From good to great: Madison on the move

The Wisconsin State Capitol in Madison. (Stock photo)

A capital city where innovation and livability go hand in hand

Nestled in the heart of Wisconsin, Madison has emerged as something of a model for midsize cities looking to balance economic vitality with exceptional quality of life.

Wisconsin’s capital is the fastest-growing city in the state, and for good reason: It has gained a reputation as one of the nation’s most dynamic tech hubs, it boasts a low unemployment rate of just 2.1% and it continues to attract top talent thanks to its high standard of living and its robust economy.

When it comes to tech, a good deal of Madison’s success can be attributed to the fact that it is home to a flagship university, the University of Wisconsin–Madison. Tom Still, president of the Wisconsin Technology Council, says the university’s status as a leading research institution both fuels innovation and provides a steady talent pipeline.

“UW–Madison really does have an outsized effect on the community at large, as I imagine LSU does,” he says.

According to Still, the school is the sixth-largest research university in the country with about $1.3 billion in annual research expenditures across all fields, rivaling the research spending of Ivy League colleges. LSU, to its credit, has made strides in this arena in recent years. In 2023, the university set a “historic” record for research activity at $488 million.

The downtown Madison shopping district. (Stock photo)

Still says LSU would do well to focus on translating its research into economic impact by fostering stronger tech transfer programs in addition to placing increased emphasis on the incubation of entrepreneurial ventures and seeking partnerships that can help retain startups and talent in Baton Rouge.

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“The kinds of skills that make for good researchers and good scientists don’t necessarily translate to entrepreneurship,” he says. “Doing other things within the university and throughout the community to create more potential founders is very important.”

Some of the major tech firms that call Madison home are Epic Systems, Exact Sciences and Promega, all of which happen to be biotech companies.

Of course, tech is far from the only thing Madison does right. The city’s commitment to quality of life, for instance, also plays a significant role in its appeal—something that offers lessons for cities like Baton Rouge that are grappling with outmigration. While Baton Rouge has struggled to retain residents in recent years, Madison’s population is steadily growing.

Notably, Madison is home to the most parks and playgrounds per capita of any of the 100 largest U.S. cities. Everett Butzine, interim president of the Madison Region Economic Partnership, says the city’s investments in green spaces and walkability have helped to make it an attractive destination for businesses, residents and tourists alike.

“A lot of Madison’s waterfronts have been taken up by green spaces and parks, and the city has done a very good job of creating a walkable community with a lot of bike and pedestrian paths,” he says.

The Madison metro is projected to grow from its current population of about 690,000 to 1 million by 2050, though Butzine believes the metro could hit that target even sooner.

Also at the heart of Madison’s approach to economic development is collaboration, particularly when it comes to public-private partnerships. In the past, the city has largely been perceived as being unfriendly to developers, but that perception has eroded dramatically in recent years. Butzine says the fruits of such partnerships are evident in Madison’s skyline, where an ever-present army of cranes signals historic levels of investment.

Madison’s Central Public Library. (Stock photo)

“It’s been a big undertaking of just listening to the private sector and understanding what its needs are,” he says. “[Madison’s leaders] have made a concerted effort to make it known that they’re here to work with private businesses, and the skyline offers a very tangible view of that.”

One standout example of the strength of Madison’s business environment is the aforementioned Epic Systems, a health care IT giant that got its start in a garage in 1979 and now employs more than 13,000 across multiple countries with plans to double its workforce over the next seven years. Butzine says many of the things that have worked for Epic are reflective of broader trends among companies in the Greater Madison area.

“Every Epic employee has their own office and things like that, so there’s a big culture here of companies treating their employees very well,” he says. “I think we’ve seen a lot of loyalty come from that.”

Aside from tech and tourism, the largest drivers of Madison’s economy are agriculture, government and health care—all sectors that Butzine characterizes as “recession-proof.”

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