Minnesota Economy & Cost of Living

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As a leading international agriculture and manufacturing exporter, Minnesota enjoys an expanding economy and moderate cost of living. Minnesota’s Gross State Product in 1999 was over $172 billion with a real per capita growth of 4.6%. Ranked 11th highest in the U.S., Minnesota had a per capita personal income of $30,793 in 1999.

Minnesota offers one of the most affordable housing markets in the U.S. The 2000 median single-family home price was $154,000, well below the national median of $162,900. Accordingly, Minnesota boasts one of the highest home ownership rates at 76.1%, far above the national average rate of 67.4% in 2000.

In 1998 the majority of Minnesota’s residents, over 2.1 million, were employed in service producing industries, such as retail trade and health and educational services. Goods producing ranked second, with over 600,000 residents employed in fields such as manufacturing, construction and agriculture. The high-technology industry has increased significantly over the past decade and Minnesota continues to be one of a handful of U.S. states with a greater proportion of high-tech jobs than its share of the national population.

The Minnesota economy is dominated by small businesses, but incredibly diverse, with 85.2% of local businesses employing 19 or fewer employees in 1999 and a very high diversity rating of .01 in 2000. These factors combined with an increase in business establishments every year since 1990, and an increase of 4,610 businesses in 2000, signify a healthy and expanding economy.

Notably, Minnesota has several state and private programs supporting biotechnology development, including:

• The Agricultural Utilization Research Institute: works cooperatively to create and expand local agricultural markets. The Institute provides both financial and technical assistance in the form of an Initial Project Assessment Program, a Market Assessment Program and a Technology Transfer Program.


• Minnesota’s Department of Trade and Economic Development: offers several business financing programs from tax credits, through the Enterprise Zone Program, to below-market financing through the Minnesota Investment Fund.


• Minnesota Project Innovation: assists businesses in obtaining SBIR and STTR grants, as well as other federal research and development funding.


• Minnesota Project Outreach: established to provide technology transfer information and scientific advice from the University of Minnesota and other institutions to small businesses.

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