Indiana: How Do States Keep Their Talent?

If you want to work in movies, you move to Hollywood.

If you want to be on the stage, it’s New York.

And if you want to build the next tech unicorn, Silicon Valley.

There’s a belief that to do certain types of work, talented people need to leave wherever they’re from to go to where the action is. So, if you were the type of person who dreamed of working in a particular field from a young age, you’d already made up your mind that you’d be packing your bags and heading to the big city — likely on the east or west coast.

This is a real problem for states trying to grow new industries and subsequently their economies. A unicorn can change the very DNA of a city. Think of the impact of Amazon in Seattle, Apple in the Bay Area, and for Hoosiers, companies like ExactTarget and Angie’s List in Indianapolis. But to build them requires - amongst other things - access to top-tier talent who want to stay in your state. So, how do states keep their talent? As a Buckeye by birth, coaster by aspiration, and now Hoosier by choice, I believe it boils down to four fundamental elements: education, ecosystem, environment, and outcomes.

Quick Origin Story

I never planned on staying in Indianapolis. Originally from Cincinnati, Ohio, I was brought to Indiana by way of college. I attended Purdue University, majored in film, and was set on moving to one of the coasts. My senior year, I joined Purdue’s Mortar Board where a handful of my ambitious, smart, hardworking peers applied for the Orr Fellowship, a two-year business fellowship. I remember thinking, “these are some of the smartest people I know — if they think this is a good idea, it probably is a good idea.” I applied, got a job, and moved to Indianapolis with the intention of moving away after the two years were over. Over a decade later, I own a house in downtown Indianapolis with my fiance and bike to work at High Alpha, a venture capital firm that was recently named to TIME’s list of Top VCs in America. How did this happen? Why did I stay?

1. Education

This one isn’t rocket science, but rather table stakes — states need strong educational institutions to keep talent. For the size of Indiana, we have some pretty incredible colleges and universities: Purdue, Indiana, Notre Dame, Ball State, Butler, and many more. Great colleges and universities attract talent from other states. 

In addition, a strong K-12 education system is vital for nurturing and keeping homegrown talent. This is where organizations like Nextech play a crucial role. Nextech, along with other non-profits, focuses on introducing STEM (science, technology, engineering, and math) programs to students to build a pipeline of future innovators through hands-on opportunities in fields like coding and robotics. By creating an early interest and skill set in these high-demand areas, states can ensure their young people are prepared for the jobs of tomorrow and are more likely to pursue higher education and careers within their home state. This comprehensive approach, from K-12 to higher education, creates a continuous cycle of talent development that is essential for long-term economic growth.

2. Ecosystems 

Back to my origin story.  Like I said, I joined Orr Fellowship after I graduated from Purdue because all my smart friends in Mortar Board were applying. It was instrumental in both my career and for keeping me in Indiana. Not just because it came with a job (which was a huge bonus!), but because it’s an incredible ecosystem — the program is in its 20th year (applications for the 2026 class are now open!) with 500 alumni, many of whom have founded high-growth companies in Indianapolis.

Oftentimes, the word ‘ecosystem’ is thrown around casually. Programs like Orr Fellowship take it to another level, placing high-achieving college graduates with a partner company for two years and bringing fellows together weekly. Fellows have become friends, started businesses together, and referred their peers to jobs while some even married other fellows. 

For states to keep talent, programs like Orr Fellowship can play a critical role, while aiding economic development. Former Orr Fellows have started and sold companies (see Lessonly, Pattern89) that not only create jobs, but continue to launch and grow careers.

Some stats from a recent report from Orr Fellowship:

1. Upon completing the program, Orr Fellows remain in Indiana at a rate higher than graduates of Indiana higher education institutions as a whole. Approximately 60% of all Orr alumni remain in Indiana after completing the program, compared to 43% of all Indiana institution graduates across comparable fields of study. These numbers translate to the Orr retention rate outperforming the statewide average by just over 16 percentage points.

2. In addition, 86% of participants remained in Indiana for at least six months after completing the Fellowship.

3. Based on survey results and a review of job titles and descriptions supplied by Orr Fellowship, 21% of Orr Fellow respondents indicated they started a business after completing the program. This is compared to the statewide average entrepreneurial rate of 0.23% and 0.36% nationally.

