ncrpc innovation index data

8/8/2019 NCRPC Innovation Index Data

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Analysis supporting regional competitiveness in a knowledge-based economy.

Innovation Trail: Select Your Region > Innovation Index

Innovation Index

View Component

Graphics and Data

Why This

Index Is Useful

What the Research Shows Using This in Your Region

The

Innovation

Index takes a

broad look at

indicators

related to

innovation

from both the

input and

output

perspectives.

Learn moreabout themethodology

Based on statistical

analysis, several factors

appear to be especially

important for increasing

economic growth:

educational attainment;

young-adult population

growth; high-tech

employment growth; and

the number of small

establishments.

Learn more about the researchresults

Economies do not recognize

political boundaries used in

governing, such as counties and

states. Each region will have a

different mix of qualities that can

boost its overall innovation score,

and no 2 regions will be exactly

alike. The practitioner's guide can

help users get started using this

tool.

Learn more about using this tool

This project is funded in part by the U.S. Commerce Department's Economic Development Administration.Work was conducted by the Pu rdue Center for Regional Development, the Indiana Business Research Cenat Indiana University's Kelley School of Business, Strategic Development Group, Inc., the Rural PolicyResearch Institute, and Economic Modeling Specialists, Inc. The project received additional support from theState of Indiana through the Indiana Office of Community and Rural Affairs.

This website was produced and is maintained by the Indiana Business Research Center at Indiana Universitys KelleySchool of Business. Questions and comments about the site may be emailed to [email protected].

About the Index

The Innovation Index

consists of five components.

1. Human Capital: 30%

2. Economic Dynamics:

30%

3. Productivity and

Employment: 30%

4. Economic Well-Being:

10%5. State Context (for

reference only)


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Innovation Trail: Select Your Region > Innovation Index > Measures

Measuring InnovationClick on the chart to drill down to more graphics and the underlying data.

The index incorporates a mix of input measures that characterize the place and its people (accounting for 60 percent of the overall index score) and output measures that

characterize its economic success (40 percent of the overall score). The state context category is provided for reference, but is not part of the broader index.Learn more

about the index weighting and its components.

Inputs and Capacity State Context Outputs

The ability of the population and labor force to innovate is

captured in 2 component indexes that include inputs into

local economies.

A measure of the resources available in a state to

entrepreneurs and businesses.

Direct outcomes and economic improvements of

innovative activities are displayed in the output indexes.

This project is funded in part by the U.S. Commerce Department's Economic Development Administration. Work was conducted by the Pu rdue Center for Regional Development, the Ind iana Business Research Center atIndiana University's Kelley School of Business, Strategic Development Group, Inc., the Rural Policy Research Institute, and Economic Modeling Specialists, Inc. The project received additional support f rom the State of

Indiana through the Indiana Office of Community and Rural Affairs.

This website was produced a nd is maintained by the Indiana Business Research Center at Indiana Universitys Kelley School of Business. Questions and comments about th e site may be emailed to [email protected].


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Innovation Trail: Select Your Region > Innovation Index > Measures > Human Capital

Human CapitalClick on a chart to view the underlying data.

Educational Attainment

Educational attainment is a measure of the population's capacity to contribute to

innovation with necessary skills and knowledge. 2 component indicators are presented f

education to measure not only highly educated residents with a bachelor's degree or

higher, but also residents with some college. Research shows that the some college/

associate's degree indicator has significant effects on GDP per worker growth.

Population Growth Rates

High population growth rates for younger working age persons (ages 25 to 44) suggest

new residents are attracted to an area, growing the workforce, adding to the innovative

base and launching new businesses. Research shows this indicator has significant effec

on GDP per worker growth.

Components

Human capital inputs are

those characteristics that

describe the ability of the

population and labor force

to innovate.

Educational Attainment

Population Growth

Rates

High-Tech EmploymentShare

Technology-Based

Knowledge

Occupations


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High-Tech Employment Share

Firms requiring a highly skilled and specialized workforce contribute to innovation in a

county by providing a resource for workers, other firms and other industries. (This metric

measures the point in time innovative capacity of the region as opposed to the growth of

innovative capacity in the productivity and employment index.)

Technology-Based Knowledge Occupations

These 6 occupation clusters are often thought to be closely associated with the producti

of innovations. They include information technology; engineering; health care and medic

science practitioners and scientists; mathematics, statistics, data and accounting; natura

science and environmental management; and postsecondary education and knowledge

creation.


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This project is funded in part by the U.S. Commerce Department's Economic Development Administration.Work was conducted by the Purdue Center for Regional Development, the Indiana Business Research Cenat Indiana University's Kelley School of Business, Strategic Development Group, Inc., the Rural PolicyResearch Institute, and Economic Modeling Specialists, Inc. The project received additional support from theState of Indiana through the Indiana Office of Community and Rural Affairs.



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Custom

RegionMitchell, KS 20.2% 642 3,171

Custom

RegionMorris, KS 17.6% 517 2,945

Custom

RegionOttawa, KS 19.2% 604 3,142

Custom

Region

Pottawatomie,

KS 26.2% 2,356 8,993

Custom

RegionRepublic, KS 19.1% 522 2,726

Custom

RegionRiley, KS 43% 10,602 24,650

Custom

RegionSaline, KS 21.8% 5,948 27,272

Custom

Region

Wabaunsee,

KS18.9% 671 3,547

Custom

Region

Washington,

KS17% 502 2,951

This project is funded in part by the U.S. Commerce Department's Economic Development Administration. Work was conducted by the Purdue Center forRegional Development, the Indiana Business Research Center at Indiana University's Kelley School of Business, Strategic Development Group, Inc., theRural Policy Research Institute, and Economic Modeling Specialists, Inc. The project received additional support from the Sta te of Indiana through theIndiana Office of Community and Rural Affairs.

This website was produced and is maintained by the Ind iana Business Research Center at Indiana Universitys Kelley School of Business. Questions and commentsabout the site may be emailed to [email protected].


