REVEALED: The worst and best states for innovative minds according to a new study
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California boasts one of the highest per capita venture capital investments and ranks first in patent creation, making it the top state for innovation.
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Massachusetts combines high levels of R&D investment with a strong tech workforce, securing its position as a leading innovation hub.
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Washington excels in both financial incentives and innovation vitality, driven by a high concentration of tech jobs and significant patent activity.
Story credit to TCGen https://www.tcgen.com/most-innovative-us-states-ranked/
California, Massachusetts, and Washington lead the nation in innovation, thanks to substantial investments in R&D, tech jobs, and venture capital. California invests $4,920.33 per capita in R&D and employs 45 tech workers per 1,000 people. Massachusetts supports innovation with $4,686.94 per capita in R&D investment and a tech workforce of 60 jobs per 1,000 people. Washington, with $5,377.52 per capita in R&D investment and a tech workforce of 43 jobs per 1,000 people, creates an environment that encourages small business creation and patent generation, key indicators of innovation vitality. California alone has generated over 657,693 patents, reflecting its dominance in fostering innovative minds.
Interestingly, the study reveals that some smaller states, such as Colorado and Utah, are punching above their weight. Colorado has a high innovation vitality index of 9 and significant financial investments, with $1,229.34 per capita in R&D investment and $1,229.34 per capita in venture capital investment. Utah leverages both financial investments and supportive policies, boasting $1,264.80 per capita in venture capital investment and an innovation vitality index of 8. These states drive significant results despite having smaller populations.
On the other end of the spectrum, Mississippi, West Virginia, and Arkansas rank as the least innovative states. Mississippi has the lowest innovation rank with minimal financial and policy support for innovation, featuring a per capita R&D investment of just $94.24 and negligible venture capital investment. West Virginia and Arkansas also struggle with low per capita R&D and venture capital investments, $128.44 and $136.82 respectively, and limited patent activity, with West Virginia generating only 7,739 patents and Arkansas 5,866. These states face significant challenges in fostering an environment conducive to innovation.
Fabio Pernía, Associate at TCGen, emphasizes the crucial role of policy and says: “Innovation is not just about money. Our research shows that states can achieve remarkable innovation outcomes by implementing supportive policies. These measures are critical, from easing the process of starting a small business to ensuring widespread broadband access.”
Top 10 Innovative States
| Overall Rank | State | Total Innovation Rank | Financial Incentives Index | Innovation Vitality Index |
| 1 | California | 8.4 | 9 | 8 |
| 2 | Massachusetts | 7.3 | 7 | 8 |
