Hey, I grew up in the Dakotas many years ago - it is not empty land but flat land with lots of ten-foot-high snow drifts through most of the year. Just wanted to clarify.
On a serious note, the people in the midwest are wonderful and it would be great if there were more opportunities to launch and build startups there. But you need to build a critical mass of entrepreneurs, investors, advisors, and resources that will nurture such startups and, without that, it will remain hit or miss for any given locale that supports only intermittent startup activity. The good news is that it is possible to launch from such places (where, even a decade ago, this would have been almost unthinkable). As this piece points out, though, it is not easy to sustain the company beyond the earliest phase without the connections and resources that will facilitate growth.
I wonder how MN compares to Wisconsin, specifically Madison. I feel like the modern tech/startup community here is growing (besides bio science which is the big thing here), but it is really hard to find talented programmers who are willing to work for a startup (despite there being plenty at the university). I don't know what it is exactly, but established companies seem to draw the most talent, despite the jobs being pretty mundane. I think the biggest problem is a lot of people don't believe in the possibilities of starting a company. The biggest thing I've learned from starting a company here is just how much support there is, and people who want to see you succeed. You never realize it until you take the first step and venture out.
As for talent, I've learned to be patient. The right people do come along if you wait. I've posted jobs several times and I get new applicants each time that restore my faith in the local community.
Finding investors is pretty doable here from those around me that have received outside funding (my company is friends and family right now), and there is a noticeable interest from the government, the university, the community, and investors, in growing Madison to become a hub of innovation.
Finally, one big thing I've noticed is how under served the community is with the whole web 2.0 thing (non techies don't have time for another website). People here really value a personal touch. Couple that with less local competition and there is a lot of opportunity here.
It must have been many years ago. Today it is part of the union and is actually 2 states, North and South Dakota.
Kidding aside, I don't see either state as a real Mecca for start ups. The money is on the coasts. The people with the know how to get big name recognition are on the coasts.
If you want to start a bank or a paper box company, SD is cool. If you want to build a startup that needs facetime with angel investors and social ties to facebook, et al, I don't think the midwest is the place to be.
I did a ton of research recently on this issue, and other cost-of-living issues, because I live in an RV full-time. I'm currently paying California taxes, because that was my most recent permanent residence...but everything is insanely expensive in California, including vehicle insurance, health insurance, taxes of all sorts, vehicle registration and licensing, etc.
On my way back from Alaska in a couple of months I'm going to take a detour east to setup my domicile in South Dakota (I want to see Mount Rushmore and the Crazy Horse monument, anyway). It will save me at least a few thousand dollars next year.
Maybe because you linked to a document that ranks total state taxes instead of per capita taxes? (which is incredibly misleading regardless of whether or not it was deliberate)
I grew up in North Dakota and was there over the 4th. My parents live in a town of 1300 people, and their house had just been wired with fiber optic for cable and internet. I'm also pretty sure they pay much less than I do in Minneapolis.