1. 1 Rochester Higher Education Development Committee Report to Governor Pawlenty and the Minnesota Legislature January 25, 2006

2. 2 Rochester Higher Education Development Committee Appointed 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

3. 3 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

4. 4 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 employerMinnesota’s largest private employer Key IBM Development LaboratoryBioscience research giant $500M in annual R&D in Rochester Worldwide reach and reputation Local research in Bioinformatics and Life SciencesMayo Medical Labs Blue Gene development and production$372M annually in research $2M annually in tuition reimbursement$5M annually in tuition reimbursement

5. 5 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

6. 6 Expanded University Research Economic Impacts Forward Effects Backwar d Effects Local Spending Labor Supplies Utilities Building Multiplier Effect (Local Re-spending) Total Impact (Backward Linkage) R&D Education Outreach & Service Extension Volunteerism Consulting Q of L Events Image Business Formation Private returns Social returns Business Growth/Retention Business Attraction Source: Simon Tripp, Impact Economics

7. 7 The Competition State Bioscience Research Investments $1B $600M $1.1 B $800M $2B NJ $125M $60M $1B, 300M $600M $440M $39M

8. 8 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.

9. 9 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

10. 10 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

11. 11 Signature Programs Engineering/TechnologyHealth 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

12. 12 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

13. 13 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

14. 14 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

15. 15 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