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Innovation Trail: Select Your Region > Innovation Index > Measures > Human Capital > Table: Percent Change in Mid-Aged Population

Human Capital

Percent Change in Mid-Aged Population, 1997-2006

Region

Average Annual Change in

Mid-Aged Population

Mid-Aged Population

2006

Mid-Aged Population

1997

Custom Region -2.8% 66,283 84,938

KS -1.2% 711,162 791,239

NE -1.1% 450,045 498,804

U.S. -0.3% 83,223,135 85,573,378

Counties

Region County


Mid-Aged Population

Mid-Aged Population

2006

Mid-Aged Population

1997

Custom Region Chase, KS -2.7% 634 806

Custom Region Clay, KS -3% 1,745 2,279

Custom Region Cloud, KS -2.4% 1,947 2,423

Custom Region Dickinson, KS -2.6% 4,194 5,286

Custom Region Ellsworth, KS -2.6% 1,448 1,827

Custom Region Geary, KS -3.2% 6,529 8,676

Custom Region Jewell, KS -6.9% 494 917

Custom Region Lincoln, KS -4.1% 595 859

Custom Region Lyon, KS -3.1% 7,660 10,152

Custom Region Marshall, KS -3.8% 1,956 2,764

Custom Region Mitchell, KS -4.1% 1,166 1,687

Custom Region Morris, KS -3.5% 1,132 1,558Custom Region Ottawa, KS -2.2% 1,347 1,647

Custom Region Pottawatomie, KS -1.3% 4,618 5,170

Custom Region Republic, KS -6.9% 758 1,412

Custom Region Riley, KS -3% 13,755 18,035


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Custom Region Saline, KS -1.6% 13,759 15,951

Custom Region Wabaunsee, KS -3% 1,468 1,926

Custom Region Washington, KS -4.1% 1,078 1,563




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Innovation Trail: Select Your Region > Innovation Index > Measures > Human Capital > Table: Population with Some College or Associate's Degree

Human Capital

Percent of Adult Population With Some College or an Associate's Degree, 2000

Region

Percent of Population Ages 25 to 64 with Some

College or an Associate's Degree

Population Ages 25-64 with Some

College or Associate's Degree

Total Population

Ages 25-64

Custom Region 34.6% 48,641 140,599

KS 32.8% 440,763 1,345,526

NE 34.8% 297,083 854,882

U.S. 29.6% 43,521,981 147,232,667

Counties

Region County

Percent of Population Ages 25 to 64 with Some

College or an Associate's Degree

Population Ages 25-64 with Some

College or Associate's Degree

Total Population

Ages 25-64

Custom

RegionChase, KS 30.4% 460 1,513

CustomRegion

Clay, KS 37.7% 1,579 4,193

Custom

RegionCloud, KS 36.7% 1,659 4,523

Custom

RegionDickinson, KS 36.5% 3,490 9,559

Custom

RegionEllsworth, KS 38.9% 1,300 3,342

Custom

Region

Geary, KS 43.2% 5,654 13,101

Custom

RegionJewell, KS 41.5% 752 1,813

Custom

RegionLincoln, KS 35.9% 613 1,709

Custom

RegionLyon, KS 28.6% 4,701 16,410

Custom

RegionMarshall, KS 30.4% 1,533 5,039


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Custom

RegionMitchell, KS 41.2% 1,305 3,171

Custom

RegionMorris, KS 32% 943 2,945

Custom

RegionOttawa, KS 37.5% 1,179 3,142

CustomRegion

Pottawatomie,KS

32.8% 2,951 8,993

Custom

RegionRepublic, KS 39.2% 1,069 2,726

Custom

RegionRiley, KS 32.4% 7,988 24,650

Custom

RegionSaline, KS 34.3% 9,347 27,272

Custom

Region

Wabaunsee,

KS

31.5% 1,116 3,547

Custom

Region

Washington,

KS34% 1,002 2,951




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Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Dynamics

Economic DynamicsClick on a chart to view the underlying data.

Average Venture Capital

Venture capital provides a source of funds to launch new ideas or expand innovative

companies.

Average Private R&D

Research and development funds provides the resources for companies to launch new

ideas or expand innovative companies.

Broadband Density and Penetration

Innovation and knowledge are linked to widespread Internet usage for individuals and

businesses. This indicator is defined as the number of broadband providers available to

residents in a given county, which serves as a proxy for actual broadband penetration in

Components

This component measures

local resources available to

county entrepreneurs and

businesses that encourage

innovation close to home.

Average Venture

Capital

Average Private R&D

Broadband Density andPenetration

Establishment Churn

Establishment Sizes


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rural markets. This indicator is presented as the population-weighted mean of broadban

service providers available per county translated from population-weighted ZIP code dat

Establishment Churn

Innovative and efficient companies replace outdated establishments, or those firms

unable to modernize techniques and processes. Average churn is a measure of total

establishment births and deaths, and expansions and contractions, relative to the totalnumber of firms in a county for all years available.

Establishment Sizes

The sizes of establishments provide an indication of a regional economy's structural

composition. Small establishments with fewer than 20 employees are flexible and not

overburdened by a bureaucratic organizational structure enabling rapid changes to

implement new ideas and evolve with technology. On the other end of the spectrum, larg

establishments with more than 500 employees have both the capital and labor resources

to fund research and other innovative activities.Research shows that the average share

small establishments has significant effects on GDP per worker growth.


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Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Dynamics > Table: Average Venture Capital Investment per $10,000 GDP

Economic Dynamics

Average Venture Capital Investment per $10,000 GDP, 2000-2006

Region

Average Venture Capital Investment per $10,000 GDP

Custom Region $0.00

KS $11.75

NE $4.45

U.S. $34.01

Counties

Region County Average Venture Capital Investment per $10,000 GDP

Custom Region Chase, KS $0.00

Custom Region Clay, KS $0.00

Custom Region Cloud, KS $0.00

Custom Region Dickinson, KS $0.00

Custom Region Ellsworth, KS $0.00

Custom Region Geary, KS $0.00

Custom Region Jewell, KS $0.00

Custom Region Lincoln, KS $0.00

Custom Region Lyon, KS $0.00

Custom Region Marshall, KS $0.00

Custom Region Mitchell, KS $0.00

Custom Region Morris, KS $0.00

Custom Region Ottawa, KS $0.00

Custom Region Pottawatomie, KS $0.00

Custom Region Republic, KS $0.00

Custom Region Riley, KS $0.00

Custom Region Saline, KS $0.00

Custom Region Wabaunsee, KS $0.00


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Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Dynamics > Table: Average Establishment Churn

Economic Dynamics

Average Establishment Churn, 1999-2005

Region

Average Establishment Churn

Custom Region 71%

KS 74.7%

NE 72.2%

U.S. 77.4%

Counties

Region County Average Establishment Churn

Custom Region Chase, KS 69.6%

Custom Region Clay, KS 70.6%

Custom Region Cloud, KS 66.2%

Custom Region Dickinson, KS 67.7%

Custom Region Ellsworth, KS 66.4%

Custom Region Geary, KS 74.7%

Custom Region Jewell, KS 53.4%

Custom Region Lincoln, KS 67.6%

Custom Region Lyon, KS 72%

Custom Region Marshall, KS 64.5%

Custom Region Mitchell, KS 66.1%

Custom Region Morris, KS 63.5%

Custom Region Ottawa, KS 69.7%

Custom Region Pottawatomie, KS 75.1%

Custom Region Republic, KS 57%

Custom Region Riley, KS 76.7%

Custom Region Saline, KS 73.6%

Custom Re ion Wabaunsee KS 68.6%


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Custom Region Washington, KS 61%




