Frequently Asked Questions

How do we build a smarter healthcare system? 

A new generation of smart medical technology is ready to be created, and Minnesota is best positioned to build it. Yet the hurdles—finding ways to use technology to accelerate the pace of innovation, and rethinking how the pieces of the puzzle fit together—are high. It’s a good thing that Minnesotans love a challenge. 

Why Minnesota?

We already have many big pieces of that puzzle. Think Mayo, Medtronic, Medical Alley and the University of Minnesota. That’s just for starters. Minnesota is home to the world’s largest medical device companies, the nation’s largest private insurer and others, the world’s top ranked hospital and other leading systems, the nationally recognized industry organization Medical Alley and one of the country’s best public universities. We represent the globe’s med-tech dream team. 

What is Minnesota MedTech 3.0? 

Minnesota MedTech 3.0 (MMT3.0) is a bold new strategy to grow Minnesota’s global market share in the medical technology industry by building an ecosystem that is even more connected, more strategic and “smarter” through the incorporation of cutting-edge technologies, such as artificial intelligence, machine learning and data science.  

Minnesota MedTech 3.0 (MMT3.0) is a new hub of more than 30 organizations that the GREATER MSP Partnership is leading. Our strategy connects the region’s medical device manufacturers with other parts of the healthcare system, such as healthcare providers, insurers, information technology firms, private capital, research institutions and government. It’s focused on building a health system that improves outcomes for patients and ensures the best medical technology is accessible to more people. And it has the potential to change everything.  
But it won’t be easy.

We have big challenges to solve:

• How do we develop ways to share data with healthcare innovators without compromising patient privacy?  

• How do we spark investments to grow our ecosystem of healthcare startups? 

• How do we recruit and retain the thousands of workers we need?
 

And we’re taking an intentional approach to solve them: 

• Acting at scale, taking a market-oriented approach 

• Industry leadership, with support from all sectors 

• Aligned action, using existing capabilities and assets 

• Equity lens, with a commitment to inclusive growth 

• Deep commitment, from organizations and executive leaders

What are the goals of Minnesota MedTech 3.0?

Building MedTech 3.0 in Minnesota will deliver thousands of good paying jobs, spur a new generation of start-ups and attract billions in private capital. We will deliver equitable outcomes through an intentional focus on access for all Minnesotans, including underrepresented groups in the region and across rural areas of the state.  Our goals are to:

• Accelerate innovation in the emerging Smart MedTech industry 

• Create good jobs and investment 

• Foster collaboration across the healthcare industry 

• Deliver inclusive growth across the state 

Where did the strategy come from? 

At the GREATER MSP Partnership’s NEXT event in February 2023, Medtronic CEO Geoff Martha issued a call to action for Minnesota to lead the next frontier of medical technology. An Itasca Project task force connected healthcare and academic leaders to explore the opportunity. The federal Tech Hubs initiative provided an opportunity to accelerate efforts. GREATER MSP, the Greater Minneapolis–Saint Paul region’s economic development partnership, led the creation of a cross-sector coalition to shape the strategy and apply for federal Tech Hubs designation.  

During summer 2023, GREATER MSP, the Greater Minneapolis–Saint Paul region’s economic development partnership, built a broader cross-sector coalition to further shape the strategy and apply for federal Tech Hubs designation. It includes organizations with globally leading MedTech innovation experience, as well as organizations with expertise in areas like workforce and economic development, research, community development, private equity and more. 

What is ‘Tech Hubs?’ 

Tech Hubs is a federal innovation initiative to increase America’s economic competitiveness and national security. Authorized in the 2022 CHIPS and Science Act, Tech Hubs is administered by the U.S. Economic Development Administration. It: 

• Aims to invest in regions across the country in key technology areas. 

• Requires deep collaboration among industry, higher education, government, economic development, and workforce/labor organizations, as well as other optional groups. 

• Designates U.S. regions with global leadership potential, which makes them eligible for federal programming and access to federal funding. 

After receiving nearly 200 comprehensive proposals from across the country, 31 Tech Hubs were designated, including MMT3.0. These Tech Hubs are immediately eligible to compete for $500 million that Congress allocated from a $10 billion authorization. 

Why did Minnesota MedTech 3.0 win designation as a Tech Hub? 

All applicants were scored on a clear set of criteria, and MMT3.0 was well positioned to compete. Several regional and state strengths were on display in the proposal, including: 

• Existing MedTech capabilities with demonstrated potential for continued growth. 

