Minnesota companies have flourished in a state that has a reputation for innovation, entrepreneurship and good old-fashioned hard work.

Minnesota has big ideas and a big heart.

A tradition of out-of-the-box thinking combined with business know-how, educated workers and a can-do spirit have made the state a hotbed for economic growth and development.

You might even say there's something special in the water. We are, after all, the Land of 10,000 Lakes and the birthplace of the Mississippi River.

Indeed, Minnesota has as many reasons as lakes to explain why some of the biggest and most recognizable corporations in America are headquartered here. Think General Mills, Target, Best Buy and 3M. All told, the state has 18 public companies on the Fortune 500 list - more per capita than anywhere in the country - with established reputations in manufacturing, retail, energy and financial services.

The state's list of private companies is just as impressive, led by Cargill, Inc., a family-owned agricultural commodity giant that is the largest privately held company in the country, posting revenue of $120 billion in fiscal 2008.

Throw in up-and-comers like BioE, Medisyn Tech and Biothera and you have the perfect mix of private and public, big and small, domestic and international firms. Med-tech, in particular, is a hallmark of the state's newer companies. Minnesota, home to the world-famous Mayo Clinic in Rochester, has one of the most vibrant medical-device clusters in the world, employing more than 28,000 people, second only to California.

It's no wonder that companies succeed in Minnesota. Innovation and risk are practically ingrained into the culture of the state. Charles Lindbergh, the Little Falls farm boy with big dreams, captured the imagination of the world when he made the first nonstop, solo flight across the Atlantic in 1927. Three decades later, inventor Earl Bakken, tinkering in his garage in northeast Minneapolis, created the first wearable artificial pacemaker and co-founded Medtronic, which became the world's largest medical technology company.

"There's a special quality about Minnesotans," says Gov. Tim Pawlenty. "They're very resourceful and have an innovative spirit that makes this a great place to live."

McQuay International's new facility, under construction in Plymouth, Minn.

That same spirit of entrepreneurship and the drive to get things done are evident today, even during challenging economic times

McQuay International, one of the world's largest makers of heating, ventilation, air conditioning and refrigeration systems, is building a $50 million research and development center in Plymouth, just northwest of Minneapolis. McQuay, cited among other factors, the region's highly educated workforce and the quality of life in Plymouth, which was named the best small city in America last year by Money magazine.

"Locating this new facility in North America and in the Minneapolis area provides access to a significant pool of experienced and highly educated engineers," said Takenori Miyamoto, executive vice president and general manager of the center.

Another international company found an ideal location for expansion in Faribault, a community of about 23,000, 45 miles south of the Twin Cities. When Moventas, a Finnish builder of gear boxes for wind-power turbines, went looking for its first U.S. site for a factory last year, Faribault landed at the top of the list.

An educated workforce, local and state incentives, and easy access to the Minneapolis-St. Paul International Airport were factors in the decision. "We believe there is a good labor pool in the Faribault area for the mechanical engineering skills we need," said Ilkka Hakala, president and CEO of Moventas. "From a supply point of view, the Midwest is a good supply base for the components we will need."

Moventas also was impressed with Minnesota's growing influence in the wind-power industry. Southwestern Minnesota is blessed with some of the breeziest countryside in the United States, powering a wind industry that ranks fourth in the country for installed capacity.

Architect's rendering of Moventas' Faribault, Minn., facility

Increasingly, companies are tapping into the sector, eager to fill the needed supply chain for building wind turbines. Wind-related employment is adding to Minnesota's strength in the manufacturing sector, which accounts for about one in eight jobs in the state. Minnesota manufacturing exports were a record $16.2 billion in 2007 and were on track to set another all-time high in 2008.

Add in Minnesota's growing influence in ethanol and bio-diesel production and you have the beginning of a green tidal wave that is propelling the state to the top of the class in energy sustainability. Once again, Minnesota is leading the way in innovation.

For more details on Minnesota's business climate, contact Kevin McKinnon at the Minnesota Department of Employment and Economic Development, 651-259-7445, Kevin.Mckinnon@state.mn.us.