The energy industry is undergoing a revolution, and some companies are breaking the mold with innovative approaches to energy efficiency and sustainability. While there has been significant growth in energy efficiency technology startups in recent years, the Midwest is lagging behind other regions in the United States. This begs the question, what is the special sauce that the Midwest is missing?
According to the 2017 Kauffman Index of Growth Entrepreneurship, which measures startup growth at the city, state, and national level, entrepreneurship grew in 26 out of 40 metro areas measured. The usual big players like San Francisco and Boston remained stable, but mid-sized cities like Indianapolis, Atlanta, and Minneapolis experienced some significant changes in the past year. However, the Midwest as a whole has yet to catch up to the growth rates of other regions.
The Midwest’s diversity in industry and societal norms can make it challenging to create a cohesive and focused economic landscape in energy and water technology. This has led to confusion in the investment community, which often prioritizes being the first to invest in disruptive technologies. Nevertheless, the Midwest boasts legendary energy and water resources, a skilled workforce, and a strong manufacturing base, making it an attractive region for innovation.
To encourage the growth of disruptive EE technologies in the Midwest, radical organizational thinking is needed. Cities like Chicago must present an efficient and effective innovation ladder, leveraging underutilized office and lab spaces to drive innovation in energy and water efficiency products and digital technology. Reciprocal agreements between innovation hubs and accelerators must prioritize energy and water efficiency products and digital technology, while also encouraging nearby states and universities to contribute to a sustainable and thriving business environment.
The McKinsey study suggests that the most workable energy and water startups are poised to disrupt industry and achieve early economic gain while creating community achievement. These end-use products represent the highest manufacturing targeted innovation approaches we can make in the near term, leveraging the inclusive and well-skilled workforce base of the Midwest, the high-tech manufacturing infrastructure, and strong supply chain lines.
Takeaway
To seize the opportunity for innovation in energy and water efficiency, the Midwest must embrace a culture of radical organizational thinking. The region’s diversity in industry and societal norms can make it challenging to create a cohesive and focused economic landscape, but it also presents an opportunity for unique perspectives and approaches to innovation.
Chicago, in particular, must leverage its underutilized office and lab spaces to drive innovation in energy and water efficiency products and digital technology. By fostering reciprocal agreements between innovation hubs and accelerators, the region can attract nearby states and universities to contribute to a sustainable and thriving business environment.
Furthermore, the McKinsey study points to the most workable energy and water startups as those poised to disrupt industry, achieve early economic gain, and create community achievement. These end-use products represent the highest manufacturing targeted innovation approaches the Midwest can make in the near term. Leveraging the region’s inclusive and well-skilled workforce base, high-tech manufacturing infrastructure, and strong supply chain lines, the Midwest has the potential to become a leader in the energy industry revolution.
In summary, the Midwest has the resources and infrastructure to drive innovation in energy and water efficiency, but it requires a culture of radical organizational thinking and prioritization of disruptive EE technologies. By embracing a mindset of innovation and collaboration, the Midwest can not only catch up to other regions but lead the way in the energy industry revolution, creating economic gain and community achievement in the process.