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Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Dynamics > Table: Average Large Establishments per 100,000 Workers, 1997 t

2006

Economic Dynamics

Average Large Establishments per 10,000 Workers, 1997-2006

Region

Average Large Establishments per Worker

Custom Region 0.60

KS 0.84

NE 1.15

U.S. 1.11

Counties

Region County Average Large Establishments per Worker

Custom Region Chase, KS 0.00

Custom Region Clay, KS 0.00

Custom Region Cloud, KS 0.00

Custom Region Dickinson, KS 1.01

Custom Region Ellsworth, KS 0.00

Custom Region Geary, KS 0.23

Custom Region Jewell, KS 0.00

Custom Region Lincoln, KS 0.00

Custom Region Lyon, KS 1.20

Custom Region Marshall, KS 0.40

Custom Region Mitchell, KS 0.00

Custom Region Morris, KS 0.00

Custom Region Ottawa, KS 0.00

Custom Region Pottawatomie, KS 0.00

Custom Region Republic, KS 0.26

Custom Region Riley, KS 0.52

Custom Region Saline, KS 1.29


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Custom Region Wabaunsee, KS 0.72

Custom Region Washington, KS 0.00




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Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Dynamics > Table: Average Research & Development Investment per $1,000

Compensation

Economic Dynamics

Average Research & Development Investment per $1,000 Compensation, 1998-

2006

Region

Average Research & Development Investment per $1,000 Compensation

Custom Region $0.00

KS $0.40

NE $1.65

U.S. $25.44

Counties

Region County Average Research & Development Investment per $1,000 Compensation

Custom Region Chase, KS $0.00

Custom Region Clay, KS $0.00

Custom Region Cloud, KS $0.00

Custom Region Dickinson, KS $0.00

Custom Region Ellsworth, KS $0.00

Custom Region Geary, KS $0.00

Custom Region Jewell, KS $0.00

Custom Region Lincoln, KS $0.00

Custom Region Lyon, KS $0.00

Custom Region Marshall, KS $0.00

Custom Region Mitchell, KS $0.00

Custom Region Morris, KS $0.00

Custom Region Ottawa, KS $0.00

Custom Region Pottawatomie, KS $0.00

Custom Region Republic, KS $0.00

Custom Region Riley, KS $0.00


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Custom Region Saline, KS $0.00

Custom Region Wabaunsee, KS $0.00

Custom Region Washington, KS $0.00

This project is funded in p art by the U.S. Commerce Department's Economic Development Administration. Work was conducted by the Purdue Center forRegional Development, the Indiana Business Research Center at Indiana University's Kelley School of Bu siness, Strategic Development Group, Inc., theRural Policy Research Institute, and Economic Modeling Specialists, Inc. The project received additional support from the Sta te of Ind iana through theIndiana Off ice of Community and Rural Affairs.

This website was produced an d is maintained by the Ind iana Business Research Center at Indiana Universitys Kelley School of Business. Questions and commentsabout th e site may be emailed to [email protected].


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Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Dynamics > Table: Average Small Establishments per 1,000 Workers, 1997 to

2006

Economic Dynamics

Average Small Establishments per 10,000 Workers, 1997-2006

Region

Average Small Establishments per Worker

Custom Region 377.1

KS 371.1

NE 372.2

U.S. 374.5

Counties

Region County Average Small Establishments per Worker

Custom Region Chase, KS 252.5

Custom Region Clay, KS 426.7

Custom Region Cloud, KS 516.7

Custom Region Dickinson, KS 506.5


Custom Region Geary, KS 187.0

Custom Region Jewell, KS 434.5

Custom Region Lincoln, KS 486.8

Custom Region Lyon, KS 355.9

Custom Region Marshall, KS 472.8

Custom Region Mitchell, KS 516.6

Custom Region Morris, KS 484.5

Custom Region Ottawa, KS 478.7


Custom Region Republic, KS 496.1

Custom Region Riley, KS 371.6

Custom Region Saline, KS 371.9


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Custom Region Wabaunsee, KS 441.1





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Innovation Trail: Select Your Region > Innovation Index > Measures > Productivity & Employment

Productivity and EmploymentClick on a chart to view the underlying data.

Change in High-Tech Employment

Firms requiring a highly skilled and specialized workforce are drawn to innovative areas.

Growth in this sector suggests the increasing presence of innovation. High-tech

employment, derived from a NAICS-based definition by Moodys, measures an

aggregation of employment in key sectors (e.g., telecommunications, Internet providers,

scientific laboratories) as an average annual rate of change in the share of high-tech

employment. Research shows this indicator has significant effects on GDP per worker

growth.

Job Growth

High employment growth relative to population growth suggests jobs are being created

faster than people are moving to a region. A high ratio between these 2 variables

indicates strong economic growth.

Components

This component measures

economic improvement,

regional desirability, or are

the direct outcomes of

innovation.

Change in High Tech

Employment

Job Growth

Gross DomesticProduct per Worker

Average Patents per

1,000 Workers


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Gross Domestic Product per Worker

GDP serves as a measure of county-level economic output, while increases in GDP per

worker measures increases in worker productivity.

Average Patents per 1,000 WorkersNew patented technologies provide an indicator of individuals and firms abilities to

develop new technologies and remain competitive in the economy. Patents are presente

as total number per 1,000 workers.



