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Rochester Higher Education Development CommitteeReport to Governor Pawlenty and the Minnesota Legislature

January 25, 2006

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Rochester Higher Education Development CommitteeAppointed by Governor Pawlenty July 2005

• Dr. Claire Bender Mayo Clinic radiologist and Dean of Mayo School of Health Sciences• Al Berning CEO, Pemstar, Past Chair GRAUC• Al DeBoer Attorney, Businessman, Rochester civic leader, GRAUC Board of

Directors• Drew Flaada IBM Director of IBM /Mayo Clinic Collaboration and Life Sciences

Development, GRAUC Board of Directors• Dwight Gourneau President NAM Tech, MN Private Colleges Council, Earned Masters

degree from UMR via Unite/ITV program while employed by IBM Rochester. Currently serves as Chair of Board of new Smithsonian American Indian Museum in DC.

• Dr. Robert Hoffman Vice President Taylor Corporation, Mankato, Chair of MNSCU Board of Trustees, former Superintendent Waseca Public Schools

• Dr. David Metzen Metzen Leadership, Inc, University of MN Board of Regents, former Superintendent South St. Paul Public Schools

• Jayne Rankin Executive Budget Officer, Minnesota Department of Finance• Dr. Wendy Shannon Superintendent Byron Public Schools, Past Chair GRAUC , Past Chair

UCR Council• Michael Vekich, CPA Vekich and Associates, Minneapolis, Past Chair MNSCU Board of

Trustees• Marilyn D. Stewart Branch Manager, Edina Realty Rochester/Austin/Kasson, Past Chair

GRAUC, Past Chair UMR Advisory Committee, Past Chair Rochester Area Chamber of Commerce, Past President MN Association of REALTORS

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The 21st Century Knowledge Economy

Key Growth: Genomics, Healthcare, Biosciences, Information Technology

Unique opportunity: Confluence between medicine/biology and engineering/information technology

Success = Technological Innovation + Capital + Talent

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Minnesota’s Unique Opportunity in SE Minnesota Rochester

Strong, sustained growthHigh percentage of degreed professionals

Nationally recognized as an innovation center30 companies on cutting edge of bioscience advances

Bioscience tax-free zone

Minnesota’s largest high-tech employer Minnesota’s largest private employerKey IBM Development Laboratory Bioscience research giant$500M in annual R&D in Rochester Worldwide reach and reputationLocal research in Bioinformatics and Life Sciences Mayo Medical LabsBlue Gene development and production $372M annually in research$2M annually in tuition reimbursement $5M annually in tuition reimbursement

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The Missing Piece for Minnesota’s Economic Engine in SE Minnesota

• A public mechanism to provide:

– Technology development and transfer

– Management skills development

– Workforce skill development

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Expanded University Research Economic Impacts

ForwardEffects

BackwardEffects

LocalSpending

Labor

Supplies

Utilities

Building

Mul

tiplie

r E

ffect

(Lo

cal R

e-sp

endi

ng)

Total Impact(Backward Linkage)

R&D

Education

Outreach& Service

Extension

Volunteerism

Consulting

Q of L Events

Image

BusinessFormation

Private returns

Social returns

BusinessGrowth/Retention

BusinessAttraction

Source: Simon Tripp, Impact Economics

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The CompetitionState Bioscience Research Investments

$1B

$600M

$1.1B

$800M

$2B NJ$125M

$60M

$1B,300M

$600M

$440M

$39M

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The Vision• Advance world-class higher education that leverages the

University of Minnesota’s research capability, in partnership with IBM, Mayo Clinic, and other industry leaders, to build signature academic and research programs that complement southeast Minnesota’s existing leadership roles in health sciences, biosciences, engineering and technology.

• Educational programs will provide application to economic activities via innovation, translational research, and clinical experiences. This institution will have a distinct identity and one governing entity. This institution will be the University of Minnesota, Rochester Campus.

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Evolution of Higher Education Structure in Rochester

1993•UCR Opens•RCC, WSU, UM

1996•RCC and RTC Merge•RCTC formed

1997•MNSCU and UM “Full and Equal” partnership at UCR

1998•UCR Provost appointed•UCR Advisory Council formed

1999•MNSCU/UM approve increased UM leadership, cooperative expansion•MN Legislature enables creation of UM Rochester branch

2002•UM/MNSCU revise principles of operation in Rochester•UM given management authority and responsibility for upper division, graduate and professional programs

2005•Legislature authorizes $3.2 M to plan/launch enhanced higher education in Rochester•Governor appoints 11 member Rochester Higher Education Development Committee

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Signature Academic Partnerships

Research

• Worldwide Top Candidates• Top Candidates• Selective Enrollment

External Accelerators

• NSF, NIH, Other Benefactors

PhD & Masters

Programs

Baccalaureate Programs

• Mayo, IBM, Hormel Institute, Others

Industry Partnerships

Reputation

Endowed Chairs Support Faculty Post-Doctoral Fellowships

Technology Transfer Intellectual Property University Technology Commercialization Office

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Signature ProgramsEngineering/Technology Health Sciences

Business

•Biomedical Informatics •Computational Biology•Biomolecular Engineering•Computer Gaming/Simulation•Nanotechnology

•Biomedical Informatics•Allied Health•Nursing•Pharmacogenomics•Pharmacotherapeutics•Genomics•Molecular Biology

•Entrepreneurship•Innovation•Leadership

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Facilities

• Downtown Rochester location required

• Proximity and access to Mayo Clinic paramount– Convenience to Mayo

researchers and faculty– Joint professorships

achievable– Access to common lab space

and facilities

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Investment for the Future

• Special appropriation from State of Minnesota plus local commitment

• Staged investment to create prioritized signature programs

• Staged growth in facilities, faculty and number of students

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Conclusion

• Invest in an economic engine for Minnesota• Capitalize on strategic assets and partnerships in

the community• Define new, unique value• Build upon an historic evolution of higher

education in Rochester• Extend and enhance the strategic direction of the

University of Minnesota

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Next Steps: Partner for Minnesota’s Future

• Adopt the recommendations of the Rochester Higher Education Development Committee

• Support implementation of the recommendations, including programmatic growth and securing incremental funding

• Work in partnership with the Rochester Higher Education Development Committee and Rochester community leaders to capitalize on the unique resources and opportunities in Rochester for the advancement of economic development in Minnesota