Minnesota Technology Industry

The technology industry in the state contributed 7.5% of the total state’s gross product, with a payroll of $13.3 billion in 2015. If the number of patents in the State is a measure of innovation in the industry, Minnesota saw a three times growth in Patents from 1992 to 2014.The technology industry in the state contributed 7.5% of the total state’s gross product, with a payroll of $13.3 billion in 2015. If the number of patents in the State is a measure of innovation in the industry, Minnesota saw a three times growth in Patents from 1992 to 2014. IBM, Medtronic, and 3M were the prime contributors, registering a combined total of 5286 patents. 80% of the Patents were in medical devices (surgery) sub-sector and technology-specific innovation mostly in the data processing and information storage niche.

Venture Capital investments since 2005 in the state have added up to $3.3 billion. However, IT services or software attracted only 16.74% of the total investments, much below the 57% attracted by the Medical Devices and Equipment industry. Angel investment is a different story. The 25% tax credit that was introduced in 2010 as part of the Minnesota's Angel Tax Credit, brought in over $250 million in start-up investments.

The hidden gem among the technology companies is the UnitedHealth Group Inc.'s data services subsidiary – Optum. Unable to handle millions of simultaneous request after the landmark Affordable Care Act, the national healthcare exchange website - healthcare.gov, crashed. Optum came to the rescue and the impressive workaround earned the company contracts worth $31 million for Maryland, Massachusetts, and Minnesota.

Social Service agencies and state officials started seeking the assistance of the technology subsidiary. The company earned $1.1 billion in the short-term building computer systems for social service agencies. The trend continued. Optum, now, is a leading data system provider for hospitals, clinics, and health insurance companies in the US with 2016 revenue crossing $83 billion.



Reference
The changing face of high tech in Minnesota
UnitedHealth a Surprise Fixer of Flawed Obamacare Sites