt-f.asp or http://www.dted.state.mn.us

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MTO customer satisfaction. (Indicator under development)

Data available in Spring 2003.

 

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Number of new-to-export companies served by MTO. (Indicator under development)

Data available by Spring 2003.

 

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Sales generated by Minnesota's tourism industry.

Graph depicting tourism-generated gross receipts and sales (in billions).

Tourism-Generated Gross Receipts/Sales (in billions) 1995 1996 1997 1998 1999 2000 2001 2002
$7.0 $6.9 $7.4 $8.0 $8.3 $9.0 $9.0 $9.3
Why is this indicator important? Tourism is increasingly considered a tool for economic diversification. Many areas of the state are promoting tourism to expand economic activity and bring new money into their communities, especially from outside of the state.

What is DTED doing? The Minnesota Office of Tourism markets Minnesota in the U.S. and internationally as a travel destination to consumers, travel media, tour operators, group tours and travel agents. The office works closely with the state’s tourism industry to jointly market the state and to address issues affecting travel and tourism. MOT also raises more than $5 million in cash and in-kind matching funds through a variety of partnerships that extend the state’s promotional efforts and conducts cost-effective ad campaigns focused primarily on Midwest markets.

Is DTED meeting the indicator target?
Despite poor weather conditions and the aftereffects on 9/11, tourism sales increased in 2001 and exceeded the target. This unexpected increase is due in part to increased spending per visitor and increased resident travel that largely offset much of the decline in non-resident travel.

With gross tourism-generated sales increasing 42 percent between 1996 and 2001, tourism is a growth industry. Adjusted for inflation, this represents a real average annual growth rate of 3 percent. Strong marketing efforts by the Tourism Office influence travelers’ decision to visit Minnesota, though many factors, including the weather and the economy, also have a strong effect on tourism sales.

 

Learn more at: http://www.dted.state.mn.us/big-pl-prog-rpt-f.asp or http://www.dted.state.mn.us

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Sales to people whose travel decisions were influenced by the Office of Tourism (spring/summer season)

Graph depicting sales influenced by the Minnesota Office of Tourism (in millions).

Source: Surveys of MOT customers conducted by the Analysis and Evaluation Office, Minnesota Department of Trade and Economic Development. Influenced sales (expenditures) are derived through surveys administered by the department’s Analysis and Evaluation Office in partnership with MOT.  This data represents travel expenditures by MOT inquirers who reported through a survey that the printed information they received influenced their decision to take a pleasure trip to Minnesota.

Why is this indicator important? Sales influenced by the Minnesota Office of Tourism provide a concrete way to measure the return on investment of government funds. Through a cost-effective use of marketing materials and travel services, the Tourism Office makes targeted audiences aware of Minnesota as a travel destination and provides them with the information to plan trips to the state. Providing high-quality information to influence travel plans is a key strategy of the Tourism Office.

What is DTED doing? The Office of Tourism provides high-quality travel information targeted at generating travel to Minnesota. Through advertising support from tourism businesses and destinations, the state is able to provide cost-effective marketing materials, including the Explore Minnesota Travel Guide and the popular Minnesota Explorer seasonal travel newspaper. Phone counselors at the Tourism Office provide customized travel planning assistance, and staff at highway travel information centers provide information to travelers to increase their tourism activity and extend their stays. And increasingly, travelers visit the detailed, interactive Explore Minnesota web site to plan their trips. A 2001 analysis of Office of Tourism advertising found that for every $1 spent, $5 in state and local taxes was generated and a 1999 report found that travelers’ visits to highway travel information centers resulted in an increase in tourism spending during their trips.

Is DTED meeting the indicator target? The marketing materials and information provided by the Tourism Office have a significant impact on consumers’ travel planning decisions. A recent Tourism Office customer survey found that information provided by the office influenced customers to travel and spend almost $118 million in Minnesota in spring/summer 2001. Given past performance and recent strategic decisions, the department is confident that the 2002 and 2003 targets ($123 million and $128 million, respectively) will be achieved.
 

Learn more at: http://www.dted.state.mn.us/big-pl-prog-rpt-f.asp or http://www.dted.state.mn.us

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Economic diversity in the six regions of Greater Minnesota.

