The Kalispell Daily Inter Lake lamented the closing of the Stimson mill in Libby: “When the centerpiece of Montana’s timber basket loses its last mill, industry watchers say the impacts will be profound.” It tells us even Montana’s best timberland can’t compete with the Southeast and Pacific Northwest. The laws of silviculture dictate that trees grow best where it’s warm, wet, and low. Compared with the Southeast and Pacific coastal regions, even Libby is high, dry, and cold.

Our traditional pillars of prosperity -- agriculture, forest products, and mining -- have crumbled. What now? What is our most promising economic frontier? Here are the facts.

Montana’s economy is in transition, from commodities to niche products and services. No longer does our competitive advantage lie in extracting natural resources. The best strategy for future prosperity and quality of life lies in managing those resources to retain and attract human capital, the ultimate resource. This requires sensitivity to habitat and recreational opportunities while stressing civility, good health care, and education.

Colorful, adventuresome entrepreneurs built Montana’s traditional economy. Today’s entrepreneurs face challenges, but opportunities abound, even in times of apparent hardship. Their challenge is to discover the most promising.

The best entrepreneurs succeed by creating products that improve social well being. They discover ways to move resources to higher-valued uses. If successful, they attract both human and financial capital. This process transforms lives, usually for the better.

Historically, Montana’s remoteness and climate were severe constraints. Now the cost of distance has been dramatically reduced. We have satellite Internet connections, FedEx, and UPS. We have safe and comfortable SUVs, while high-tech clothing and insulation have diminished discomfort and fostered winter recreation.

Here’s an example of Montana’s progress. Fifteen years ago I was sent to Dallas for shoulder surgery. Recently I had a much more complicated and sophisticated operation on my ankle here in Bozeman. We have state-of-the-art orthopedists precisely because of our quality of life.

Complemented by modern technology, Montana’s environment is a magnet for human capital. Our future lies in retaining and attracting it (consider the five Bozeman High School seniors recently named National Merit Scholarship semi-finalists). This conjunction of talent and nature draws creative entrepreneurs.

For example, at MSU’s Department of Plant Sciences and Plant Pathology, David Sands and a team of researchers have produced a gluten-free Indian Ricegrass (Montina) that can replace wheat in cooking for 30 million gluten-intolerant people. They’ve also developed novel methods to fight invasive weeds with biological controls, and found creative ways to improve the nutrition of foods. A recent World Health Organization report on worldwide health risks recommends this to help malnourished people in developing countries.

Similarly, Al Cunningham, Anne Camper, Marty Hamilton, and their colleagues at MSU’s Center for Biofilm Engineering work to solve the health and industrial problems caused by microbial biofilms. They also explore biofilms’ potential for pollution control.

Entrepreneurs and their families carefully calculate where to live. They consider the quality of schools, the attractiveness of the surroundings, and availability of air travel. Can our legislators understand the implications?

Not recognizing these new economic realities, Montana’s politics reflect the distant past. In the late 1800s the Plains Indians created the Ghost Dance movement to bring back the bison. I empathize while understanding the futility of the effort. Like the Indians who lost their buffalo, Rocky Mountain legislators face massive deficits. Some urge reviving the traditional extractive industries to save us from the downturn of our fortunes. Alas, this is a false hope.

Cash-starved bureaucracies resist change. When stressed, they usually become defensive, cowardly, and risk averse. Constructive innovations are rare.

But here’s one. MSU has joined the Foundation for Research on Economics and the Environment to educate federal judges and law professors on environmental, scientific, and economic topics. The programs bring professors from Berkeley, Chicago, Harvard, Stanford, and Yale to join MSU faculty as lecturers. All costs are paid by external sources, none by the University. Further, we’ve offered 4 percent of the grants funding these seminars for MSU scholarships for promising Montana kids.

Our future lies in keeping and attracting innovators. With creative investments in institutions and people, major portions of Montana can thrive. We have high potential.