innovationIOWA Weekly 12.12.19

At the Technology Association of Iowa’s recent Catalysts event, retiring Executive Vice President Gary Scholten of Principal Financial Group said he has watched the fight for growth in Iowa’s tech scene.

"About 10 years ago TAI commissioned a study, and at that time they determined that about 10% of the jobs in Iowa were linked to technology, and over 12% of the economy was connected to technology," Scholten said.

Out of $117 billion in venture capital funneled to U.S. startups in 2018, only 1.2% came to Midwest-based startups, said Kerty Levy, recently named managing director of Techstars Iowa.

(ICYMI: ‘Everybody is a change agent,’ Catalyst honorees share)

TAI’s Catalysts used last week as a call to action. This week, the rest of the country heard the call, as a new report highlighted population and economic discrepancies between major cities and the U.S. heartland.

Despite all the growth Iowans are seeing on the plains, 90% of the U.S. job growth in tech -- and by extension, the wealth concentration -- is in just five cities along the national coasts, causing "a crisis of regional imbalance," according to a new report from the Brookings Institution and the Information Technology and Innovation Foundation.

Regional divergence is causing an extreme swing in economic impacts, the report argues: The combination of Boston, San Francisco, San Jose, Seattle and San Diego shares 22.8% of the nation’s "innovation employment" of workers in the science, technology, mathematics and engineering industries. The early development of infrastructure, such as broadband, needed by tech companies in a limited number of communities is reinforcing concentration of companies and jobs, and the divergence between national "innovation centers" and underdeveloped regions is exacerbating political polarization.

The study authors -- Robert Atkinson, Mark Muro and Jacob Whiton -- propose that the federal government could assemble major 10-year investment packages worth $100 billion over the decade in eight to 10 heartland cities with a minimum population threshold of 500,000 residents.

The Des Moines-West Des Moines metro is right on the map among potential candidates proposed by the study, alongside 34 other communities in 19 states.

(Full report: "The Case for Growth Centers.")

"Some will say the present proposal goes way too far, while others will say it doesn’t go far enough," the authors wrote. "The proposed innovation surge would absolutely begin to transform the nation’s spatial malaise. Most notably, it would bring new vitality closer to more communities, allowing for smaller towns and counties to benefit through supply chain relationships, commuting and other interdependencies with the growth centers."

IN THE NEWS

Malware found on city of West Des Moines computer network
City staff members are investigating after finding malware on the city of West Des Moines’ computer network, KCCI reports. On Monday, the West Des Moines Fire Department said that the extent and impact of the malware was unknown but that police, fire, EMS and dispatch services were operating as normal.

IDx announces new executive leadership team appointments
IDx Technologies founder and CEO Michael Abramoff is succeeding Gary Seamans as executive chairman as the Coralville-based medical company announced new leadership appointments across its executive leadership team. Other appointments include John Bertrand succeeding Abramoff as CEO; Seth Rainford being appointed president and COO; and Danika Simonson being hired in the newly created chief of staff position. IDx Technologies is the creator of IDx-DR, an FDA-authorized autonomous artificial intelligence system that detects diabetic retinopathy, a leading cause of blindness.

C.R. funeral equipment company wins innovation award
Cedar Rapids-based Mortuary Lift has won second place in the National Funeral Directors Association’s annual Innovation Awards for its lightweight stair climbing system known as "the Stepper," reports the Corridor Business Journal. The NFDA's Innovation Awards recognize outstanding funeral service equipment, products and processes introduced commercially during the prior year. The Stepper promises to ease the toll lifting takes on workers in the funeral service industry. The average male funeral director in the United States is 50.6 years old, while the average female funeral director is 44.6, according to Census Bureau data compiled by datausa.io.

ONE GOOD TECH READ
Did Uber just enable discrimination by destination?

CITYLAB: If you call an Uber to take you to a low-income neighborhood in Oakland or Los Angeles, you might have to wait longer than you used to — and it’s possible you won’t be matched with a driver at all. These are potential consequences of changes Uber quietly announced in its driver platform in California last week. Drivers in that state will now be able to see each would-be passenger’s destination upfront — before the ride is accepted. As a result, California cities could now have a new ride-hailing worry to add to their growing list: discrimination based on a rider’s destination.

IN OTHER NEWS: Bioethical study slams GoFundMe for allowing fundraising campaigns on unproven medical procedures (THE VERGE).

By Business Record Staff

For the past 20 years, the Business Record has celebrated Forty Under 40. The honor has long recognized up-and-coming business leaders and the powerful impact young professionals make in Greater Des Moines.

Each of these 800 past Forty under 40 honorees not only were inspiring when they were nominated, but also went on to greater success. They were honored for both their business accomplishments and their involvement with civic or philanthropic initiatives. We look forward to continuing this tradition of celebrating and elevating these leaders.

BUSINESS RECORD CALENDAR
UPCOMING EVENTS

Dec. 13: TAI's TechBrew AM
TechBrew AM is a morning networking event for entrepreneurs, technologists, government officials, business leaders and funders to connect over coffee and learn about a local technology executive.
WHERE: West End Architectural Salvage, 8-9 a.m.
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Dec. 18: Startup Ames and 1 Million Cups Holiday Special
1 Million Cups Ames and Startup Ames invite you to celebrate an amazing year. Join us at Lockwood Cafe for appetizers, drinks and a fun celebration. This event is free and open to anyone, and the first drink is on us!
WHERE: 4625 Reliable Street, Ames, 5-7 p.m.
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View our full calendar to see the latest curated business and community events, or suggest an event.