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Innovation Trail: Select Your Region > Innovation Index > Measures > Productivity and Employment > Table: GDP per Worker Growth

Productivity and Employment

Percent Change in GDP per Worker, 1997-2006

Region

Average Annual Change in GDP per Worker GDP per Worker, 1997 GDP per Worker, 2006

Custom Region 3.8% 37,988 53,656

KS 3.9% 42,981 61,250

NE 3.4% 45,477 61,782

U.S. 3.8% 53,917 76,076

Counties

Region County Average Annual Change in GDP per Worker GDP per Worker, 1997 GDP per Worker, 2006

Custom Region Chase, KS -3% 28,571 21,851

Custom Region Clay, KS 1.6% 32,539 37,481

Custom Region Cloud, KS 3.8% 35,335 49,729

Custom Region Dickinson, KS 3.7% 41,393 57,496

Custom Region Ellsworth, KS 4% 35,070 50,243

Custom Region Geary, KS 4.4% 31,257 46,495

Custom Region Jewell, KS 2.1% 33,197 40,278

Custom Region Lincoln, KS 2.1% 33,262 40,283

Custom Region Lyon, KS 4.4% 41,372 61,488

Custom Region Marshall, KS 4.3% 37,868 55,753

Custom Region Mitchell, KS 4% 38,037 54,388

Custom Region Morris, KS 4.9% 37,412 58,276

Custom Region Ottawa, KS 4.9% 29,989 46,576

Custom Region Pottawatomie, KS 2.2% 39,270 48,072

Custom Region Republic, KS 3.3% 37,306 50,079

Custom Region Riley, KS 4.8% 38,357 59,067

Custom Region Saline, KS 3.4% 42,891 58,473

Custom Region Wabaunsee, KS 5.4% 29,173 47,277


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Custom Region Washington, KS 5.8% 35,167 59,025




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Innovation Trail: Select Your Region > Innovation Index > Measures > Productivity and Employment > Table: GDP per Worker


Gross Domestic Product (GDP) per Worker, 2006

Region

GDP per Worker

Custom Region $53,656

KS $61,250

NE $61,782

U.S. $76,076

Counties

Region County GDP per Worker

Custom Region Chase, KS $21,851

Custom Region Clay, KS $37,481

Custom Region Cloud, KS $49,729

Custom Region Dickinson, KS $57,496

Custom Region Ellsworth, KS $50,243

Custom Region Geary, KS $46,495

Custom Region Jewell, KS $40,278

Custom Region Lincoln, KS $40,283

Custom Region Lyon, KS $61,488

Custom Region Marshall, KS $55,753

Custom Region Mitchell, KS $54,388

Custom Region Morris, KS $58,276

Custom Region Ottawa, KS $46,576

Custom Region Pottawatomie, KS $48,072

Custom Region Republic, KS $50,079

Custom Region Riley, KS $59,067

Custom Region Saline, KS $58,473

Custom Re ion Wabaunsee KS $47 277


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Custom Region Washington, KS $59,025




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Innovation Trail: Select Your Region > Innovation Index > Measures > Productivity and Employment > Table: Job Growth to Population Growth Ratio


Job Growth-to-Population Growth Ratio, 1997-2006

Region

Job Growth to

Population Growth

Ratio

Total

Employment

(1997)

Total

Employment

(2006)

Total

Population

(1997)

Total

Population

(2006)

Custom Region 6.45 190,732 197,313 304,138 305,158

KS 0.98 1,676,806 1,794,329 2,635,292 2,755,700

NE 1.38 1,111,371 1,213,146 1,686,418 1,760,435

U.S. 0.84 154,541,200 176,124,600 272,646,925 298,362,973

Counties

Region County

Job Growth to

Population Growth

Ratio

Total

Employment

(1997)

Total

Employment

(2006)

Total

Population

(1997)

Total

Population

(2006)

Custom

RegionChase, KS -17.67 1,826 2,957 3,024 2,960

Custom

RegionClay, KS -2.85 5,292 6,499 9,005 8,581

Custom

RegionCloud, KS 0.27 6,140 5,834 10,494 9,376

Custom

RegionDickinson, KS 0.75 10,257 9,797 19,532 18,922

Custom

RegionEllsworth, KS -0.61 3,822 3,980 6,538 6,281

Custom

RegionGeary, KS 2.95 24,359 28,172 27,700 28,994

Custom

RegionJewell, KS 0.15 2,248 2,137 3,990 3,248

Custom

RegionLincoln, KS -0.04 2,069 2,079 3,555 3,272

Custom

RegionLyon, KS -29.65 22,947 21,109 35,513 35,575


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Custom

RegionMarshall, KS -0.27 7,176 7,441 11,166 10,166

Custom

RegionMitchell, KS 0.63 5,027 4,575 7,027 6,314

Custom

RegionMorris, KS 2.85 3,121 2,398 6,184 5,930

Custom

Region

Ottawa, KS 277.00 2,940 2,663 5,991 5,990

Custom

Region

Pottawatomie,

KS3.33 10,370 14,693 17,626 18,925

Custom

RegionRepublic, KS 0.64 4,160 3,470 6,059 4,974

Custom

RegionRiley, KS 0.02 34,194 34,304 64,018 69,164

Custom

RegionSaline, KS 1.82 37,790 39,150 53,168 53,914

Custom

RegionWabaunsee, KS 0.53 2,891 2,780 6,897 6,688

Custom

RegionWashington, KS 1.08 4,103 3,275 6,651 5,884




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Innovation Trail: Select Your Region > Innovation Index > Measures > Productivity and Employment > Table: Percent Change in High Tech Employment


Percent Change in High-Tech Employment Share, 1997-2006

Region

Rate of Change in High-Tech

Employment Share, 1997-2006

High-Tech Employment

Share, 1997


Share, 2006

Custom Region 1.2% 2.6% 2.9%

KS 2.1% 3.9% 4.7%

NE -1% 4.8% 4.4%

U.S. -0.7% 4.9% 4.6%

Counties

Region County

Rate of Change in High-Tech

Employment Share, 1997-2006


Share, 1997


Share, 2006

Custom Region Chase, KS 5.6% 1.1% 1.8%

Custom Region Clay, KS -0.2% 1.5% 1.5%

Custom Region Cloud, KS 5.1% 1.7% 2.7%

Custom Region Dickinson, KS 14.9% 0.4% 1.7%

Custom Region Ellsworth, KS 1.8% 1.2% 1.4%

Custom Region Geary, KS -4.9% 2.9% 1.8%

Custom Region Jewell, KS 1.6% 0.6% 0.7%

Custom Region Lincoln, KS 5.8% 1.2% 2%

Custom Region Lyon, KS 4.3% 1.7% 2.5%

Custom Region Marshall, KS 1.3% 2.4% 2.7%

Custom Region Mitchell, KS 0.7% 2.2% 2.4%

Custom Region Morris, KS 5.4% 2% 3.3%

Custom Region Ottawa, KS 8.7% 0.5% 1.1%

Custom Region Pottawatomie, KS 2.6% 2.4% 3.1%

Custom Region Republic, KS -4.7% 1.8% 1.2%

Custom Region Riley, KS -1.9% 2.1% 1.8%


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Custom Region Saline, KS 1.6% 4.8% 5.5%

Custom Region Wabaunsee, KS 3.4% 0.9% 1.2%

Custom Region Washington, KS 8.1% 1.5% 3.2%


This website was produced and is maintained by the Ind iana Business Research Center at Indiana Universitys Kelley School of Business. Questions and comments

about the site may be emailed to [email protected].


