South Dakota Sees Progress As Clock Ticks on 2010 Economic Development Initiative

While many states will lay out strategic plans with quantifiable goals to measure success, South Dakota in 2003 was one of the first SSTI noticed to use a specific target for its gross state product (GSP) as one of the measures. According to the latest annual review, South Dakota officials feel they are making significant strides in its goal of adding $10 billion to its GSP by 2010.

Using the latest data available from the U.S. Department of Commerce, the 2005 progress report reveals the state’s GSP increased by 21.9 percent between 2001-2004 and, from 2003-2004, the state experienced an increase of 7.6 percent, or $5.4 billion. Comparatively, South Dakota is among the top states to increase GSP over the 2003-2004 period. Only 13 other states saw higher increases. At the top was Nevada, with an increase of 11.8 percent, followed by Arizona at 9 percent and Arkansas at 8.5 percent. Michigan had the lowest increase, 3.5 percent.

Additionally, South Dakota’s employment growth was twice that of the nation in 2005, according to Jafar Karim, director of the Governor’s Office of Economic Development. The state’s per capita personal income also increased by 5.3 percent, which is above the national average of 4.9 percent.

Gov. Mike Rounds unveiled the economic stimulus plan in 2003, which outlines a series of specific goals for economic growth and visitor spending in the state by the year 2010. Research and technology development play central roles to the strategy. The third goal of the initiative is to become a leader in research and technology by 2010. Measurements within this group include National Science Foundation and National Institutes of Health funding to the state, academic R&D expenditures, annual patents issued, science and engineering (S&E) doctorate awards granted, and educational attainment. Within this category, the state produced mixed results. Annual patents decreased by 1.1 percent over 2003-2004 and S&E doctoral awards decreased by 8.3 percent. However, educational attainment – the percentage of the population age 25 or older to hold a bachelor’s degree or higher – increased by 10.4 percent.

Mel Ustad, director of commercialization and research, said there was significant progress in this goal through the establishment of funding for the state’s four research centers (see the July 26, 2004 issue of the Digest). These centers attract more external funding and produce innovations with commercial potential, Ustad said.

More information on the 2010 Initiative is available at: http://www.2010initiative.com/

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