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SPECIAL ADVERTISING SECTION In America’s heartland, Missouri is transforming itself into a center for biotechnology and sustainable businesses that can help the planet. ChAnge A stAte of IN PARTNERSHIP WITH

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Page 1: Fortune Magazine Missouri Section

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In America’s heartland, Missouri is transforming itself into a center for biotechnology and sustainable businesses that can help the planet.

ChAngeA stAte of

In PartnershIP wIth

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different kind of crop these days—

young companies that are looking to

leave their mark on the world by curing

cancer, feeding the hungry, solving the

energy crisis, and tackling the other

critical challenges facing the planet.

The entrepreneurs behind these

fledgling firms are dreaming big.

They’re also getting lots of support

from state and local government, as

well as from Missouri’s leading universi-

ties and prestigious research institutes.

The resulting spirit of collaboration and

innovation is luring companies from

high-profile states like California, New

York, and South Carolina, and even

some from countries as far away as the

United Kingdom and Israel.

Consider Immunophotonics, a small

company that has developed a minimally

invasive laser-assisted vaccine designed

to treat metastatic breast cancer. A

year ago, the company moved into the

University of Missouri’s brand-new Life

Science Business Incubator in Columbia,

where $300 a month buys furnished

work space, shared office equipment,

and access to mentoring resources. “We

moved into the incubator to take this

to FDA approval in the U.S.,” says chair-

man and CEO Tomas Hode, a Ph.D. from

Sweden who founded the company. In

moving to Missouri, he got not only af-

fordable office space but also financing,

mentoring, and room to grow. “I am

very, very happy here,” he says.

Take a 30-minute drive from Colum-

bia, and there’s Soy Labs, a onetime

California company. It will soon be the

first tenant in the Missouri Plant Sci-

ence Center, now under construction in

the small town of Mexico. In addition

to office and lab space, the center will

include a pilot manufacturing plant de-

signed to help companies easily move

from the lab into initial manufacturing.

And that, says Soy Labs president Ryan

Schmidt, means his fledgling company

will be able to get its product to market

without first investing in its own labora-

tory or production plant.

“It would cost us easily 50% to 80%

more to do this same work in California,”

SPECIAL ADVERTISING SECTION

If the words “heartland” and “cutting edge” don’t seem to have much in common, think again and take a hard look at Missouri. Along with its traditional harvest of corn and soybeans, Missouri is growing a very

Missouri ranks second in the nation in the

nuMber of farMs.

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says Schmidt, whose company develops

cholesterol-reducing soy products that

can be added to supplements, foods,

or beverages. He expects to have 20

employees on-site within nine months,

and hopes to eventually build a plant in

the 70-acre business park that abuts the

center. “If you can grow companies and

grow entrepreneurs in this down econ-

omy,” he says, “just wait until the econ-

omy turns around to see what happens.”

Homegrown Success Stories

Missouri—which proudly touts its nick-

name, “The Show-Me State”—takes this

culture of entrepreneurship seriously.

Studies show that business startups

play a major role in job creation, in

some areas providing as much as 12%

of employment, according to the Kauff-

man Foundation, a Kansas City–based

organization devoted to entrepreneur-

ship. The state has only to look at some

of its own success stories to see what

can happen.

Express Scripts, for one, started in

1986 with the innovative idea of provid-

ing mail-order pharmacy services. “Our

founder looked at millions of patients

taking maintenance medications for

chronic diseases, and he wondered why

they were being forced to drive to a

pharmacy every 30 days,” says CFO Jeff

Hall. For the next 25 years, the company

implemented a series of breakthrough

methods that continue to make the use

of prescription drugs safer, more ef-

fective, and more affordable. With its

commitment to R&D, Express Scripts,

now headquartered on the campus of

the University of Missouri–St. Louis, has

flourished. Revenues in 2009 reached

$24.7 billion, and they are projected to

exceed $40 billion in 2010.

The impact on the state’s economy?

When you add up Express Scripts’ pay-

roll, the business it does with local sup-

pliers, capital investment, charitable

contributions, and taxes, the amount

that the company contributes to Mis-

souri totals nearly $1 billion a year. And,

after opening its multimillion-dollar

Technology & Innovation Center this

past year, Express Scripts’ positive eco-

nomic impact on Missouri should con-

tinue to grow. It’s a story that the state

is anxious to replicate, and it’s work-

ing hard to do just that. Building on its

diverse agricultural base, the state is

helping launch companies that can take

advantage of Missouri’s great natural

resources, world-class universities, out-

standing quality of life, and supportive

business environment.