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Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Well-Being

Economic Well-BeingClick on a chart to view the underlying data.

Average Poverty Rate

Innovative economies are thought to be less poverty stricken as a result of elevated

employment opportunities and a more highly educated workforce with diverse skills that

open the doors to an increased number of employers. As poverty rates decrease,

presumably innovation has increased.

Average Unemployment Rates

Innovative economies have greater employment opportunities and lower unemployment

rates.

Average Net Migration

Total migration of all persons into a county serves as an indicator of whether a region is

Components

Innovative economies

improve economic well-

being for residents because

they earn more and have in

increasing standard of

living.

Average Poverty Rate

Average

Unemployment RatesAverage Net Migration

Average PCPI Growth

Compensation


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attractive to job seekers and families.

Average Growth in Per Capita Personal Income

Personal Income is the broadest measure of a person's income because it includes rent

income, dividends and interest payments, in addition to salary, wages and benefits. As a

result, it is probably the best measure of well-being.

Compensation

Improvements in earnings per worker, or compensation, signify a postive trend in

economic growth being passed on to workers. 2 specific categories of workers are

considered: wage and salary employees and nonfarm proprietors.


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Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Well-Being > Table: Percent Change in Wage and Salary Earnings per Worker

Economic Well-Being

Percent Change in Average Wage and Salary Earnings, 1997-2006

Region


Wage and

Salary Earnings per

Worker

Wage and

Salary

Employment,

1997

Wage and

Salary

Employment,

2006

Wage and Salary

Disbursements,

1997 (000s)

Wage and Salary

Disbursements,

2006 (000s)

Custom Region 4.3% 150,482 158,051 $3,082,379 $4,749,984

KS 3.9% 1,349,967 1,434,849 $34,582,641 $52,140,628

NE 3.8% 897,691 975,386 $22,520,992 $34,358,517

U.S. 3.9% 128,681,000 141,916,000 $3,872,441,000 $6,060,261,000

Counties

Region County


Wage and

Salary Earnings per

Worker

Wage and

Salary

Employment,

1997

Wage and

Salary

Employment,

2006

Wage and Salary

Disbursements,

1997 (000s)

Wage and Salary

Disbursements,

2006 (000s)

Custom

RegionChase, KS 5.4% 991 954 $14,509 $22,646

Custom

RegionClay, KS 3% 3,497 3,645 $59,534 $81,106

Custom

RegionCloud, KS 3.1% 4,395 4,318 $77,487 $100,934

Custom

RegionDickinson, KS 3.5% 7,692 7,755 $145,487 $200,954

Custom

RegionEllsworth, KS 3.4% 2,634 2,573 $50,938 $67,692

Custom

RegionGeary, KS 5.8% 22,483 25,938 $531,452 $1,032,455

Custom

RegionJewell, KS 3.3% 1,126 1,030 $17,857 $21,975

Custom

Region Lincoln, KS 4.2% 1,162 1,055 $16,476 $21,839


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Custom

Region

Lyon, KS 3.2% 19,107 18,939 $393,484 $519,960

Custom

RegionMarshall, KS 3.7% 5,002 5,235 $105,321 $154,158

Custom

RegionMitchell, KS 3.4% 3,739 3,557 $74,718 $96,150

Custom

Region

Morris, KS 4.5% 1,911 1,774 $33,940 $47,200

Custom

RegionOttawa, KS 4.2% 1,615 1,530 $26,438 $36,712

Custom

Region

Pottawatomie,

KS3.8% 7,635 8,956 $162,689 $269,008

Custom

RegionRepublic, KS 3% 2,679 2,267 $44,345 $49,150

Custom

RegionRiley, KS 4.8% 29,000 31,469 $541,361 $906,329

Custom

RegionSaline, KS 3.5% 31,869 33,008 $727,756 $1,030,943

Custom

Region

Wabaunsee,

KS4.2% 1,370 1,644 $22,157 $38,955

Custom

Region

Washington,

KS4.7% 2,575 2,404 $36,430 $51,818




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Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Well-Being > Table: Average Annual Growth in PCPI

Economic Well-Being

Percent Change in Per Capita Personal Income, 1997-2006

Region

Average Annual Growth in

Per Capita Personal Income (PCPI) PCPI , 1997 PCPI, 2006

Custom Region 4.3% $21,316 $31,371

KS 4.2% $24,504 $35,764

NE 4.3% $24,359 $35,713

U.S. 4.3% $25,654 $37,698

Counties

Region County

Average Annual Growth in

Per Capita Personal Income (PCPI) PCPI , 1997 PCPI, 2006

Custom Region Chase, KS 4.1% $25,223 $36,501

Custom Region Clay, KS 4.7% $22,875 $34,945

Custom Region Cloud, KS 3.3% $20,543 $27,589

Custom Region Dickinson, KS 3.9% $21,397 $30,531

Custom Region Ellsworth, KS 4.1% $19,604 $28,405

Custom Region Geary, KS 6.1% $20,052 $34,602

Custom Region Jewell, KS 3.5% $21,553 $29,523

Custom Region Lincoln, KS 3.3% $19,794 $26,574

Custom Region Lyon, KS 2.9% $19,515 $25,383

Custom Region Marshall, KS 4.8% $22,750 $35,049

Custom Region Mitchell, KS 2.4% $24,767 $30,781

Custom Region Morris, KS 3.7% $19,941 $27,703Custom Region Ottawa, KS 2.8% $21,496 $27,707

Custom Region Pottawatomie, KS 4.8% $20,658 $31,823

Custom Region Republic, KS 3.1% $20,437 $26,907

Custom Region Riley, KS 5.5% $19,005 $31,091


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Custom Region Saline, KS 3.8% $25,658 $36,133

Custom Region Wabaunsee, KS 3.8% $21,453 $30,127

Custom Region Washington, KS 1.9% $20,635 $24,529




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Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Well-Being > Table: Average Poverty Rate

Economic Well-Being

Average Net Internal Migration Rate, 2000-2007

Region

Average Net Internal Migration

Rate per 10,000 Residents

Custom Region -62.6

KS -31.1

NE -26.7

U.S. 0.0

Counties

Region County

Average Net Internal Migration

Rate per 10,000 Residents

Custom Region Chase, KS -97.6

Custom Region Clay, KS -3.6

Custom Region Cloud, KS -76.0

Custom Region Dickinson, KS -18.2


Custom Region Geary, KS -230.2

Custom Region Jewell, KS -135.2

Custom Region Lincoln, KS -60.0

Custom Region Lyon, KS -101.8

Custom Region Marshall, KS -70.6

Custom Region Mitchell, KS -68.0

Custom Region Morris, KS -4.0

Custom Region Ottawa, KS -19.2


Custom Region Republic, KS -137.2

Custom Region Riley, KS -38.4

-


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Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Well-Being > Table: Average Poverty Rate

