Kansas should foster a thriving startup ecosystem
Ad Astra Podcast
The Silicon Prairie
The Silicon Prairie, Kansas should foster a thriving startup ecosystem. Two facts about Kansas should raise alarm with lawmakers and Topeka and in the public at large. First, there are roughly 40,000 students per grade in Kansas public and private K-12 schools. Less than one in ten will go on to graduate from college and get a job in Kansas. Second, Kansas gross domestic product is roughly $200 billion per year. Of that, roughly half comes from Sedgwick and Johnson counties. Kansas is squandering its human capital and its economy is highly uneven. To fix this, Kansas should enact policies to foster a thriving startup ecosystem, the Silicon Prairie. The history of Silicon Valley provides a roadmap for how Kansas can replicate its success. A combination of federal and state policy beginning in the 1940s helped create what is today the most innovative ecosystem in the world. Most importantly, Stanford University, located in the heart of Silicon Valley, played a crucial role in establishing the innovation cluster we see today. The I-70 corridor in Kansas provides a similar opportunity. Starting in the east, I-70 connects Kansas City to the University of Kansas and Lawrence, to Kansas State University in Manhattan, to Fort Hayes State University in Hayes. If you include the I-135s per South to Wichita, Wichita State University is incorporated. Creating the Silicon Prairie relies on three legs of a stool, education, policy, and partnerships. In this article, I will discuss each. Education in the Silicon Prairie requires a combination of the right education, policy, and partnerships to function. While all three legs are critical to balancing the stool, education is the most important leg. The high school graduation rate in Kansas is 88%. Of note, of the graduates, only 21% are ready for college per ACT testing scores. Roughly half of graduates pursue higher education. On average, about 40% of students graduate college within six years of starting. This rate is higher at four-year institutions and lower at community colleges. Placement rates vary by school, but roughly half of graduates get a job in Kansas after school. Kansas lawmakers should focus on two areas. First, public K-12 education in Kansas needs to be improved. Specifically, college readiness needs to be improved and they need to be more pathways to well-paying jobs in Kansas. This can include vocational training, apprenticeships, and community college. Second, more graduates from Kansas schools need to get jobs in Kansas after school. Policy lawmakers must also create an innovation-friendly business environment, including R and D tax credits and other reforms to the tax code. The state should also create an entrepreneurship-friendly regulatory regime. Finally, the state needs to coordinate a multi-institution Silicon Prairie initiative among Kansas universities and increase their funding accordingly. Partnerships private firms must be partners in the Silicon Prairie for it to be successful. For example, firms could sponsor scholarships for certain programs or could guarantee a job after graduation for certain training programs. Startup incubators and accelerators must also be created to help new businesses succeed. These can be affiliated with existing university programs or be private. Finally, a key to Silicon Valley's success is a vibrant venture capital ecosystem. A new business can quickly get the funding it needs to begin operations and scale. Kansas must attract venture capital firms to have success in creating new businesses. Kansas can either continue to lose its talent and endure an uneven economy or seize the opportunity to build a thriving 21st century economy, the Silicon Prairie. By focusing on improving education, implementing innovation-friendly policies, and fostering strong partnerships with private firms, Kansas can create an environment that retains its graduates, spurs entrepreneurship, and attracts new businesses. The I-70 corridor, with its connection to major universities and urban centers, offers a promising foundation for this transformation. Using this blueprint, Kansas can become a hub of innovation and entrepreneurship, driving widespread economic growth for the state.