Great Plains at Center of Mounting Brain Drain

The agricultural states that lie east of the Rocky Mountains are at the center of an escalating decline in population, far exceeding that of other regions of the country. Of particular concern is the effect of population loss among young, educated workers on the states’ economies, resulting in a brain drain that could leave the region lagging the rest of the nation for many years to come.

A number of areas cry “brain drain” whenever they see statistics for where graduates go after finishing college. Often, those arguments are made without looking at the more useful measure of net migration, the result of considering in-migration as well as out-migration.

One look at the map of the U.S. Census Bureau Population Estimates for 2006 http://www.economist.com/world/na/displaystory.cfm?story_id=10534077 , published in a recent issue of The Economist, graphically illustrates where brain drain is really occurring. And, brain drain is mainly on the plains. The extent of population loss stretching from eastern Montana to west Texas leads the country. The Economist article states that certain areas of the Great Plains are more sparsely populated now than they were in the late 19th century when the government declared them to be deserted. A shrinking agricultural base and industrial farming, technological advances and the region’s failure to attract new businesses are most likely causes for the rapid net out-migration, according to The Economist.

States across the Midwest and Northeast also experiencing significant population loss – especially among younger residents – have employed several measures over the years aimed at reversing brain drain and enticing graduates in emerging fields, such as life sciences. Past initiatives or proposals have included tuition loan forgiveness plans, financial incentives, improving the quality of life, and eliminating the state income tax for younger residents.

In the Midwest, for example, facing an estimated 150,000 skilled worker shortage by 2012, Iowa lawmakers passed the Generation Iowa bill last year. The bill established a 15-member commission to advise and assist in retention and attraction efforts across the state.

The Generation Iowa Commission released its findings last month in Road Map to Recruit and Retain Young People to Iowa http://www.iowalifechanging.com/generation/downloads/gen-iowa-report-2007-RECCOMMENDATIONSONLY.pdf . The group’s report outlines several recommendations across five categories, including reducing student loan debt, expanding career pathways, and aggressively marketing the state. Gov. Chet Culver also announced 60 new Iowa Student Internship Awards last month in the fields of bioscience, advanced manufacturing and information technology, with the goal of transitioning college student interns to full-time employees.

Many of the states located in the Plains, anticipating long-term consequences if their trends of declining demographics continue, are actively working to lure back graduates that have left the state, while also recruiting new residents by promoting the region’s emerging technology base and low cost of living. The following examples highlight recent efforts from government agencies and nonprofit organizations to stem brain drain across the Plains.

Kansas

The Kansas Technology Enterprise Corporation (KTEC) http://www.ktec.com/index_NoFlash.htm launched an initiative last month focusing on professionals and investors in bioscience and information technology with ties to the state. The Come Home to Kansas http://www.comehometokansas.com/ initiative also targets non-residents and entrepreneurs looking for opportunities in technical fields. With a strong foundation of bioscience and technology companies, KTEC hopes to match professionals with Kansas bioscience and information technology employers who are struggling with recruitment through a job portal and website that promotes the state’s assets. The website features resources to connect entrepreneurs to funds and start-up assistance alongside information on the housing market and cost of living data.

Montana

An established program in Montana continues to build a network of support for entrepreneurs in high-technology fields. TechRanch http://www.techranch.org was formed in 2000 with the goal of creating more high-paying jobs to retain Montana graduates. The organization consists of three programs — the Bozeman Technology Accelerator, the TechRanch Entrepreneur Network, and the Bootstrap Montana Loan Program. Collectively, these programs have assisted in the formation of more than 60 companies across the state, many of which have gone on to secure government grants and license technologies, according to TechRanch.

Nebraska

Hoping to establish an entrepreneurial culture in southeast Nebraska, the Inventors, Investors and Entrepreneurship Club continues to hold monthly networking sessions at the University of Nebraska-Lincoln Kimmel Education and Research Center. The sessions serve to recruit younger people to the rural areas of the state to start new businesses. The initiative is part of a larger, regional effort being organized by River Country Economic Development Corporation that focuses on sharing the resources of the business community and services that are available to help start-up companies.

North Dakota

In 2006, University of North Dakota (UND) students established what it calls the first venture capital fund to be completely managed and operated by students (completing all due diligence, making the final investment decision, and negotiating the deal’s term structure). Dakota Venture Group http://www.dakotaventuregroup.com/ , which was seeded by a private donation, operates independently from the university, and five students that serve as managing directors handle all aspects of the investing process. The fund is viewed as a learning opportunity in equity investing for students that also provides a foundation for establishing young companies started by UND students and alumni within the region.

Oklahoma

Lawmakers are looking to the aerospace industry to grow new, high-tech jobs and recruit younger workers. Two bills introduced during the 2008 legislative session would provide tax incentives to graduates who work in aerospace or engineering for at least five years and support the aerospace industry through the creation of the Oklahoma Aerospace Institute focusing on education, training, research and economic development (see the Feb. 6, 2008 issue of the Digest http://www.ssti.org/Digest/2008/020608.htm#OCAST ).

Oklahoma is expected to experience a shortage of about 200 aerospace engineers and 400 electrical engineers by 2014, according to an article in The Oklahoman. At the same time, enrollment for aerospace engineering programs has increased. Between 2001 and 2005, enrollment in bachelor degree programs grew by 55 percent and by nearly 130 percent in master’s programs, the article states.

South Dakota

A joint partnership launched in 2006 between the Department of Labor, the Department of Tourism and State Development, and the Governor’s Office, Dakota Roots aims to grow the state’s workforce by linking former South Dakota residents with local business opportunities. After one year, the initiative has built a labor pool of approximately 1,400 individuals, servicing 241 participants from 40 states. The idea is there are many individuals and companies looking to return to the state, but they need assurance that opportunities for business creation and high-paying jobs are available. The program enables individuals to register their skills and interests to be matched with the needs of local companies and provides assistance to businesses looking to relocate to the state.

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