business

The headline is blunt -- "State lags in venture capital investment, report finds" -- and the news sounds ominous. But the April 25 Star Tribune article suggesting that Minnesota is coming up short on the kind of breakthrough ideas that spawn innovative new companies doesn't tell the whole story.

The real story -- one that far transcends a first-quarter dip in venture capital investing -- is a tale of creativity and innovation that defines Minnesota's long-term business successes.

Minnesota is blessed with a wealth of intellectual capital, creative energy and business acumen and has enjoyed greater business success relative to its size and geography than one might have expected.

Our history is replete with innovative companies such as Cargill, 3M, Medtronic and General Mills, and brilliant individuals such as Seymour Cray, William Norris, the Mayo brothers and Earl Bakken. From water skiing to the electric pop-up toaster, from taconite processing to the "Green Revolution," Minnesota boasts an impressive roster of "firsts" from its companies and research institutions.

The Economist magazine once called innovation "the industrial religion," but it couldn't quite come up with a good working definition of what it is -- let alone a way to measure it. "It is usually thought of as the creation of a better product or process. But it could just as easily be the substitution of a cheaper material in an existing product, or a better way of marketing, distributing or supporting a product or service," the magazine said.

However we define it, innovation drives the economy. Someone once observed that innovation comes from the inspiration, hard work and "entrepreneurial lust or sheer, naked ambition" of clever people. These qualities are especially important now, as we seek ways to preserve the economic luster of Minnesota's rich heritage.

Thomas Friedman has famously characterized the United States as "the world's dream machine," referring to a peculiarly American drive to find new and innovative ways of doing things.

Minnesota can be America's dream machine.

It's not so distant a dream -- even at the most local level. In his State of the State address this year, Gov. Tim Pawlenty pointed to the great innovations emerging from Greater Minnesota. The southwestern part of the state produces more than 70 percent of Minnesota's wind power and boasts an array of biomass and biogas projects -- making primary methane gas from decomposing biological waste. A new plant will create electricity from turkey droppings while another will convert solid municipal waste into a clean-burning, synthetic gas.

Another pumps out 45 million gallons of ethanol a year-- along with Shakers vodka -- and is developing a system to create biomass energy from corn stalks and husks, replacing its use of natural gas altogether. Yet another company is using corn to make everything from drapes to T-shirts.

This represents Minnesota's spirit of innovation at its best, and it's critically important to all of us who live and work in this state to keep it going. We know -- because we're in a position to see it every day -- that innovation is alive and well in Minnesota.

The search for great ideas -- the discovery of the next big thing -- is central to our continued success. Who among us will create the next breakthrough idea? Who will offer the next great business success story? Cultivating these ideas and building more successful start-ups is critical to the ongoing success of our economy.

One way to keep ideas and investment flowing is the second annual Minnesota Cup, a statewide contest that connects budding entrepreneurs with a support network of state and University of Minnesota resources, investors and business leaders.

The governor launched the first competition last year in an effort to identify and promote the best ideas all around the state. Six hundred entries poured in from 48 counties, representing products and services from high tech to no tech, and nearly every conceivable market segment.

The second annual competition is underway, with submissions being taken through May 26. The winner will receive $25,000 in seed capital and guidance from the Wells Fargo Advisory Board, made up of leaders in finance, accounting, legal and management support services.

For more information on the Minnesota Cup competition -- including information on how to enter your breakthrough idea in the contest -- visit www .breakthroughideas.org.

Ward Einess is acting commissioner of the Minnesota Department of Employment and Economic Development. Scott Litman is co-chair of the Minnesota Cup competition.