Missouri uses a traditional toolbox

of tax credits, tax rebates, and govern-

ment grants to attract companies to

the state. But there’s more. The state

receives a spotless AAA bond rating

from all three rating agencies, and for

the past two years it has balanced its

budget without raising taxes. In a CNBC

rating of states with the lowest cost of

doing business, Missouri ranks fifth.

These days the state is finding that

some of its strongest appeal comes

from Missouri’s community approach to

problem-solving, its collaborative spirit,

and its willingness to think outside the

box. This penchant for innovation and

independent thinking is clear in the

initiatives designed to chart the state’s

future economy.

One of the most ambitious is

Missouri’s Strategic Initiative for Eco-

nomic Growth. Launched this summer

by Governor Jay Nixon, its stated pur-

pose is to transform the state’s economy

in the next five years. “We want to be

proactive, not reactive,” says Nixon of

the project, which will ultimately iden-

tify the six or eight initiatives that hold

the most promise for Missouri. “We

need to know where we are going if we

are going to get there.”

The project—business-led and data-

driven—is moving fast. With a 41-mem-

ber steering committee comprising busi-

ness, industry, labor, civic, and education

leaders, the initiative has garnered

broad support. Its final report is due on

the Governor’s desk by March 31.

Such aggressive pursuit of business in-

novation isn’t a surprise to Missourians.

After all, this is the state that launched

the Lewis and Clark expedition and gave

birth to the Pony Express. Missouri is

the state that invented the ice cream

cone and built the space modules used

kansas city skyline, highlighted by the

historic union station.

Page 5: Fortune Magazine Missouri Section

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in the Gemini and Mercury space proj-

ects. These days, it’s home to a growing

number of scientists who are splitting

genomes, creating new energy frontiers,

and changing the face of agriculture.

Sustainable Agriculture

In the eastern part of the state near

St. Louis, the emphasis is on plant sci-

ences. It is here that the prestigious

Danforth Plant Science Center is work-

ing to develop new varieties of crops,

ranging from cassava with improved

nutritional qualities to disease-resistant

and drought-tolerant plants, and new

biofuels to create a sustainable energy

source, as well as ways to reduce pesti-

cide and fertilizer use.

“Our goal is to improve nutrition,

end starvation, preserve the environ-

ment, and build St. Louis as a center for

plant science,” says William H. Danforth,

chairman of the center named for his fa-

ther. “If you don’t have something great

in your community, you don’t have a

great community.”

Next door to the Danforth Center, a

new bioresearch park is attracting young

plant-science firms. Across the street

from the center is Monsanto, the former

chemical company that has remade itself

by focusing on agriculture. Along the

way, it has become a major force in the

search for new ways to make agriculture

more sustainable. Its sprawling 500-acre

facility is filled with scientists who take

that charge seriously.

Given the projections for world

population growth, agriculture has a

big job—doubling food production by

2050, says Brett Begemann, Monsanto’s

executive vice president of global seeds

and traits. “And we’ll have to do it on

the same amount of land and with fewer

resources.” The company is doing its part

to address these challenges by develop-

ing better tools for farmers, including

advanced hybrid and biotech seeds.

Still, getting the world to see the

potential provided by new agricultural

innovations can be challenging. “People

don’t understand how significantly

farmers could improve their lot by sim-

ply using hybrid seed,” says Begemann.

Example: In three short years, the intro-

duction of hybrid corn seed transformed

Malawi from a country where people

were starving to one that is now export-

ing its own corn.

Animal Kingdom

In the western part of Missouri, the fo-

cus shifts from plants to animals. Once

home to the Kansas City Stockyards, this

region has now positioned itself as the

nation’s animal health center, produc-

ing everything from animal vaccines

and veterinary supplies to livestock feed

and pet products. Some 32% of the $19

billion global animal health industry is

based in the Kansas City area, making it

the largest single concentration of ani-

mal health companies in the world.

Why Kansas City? Located in the geo-

graphic center of the U.S., the Kansas

City region is within 350 miles of 45%

of all the country’s feedlot cattle, 40%

of its hogs, and 20% of its beef cows

and calves. The region has five veteri-

nary schools located within a 300-mile

radius. In 2007, the U.S. Animal Health

Association moved its headquarters to

nearby St. Joseph after decades in Vir-

ginia. Small surprise, then, that the re-

gion boasts such well-known brands as

Advantix, Beneful, and Greenies, as well

as companies like Switzerland’s Nestle

Purina Petcare and Israel’s Teva Animal

Health Inc. “A very large part of the

global industry is sitting right here,” says

George Heidgerken, president and CEO

of animal health company Boehringer

Ingelheim Vetmedica Inc. and chairman

of the advisory board for the KC Animal

Health Corridor.

