Minneapolis, MN – On Tuesday, May 28, 2019, Medical Alley Association released the following statement in response to the newly-proposed state budget for FY 2020-2021:
“With so much at stake, Medical Alley Association sincerely thanks Governor Tim Walz, Representative Melissa Hortman, Senator Paul Gazelka and all of the legislators who helped support provisions of the budget that continue to grow Medical Alley as the global epicenter of health innovation and care,” said Shaye Mandle, President and CEO of Medical Alley Association. “Our team looks forward to working with all of Minnesota’s leaders to ensure that the state’s most vital industry can thrive, bringing good jobs to the state and innovative treatments to patients all over the world.”
Medical Alley Association appreciates the reinstatement of the Angel Investment Tax Credit (AITC). Funded at $10 million for each of tax years 2019 and 2021, this will give startups more ready access to capital. From 2013 to 2017, 131 health technology companies raised more than $108 million and have leveraged an additional $372 million in funding thanks to the AITC. Additionally, with competitor states such as Illinois and Massachusetts recently establishing similar credits, this will help Minnesota remain an attractive option for innovative startups to locate and grow.
Medical Alley Association also supports the allocation of funds for Launch Minnesota, the SciTechsperience internship program, and the plan to drive private investment in Duluth through establishing a regional exchange council modeled after Rochester’s Destination Medical Center (DMC). By providing direct grants to innovators, as well as education and outreach to current and future entrepreneurs, Launch Minnesota will help startups access the tools they need to be successful at every stage of development. Furthermore, the funding for the SciTechsperience internship program ensures that an important talent pipeline for employers throughout Minnesota remains viable, strengthening the state’s workforce both now and in the future.
Establishing a DMC-style authority in Duluth will lead to significant investment and growth in the health innovation and care industry. Duluth already has a thriving healthcare industry; Essentia Health and St. Luke’s employ about 10,000 people in the Duluth area and pay nearly $1.5 billion in wages and benefits. Both of them already are investing tens of millions of dollars in local construction, including Essentia Health’s Vision Northland. Adding investment from the state to this economic impact will accelerate Duluth’s growth as a hub for investment and innovation in the health technology and care industry.
About the Medical Alley Association
Founded in 1984, the Medical Alley Association supports and advances the global leadership of Medical Alley’s healthcare industry, and its connectivity around the world. MAA delivers the collective influence, intelligence and interactions that support Medical Alley.