Report: Kansas, Missouri economies hinge on homegrown startups, not border war wins
August 29, 2019 | Rashi Shrivastava
Kansas and Missouri must “grow from within” if the neighboring states aim to successfully confront structural challenges that face their economies, said Amy Liu, a contributor at national think tank the Brookings Institution.
Govs. Laura Kelly, D-Kansas, and Mike Parson, R-Missouri
The “historic handshake” between Govs. Laura Kelly, D-Kansas, and Mike Parson, R-Missouri, earlier this month marked the symbolic end to an ongoing economic border war that produced headline-making wins for the states in a decades-long game of tit for tat — but little actual economic development or job creation in either state, according to previous reporting.
A new era of collaboration for Kansas and Missouri should focus on job growth linked to the expansion of existing businesses and startups — not from business relocations and tax incentive-based lures, said Liu.
“The opportunity is now there for both states to put the unbalanced tax abatements and hollow business relocations in the past,” she said. “They need to move forward vigorously by focusing on building homegrown talent, enriching education opportunities, and ensuring that each state’s workforce can access quality transportation and housing.”
The two Midwest states are among those geographic economies that lack the “critical mass of knowledge assets” like applied research and development capability and specialty skilled workers, Liu said. And while efforts like innovation districts in communities like Kansas City and St. Louis seek to address such challenges, statewide and even multi-state initiatives are needed to secure long-term wins in the world of rapidly-advancing innovation.
Click here to read about how communities and developers are working to craft the right formula for innovation hubs in Kansas City.
“We are in the midst of a winner-take-most economy where superstar cities like San Francisco, San Jose, Austin, and Boston are capturing an ever-growing share of the nation’s innovation jobs and talent,” Liu said.
Another trend putting Kansas and Missouri at risk: automation of jobs, she said, noting a quarter of jobs in the two bordering states are at “high-risk” of automation, according to a report published by Brookings.
“Leaders must embrace a vision of regional economic development that is comprehensive in scope, collaborative in spirit, and inclusive, improving incomes and employment for everyone, no matter their race or zip code,” Liu said.
This story was produced through a collaboration between Missouri Business Alert and Startland News.
2019 Startups to Watch
stats here
Related Posts on Startland News
Grief happens on (and off) company time: Why a startup founded from loss is building holistic bereavement plans for corporate America
When grieving employees return to work, managers and colleagues often aren’t equipped to properly support them, said Lisa Cooper. “While I was working in corporate America for quite some time, I had witnessed a lot of dysfunction surrounding grief,” said Cooper, co-founder of Workplace Healing alongside Mindy Corporon. For example, I can remember specifically when someone…
Cherry enters the endorsement game, scoring NIL deals that also boost female college athletes
Partnering with college athletes is a natural elevation of sports apparel company Cherry Co., said Thalia Cherry. The KC-based brand signed agreements with 18 athletes for NIL (name, image, likeness) endorsement deals, shared Cherry, founder and CEO. “It’s a perfect alignment,” she continued. “We were already working with professional athletes in some capacity. So when…
Savvy duo builds their brand on embracing natural hair; Here’s how the salon chain is creating healthy space for stylists, clients alike
Savvy Salon KC — one of Kansas City’s only Black-owned salon chains — is all about creating a better experience for both the customer and the stylists, said founders Rickey and Lenora Leathers. The salon — which specializes in curly- and coily-textured hair and creating sustainable career opportunities for women of color — opened its…
Starting a business? ‘Never-give-up attitude’ matters more than you think, says Porter House co-founder
Editor’s note: This story was originally published by Missouri Business Alert, a member of the KC Media Collective, which also includes Startland News, KCUR 89.3, American Public Square, Kansas City PBS/Flatland, and The Kansas City Beacon. Click here to read the original story. While there are lots of important skills and knowledge to have when starting a…