Then there are the biomedical

companies. Some have their roots in

SPECIAL ADVERTISING SECTION

greenhouses at the donald danforth

Plant science center, st. louis.

Missouri ranks third in the small Business and entrepreneurship Council’s energy Cost Index 2010, which measures where the 50 states stand in terms of how major energy costs affect small businesses, individuals, and families.

Page 7: Fortune Magazine Missouri Section

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state fact file:

• Missouri was named after a tribe whose name meant “town of the large canoes.”

• Missouri was the first state to free its slaves.

• the state boasts more than 95 wineries, which have an economic impact of more than $700 million a year.

• the state nickname—“the show Me state”—was coined in 1899 when Congressman Willard Duncan Vandiver stated: “I’m from Missouri and you’ve got to show me.”

• Walt Disney, who grew up in Marceline, based Disneyland’s Main street UsA on that town.

• Rock Port, with a population of 1,300, is the first city in the U.s. to be powered by wind.

• Branson, located in south-east Missouri, boasts more

theater seats than the Broad-way theater district in new York.

• In 2010, Missouri celebrated the 175th anniversary of Mark twain’s birth, the 125th an-niversary of his work Adventures of Huckleberry Finn, and the 100th anniversary of his death.

• the agricultural sector accounts for 13.3% of the state’s gross product.

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genome-sequencing projects at the

universities; others have sprung from

Missouri hospitals. Still others have ar-

rived from outside the state to capital-

ize on Missouri’s research capabilities

and incubator support. The collabora-

tive approach to both science and eco-

nomic development translates into lots

of room for translational science, which

means that breakthroughs in one disci-

pline can easily be applied in another.

At Washington University, located

at the western edge of Forest Park in

St. Louis, that kind of interdisciplinary

approach is hardwired into the curricu-

lum. Students are encouraged to take

courses in any of the university’s various

schools, and it’s not uncommon to find

a biology major minoring in music or

a student in the art school graduating

with a dual major in economics.

Then there is the university’s Skan-

dalaris Center for Entrepreneurial Stud-

ies. While located within the business

school, it funds and coordinates courses

across all schools and programs at the

university. Every year, it awards more

than $200,000 in seed money for com-

mercial and nonprofit ventures. Recent

winners include a customized earbud

company, a DNA sequencing lab, a loca-

vore food market, and a group that uses

ballroom dancing to build self-esteem

and confidence among fifth-graders.

With about 6,000 full-time under-

graduates and 5,600 full-time students

in graduate and professional programs,

Washington University has also been a

magnet for talent. “We have become

one of the major importers of human

resources in the state,” says Chancellor

Mark S. Wrighton. “Approximately 90%

of our students come from outside Mis-

souri, and about 30% remain in the re-

gion after graduation.”

Incubating Breakthrough Ideas

At the University of Missouri system,

new policies are helping the four-

campus system aggressively tackle the

challenge of growing new companies.

A few years ago, the system expanded

its stated mission to include economic

goods roll off the line in a Missouri Plant.

Missouri is located

near the country’s geo-

graphic and population

centers and is a virtual

“next-door-neighbor”

to at least 20 states.

The state’s proximity

also allows for effi-

cient “quick shipping”

to markets all over the

world. The state has

been ranked as one of

the best for manufac-

turing and logistics.

Missouri has the 7th

largest highway system

in the U.S., two of the

largest rail terminals,

and more than 1,000

miles of waterways.

The state is a hub of

business activity, with

more than 160,000

tons of cargo and 20

million airline passen-

gers transported by air

each year.

Within 500 miles of:

• 44% of U.s. population

• 38% of U.s. personal income

• 45% of total U.s. households

• 46% of total U.s. manufacturing capacity

Missouri’s Central Location

500 Miles

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development, and ever since it has been

overhauling the way it develops, at-

tracts, grows, and invests in fledgling

businesses. “We color outside the lines,”

says Mike Nichols, vice president of re-

search and economic development.

On one front, the university sys-

tem—which has nearly 70,000 students

on its four campuses—has revamped

some longstanding practices to make it

easier to attract talent. Most recently,

it changed its rules to allow students to

own outright any intellectual property

they develop while in school. It also takes

a generous approach to its faculty inven-

tors, letting them keep one-third off

the top of any revenues produced by a

technology that the university chooses to

commercialize. Then it reinvests a signifi-

cant portion of what’s left in the inven-

tor’s department.

