Dynamic Innovation Ecosystem

Investing in hometown talent is the right (and smart) thing to do

Businesses of the future begin as the startups of today. Established companies in Minnesota rely on a robust innovation ecosystem — one that continually generates fresh ideas, emerging talent, and the breakthroughs needed to remain global leaders.

Minnesota makes it possible for companies to grow and stay rooted in the state rather than looking elsewhere. The state promotes innovative jobs and strengthens its innovation ecosystem through coordinated support and statewide collaboration.

Minnesota is also making it easier for emerging, high growth companies to access answers, resources, and connections across the state.

A key driver of Minnesota’s success is its tech savvy workforce and its long standing role as a hub for creativity, idea incubation, and prolific patent activity.

Incubators and Accelerators

Many of Minnesota’s largest companies actively support accelerators and startup programs. Cargill and Ecolab back the Techstars Farm to Fork accelerator, while Allianz and Securian Financial partner with gener8tor in the OnRamp Insurance accelerator.

Minnesota’s technology startup community also benefits from annual competitions and conferences that attract international attention, helping connect founders with investors, mentors, and global networks.

In 2025, Minnesota startups raised more than 1.1 billion dollars in venture capital across 166 deals. Businesses launched in the state are also more likely to endure — Minnesota ranks fourth in the nation for five year business survival. This strength is rooted in Minnesota’s combination of investment, collaboration, and supportive networks that empower innovative startups and bold entrepreneurs to thrive.

Patents

Minnesota’s patent and technology rankings reflect its strong culture of innovation and the momentum driving its economy. The state’s performance in patents per one million people highlights just how powerfully Minnesota contributes to the nation’s inventive landscape:

• 1st in medical devices
• 1st in pacemakers
• 2nd in food products
• 2nd in water treatment
• 4th in electrotherapy
• 4th in plastics
• 4th in water purification
• 8th in chemical patents
• 8th in machinery
• 8th in sensors
• 10th in data storage

By company, the largest number of patent registrations between 2010 and 2021 went to IBM (9,597), 3M (9,175) and Medtronic (5,331).

Innovation Rankings

Our high rankings are a testament to the creativity and passion for innovation. From patent registration to workforce in high-tech industries, Minnesota shines! This is how the state ranks:

• 2nd in workforce in medical devices industries manufacturing (EMSI, 2021).
• 3rd in workforce in navigational, measuring, electromedical, and control instruments manufacturing (EMSI, 2021).
• 4th in technology and innovation (CNBC, Top States for Business, 2023).
• 6th nationwide in workforce computer and peripheral equipment manufacturing (EMSI, 2021).

In 2020, the Milken Institute raised our rankings on two key metrics:

• 6th in risk capital and entrepreneurial infrastructure, up from 21st in 2018.
• 6th in technology and science workforce, up from 7th in 2018.

Research and Development

Minnesota is incredibly fertile ground for research and development innovation and success.

Businesses pump about $8 billion each year into research and development projects, according to the National Science Foundation. Public or private sector, much of the state's research is done in conjunction with the University of Minnesota and the Mayo Clinic, both of which have established international reputations for their own research as well as their collaborations with government and the private sector.

Some examples of Minnesota’s successful R&D include:

• The University of Minnesota ranks 13th in R&D expenditures among public universities, with $1.042 billion in 2020.
• Mayo Clinic had R&D funding of $1.01 billion in 2021.
• Medtronic R&D expenses for the twelve months ending April 30, 2022 were $2.8 billion, a 10.2% increase year-over-year. The company is headquartered in Dublin, Ireland and Minneapolis, Minnesota.
• 3M spent $1.96 billion in R&D expenditures (2021).

The State of Minnesota also invests in innovation, ranking 5th highest in R&D expenditures in transportation ($11.6 million) and 8th in agriculture ($5.5 million).

Launch Minnesota

Launch Minnesota, spearheaded by the Minnesota Department of Employment and Economic Development, is a statewide collaborative effort to accelerate the growth of startups and amplify Minnesota as a national leader in innovation. 

Launch Minnesota Initiatives to Connect the State Startup Ecosystem

Regional Innovation Hubs: Connect Minnesota corner-to-corner by a first-of-its-kind hub and spoke model that brings together the state’s entire innovation ecosystem. The Regional Innovation Hubs connect six regions, eight hubs and over 80 program partners across the state.

MN Venture Builders: In collaboration with the Holmes Center for Entrepreneurship at the Carlson School of Management, University of Minnesota, the state has developed an entrepreneurial education platform. MN Venture Builders links courses, competitions, seminars, mentors, and connections across Minnesota’s entrepreneurial ecosystem, providing early‑stage technology entrepreneurs with resources and support statewide.