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Study gives Minnesota manufacturing 'A' for innovation, 'F' for taxes

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A Ball State University study on Minnesota’s manufacturing climate gives the state an A for productivity and innovation, a B for manufacturing, and an F for its taxes.

That's according to the Mesabi Daily News, which reports on the university's 2013 Manufacturing and Logistics Report Card.

Minnesota got high marks in productivity growth, research and development spending per capita, and patents per capita, which “places Minnesota right near the top in productivity and innovation in manufacturing,” the professor who did the study tells the Daily News.

The study, according to the Daily News, also shows:

• Human Capital: The state received an A for the high quality of its labor force.

• Manufacturing and logistics: The state is “doing great��� in these two areas.

• Tax climate: Minnesota ranks sixth from the bottom in corporate and individual taxes (44th), and ranks near the middle, 26th, in property taxes. In sales taxes and unemployment insurance, the state ranks 35th and 40th, respectively, says the Mesabi paper.

The Associated Press says the report maintains that high taxes make the state less attractive for companies looking to relocate. But the author approves of the strategy that puts tax revenue toward education and infrastructure.

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