The university system also took aim

at the state’s Sunshine Law, which re-

quired its public-private partnerships and

collaborations to be transparent to the

public. That law was making it nearly im-

possible for the university to work with

companies concerned about revealing

business plans, financial information, or

trade secrets that could endanger their

competitiveness, Nichols says. This sum-

mer, Senate Bill 733 revised that law,

leveling the playing field between public

and privately funded institutions.

The university has even begun making

direct investments in startup companies.

This year, some $600,000 was available

for fast-track faculty projects—inventions

that needed a bit more money to see if

they could be commercialized. There is

also a brand-new $5 million seed-capital

fund for direct investment, which Nich-

ols sees as offering the state big returns.

“We’re not looking to make money.

We’re looking to create jobs,” he says.

The result is more small companies

populating a growing number of uni-

versity-affiliated high-tech incubators

that are designed to foster growth in

plant science, animal health, biomedical

innovations, and other attractive areas.

“I feel like a kid in a candy store,” says

Nichols, who spent 25 years launching

new companies before joining the uni-

versity. “I get to leverage other people’s

money, make money for them, and teach

others how to do it.”

These incubators offer the commu-

nity more than just job generation. At

the Christopher S. “Kit” Bond Science

and Technology Incubator in St. Joseph,

Missouri ranks fifth in the tax foundation’s Corporate Income tax Index, which looks at the impact of each state’s principal tax on business activities within the state.

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Gary Clapp runs a unit that’s located on

the Missouri Western State University

campus. He also teaches a course on

bio-manufacturing that’s designed to

provide real-world experience to college

students so they understand of the rules,

regulations, and restrictions that apply

when bringing a product to market.

As head of the Institute for Indus-

trial and Applied Life Sciences, Clapp also

has worked with the local school district

to get more math and science into the

classroom. Yet Clapp says workforce de-

velopment is something that needs to be

addressed even before kids start school.

Citing new programs that target the pre-

school population, he says, “Training has

to begin as soon as a family gets started.”

Supporting Fledgling Entrepreneurs

In Independence, an old hospital is in

the process of being transformed into

an incubator that will feature not only

scientific wet labs but also kitchen work-

space. The Ennovation Center, owned

by the Independence school district, is

aimed at attracting young companies.

But in renovating the building, the de-

signers have kept in mind the impor-

tance of science education. In convert-

ing an old surgical suite into a lab, they

retained the viewing area that once let

visitors watch operations. “We call this

our Grey’s Anatomy suite,” says Tom

Lesnak, president of Independence Eco-

nomic Development, noting that stu-

dents will now be able to watch chemi-

cal experiments without being exposed

to chemicals or fumes.

Job Momentum in Missouri

0 10 20 30 40 50 60 70 80

0 10 20 30 40

65.7%

23.3%

11.0%

Companies were asked: over the next 12 months, does your business plan on increasing, maintaining, or decreasing your current employment levels?

Maintaining

increasing

decreasing

source: Meric Missouri business survey 2010

Monsanto and Vine Design® is a registered trademark of Monsanto Technology LLC. ©2010 Monsanto Company.

We’re Proud to CallMissouri Home

Producing More. Conserving More. Improving Lives. That’s sustainable agriculture. And that’s what Monsanto is all about.

Learn more at www.monsanto.com

Monsanto is a global leader in agricultural innovation.

We work with farmers to produce more crops for a growing world

while conserving more natural resources for future generations.

Headquartered in St. Louis, we are committed to improving lives in

communities where we operate. That’s why we donated nearly $6

million last year to the St. Louis region and its charities through the

Monsanto Fund.

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historical snapshots:

• the Pony express, born in st. Joseph in 1860, improved communications across the country by shortening mail delivery from st. Joseph to sacramento, Calif. the fastest trip made during the compa-ny’s brief 18-month history: seven days and 17 hours.

• Born a slave, Missouri native george Washington Carver

discovered 300 uses for peanuts. the agri-cultural chemist

also developed a crop rota-tion system for southern cot-ton farmers that made use of soil-enriching plants such as peanuts, soybeans, sweet po-tatoes, and pecans.

• In the early 1870s, Adolphus Busch was the first Ameri-can brewer to adopt the use of pasteurization, allowing beer to be shipped long distances with-out spoiling. he also pioneered the use of artificial refrigera-tion, refrigerated rail cars, and rail-side icehouses.