4. There are 243 confirmed Orr alumni living and working in Indiana. They contribute to the state’s economic output with nearly $38 million in annual earnings and add nearly $59 million annually to its gross domestic product (GDP).

5. Their presence in the workforce generates an additional 482 FTE jobs in the supply chain and induced industries across the state that produce an additional $30 million in labor income and $49 million in gross regional product (GRP).

The most successful ecosystems go beyond business. They lean into real connection, friendship, and shared aspirations. If everything is only about business opportunities, people may still leave. If there’s more going on for people to engage with, learn and grow  – they’re more likely to stay.

When it comes to ecosystems and startup communities, Brad Feld has some interesting opinions and ideas as to who should lead them (spoiler alert, in his view, the leaders of startup communities should not be government programs, universities, or venture capital firms!) and how different programs add to the larger ecosystem.

3. Environment

Midwest states actually have some major advantages over the coasts. They are more affordable for a start, and this directly impacts quality of life. The high cost of living in traditional talent hubs like New York and California often forces people to make financial trade-offs that they may not have to make in much of the Midwest. For example, the median home price in California is three times that of Indiana. This means that talent can put down roots, buy a home, and start a family without the immense financial strain of a higher-priced market.

States can also incentivize this affordability for businesses, particularly for venture-backed startups. Government programs, like the ones offered by the Indiana Economic Development Corporation (IEDC), provide tax credits and grants to encourage job creation and capital investment. This includes programs like the Venture Capital Investment Tax Credit, which makes it more attractive for investors to fund Indiana-based companies, and the Hoosier Business Investment Tax Credit, which directly supports job creation. 

These incentives lower the barrier for entrepreneurs to start and grow a business, complementing the state's natural cost-of-living advantage.

4. Outcomes (aka, Winning) 

Finally, the most powerful way for a state to retain talent is to produce winners — breakout companies that achieve massive success. The success of a unicorn can create a powerful, virtuous cycle. 

1. Attraction: The initial success of a company attracts new talent to the state. People want to work for successful, innovative businesses.

2. Retention: Employees who join these successful companies sometimes accumulate wealth through equity or stock options. They are more likely to stay in the area, buy homes, and become part of the local community.

3. Reinvestment: As successful companies are acquired or go public, they create a new generation of angel investors and entrepreneurs. These founders and early employees can use the funds they’ve gained and expertise to start new companies or invest in others, fueling the local ecosystem. This is a key reason why cities like Seattle have such a strong tech scene, one that extends beyond just Amazon and Microsoft.

This cycle is crucial. The presence of high-growth, high-value companies creates a sense of momentum and possibility. It proves to young professionals that they don't have to leave the state to achieve their career goals. They can build a successful career and a rewarding life right where they are. In essence, while education, ecosystems, and environment are the foundational elements, it’s the thrill of ‘winning’ and creating something truly great that solidifies a state’s ability to keep its talent for the long term.

Bringing It All Together

To bring it all back to my own personal story of “how did I become a Hoosier?”, and use that as an example of how these elements play out in the real world: 

Education: I came from another state to attend Purdue. 

Ecosystem: I was pulled into the world of SaaS, VC, and startups through a robust ecosystem and the Orr Fellowship.

Environment: I stayed and bought a house because I was able to afford one. 

Outcomes: I work at High Alpha, a venture firm started by a group of ExactTarget founders and leaders. After building and growing something remarkable, they used their knowledge and experience to co-create net new companies and invest in talented founders, many of whom are based in Indiana

Indiana isn’t the only state in the Midwest that has a story like this, and I’m only a single representative of how these elements help grow a local ecosystem. But we also need more, so if you’re reading this and are thinking of moving or working in a similar environment, I say just do it!

‍Mollie Kuramoto is Director of Marketing at High Alpha, a venture firm based in Indianapolis that creates and funds B2B SaaS companies. Prior to High Alpha, she worked at marketing services agency Element Three in the same city, and has been a content marketer in written and video form. Originally from Cincinnati, she graduated from Purdue University with a degree in English and Film and likes riding her bike to the office as well as coaching youth soccer on weekends.