Rochester Higher Education Development Committee
Report to Governor Pawlenty and the Minnesota Legislature
January 25, 2006
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Rochester Higher Education Development Committee
Appointed by Governor Pawlenty July 2005
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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 growth
High percentage of degreed professionals
Nationally recognized as an innovation center
30 companies on cutting edge of bioscience advances
Bioscience tax-free zone
Minnesota’s largest high-tech employer
Key IBM Development Laboratory
$500M in annual R&D in Rochester
Local research in Bioinformatics and Life Sciences
Blue Gene development and production
$2M annually in tuition reimbursement
Minnesota’s largest private employer
Bioscience research giant
Worldwide reach and reputation
Mayo Medical Labs
$372M annually in research
$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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Multiplier Effect (Local Re-spending)
Expanded University Research
Economic Impacts
Business
Formation
Business
Growth/Retention
Labor
R&D
Supplies
Local
Spending
Utilities
Backwar
d
Effects
Business
Attraction
Forward
Effects
Education
Private returns
Social returns
Building
Extension
Outreach
& Service
Volunteerism
Consulting
Total Impact
(Backward Linkage)
Q of L Events
Image
Source: Simon Tripp, Impact Economics
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The Competition
State Bioscience Research Investments
$39M
$1B
$2B
$1.1
B
NJ
$125M
$600M
$60M
$440M
$800M
$1B,
300M
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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
1997
•UCR Opens
•RCC, WSU, UM
•MNSCU and UM
“Full and Equal”
partnership at UCR
1996
•RCC and RTC
Merge
•RCTC formed
1999
•MNSCU/UM approve
increased UM leadership,
cooperative expansion
•MN Legislature enables
creation of UM Rochester
branch
1998
•UCR Provost appointed
•UCR Advisory Council
formed
2005
•Legislature authorizes $3.2 M to
plan/launch enhanced higher
education in Rochester
•Governor appoints 11 member
Rochester Higher Education
Development Committee
2002
•UM/MNSCU revise principles of
operation in Rochester
•UM given management authority and
responsibility for upper division,
graduate and professional programs
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Signature Academic Partnerships
External
Accelerators
• NSF, NIH, Other
Benefactors
Industry
Partnerships
• Mayo, IBM, Hormel
Institute, Others
Research
 Technology Transfer
 Intellectual Property
 University Technology
 Commercialization Office
 Endowed Chairs
 Support Faculty
 Post-Doctoral Fellowships
Reputation
Baccalaureate
Programs
• Top Candidates
• Selective Enrollment
PhD &
Masters
Programs
• Worldwide Top Candidates
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Signature Programs
Engineering/Technology
Health Sciences
•Biomedical Informatics
•Computational Biology
•Biomolecular Engineering
•Computer Gaming/Simulation
•Nanotechnology
•Biomedical Informatics
•Allied Health
•Nursing
•Pharmacogenomics
•Pharmacotherapeutics
•Genomics
•Molecular Biology
•Entrepreneurship
•Innovation
•Leadership
Business
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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
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