• the 10-story Wainwright Building, designed by Louis sullivan and built in 1891, is considered the world’s first skyscraper. still standing in downtown st. Louis, the building marked a turning point in building design due to its load-bearing steel framework.

• food firsts are common: the ice cream cone was re-portedly invented at the st. Louis World’s fair in 1904. other iconic Ameri-can foods—including the hot dog, Dr Pepper, cotton candy, and iced tea—were popularized at the fair. Aunt Jemima’s pancake flour, in-vented in st. Joseph, was the first ready-mix food to be in-troduced commercially.

• the University of Missouri opened the world’s first school of journalism on sept. 14, 1908. By the end of the day students and faculty edi-tors had published its first newspaper.

• McDonnell Aircraft, which later merged with

Boeing, built space cap-sules for Project Mercury,

the first U.s. manned space program, as well as for Project gemini.GoToStLouis.org

FORTUNE 1000 is a trademark of theFortune Magazine division of Time Inc.

Leading FinancialServices Center

Second Only to Wall Street

25 Colleges and Universities

National Leaderin Plant and Life Sciences

Affordable Living

Home ofFORTUNE 1000™

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• Express Scripts • Emerson Electric • Monsanto • Ameren

•Reinsurance Group of America • Charter Communications

• Peabody Energy • Smurfit-Stone Container • Graybar Electric • Centene • Energizer Holdings

• Ralcorp Holdings • Jones Financial • Arch Coal • Brown Shoe

• Sigma-Aldrich • Patriot Coal • Solutia • Laclede Group •

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Making Missouri Healthier—Physically and Financially

With 400 locations and nearly 22,000 co-workers and physi-

cians across the state, Mercy touches the lives of approxi-

mately 1.8 million Missourians each year. As an employer,

Mercy provides approximately $104 million in payroll each

month to build stronger families and local economies. The

economic benefit of Mercy in the St. Louis area alone has

been estimated at $2.2 billion in 2009.

$450 Million Electronic Health Record Investment Improves

Patient Experience

Mercy joins just 2.6% of providers nationwide (including Johns

Hopkins and Mayo Clinic) that use an electronic health record

to its fullest. Each day, doctors and caregivers place an average

of 60,000 orders for care and track over 30,000 medication

administrations, improving safety and outcomes for patients.

New Personal Health Record Empowers People to

Better Manage Health

MyMercy, an online connection with a personal physician,

opens up unlimited possibilities in managing health. With

the right information and a convenient connection to their

doctor, people can make smarter decisions and live more

productive lives.

Nation’s Largest Single-Hub Electronic ICU Extends Care

to Remote Hospitals

Mercy’s SafeWatch program brings specially trained physicians

called “intensivists” to over 400 ICU beds in four states. Based

in St. Louis, SafeWatch represents the future of telemedicine;

it provides extra support and expertise to a patient’s bedside

care team in remote hospitals.

$60 Million Data Center Processes Two Terabytes of

Information Every Second

Mercy chose Washington, Mo. from more than 20 sites in the

Midwest to build its data center. The center supports Mercy’s

clinical and operational functions across four states. Built on

Missouri bedrock, it can withstand a variety of

natural events—including a tornado with 157-

mph winds. With a 99.99% availability of data

and files, its backup systems ensure that doctors

and clinicians can continue to serve patients.

Springfield Distribution Center Facilitates

Supply Chain Operations

Mercy’s supply chain operating division, Resource Optimization

and Innovation (ROi), processes 2.1 million pick commands per

year from its warehouse. ROi returned over $22 million in net

financial benefit to customers in fiscal 2009 and was ranked

second in the world in the AMR Research Healthcare Supply

Chain Top 25 for 2009, just behind Johnson & Johnson.

Mercy Partners with Employers to Reduce Expenditures

Holding the cost of employee health benefits to half the national

average is a big win for a large employer in Springfield, Mo. who

partnered with Mercy. Mercy’s ongoing education and health

programs help employers control costs and manage health.

154 Years of Firsts, Pioneered by the Sisters of Mercy

For a century and a half, the Sisters of Mercy served Missouri by

providing hospitals and nursing training where there were none.

Following in the Sisters’ footsteps, Mercy continues to innovate

today by listening and meeting the needs of people in the

Midwest. Mercy is delivering a new model of care

and bringing the future of health care to Missouri.

To learn more about Mercy, visit mercy.net.

