The United States ranked third out of 139 global economies in the most recent Global Innovation Index, so WalletHub wanted to determine which among the nation’s 50 states and the District of Columbia (which we’ll consider a state for the sake of the article) have contributed the most to the country’s innovative success.
The study compared all 50 states and D.C. on a variety of factors, such as:
- Share of STEM professionals
- R&D spending per capita
- Concentration of tech companies
How did Washington, D.C. compare to the other states?
The District’s #1 spot as the most innovative state in the country was earned decisively:
- #1 highest share of STEM professionals
- #1 highest STEM-related job demand by 2030
- #1 highest share of science & engineeting graduates aged 25+
- #3 highest share of technology companies
- #1 highest R&D spending per capita
- #1 most venture-capital funding per capita
Overall, Washington, D.C.’s metrics from the study broke down as follows:
- Overall State Innovation Index – 69.13 (out of a potential 100)
- Human Capital Rank – #1
- Innovation Environment Rank – #13
What was the methodology of this study?
The study’s methodology focused on comparing all 50 states and D.C. through two specific lenses: Human Capital and Innovation Environment.
The first, human capital, refers more to the residents and their capacity to innovate or propensity to become innovators.
There were a total of 6 unique metrics that fell under this category, each of which was weighted to create a total potential score of 50 points, which accounted for 50% of the Innovation Index’s potential 100 points.
- Share of STEM Professionals: 14.29 Points
- Share of Science & Engineering Graduates: 7.14 Points
- Projected STEM-Job Demand by 2030: 7.14 Points
- Scientific-Knowledge Output: 7.14 Points
- Eighth-Grade Math & Science Performance: 7.14 Points
- AP Exam Participation: 7.14 Points
The second, innovation environment, refers more to what the state is doing to facilitate innovation or the development of innovators.
In this category, there were a total of 19 unique metrics, each of which was weighted to create a total potential score of 50 points, which accounted for 50% of the Innovation Index’s potential 100 points.
- Share of Technology Companies: 4.55 Points
- R&D Spending per Capita: 4.55 Points
- R&D Intensity: 2.27 Points
- Invention Patents per Capita: 2.27 Points
- Tech GSP as a Percent of Total State Product: 2.27 Points
- Net Migration: 2.27 Points
- Entrepreneurial Activity: 2.27 Points
- Number of Startups “Accelerated” per Total Number of Start-ups: 2.27 Points
- Tax-Friendliness: 4.55 Points
- Venture-Capital Funding per Capita: 2.27 Points
- Average Annual Federal Small-Business Funding per GDP: 2.27 Points
- Industry-Cluster Strength: 2.27 Points
- Open Roads & Skies Friendly Laws: 1.14 Points
- Average Internet Speed: 2.27 Points
- Share of Households with Internet Access: 2.27 Points
- Adoption of K–12 Computer Science Standards: 1.14 Points
- IP Services Exports as a Share of All Services Exports: 2.27 Points
- Growth in Total Firms: 2.27 Points
- Jobs in New Companies: 4.55 Points
