Kummer College’s Role in Missouri’s Economic Growth

The conversation between Dean Jim Sterling and Dr. Chevy Fang offers a rare and practical blueprint. It’s not just an academic dialogue; it’s a case study in applied economic theory, one that provides a tangible model for how a regional economy can be consciously engineered for resilience and growth. The principles discussed—innovation as the seed, entrepreneurship as the action, and economic development as the outcome—are universal. But their application at Missouri S&T, through the conduit of the Kummer College, highlights a specific and powerful strategy: leveraging institutional assets to solve hyper-local problems with global implications.

At the heart of this model is a rejection of siloed thinking. Dr. Fang’s clarification that entrepreneurship isn’t solely about startups but can flourish within established companies and family firms is critical. It expands the playing field. It means economic development isn’t just about chasing the next unicorn tech startup but also about strengthening the bedrock of the existing economy. This is especially relevant for regions like Missouri, where, as Fang notes, longstanding family enterprises serve as “regional anchors.” A 2023 report from the Family Enterprise USA underscores this, noting that family businesses account for nearly 60% of the nation’s employment and over 78% of all new job creation. Their deep-rooted commitment to place is a stabilizing force often absent in more footloose, publicly-traded corporations.

This is where the Kummer College’s applied orientation becomes its superpower. By connecting Missouri S&T’s formidable technological research with the real-world challenges of these regional anchors, it creates a virtuous cycle. Students gain not abstract theory but direct experience in issues like succession planning, professionalization, and long-term capital allocation—topics rarely covered in standard MBA curricula focused on quarterly earnings. The firms, in turn, gain access to cutting-edge thinking and a pipeline of talent equipped to navigate technological change. This isn’t just education; it’s strategic economic R&D.

The most compelling insight from Fang’s research is the nuanced view of family firm governance. It avoids the simplistic trope of the stodgy, resistant family business. Instead, it frames concentrated ownership and a multi-generational perspective as a potential strategic advantage. Features such as concentrated ownership, long-term commitment and concern for reputation can encourage patient investment, Fang states. This patience is a scarce commodity in today’s markets. A study published in the Strategic Management Journal found that family firms often outperform in R&D-intensive industries over the long haul precisely because they can tolerate innovation cycles that would spook public market investors.

• Innovation as the seed
• Entrepreneurship as the action
• Economic development as the outcome
• Strengthening existing economic bedrock
• Harnessing institutional assets
• Creating a virtuous cycle

For the Missouri economy, the implication is clear. The path to sustained growth in 2025 and beyond may not be through a frantic hunt for external investment alone. It is equally about cultivating the inherent strengths already embedded in its business landscape. By providing the framework, the research, and the human capital to help these anchor firms innovate while preserving their core values, Kummer College is acting as both a catalyst and a stabilizer. It’s helping write a playbook for economic development where continuity and change are not opposites but necessary partners. The ultimate metric of success won’t just be a count of new startups but the enhanced vitality and adaptability of the entire business ecosystem that has sustained the region for generations. That’s a lesson in economic architecture with profound relevance far beyond the state’s borders.