Mercy Delivers the Future of Health Care

the Mercy safeWatch teaM Monitors over 400 icu Patients in four states froM its coMMand center in st. louis.

the online ser-vice MyMercy lets Patients contact their doctor and Manage their health When it’s Most convenient.

Page 14: Fortune Magazine Missouri Section

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Education was also a consideration in

renovating the hospital kitchens, which

now serve as a leasable culinary work-

space. Fully renovated, the area is divided

into five kitchens and boasts $250,000 of

new cooking equipment ranging from

ovens to mixers to a smoker. Already be-

ing leased to tenants who need space to

develop products and start production, it

will eventually house a culinary arts edu-

cation program, as well.

“This is so much fun,” says the kitch-

en’s first tenant, Jennifer Ward, as she

was running a test batch of gluten-free

cookies through the new rotating con-

vection ovens. For Ward, the incubator

is a way to build her business; to Lesnak,

it’s a way to build a community. “Sta-

tistics show that 85% of all incubator

companies stay in the community where

they started,” he says.

Recognizing the importance of edu-

cation to workforce development, the

state has worked hard to make college

more accessible. Govenor Nixon and the

state’s public higher education institu-

tions—including both two-year and

four-year colleges—agreed to freeze

tuition for the past two years despite

challenges posed by the economy. As a

result, this fall, total enrollment in the

state’s public universities and colleges

topped 255,000—an increase of more

than 10,000 students over last year.

Developing a Talent Pool

Corporations, too, are playing a key role

in workforce development. The state

has been working hard to not only ask

employers to identify the kinds of skills

they view as necessary for their contin-

ued growth, but also to create those

programs in the state’s universities, col-

leges, and two-year schools.

Boeing is a prime example. The

aerospace giant’s defense, space, and

security unit is headquartered in St.

Louis, where it produces products rang-

ing from tactical aircraft to unmanned

systems. In 2007, it launched a program

with the State of Missouri and St. Louis

Community College to retrain people

for sheet metal assembly. “It is an in-

credibly productive relationship,” says

Dennis Muilenburg, president and CEO

of Boeing Defense, Space & Security.

“This program trains individuals in the

key skills needed for the aircraft assem-

bly process.”

Boeing also partners with Washing-

ton University and Missouri University of

Science and Technology, offering its em-

ployees continuing engineering courses

that build its talent pipeline. And the

training connection goes even deeper.

“We invest in all tiers of the education

system,” says Muilenburg, noting that

one of his favorites is a high school FIRST

robotics competition. “We actually have

a couple of engineers working for us

who were part of that program.”

Edward Jones, too, has found the

state to be a place where the spirit of

collaboration ranges from lofty goals

like training the workforce to nuts-and-

bolts business development. Founded

in 1922, the financial services firm has

grown over the years and recently over-

saw a significant expansion that hinged

in part on the state’s willingness to

accelerate replacement of a key inter-

change off Interstate 270.

“In Missouri, there is a real and

widespread understanding of the value

and necessity for a good business en-

vironment,” says Jim Weddle, Edward

Jones managing partner. “As a result,

the state, the region, and localities co-

operate. They recognize that working

together they can achieve far more than

working apart. This cooperation drives

economic development. “

Some see Missouri’s pioneer past

a boeing eMPloyee building a fighter jet

in st. louis.

Missouri ranks fifth in the cost of doing business in America’s top statesfor Business, an index compiled by CnBC that is based on each state’s tax burden on individuals, property, and business, as well as utility and energy costs.

Page 15: Fortune Magazine Missouri Section

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SPECIAL ADVERTISING SECTION

ameren Missouri serves 1.2 million electric and 126,000 natural gas customers in 63 counties and 500 towns. Part of st. louis-based ameren corp. (nyse: aee), ameren Missouri is critical to the state’s economy. its electric rates are about 33% below the national average, while it has invested more than $1 billion in infrastructure proj-ects to ensure that Missouri’s grid, power plants, and pipelines are safe, reliable and environmentally sound. in addition, ameren Missouri’s economic development professionals offer a portfolio of value-added programs, and expertise for com-panies interested in expanding or moving their operations to Missouri. learn more at amerenMissouri.com.

for more than 25 years, states have relied on centene corp. to provide health care services and programs to its most vulnerable and underserved residents. centene has been proud to call Missouri home to its corporate headquarters for the past decade, benefiting greatly from the pioneering spirit so deeply ingrained in our state’s history. the innovative solutions that we continue to develop allow us to remain true to our founding belief—that every american is entitled to receive quality health care with dignity. the friendly economic climate and unparalleled professional talent in Missouri have been invaluable in helping us achieve our mission.

