Minneapolis Leads Midwest Health Care Investments
$289 million in new venture investments so far this year
October 22, 2008 (MINNEAPOLIS) -- Minneapolis is the top metro area in the Midwest for health care venture investments, according to the BioEnterprise Midwest Health Care Venture Investment Report released yesterday.
So far this year, health care investments by Minneapolis area companies totaled $289 million, more than any other Midwest metro area. Behind Minneapolis was Cleveland ($152 million), Pittsburgh ($101 million), and Chicago ($78 million). Minnesota also recorded more health care investments than any of the 12 states covered in the report.
“The centerpiece of the City of Minneapolis’ economic strategy is health care – our most important industry,” Mayor Rybak said. “Minneapolis is clearly one of the country’s leading health care and lifescience centers because we have focused and invested in growing this important industry. The more momentum we continue to build in this sector, the more we will continue to grow.”
“Despite the broader economic downturn, Midwestern health care start-ups continue to attract record levels of venture,” said Baiju R. Shah, President of BioEnterprise. “The Midwest continues to thrive because the region has a strong health care technology and talent base that is just starting to be discovered by national investors. In addition, the health care sector is seen as recession-proof.”
With more than 45,000 jobs last year, Minneapolis has the largest concentration of health care jobs in Minnesota. More than 12 percent of all jobs in Minneapolis are in health care, the fastest growing part of the Minneapolis economy:
• Minneapolis added more than 2,300 health care and life sciences jobs in 2007 – a growth of nearly 5 ½ percent, and a larger growth rate than the metro area or state as a whole.
• Between 2004 and 2007, hospital employment in Minneapolis grew 32% and ambulatory health-care services grew 23%.
• According to the Brookings Institution, the Minneapolis metro area accounts for 22 percent of the entire national output of biomedical devices.
“Minneapolis is blessed with a vibrant, diverse economy and a quality workforce,” Rybak added. “Our economic plan remains focused on developing a strong workforce by investing in people and investing in the common ground infrastructure that fosters innovation and growth. During these turbulent economic times, we must build on our strengths and stay focused on the future.”
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