WalletHub recently released a study that took a close look across 25 unique key indicators that measured the level of innovation in every state across the United States!
The study included factors like the share of STEM professionals in that state, R&D spending per capita, and the density of tech-focused companies…
How the District of Columbia out-innovated all 50 States
It may come as no surprise to some, but the District of Columbia without a doubt has a higher concentration of innovation than any other State in the nation!
The study found that D.C. had the highest share of STEM professionals in the nation, the highest projected STEM-job demand by 2030, the highest R&D spending per capita, and the highest venture capital funding per capita.
Additionally, the study found the District’s youth were being prepared for a future of innovation as well, with nearly 58% of high school students participating in AP exams!
Which of the 50 States were almost as innovative as the District?
While the study obviously has some limitations given the comparative populations of each State compared to that of the District of Columbia, the study nonetheless had the District of Columbia measured at 5 entire points higher on WalletHub’s State Innovation Index than the second most innovative State!
The top ten States for Innovation in the country, including the District of Columbia, are as follows:
- District of Columbia – 69.79 on WalletHub’s State Innovation Index
- Massachusetts – 64.12 on WalletHub’s State Innovation Index
- California – 63.64 on WalletHub’s State Innovation Index
- Colorado – 62.95 on WalletHub’s State Innovation Index
- Washington – 61.82 on WalletHub’s State Innovation Index
- Maryland – 61.32 on WalletHub’s State Innovation Index
- Virginia – 58.34 on WalletHub’s State Innovation Index
- Deleware – 54.97 on WalletHub’s State Innovation Index
- Utah – 53.19 on WalletHub’s State Innovation Index
- New Jersey – 52.01 on WalletHub’s State Innovation Index
What was this study’s methodology?
According to WalletHub, the study focused on two main dimensions, the first being ‘Human Capital’ and the second being ‘Innovation Environment’ with each of the two totalling for 50 points to create the 100 point scale.
Each of these dimensions were comprised of several factors, we’ve broken them down below:
Human Capital – 50 points
- Share of STEM Professionals – 14.29 points
- Share of Sciene & Engineeting Graduates – 7.14 points
- Projected STEM-Job Demand by 2030 – 7.14 points
- Scientific-Knowledge Output – 7.14 points
- The number of peer-reviewed articles published per $1 Million of Academic S&E research and development.
- Eighth-Grade Math & Science Performance – 7.14 points
- AP Exam Participation – 7.14 points
- The percentage of public high-school students in the graduating class who completed one or more Advanced-Placement exams at any point in high school.
Innovation Environment – 50 points
- Share of Technology Companies – 4.55 points
- The number of technology establishments per total establishments.
- R&D Spending per Capita – 4.55 points
- R&D Intensity – 2.27 points
- The ratio of total research and development (R&D) performed to state gross domestic product (GDP).
- Invention Patents per Capita – 2.27 points
- Utility, design, plant, and reissue patents per million of state population.
- Tech GSP as a Percent of Total State Product- 2.27 points
- Net Migration – 2.27 points
- The net number of people moving to or from a state per 1,000 residents.
- Entrepreneurial Activity- 2.27 points
- Based on data from the Kauffman Index of Startup Activity.
- Number of Startups “Accelerated” per Total Number of Start-ups – 2.27 points
- Tax-Friendliness- 4.55 points
- based on data from the Tax Foundation’s State Tax Competitiveness Index.
- 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
- Based on data from the U.S. Cluster Mapping Project.
- 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
- A state is considered to have K–12 CS standards if the standards meet all of the following criteria:
- Form a coherent progression that aligns elementary, middle, and high school expectations.
- Are publicly accessible on the state’s website.
- A state is considered to have K–12 CS standards if the standards meet all of the following criteria:
- IP Services Exports as a Share of All Services Exports – 2.27 points
- Measures royalty and license services exports as a share of total state services exports.
- Growth in Total Firms – 2.27 points
- The rate of increase (or decrease) in the total number of firms in an economy.
- Jobs in New Companies – 4.55 points
- Measures the share of workers at firms less than 5 years old.