A Powerhouse for Missouri

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Ameren amerenMissouri.comAnheuser-Busch anheuser-busch.com

Boeing boeing.com

Centene Corporation centene.com

Edward Jones edwardjones.comExpress Scripts express-scripts.com

Kansas City Area Development Council thinkkc.com

Monsanto Company monsanto.com

Sisters of Mercy Health System mercy.net

St. Louis Regional Chamber & Growth Assoc. gotostlouis.org

University of Missouri System, Research and Economic Development

umsystem.edu/redmapWashington University in St. Louis

wustl.eduWebster University

webster.edu

Web Directory

470 E. Lockwood Avenue • St. Louis, MO 63119

“Webster University was formed by a progressive, committed, inclusive and entrepreneurial community of educators. While the University has changed over time, the values and commitments formed at the outset have endured. They guide us and mark us as those who care, who respond, who innovate, who lead.”

Dr. Elizabeth (Beth) StroblePresident

United States • Austria • China • the Netherlands • Switzerland • Thailand • United Kingdom

webster.edu

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reflected in the way the state and its

companies are tackling economic issues

today. Mercy, a four-state health care

ministry based in St. Louis, has just fin-

ished a decade of infrastructure build-

ing. Faced with big changes in health

care and aging systems, Mercy rolled

up its sleeves and performed a major

overhaul. The result: a brand-new elec-

tronic health record system, a new data

center, a state-of-the-art supply chain

that tracks everything right down to

a bandage as it arrives at the patient’s

bedside, and a fast-growing telemedi-

cine operation.

The health care frontier today may

look different than it did to the pioneer-

ing nuns who founded the health minis-

try more than 150 years ago. But the com-

mitment to getting the job done through

hard work and vision is much the same.

“This makes us sustainable going for-

ward,” says Lynn Britton, president and

CEO of Mercy. “And this is just the start.”

Innovation in Missouri, however,

isn’t just about starting new companies.

It’s also about helping established com-

panies looking for new and better ways

of doing business. At Anheuser-Busch,

for example, there’s a long history of

embracing technology as a way of im-

proving business. More than a century

ago, the company revolutionized the

beer business by adopting pasteuriza-

tion, artificial refrigeration, refrigerated

railcars, and railside icehouses.

“Our founders transformed the U.S.

beer industry and instilled a passion for

innovation that continues to drive our

company,” says president Dave Peacock.

These days the company is turning to

technology to make its breweries greener

and more environmentally friendly.

Since the end of 2004, Anheuser-Busch

breweries have reduced water usage by

nearly 32%, saving 23 billion liters of

water. The company now recycles 99.4%

of the solid waste generated in the

brewing and packaging process, includ-

ing aluminum, glass, grain, scrap metal,

and cardboard.

The company has also embraced al-

ternative energy in a big way, including

the use of solar power at two brewer-

ies and bio-energy recovery systems at

10 breweries, which use nutrient-rich

wastewater from the brewing process

to create and capture renewable fuel.

International Aspirations

On another front, Missouri is taking a

more global view of the world these

days. It has been forging overseas con-

nections in countries ranging from Mex-

ico to Japan, and it’s working to boost

exports and attract foreign companies to

the state. One of its most publicized ef-

forts has been the campaign to establish

a China hub at the Lambert–St. Louis Air-

port. Toward this end, Webster Univer-

sity president Elizabeth Stroble was one

of those accompanying a recent Missouri

delegation to China. Her school, which

boasts 108 campuses worldwide, has had

a working relationship with the Chinese

ministry of education for years. And

that, Stroble says, gave her some insight

into the Chinese interest in St. Louis.

“I see the cargo hub as a way to es-

tablish the kind of relationship with

Missouri has 90 Wineries and 1,500

acres devoted to graPes.

Missouri boasts a total 131,100 green jobs in both direct and support positions. they account for 4.8% of employment within the state.

Page 17: Fortune Magazine Missouri Section
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China that is a win-win,” says Stroble.

Part of the Chinese attraction to Mis-

souri, she says, is its excellent education

system. And she is quick to point out

that Webster not only has campuses in

China but also houses one of the Chi-

nese government’s Confucius Institutes

on its home campus in Webster Groves.

One of only 362 in the world, the Insti-

tute promotes better understanding of

Chinese history, language, and culture.

Is Missouri a hard sell to the Chinese?

What about to New Yorkers or Cali-

fornians, or those eyeing the research

parks of the Southeastern states? Trans-

plants often say they weren’t sure about

Missouri until they arrived but were

happily surprised by what they found.