Economic Well-Being

Poverty Rate, 3-Year Average from 2003-2005

Region

Average Poverty

Rate

Number in Poverty,

2003

Number in Poverty,

2004

Number in Poverty,

2005

Custom Region 12.2% 32,130 33,691 37,303

KS 11.1% 278,163 297,733 310,666

NE 10.3% 170,042 172,162 186,436

U.S. 12.8% 35,861,170 37,039,804 38,231,474

Counties

Region County

Average Poverty

Rate

Number in Poverty,

2003

Number in Poverty,

2004

Number in Poverty,

2005

Custom

RegionChase, KS 10.7% 308 317 324

CustomRegion

Clay, KS 10.5% 874 896 905

Custom

RegionCloud, KS 12% 1,052 1,109 1,144

Custom

RegionDickinson, KS 9.1% 1,731 1,769 1,656

Custom

RegionEllsworth, KS 9.4% 517 528 514

Custom

Region

Geary, KS 13.1% 3,156 3,125 3,199

Custom

RegionJewell, KS 12.3% 395 407 435

Custom

RegionLincoln, KS 11% 356 350 396

Custom

RegionLyon, KS 14.5% 4,454 4,817 5,608

Custom

RegionMarshall, KS 10.1% 1,011 1,016 1,048


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Custom

RegionMitchell, KS 10.4% 624 617 667

Custom

RegionMorris, KS 10.1% 564 599 641

Custom

RegionOttawa, KS 8.2% 480 489 494

Custom

Region

Pottawatomie,

KS 9.3% 1,693 1,763 1,806

Custom

RegionRepublic, KS 10.7% 549 553 523

Custom

RegionRiley, KS 16.7% 7,747 8,436 10,745

Custom

RegionSaline, KS 10.9% 5,488 5,798 6,006

Custom

RegionWabaunsee, KS 7.7% 513 517 540

Custom

RegionWashington, KS 10.5% 618 585 652




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Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Well-Being > Table: Percent Change in Proprieters Income per Proprietor

Economic Well-Being

Percent Change in Average Proprietors Income, 1997-2006

Region


Proprietors'

Income per Proprietor

Proprietors'

Employment,

1997

Proprietors'

Employment,

2006

Proprietors'

Income

1997 (000s)

Proprietors'

Income

2006 (000s)

Custom Region 1.8% 28,326 29,686 $596,648 $736,889

KS 5.2% 261,499 305,366 $5,053,681 $9,445,306

NE 3.1% 160,239 198,595 $3,242,079 $5,327,018

U.S. 3.4% 23,648,200 32,381,600 $595,645,000 $1,103,626,000

Counties

Region County


Proprietors'

Income per Proprietor

Proprietors'

Employment,

1997

Proprietors'

Employment,

2006

Proprietors'

Income

1997 (000s)

Proprietors'

Income

2006 (000s)

Custom

RegionChase, KS -1.7% 539 1,796 $8,550 $24,497

Custom

RegionClay, KS 4.2% 1,211 2,375 $18,015 $51,463

Custom

RegionCloud, KS 1.6% 1,171 1,121 $17,024 $18,792

Custom

RegionDickinson, KS 1.4% 1,611 1,171 $25,526 $21,045

Custom

RegionEllsworth, KS 1.4% 729 1,068 $9,897 $16,489

Custom

RegionGeary, KS 2.7% 1,645 2,041 $26,267 $41,457

Custom

RegionJewell, KS 3.7% 511 661 $7,415 $13,390

Custom

Region Lincoln, KS 0.1% 423 638 $5,404 $8,207

Custom

RegionLyon, KS 4.7% 2,936 1,388 $45,895 $33,088


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Custom

RegionMarshall, KS 5.8% 1,184 1,424 $17,288 $35,051

Custom

RegionMitchell, KS 2.7% 779 689 $12,739 $14,316

Custom

RegionMorris, KS 10.6% 681 219 $10,903 $9,074

Custom

Region Ottawa, KS 6.1% 799 691 $8,670 $13,028

Custom

Region

Pottawatomie,

KS0.8% 1,883 5,035 $24,177 $69,614

Custom

RegionRepublic, KS 4.6% 770 658 $11,222 $14,560

Custom

RegionRiley, KS 6.3% 4,707 2,403 $70,833 $63,845

Custom

RegionSaline, KS -0.1% 5,187 5,515 $255,927 $270,695

Custom

Region

Wabaunsee,

KS6% 874 587 $12,548 $14,409

Custom

Region

Washington,

KS4.8% 686 206 $8,348 $3,869




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Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Well-Being > Table: Average Unemployment Rate

