Press release: Minnesota moves forward as U.S. hub for medical technology
Leaders of the “Minnesota MedTech 3.0” coalition announced they are moving ahead to advance the country’s leading innovation strategy for medical technology after learning the U.S. Department of Commerce awarded an initial round of federal funding to regional hubs focused on other technology areas.
In October 2023, Minnesota MedTech 3.0 competed for and won designation as a U.S. Tech Hub for its plan to create the world’s leading medical technology ecosystem that is even more connected, more strategic and “smarter” by incorporating cutting-edge technologies, such as artificial intelligence, machine learning and data science.
In February, the Minnesota MedTech 3.0 coalition and 30 other U.S. Tech Hubs applied for a first wave of federal Tech Hubs funding to implement their strategies. Coalition members understood that 95% of the funding originally authorized for the Tech Hubs program has not yet been allocated by Congress. Given that, coalition members have been preparing scenarios for implementing the strategy with and without immediate federal awards.
On July 2, the U.S. Department of Commerce announced initial awards for projects in several hubs focused on technology areas such as semiconductors, quantum computing and lithium batteries.
Built and led by the GREATER MSP Partnership, the economic development agency for the Greater Minneapolis–Saint Paul region, Minnesota MedTech 3.0 is comprised of a cross-sector statewide coalition of nearly 40 organizations allied around a groundbreaking shared innovation strategy for smart medical technologies that would enhance U.S. economic and national security while building a healthcare system that is more innovative, more equitable and more affordable.
“While we’re disappointed in the decision, we are undeterred in our pursuit,” said Peter Frosch, President and CEO of the GREATER MSP Partnership. “We will continue working to receive the next round of federal funding, but we are not waiting to act. Working together in the months to come, we will build the country’s leading health data alliance for medical innovation, incubate hundreds of high-growth startup companies and create great careers for thousands of Minnesotans.”
“We earned America’s Tech Hubs designation because we have the country’s best strategy for growing the future of MedTech. That hasn’t changed,” said Geoff Martha, Chairman and CEO of Medtronic. “The world needs better healthcare solutions that are more accessible and affordable. Advancements in artificial intelligence and machine learning present an opportunity to produce smarter medical technologies that can improve the way we deliver care across the globe. That’s a future worth pursuing, and it’s one where Minnesota will lead the way.”
“Our HealthPartners mission to improve health and well-being will be significantly advanced through the work of the Minnesota MedTech 3.0 coalition,” said Andrea Walsh, President and CEO of HealthPartners. “While we are disappointed that the federal grant application wasn’t funded in this round, we remain enthusiastic about the vision and aims of this partnership and what we will accomplish together in Minnesota.”
“We will continue moving forward to innovate at the boundaries of medical and data science, leveraging our collective strengths to transform healthcare for Minnesota and the world,” said Gianrico Farrugia, M.D., president and CEO of Mayo Clinic. “We remain committed to working with our partners throughout the state to accelerate medical technology innovations that meet the needs of patients today and into the future.”
“This process brought together an extraordinary coalition around Minnesota’s strength, and we’re committed to pressing forward together,” said Matt Varilek, Minnesota Department of Employment and Economic Development (DEED) Commissioner. “If companies want to be leaders in life sciences and innovation, integrating artificial intelligence, machine learning and data science into medical technology, Minnesota is the place to be. We already have the top health-tech cluster in the world, and the State of Minnesota is eager to help make it even stronger.”
“The MedTech 3.0 partnership has created an unprecedented coalition of education, government, industry and nonprofit leaders in diverse sectors of Minnesota’s MedTech ecosystem, laying a solid foundation for strategic partnerships long into the future,” said Shashank Priya, University of Minnesota Vice President for Research and Innovation. “The University remains committed to working with our partners to build and strengthen MedTech innovation in the region and beyond.”
“Minnesota is the cradle of med tech and remains at the center of an industry that saves lives around the world,” said Christophe Beck, Ecolab Chairman and CEO and chair of the GREATER MSP Partnership. “Boldly implementing this strategy is critical to our local global companies, state and country. We will continue to pursue opportunities for federal funding and new resources and remain committed to delivering game-changing technologies and world-class expertise for all.”
