The economy has had a decent run for a while – before the pandemic anyway – but it’s hard to imagine that the most innovative states in the nation have been laying the groundwork for their success for more than 150 years.
Bloomberg has recently released its annual Innovation Index, where it ranks all fifty states based on six criteria of equal weight. These include R&D activity, patents filed, companies in technology, productivity, and STEM jobs, as well as residents with science or engineering degrees.
According to the report, the top two states – California and Massachusetts – owe some of their tech prowess to the Morrill Act of 1862, which allowed public land to be sold and the proceeds used to establish colleges and universities. The results were institutions like MIT and the University of California, which economist Paul Romer says helped to change the course of education to focus on practical problem-solving.
Nurturing research-oriented universities have paid off in supporting Silicon Valley and, according to Bloomberg’s report, California-based companies received more than $67 billion in venture capital funding last year, three times that of the runner up in tech deals, New York.
Massachusetts ranked highest in tech company density, boasting big names GE and Raytheon among its headquartered companies. Ranking third was Washington state, likely boosted by big employers like Boeing and Amazon. Bloomberg’s report has ranked these same states as the top three for three consecutive years.
Bloomberg says Alabama was the biggest mover this year, rising five spots while neighboring state Mississippi ranked dead last.
Find the full index by following the link below and see where your state ranks on this list.
