Frequently Asked Questions: Funding

How much has the state already given?

The 2003 Legislature and Governor Pawlenty took the first step of providing $2 million in state funds combined with matching funds from the University and Mayo to launch joint research projects focused on improving health care, including the diagnosis and treatment of cancer, heart disease and neurological diseases.

What will the partnership need to keep moving forward?

To achieve these outcomes and goals, the partnership anticipates requirements of $70 million over five years for programmatic needs (faculty and staff salaries, scientific infrastructure, equipment, and developmental funds to assure that technologies are effectively developed). This state money will be used to match and leverage the significant research funding sponsored by the University and Mayo. Depending upon the specific space requirements necessary to move collaboration forward, the Partnership may seek state bond financing to construct a research facility to house the scientists and laboratories needed to support this highly technical research.

What will the University and Mayo Clinic contribute to this effort if there is a Phase Two?

The University and Mayo Clinic have made strategic investments in biotechnology and medical genomics over the last several years - spending nearly half a billion dollars on infrastructure, equipment, research databases, and most especially the recruitment and retention of top faculty in these fields. The investments made by the University and Mayo Clinic will enable the state to leverage its investment in ways not possible with other state investments.

How will the state's money be used? Will it just cover the cost of research?

The money will be used to fund the direct and indirect costs of research (such as facilities, operations, and administration) and certain incidental expenses (such as the cost of external review.

Will you be looking for private investors or money from the federal government?

It is possible that as this effort progresses there will be appropriate roles and opportunities for private investors. The University and Mayo will continuously explore possible relationships with the private sector in regard to technology transfer or other aspects of the collaboration, which could involve the private sector in an appropriate and mutually beneficial way. Minnesota companies could be directly involved in research projects, where appropriate, or participate in technology development.

The partnership will be looking at ways in which we can leverage federal support including appropriations to support infrastructure needs or direct research grant support.

When do you expect a return on state investments?

The short-term return on the state's investment likely will exceed 100 percent, as it will enable the partnership to attract additional federal and industry support. The early returns are primarily from the awarding of new research from such agencies as the National Institutes of Health. Every additional $1M of these dollars creates about 38 new jobs. A decade from now, the health and economic benefits to the people of Minnesota should begin to develop.

Why should taxpayers fund this effort, shouldn't it be private investors?

We expect there will be a role for private investors but the research needs to come first. In the wake of substantial breakthroughs in biological understandings and new technology, exemplified by the mapping and sequencing of the human genome, the potential for new scientific discoveries is momentous. Mayo and the University have already invested heavily in attracting important scientific talent and developing the infrastructure to support a competitive research effort. They are prepared to continue supporting this investment through a joint collaboration. However, neither Mayo nor the University can do it alone. The State's investment jump-starts the collaboration between the two institutions to find the areas of synergy and begin the process of translating the new knowledge into products, devices, and therapeutics that also create new jobs and businesses. The State also has additional economic development tools to facilitate this opportunity the benefit of all Minnesotans.

There will also be a role for private investors down stream when the investment capital for starting new companies is necessary to commercialize the technology discovered during the research process.