| 3 | Washington | 6.7 | 5 | 9 |
| 4 | Colorado | 5.5 | 2 | 9 |
| 5 | Texas | 5.3 | 4 | 7 |
| 6 | Utah | 5.2 | 2 | 8 |
| 7 | Oregon | 4.9 | 2 | 8 |
| 8 | New York | 4.9 | 3 | 6 |
| 9 | Delaware | 4.6 | 3 | 6 |
| 10 | Minnesota | 4.5 | 2 | 7 |
Top 10 Least Innovative States
| Overall Rank | State | Total Innovation Rank | Financial Incentives Index | Innovation Vitality Index |
| 41 | New Mexico | 1.7 | 0 | 3 |
| 42 | Tennessee | 1.7 | 0 | 3 |
| 43 | Alaska | 1.3 | 0 | 3 |
| 44 | Hawaii | 1.2 | 0 | 2 |
| 45 | Alabama | 1.1 | 1 | 2 |
| 46 | Kentucky | 0.9 | 0 | 2 |
| 47 | Louisiana | 0.9 | 0 | 2 |
| 48 | Arkansas | 0.8 | 0 | 2 |
| 49 | West Virginia | 0.4 | 0 | 1 |
| 50 | Mississippi | 0 | 0 | 0 |
Ranked The Best and Worst Innovative States
| Overall Rank | State | Total Innovation Rank | Financial Incentives Index | Innovation Vitality Index |
| 1 | California | 8.4 | 9 | 8 |
| 2 | Massachusetts | 7.3 | 7 | 8 |
| 3 | Washington | 6.7 | 5 | 9 |
| 4 | Colorado | 5.5 | 2 | 9 |
| 5 | Texas | 5.3 | 4 | 7 |
| 6 | Utah | 5.2 | 2 | 8 |
| 7 | Oregon | 4.9 | 2 | 8 |
| 8 | New York | 4.9 | 3 | 6 |
| 9 | Delaware | 4.6 | 3 | 6 |
| 10 | Minnesota | 4.5 | 2 | 7 |
| 11 | Florida | 4.4 | 3 | 6 |
| 12 | Michigan | 4.3 | 2 | 7 |
| 13 | New Jersey | 4.2 | 3 | 6 |
| 14 | Arizona | 4 | 2 | 6 |
| 15 | New Hampshire | 3.9 | 1 | 7 |
| 16 | Connecticut | 3.8 | 2 | 6 |
| 17 | Maryland | 3.8 | 1 | 6 |
| 18 | Vermont | 3.8 | 1 | 7 |
| 19 | Nevada | 3.8 | 1 | 7 |
| 20 | Idaho | 3.7 | 1 | 7 |
| 21 | North Carolina | 3.6 | 2 | 6 |
| 22 | Wyoming | 3.5 | 1 | 6 |
| 23 | Illinois | 3.5 | 2 | 5 |
| 24 | Virginia | 3.5 | 1 | 6 |
| 25 | Missouri | 3.4 | 1 | 6 |
| 26 | Georgia | 3.4 | 2 | 5 |
| 27 | Indiana | 3.2 | 1 | 5 |
| 28 | Pennsylvania | 3.1 | 2 | 5 |
| 29 | Rhode Island | 2.9 | 0 | 6 |
| 30 | Iowa | 2.8 | 1 | 5 |
| 31 | Kansas | 2.8 | 1 | 5 |
| 32 | Ohio | 2.8 | 2 | 4 |
| 33 | North Dakota | 2.8 | 0 | 5 |
| 34 | Wisconsin | 2.7 | 1 | 4 |
| 35 | South Carolina | 2.6 | 0 | 5 |
| 36 | Nebraska | 2.4 | 0 | 5 |
| 37 | Montana | 2.3 | 0 | 5 |
| 38 | South Dakota | 2 | 0 | 4 |
| 39 | Maine | 1.8 | 0 | 4 |
| 40 | Oklahoma | 1.8 | 0 | 3 |
| 41 | New Mexico | 1.7 | 0 | 3 |
| 42 | Tennessee | 1.7 | 0 | 3 |
| 43 | Alaska | 1.3 | 0 | 3 |
| 44 | Hawaii | 1.2 | 0 | 2 |
| 45 | Alabama | 1.1 | 1 | 2 |
| 46 | Kentucky | 0.9 | 0 | 2 |
| 47 | Louisiana | 0.9 | 0 | 2 |
| 48 | Arkansas | 0.8 | 0 | 2 |
| 49 | West Virginia | 0.4 | 0 | 1 |
| 50 | Mississippi | 0 | 0 | 0 |
Story credit to TCGen https://www.tcgen.com/most-innovative-us-states-ranked/
Methodology
The data includes per capita R&D investment, per capita venture capital investment, small businesses created, patent creation rate, and the SBA amount funded. By analyzing this data, TCGen has developed a Total Innovation Rank Index based on the following indexes:
Financial Incentives Index (average)
Innovation Vitality Index (average)
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Author: David Keech
David Keech is a retired teacher and works as a sportswriter, sports official and as an educational consultant. He has reported on amateur sports since 2011, known as 'KeechDaVoice.' David can be reached at [email protected]