Tariq Shah, whose company

PetScreen opened an office in Columbia

last year, initially thought he’d be set-

tling in New York State. The U.K.-based

company wanted to tap into the U.S.

pet population. “There are more dogs

in the U.S. than there are people in

England,” he explains. But the company

opted for Columbia because “the situa-

tion was too good to resist.”

When Shah told his wife they were

heading to Missouri, the first thing she

did was check out Columbia on Wiki-

pedia. A visit last July sealed the deal.

What the Shahs found in Missouri was

an affordable lifestyle—the state has

the fifth-lowest cost of living in the

country—friendly people, and a sense

of community.

There’s also a lot to do. Not only does

the state have two urban centers—St.

Louis in the east and Kansas City in the

west—but each city also boasts its own

sports teams, symphony, theaters, and

museums. Across the state, there are

caves for spelunking, streams for fishing,

lakes for boating, and lots of state parks

for biking, hiking, and birdwatching. The

state’s wineries—while not well known

outside of Missouri—have a long history

and a loyal following. And those inter-

ested in history have their choice of such

attractions as Civil War reenactments,

Harry Truman’s home in Independence, or

the Pony Express Museum in St. Joseph.

Missouri also feels like a place where

a person can make a difference. Stop

by the Midwest Research Institute, a

not-for-profit research organization in

Kansas City, and you’ll get a sense of

the future. The institute tackles applied

science issues ranging from analyzing

anti-cancer drugs to engineering ro-

botics for defense. Some of the most

exciting work is being done in the field

of energy, where algae oil and biomass

are showing great promise, particularly

when combined with other technolo-

gies such as CO2 capture.

With Missouri’s wealth of resources—

water, fields to grow biomass, and loads

of scientific talent—the possibilities

stretch the imagination. “When all those

things are linked, that will make this the

epicenter of some of the most exciting

development in the country,” says Roger

Harris, associate vice president and direc-

tor of energy and life sciences.

Governor Nixon says one recent trip

to a southern Missouri farm exemplifies

his state’s potential for innovation and

growth. He visited the soybean fields of

Kip Cullers, near Stark City, in October

to present Cullers with the Governor’s

Award for Agricultural Achievement.

Cullers had set a new world record

for soybean yields: 160.6 bushels per

acre. That tops the previous world re-

cord—also set by Cullers, in 2007—of

154.57 bushels. Cullers attributes his

success to his use of the latest advances

in scientific research and development;

a keen eye for detail; and old-fashioned

Midwestern elbow grease. He walks his

fields multiple times a day to make sure

his plants are growing in the most con-

ducive environment possible.

“Kip Cullers and farmers across Mis-

souri exemplify our future of innovation,

science, and progress,” Govenor Nixon

says. “They build on our state’s tradition

of agriculture and farming, but they’re

embracing science and technology to

expand their operations in the 21st cen-

tury. That’s exactly the innovative spirit

that will move every part of Missouri’s

economy forward.” —Lynn asinof

to advertise in our economic development sections, contact Pete franco at 212.522.4227. for reprints, call Pars at 212.221.9595, ext. 437.

nelson-atkins MuseuM of art, kansas city

Missouri offers newcomers the fifth-lowest cost of living in the country, plus friendly people and a sense of community.

Page 19: Fortune Magazine Missouri Section

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Missouri’s economy:fourth Most Diversified of All 50 states

TRADE, TRANSPORTATION, AND UTILITIES

FINANCIALACTIVITIES

MANUFACTURING

GOVERNMENT

INFORMATION

CONSTRUCTION

LEISURE AND HOSPITALITY

OTHER SERVICES OTHER NATURAL RESOURCES AND MINING

EDUCATION ANDHEALTH SERVICES

PROFESSIONAL ANDBUSINESS SERVICES

source: u.s. bureau of econoMic analysis

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A Center of Innovation

“ It’s no surprise that businesses want to come to Missouri - we have some of the most competitive business and energy costs of any state in the nation. But businesses also want to stay here, want to grow here.

Why? Because they can.”

J A Y N I X O N G O V E R N O R O F M I S S O U R I

3rd lowest business energy costs (Small Business Entrepreneurship Council)

5th lowest cost of doing business (CNBC)

7th best transportation network (CNBC)

WWW.FORTUNE.MISSOURIPARTNERSHIP.COM

MISSOURI DEPARTMENT OF ECONOMIC DEVELOPMENT THE MISSOURI PARTNERSHIP