Economic Well-Being

Unemployment Rate, 3-Year Average 2005-2007

Region

Unemployment

Rate

3-year

Average 2005-

2007

Unemployment

2005

Unemployment

2006

Unemployment

2007

Labor Force

2005

Labor Force

2006

Labor Force

2007

Custom Region 3.8% 6,977 6,086 5,765 161,608 163,822 168,82

KS 4.5% 74,806 64,274 60,556 1,465,098 1,470,192 1,480,24

NE 3.3% 37,725 29,611 28,943 973,172 971,954 981,40

U.S. 4.8% 7,591,000 7,001,000 7,078,000 149,320,000 151,428,000 153,124,00

Counties

Region County

Unemployment

Rate

3-year

Average 2005-

2007

Unemployment

2005

Unemployment

2006

Unemployment

2007

Labor Force

2005

Labor Force

2006

Labor Force

2007

Custom

RegionChase, KS 4% 71 68 61 1,692 1,700 1,58

Custom

RegionClay, KS 3.6% 202 168 162 4,880 4,981 5,07

Custom

RegionCloud, KS 3.5% 218 198 190 5,695 5,913 5,59

Custom

RegionDickinson, KS 4.1% 479 420 393 10,559 10,617 10,62

Custom

RegionEllsworth, KS 3.5% 135 120 118 3,404 3,677 3,69

Custom

RegionGeary, KS 5.1% 669 590 500 11,163 11,340 11,93

Custom

RegionJewell, KS 3% 64 58 52 1,977 1,909 1,92

Custom

RegionLincoln, KS 3.8% 78 65 68 1,808 1,858 1,83

CustomLyon, KS 4.2% 901 808 772 19,538 19,527 19,72


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Custom

RegionMarshall, KS 3.4% 223 202 183 5,927 5,813 6,06

Custom

RegionMitchell, KS 3.5% 131 118 113 3,445 3,436 3,34

Custom

RegionMorris, KS 4.7% 148 126 137 2,918 2,921 2,97

CustomRegion

Ottawa, KS 3.9% 155 117 118 3,373 3,390 3,26

Custom

Region

Pottawatomie,

KS3.5% 447 371 359 10,829 11,241 11,57

Custom

RegionRepublic, KS 3.6% 113 98 85 2,759 2,742 2,76

Custom

RegionRiley, KS 3.3% 1,288 1,163 1,180 34,043 35,127 39,54

Custom

RegionSaline, KS 3.9% 1,349 1,145 1,027 30,402 30,606 30,31

Custom

Region

Wabaunsee,

KS4% 174 136 139 3,781 3,649 3,66

Custom

Region

Washington,

KS3.5% 132 115 108 3,415 3,375 3,34

This project is funded in part by the U.S. Commerce Department's Economic Development Administration. Work was conducted by the Purdue Center for RegionalDevelopment, the Indiana Business Research Center at Indiana University's Kelley School of Business, Strategic Development Group, Inc., the Rural PolicyResearch Institute, and Economic Modeling Specialists, Inc. The project received additional support from the State of Indiana through the Indiana Office ofCommunity and Rural Affa irs.

This website was produced and is maintained by the Indiana Business Research Center at Indiana Universitys Kelley School of Business. Questions and comments about thesite may be emailed to [email protected].


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Calculating the InnovationIndexThe Innovation Index compares regional performance to the United States and is calculated

from 4 sub-indices. The weights for each component are listed below. (An additional "State

Context" sub-index is displayed as part of the data output, but it is for reference only and not

included in the calculation of the overall index.)

Human Capital: 30% Economic Dynamics: 30%

Productivity and Employment:

30%

Economic Well-Being: 10%

Innovation Index

The Index helpsyou understandyour region's

innovation performance andpotential

View Innovation Index

Cluster Analysis

Explore 15 knowledge-basedoccupation clusters and 17industry clusters to uncoverregional strengths

View Occupation Clusters

View Industry Clusters

Investment Analysis

Understand the regionaldevelopment process andaccess tools to help guidepublic investment decisions

View Guidelines for

Regional Investment


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Where Do the Data Come From?

Variables in the Innovation Index are derived from both official government statistical agencies

and several private, proprietary sources, including Moodys economy.com, Decision Data

Resources, and Economic Modeling Specialists, Inc. These proprietary data were used in

specific index calculations and are reflected on the website only in terms of those resulting

calculations and are not available in their original (raw) form, but we encourage you to contac

the sources of those data for more information.

For detailed source information for each of the index components, see Section 4.6 in the

report.

Proprietary Sources Public Sources

Federal Communications Commission

National Science Foundation

U.S. Bureau of Economic Analysis

U.S. Bureau of Labor Statistics

U.S. Census Bureau

Time Period

The Innovation Index focuses on data within the 1997-2007 time span, and using the latest

year of available data at the time of index construction. However, the most recent data for

individual index components are available via the data browser except in cases where the dat

are proprietary.

More Information

Innovation Index Methodology

What the Innovation Index Research Shows

How to Use the Innovation Index

More detailed information about the innovation index can be found in the report,

Crossing the Next Regional Frontier: Information and Analytics Linking Regional

Competitiveness to Investment in a Knowledge-Based Economy

The Innovation Index (Chapter 4)

Innovation Index Definitions, Calculations and Models (Appendix C)

This project is funded in part by the U.S. Commerce Department's Economic Development Administration. Work wasconducted by the Purdue Center for Regional Development, the Indiana Business Research Center at IndianaUniversity's Kelley School of Business, Strategic Development Group, Inc., the Rural Policy Research Institute, andEconomic Modeling Specialists, Inc. The project received additional support from the State of Indiana through theIndiana Office of Community and Rural Affairs.

This website was produced and is maintained by the Indiana Business Research Center at Indiana Universitys Kelley School ofBusiness. Questions and comments about the site may be emailed to [email protected].


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which a professionals geographic location would likely remain more stable. The 2

to-44 age bracket is likely to be less risk averse and more entrepreneurial.

Moreover, population growth in this age bracket suggests the possibility that new

residents are likely to expand the innovative and entrepreneurial characteristics of

the base community.

Occupational Mix: Certain occupational mixes favor innovative behaviors. The

research team defined six technology-based knowledge occupation clusters that

are hypothesized to have a higher probability of developing new and innovative

ideas, products and processes that drive economic growth:

1. Information technology

2. Engineering

3. Health care and medical science practitioners and scientists

4. Mathematics, statistics, data and accounting

5. Natural sciences and environmental management

6. Postsecondary education and knowledge creation

High-Tech Employment: In addition to knowledge occupation clusters, there are

other occupations linked to high-technology firms and activities that either retain

opportunities for the home-grown, skilled and specialized labor force or attractsimilar workers that are complementary to technology-based knowledge

occupations. High-tech firm employment and growth is overwhelmingly found in

urban centers, producing a rural-urban technology gap. The high-tech sector is

defined by Moodys as comprised of such industries as telecommunications,

Internet providers, computer manufacturing, and scientific laboratories, to name a

few. Together, the high-tech industry employment and technology-based

knowledge occupational data provide a reasonable estimate of the extent to which

a countys occupational and industry mix provide either the existing capacity to

generate innovative products and processes or the ability to augment local

innovative capacity by attracting new firms and new talent.

Economic Dynamics Sub-Index

The economic dynamics sub-index measures local business conditions and resources

available to entrepreneurs and businesses. Targeted resources such as research and

development funds are input flows that encourage innovation close to home, or that, if n

present, can limit innovative activity.

R&D Investment: Inputs to innovation can come in the form of fund or knowledge

transfers that may originate outside a region but benefit firms and individuals insid

a region. Investments targeted to a region provide capital to aid the economicdynamics of a region. In particular, direct research and development (R&D)

investments in a given county are indicative of overall levels of research being

conducted. While research itself may not always result in a marketable innovation

is a vital precursor. R&D expenditures are thus an indicator of innovationeven if

the funds go toward unsuccessful products. It is generally understood, however,

that those spending more will have the greatest innovative results or outcomes.

R&D also has a well-documented spillover effect where R&D can provide crucial

knowledge and resources for third-party firms to further innovate.