Diversity statistic
(closer to zero is more diverse)*
1991 1994 1995 1996 1997 1998 1999 2000 2001 Target 2002 Target
Northwest .06 .05 .04 .04 .03 .04 .04 .04 .04 .04
West Central .08 .05 .04 .04 .05 .04 .04 .04 .04 .04
Northeast .37 .30 .37 .36 .30 .28 .28 .26 .25 .25
Southwest .09 .07 .08 .10 .11 .11 .11 .10 .10 .10
Central .07 .05 .05 .05 .06 .05 .05 .05 .05 .05
Southeast .07 .07 .08 .08 .10 .10 .10 .10 .09 .09

*Data is not available for 1992-93.
Source: Covered Employment and Wages Program (ES-202), U.S. Department of Labor, Bureau of Labor Statistics

Click for growth rates and number of jobs by economic development region.

Click for growth rates and number of jobs in under-represented sectors by economic development region.

Why is this indicator important? Regions that are dependent on a few industries are more vulnerable than areas that include a broader range of economic activity. Economic diversity is often cited as a means for stable and balanced economic growth. The diversity statistic measures similarity to the national economy (the diversity benchmark). The closer the statistic is to zero, the closer the distribution of regional employment is to the distribution of national employment.

What is DTED doing? While rural economic diversification is a multi-faceted, long-term goal, DTED has played an important leadership role through various programs and services. The department actively markets Greater Minnesota locations to expanding businesses and has increased the number of company visits by the commissioner and staff. Increased marketing and technical improvements also have been made to MnPRO, Minnesota’s web-based business facility and site selection service. Seventy percent of all business expansions assisted by the department in the past year were in Greater Minnesota,

DTED funding through the 21st Century Minerals Fund, Minnesota Investment Fund, Rural Challenge Grant Program, provide financial assistance for specific business development projects in rural Minnesota. Regional infrastructure has been bolstered through investments made by Technology Catalyst Grants, the Redevelopment Program, the Contamination Cleanup Fund and the Public Facilities Authority. Funds administered by DTED through the Job Skills Partnership Board assist with training and placing skilled workers in new and expanding rural businesses.

Is DTED meeting the target? Data for 2001 will be available in early 2003. Although diversity appears to have improved or stabilized for all regions, it is likely that the recent economic recession will impact regional economic diversity.
 

Learn more at: http://www.dted.state.mn.us/big-pl-prog-rpt-f.asp or http://www.dted.state.mn.us

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DTED facilitated expansions by businesses in under-represented sectors.

Number of business expansions facilitated by DTED
  2000 2001 2003
Statewide 28 17 Targets under
Greater MN 4 4 development

Source: Minnesota Department of Trade and Economic Development

Why is this indicator important? The department is committed to expanding the state’s current industrial base while improving the diversity of the state’s economy. Facilitating high-quality business expansions in industries where the state is under-represented helps ensure that that the state can profit from growth throughout the economy while minimizing future economic indicators.

What is DTED doing? The department actively markets Greater Minnesota locations to expanding Twin Cities and non-Minnesota businesses. These new strategy has meant an increase in the number of company visits by the commissioner and staff. These visits provide an opportunity for staff to provide an integrated package of technical and financial assistance available to facilitate any expansion in Greater Minnesota. These proactive efforts have helped increase the number of expansions in Greater Minnesota – in 2001, 70 percent all business expansions assisted by the department in the past year were in Greater Minnesota.

Is DTED meeting the target? This indicator was created in late 2002. Performance targets for subsequent years will be developed in coming months.

 

 

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Number of University of Minnesota licensing agreements with the private sector.

Graph depicting licensing agreements University of Minnesota and private sector.

Why is this indicator important? The University of Minnesota often does not have the ability to make full use of new technologies and other innovations that come from staff, so it enters into licensing agreements with companies to develop and sell the University product. This arrangement ensures commercialization of new ideas and technologies and provides additional funding for research and education.

What is DTED doing? DTED is actively engaged with the High Tech Council, MNBIO, Medical Alley, the University of Minnesota, and others in improving the transfer of technology from academia to industry. DTED created the Biomedical Innovation and Commercialization Initiative, which was a casualty of the state’s budget crisis but remains on the books as a template for funding future investment in technology transfer.

State economic development policy will continue to encourage both creative research and entrepreneurial energy while facilitating mutually beneficial collaboration between the state’s premier research institutions and the entrepreneurial community.

Is DTED meeting the target? Although 2001 licensing agreement performance did not meet the overall target, the in-state target was met.
 

Learn more at: http://www.dted.state.mn.us/big-pl-prog-rpt-f.asp or http://www.dted.state.mn.us

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How do I learn more about what the Department of Trade and Economic Development is doing?

Minnesota Department of Trade and Economic Development: www.dted.state.mn.us

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