Cusp of Renaissance in America

“We are on the cusp of a renaissance in America with population shifts,” was how Rich Karlgaard, publisher of Forbes, characterized what he found when he traveled around the country for two years researching his book Life 2.0. He was the keynoter at the IEDC (International Economic Development Conference) Annual Meeting in Chicago last week. I was thrilled to get him one-on-one for breakfast. He and I have corresponded a great deal over the past several years about our work, but it was my first time to actually meet him.

In his speech, he focused upon eight keys that will differentiate great towns. He mentioned that his research and focus is primarily in towns of greater than 50,000, but if you lived in a town of less than 25,000 there was that expert in the room, mentioning me several times by name. Here are the eight keys that he mentioned:

1. Great Education—The key is the K thru 12 system, which is still working well in the upper Midwest. He called it the Brain Belt.

2. University Towns—These are the rising stars, but only those focused upon science and math, not liberal arts. He’s betting on Ft. Collins, CO, not Boulder.

3. Taxes & Regulation—Less is better. Take a look at the borders of states. Fargo, ND is booming. Morehead, MN, across the river, is dead.

4. Private/Public Partnerships—These are the keys of the future. NM is coming off the bottom because Gov. Bill Richardson is proactively searching out private/public partnerships.

5. One Industry Bets—Too many towns are betting on becoming the “Silicon Prairie” or “Biotech Basin”. The better model is to have 1000 entrepreneurs blooming in your town. These entrepreneurs will attract others to your community. Create clusters, have cheap rent and lots of broadband and wi-fi.

6. Power of One—Fargo has flourished with 7%/year growth for the past decade because of one person. Doug Burgum started Great Plains Software there and developed a high technology cluster in the town. Recently, Alien Technology moved their RFID R&D there. Others will follow.

7. Power of Smaller Towns—There is a cost gap and advantage in smaller towns, but one of the key reasons that people are moving to these meccas is a great spiritual and religious revival taking place in the USA. It is much easier to nurture your family and yourself in these places.

8. Magnet Towns—Walter Wriston, an early mentor of Rich’s told him in the early 90s, “Capital and talent will go where it is welcome and will stay where it is well treated.” Rich challenged towns to be such a magnet.