Indiana must address issues to resolve its brain drain

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A state is not defined by the characteristics of those who stay, but by the characteristics of those who leave. Indiana is going through a major transition, and is having trouble making the change. It is seen in the brain drain, but it also affects other parts of the economy as well. The states with growing economies are making the change to a different balance between “knowledge workers” and skilled workers, and from an older workforce to a younger workforce. Just the opposite is happening in Indiana.

In the last 10 years Indiana has lost population younger than 45, and gained in population older than 45. The problem is that people younger than 45 have babies and those older than 45 have a lot fewer babies, which means the population is going to continue to age. We are also now the seventh-heaviest population in the country with nearly one-third of Hoosiers being obese, which translates into more health care costs. The trends in business and employment have moved rapidly toward more fixed costs in companies — meaning more “knowledge workers” and technology — and away from variable costs, meaning skilled workers. But Indiana’s education level is low as a population compared to other states, making attracting new, innovative firms more difficult.

The brains that we have lost will not come back. The factors that caused them to leave are still here. So we need to concentrate efforts to make changes for those who are currently very young and will soon be born. I teach college students and ask them in every class where they want to begin their careers. It’s not Indiana. Why? Not enough job opportunities, nothing to do, too many old people, and the weather. So, what do we do?

If what we have is not attractive enough to the people who leave, then we have to develop new things attractive enough to keep those who are here. What we don’t have are the jobs many people need or want. So we need to put a huge emphasis on starting new businesses, entrepreneurship. In my discussions with entrepreneurs they tell me that Indiana lacks money — venture capital, “angel investors” and second-level investors. If we don’t have them, then we need to develop the relationships with them that allow connections with entrepreneurs and startups, legal help, marketing help and mentors — those who have been through it before and can give guidance to people with great ideas who have never started a business. In other words, we need a big network of business incubators, not just in the big cities, but linked with people everywhere. Indiana is still basically rural. We need to reach those with ideas everywhere. I’m suggesting loaned executives from larger companies. I also suggesting existing companies start intrapreneur programs to start new companies themselves from inside their existing firm.

We need to work with every city and town to make sure they have people who can help with zoning, utilities, tax abatements, training and all the incentives we offer companies in Indiana that expand. We also have to give ways for cities and towns to become attractive and stop starving them of money. We have among the most highly regulated cities in the country. No wonder we can’t make changes as the economy changes to a knowledge-based economy.

This is not easy. This is big. But if we don’t, in another 10 years will have lost another 50,000 young people and gotten older and heavier, and the stuff we have today that is not attractive enough to keep the talent we have will be another 10 years older. And it will cost a lot more to address the problem. Please, someone come up with a better idea.

Mark L. Akers, assistant professor, School of Business, University of Indianapolis

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