• Strong industry leadership with depth of commitment from top leaders in all sectors. 

• Commercialization approach that included complementary interventions. 

• Integrated approach to equity, workforce and other critical issues. 

• Strength of regional collaboration with plans for broader engagement. 

What does the Tech Hubs win mean for the region and state? 

In the short term, it provides immediate validation of the strategy and a catalyst for activating that strategy. Minnesota partners will immediately market this designation around the world and can begin to access specific federal assistance and programs while also applying for federal funds. 

In the long term, implementation of the strategy itself will enable Minnesota to grow its global leadership in MedTech through a coordinated set of actions that help more innovators commercialize their technologies, create good jobs and improve health outcomes.  

What is ‘Smart MedTech’? And why ‘MedTech 3.0’? 

The “Minnesota MedTech 3.0” strategy builds on existing strengths to create a medical device ecosystem that is even more connected, more strategic and “smarter” by incorporating cutting-edge technologies, such as artificial intelligence, machine learning and data science. It will deliver results that matter to patients, hospitals, insurers and medical-device manufacturers, such as faster innovation, new products and better health outcomes, in ways that manage rising costs. 

A third wave of Minnesota’s global leadership builds off a first wave of creating globally leading companies and organizations and a second wave of developing globally leading partnerships. This third wave brings together all stakeholders in pursuit of shared objectives and strategy. MedTech 3.0 also refers to an emerging term in the industry in reference to smart technology that further breaks down silos and promotes greater connectivity across the healthcare continuum. 

What types of actions will take place? 

MMT3.0 will accelerate the pace of Smart MedTech innovation in our region. Historically, Minnesota has been home to globally leading companies and institutions that helped establish a strong MedTech ecosystem. What’s different with MMT3.0 is that the leaders of all these organizations are aligning around a shared strategy. We will do this holistically through key initiatives in four overlapping areas:  

• Data and Information Sharing 

• Incubation and Startup Acceleration 

• Ecosystem Growth and Investment 

• NextGen Talent Solutions 

MMT3.0 will create one shared operating system across all initiatives that includes a coalition-wide equity strategy. MMT3.0 would both scale and integrate existing solutions in our region as well as import or create new solutions. 

Building MedTech 3.0 in Minnesota will deliver thousands of good-paying jobs, spur a new generation of start-ups, and attract billions of dollars in private capital. MMT3.0 will deliver equitable outcomes through an intentional focus on access to economic opportunities for all Minnesotans, including underrepresented groups across the region and state. 

Is this about Minneapolis–Saint Paul, the entire state, or the country? 

MMT3.0 was designated as a metropolitan regional Tech Hub as defined by the 15-county Greater Minneapolis–Saint Paul–Bloomington Metropolitan Statistical Area. However, the strategy is intended to be a Minnesota strategy, and initiatives will be intentionally designed for statewide impact and require partnerships across Minnesota. To win federal funding, MMT3.0 must make the case that its actions are critical to economic and national security. 

Will the MMT3.0 strategy be pursued even if federal funding is not awarded in 2024? 

Yes. Now that our hub is designated, we intend to activate the strategy. The speed and order in which we activate components in 2024 will, however, depend somewhat on access to federal funding that will help catalyze action in several critical areas. 

How can interested parties follow along? 

Visit greatermsp.org/medtech to learn more and sign up for updates. There will be opportunities to share ideas and connections that can strengthen Minnesota’s competitive position.   

When MMT3.0 is implemented, there will be many ways for additional entrepreneurs, investors, workers, researchers, industry leaders, and others to directly engage and gain value from this hub. Much will depend on which projects are funded and activated first. 

Until then, interested parties can both participate in dedicated sessions and directly contact MMT3.0 members. For example, the GREATER MSP Partnership is leading the effort. Other MMT3.0 partners, like the Medical Alley Association, provide direct connections for MedTech innovators through the Medical Alley Starts program. The Governor’s Workforce Development Board at the Minnesota Department of Employment and Economic Development (DEED) will lead efforts to develop a talent strategy with employers, higher education, workforce providers, labor and other groups. 

Will the coalition grow? 

EDA advised applicants to focus on the quality of commitments among coalition members over their size. However, our coalition is expected to evolve as we make decisions during Phase 2. MMT3.0 counts several current members who stated that they were prepared to engage larger networks in the region and state upon winning the designation.  

Who can I contact for more information? 

GREATER MSP Partnership lead Matt Lewis (matt.lewis@greatermsp.org) and Rachel Placzek (Rachel.placzek@greatermsp.org