Minnesota MedTech 3.0 is a coalition led by the GREATER MSP Partnership that includes Abbott, Allina Health, Augsburg University, Avio MedTech, Blue Cross Blue Shield of Minnesota, Boston Scientific, Bread & Butter Ventures, Brown Venture Group, Center for Economic Inclusion, City of Brooklyn Park, Coloplast, Destination Medical Center, Fogarty Innovation, Founders Club, gener8tor, Governor’s Workforce Development Board and Minnesota, Department of Employment and Economic Development, HealthPartners, Hennepin Healthcare, Inspire Medical Systems, Mayo Clinic, Medica, Medical Alley Association, Metropolitan Economic Development Association (MEDA), Medtronic, Minnesota AFL-CIO, Minnesota State, Minnesota Technology Association, MNSBIR, Inc., MSP Equity Fund, Nortech Systems, Swakopee Mdewakanton Sioux Community, State of Minnesota–Office of Governor Tim Walz, University Enterprise Labs, University of Minnesota, University of St. Thomas and Vensana Capital. Several additional organizations are affiliated partners in key projects.
During recent months, Minnesota MedTech 3.0 leaders have been working to activate several components of their comprehensive strategy focused on startup incubation, health data, and talent while exploring global partnerships with leaders in several countries around the world.
Designated U.S. Tech Hub
Earlier this year, Minnesota MedTech 3.0 submitted a federal funding proposal following its October 2023 designation as one of the country’s leading Tech Hubs and the only hub focused on Smart MedTech.
The federal Tech Hubs program is a national innovation effort run by the U.S. Department of Commerce to ensure the United States leads the world in the most important technologies of the 21st century. It was authorized by the bipartisan CHIPS and Science Act and included $10 billion for the program over five years. However, to date only $541 million has been appropriated for the program. So, rather than receiving funding last fall, all 31 Tech Hubs then spent several months competing for the limited pool of dollars, leaving the majority of designated U.S. Tech Hubs and technology areas without federal funding.
If subsequent funding becomes available, the U.S. Department of Commerce’s Economic Development Administration plans to invest in additional Tech Hubs. Federal funding would have been focused on specific projects of the Minnesota MedTech 3.0 strategy—especially those actions innovators are challenged to pay for without public partnership. Minnesota MedTech 3.0 leaders will continue to partner with the federal Tech Hubs office as a designated Tech Hub, including to identify additional sources of public and private funding. Leaders will attend a federal summit in Washington, D.C., in July to engage directly with capital providers from across the U.S.
Next generation of global leadership
Historically, Minnesota has been home to globally leading companies and institutions that helped establish a leading med-tech ecosystem. Today, Minnesota is home to the world’s largest medical device companies, the nation’s largest private insurer and other nation-leading insurers, the world’s top-ranked hospital and other nation-leading hospital systems, the nationally recognized industry organization Medical Alley, and one of the country’s best public universities, the University of Minnesota, with a medical school and leading researchers in med tech, health and bio science.
What’s different with Minnesota MedTech 3.0 is that the leaders of all these organizations have aligned around a shared strategy. This hub connects the region’s medical-device manufacturers with other parts of healthcare system, such as healthcare providers, insurers, information technology firms, private capital, research institutions and government. The coalition will also incorporate existing programs and solutions to speed up and improve the innovation process.
Minnesota MedTech 3.0 builds on the region’s existing strengths to create an innovation ecosystem that 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.
Projects in motion include:
The North Star Data Alliance, which will interconnect data from across the nation’s leading provider, payor and medical device companies by extending the HIPAA-compliant data networks of Minnesota’s flagship health data platforms and customizing their capabilities to deliver fit-for-purpose datasets to innovators.
The MNcubator, which will provide entrepreneurs at all stages with a tiered system of services designed to fast-track Smart MedTech innovation, consolidating Minnesota’s globally unique assets in medical technology, healthcare and AI.
The NextGen Talent Partnership, which aligns the marketplace of employers, educational institutions, labor organizations, workforce boards, training partners, government entities and community-based organizations in a common direction, at scale, to build a workforce with the skills to position Minnesota as the global leader.
MedTech Funding Frontier, which assembles an all-star team of investors and industry experts committed to inclusively expanding the early-stage capital available to Smart MedTech innovators.
The Smart MedTech HQ, a groundbreaking, collaborative operating system that equitably accelerates the pace and volume of Smart MedTech innovation by unlocking the full capabilities of the region, including incubation of initiatives to strengthen supply chain, infrastructure, and global trade and investment partnerships.
Media Contact: Matt Lewis, GREATER MSP, matt.lewis@greatermsp.org