Unfortunately, private R&D data is coded in a manner based on the location of


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company headquarters and not the research sites. Thus, the data may not reveal

the true location of the R&D activity. Be that as it may, the R&D concept was

operationalized in this study for each county by dividing total R&D expenditures by

total worker compensation. In this way, the volume of R&D expenditures is adjuste

for the level of productive activity in the county (as opposed to high personal

income values that may be due to a large presence of retirees) and, to some

degree, the local cost of living or doing business.

Venture Capital Investment: Venture capital (VC) funds are used to launch new

ideas or expand innovative companies. In the United States, VC may be

responsible for up to 14 percent of all innovative output activity. VC investment firm

are highly selective with their investments to maximize the probability of high

returns. The return on VC, and possibly the importance of VC, is diminished

somewhat by the fact that the VC investments are typically management-intensive

Looking for VC funding may consume a considerable level of effort by the seeking

firms management, just as VC firms exert considerable effort seeking suitable

projects to invest in.

Broadband Density: Broadband provides high-speed Internet connections to

businesses and consumers. Several state-level studies have attempted to capture

the effect of adding broadband capacity to a regions infrastructure. These studiessuggest that broadband capacity has an overwhelmingly positive effect on

economic performance. High-speed Internet access ensures that businesses and

individuals can collaborate from virtually any location.

The Federal Communications Commission (FCC) collects data on the number of

broadband providers, not users or broadband lines, at a ZIP code level. To create

measurethat is, a broadband density proxy at the county levelbroadband

penetration was estimated by using population densities of ZIP codes to transform

the FCC ZIP code data into county-level data. This measure of broadband

penetration does not state how many individuals in a region have access to

broadband. Given the limitations of the data, but acknowledging the theoreticalimportance of the concept, the index uses two broadband indicators. The first is a

measure of current density and the second is the rate of density change.

Churn: Competition is crucial to innovation. Market structures can influence the

degree to which innovation is even possible. Specifically, markets with high rates o

firm entry have been linked to increased levels of innovation. Conversely, the rate

at which businesses shut their doors or reduce their workforce indicates a decreas

in economic deadwood. Together the growth and contractions along with births an

deaths produce the notion of economic churn, which serves as an indicator of the

extent to which innovative and efficient companies replace outdated firms unable tmodernize techniques and processes. Churn has been linked to positive

employment growth and is not subject to agglomeration effects that often

distinguish urban and rural economic structures.

Business Sizes: Small firms, it is thought, are highly adaptable and can easily

change their processes to incorporate new ideas. In recent years, high merger

rates between small and large firms have coincided with increased technological

influence of small firms. Some evidence, however, suggests these acquisitions ma

not be significant sources of innovation for large firms. Theoretically, a higher

proportion of large businesses would positively contribute to innovation through th

increased availability of funds for research and development, as well as the


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resources to directly employ scientists rather than hire out research services.

Available data, however, do not identify whether, or the degree to which, an

establishment is engaged in innovation activities. Moreover, using data on large

establishments, defined as establishments with 500 or more employees, may be o

limited utility for explaining innovative capacities in rural counties with small

economies. Just the same, because the variable has some theoretical merit, the

number of large establishments per 10,000 workers remains in the index.

Productivity and Employment Sub-Index

The productivity and employment sub-index describes economic growth, regional

desirability, or direct outcomes of innovative activity. Variables in this index suggest the

extent to which local and regional economies are moving up the value chain and attracti

workers seeking particular jobs.

High-Tech Employment Share Growth: Just as the share of high-tech

employment in a county was an important input, the extent to which that share is

increasing relative to total employment is an important performance measure.

Firms requiring a highly skilled and specialized workforce are drawn to innovative

areas. In a similar way, this measure also registers the degree to which home-

grown, high-tech firms have expanded their presence. Growth in the share of high

tech employment suggests the increasing presence of innovative activity and

signifies that high-tech firms are growing in the county or region both in relative as

well as absolute terms.

Job Growth-to-Population Growth Ratio: High employment growth relative to

population growth suggests jobs are being created faster than people are moving

a region. Even though the ratio measures the change in level between jobs and

population and, therefore, cant be used to compare rates of growth, it can rank

order counties or regions in terms of employment performance. A high ratio

between these two variables indicates strong employment growth. A negative valu

signifies that population is growing while employment is declining or vice versa. In

cases for which population is declining while employment is increasing, the absolu

value of the ratio is used as that would be considered favorable employment

performance.

Patent Activity: Newly patented technologies provide an indicator of individuals

and firms abilities to develop new technologies and remain competitive. The

number of patents produced is a commonly used output measure for innovative

activities, but the data can mislead. Patent data are coded to distinguish between

the residence of the filer and the recorded location of the employer (if the applican

is not a private inventor), but the recorded location of the employer may or may nocorrespond to the location of the work that produced the patent, especially if the

employer is a large, diversified company with many locations. In addition, the

available patent data cover only utility patents and not all patent types. Patent data

are recoded from the raw data provided by the U.S. Patent Office and awards

patents to any county from which one of the filers reported as their location. This

means that for any single patent with more than one filer, a patent may be counte

multiple times if filers are located in different counties. Patents can also be an

inaccurate indicator of innovation outcomes, particularly in areas where a single

firm overwhelms the total patent count, such as Eli Lilly in Indianapolis.


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Gross Domestic Product: The final component of the productivity and

employment sub-index is the single most important measure of productivity

availablegross domestic product (GDP). The index incorporates both the level o

a countys current-dollar GDP per worker today, and also growth in the value over

the past decade.

Economic Well-Being Sub-Index

Innovative economies improve economic well-being because residents earn more andhave a higher standard of living. Decreasing poverty rates, increasing employment, in-

migration of new residents and improvements in personal income signal a more desirab

location to live and point to an increase in economic well-being.

Average Poverty Rate: Innovative economies have greater employment

opportunities with higher compensation, thus lowering rates of poverty. Reduced

rates of poverty will tend to lag growth in employment opportunities. As a result, th

last three years of the most recent data are used. Since a high poverty rate is a

negative outcome, the index uses the inverse of the average poverty rate.

Average Unemployment Rate: Innovative economies have greater employment

opportunities and lower unemployment rates. Since a high unemployment rate is a

negative outcome, the index uses the inverse of average unemployment rate.

Net Migration: Migration measures the extent to which a county or region is

broadly appealing and excludes other elements of population dynamics such as

fertility rates. While people may migrate into a region for a host of reasons, from

employment opportunities to environmental amenities, migration out of a region

almost certainly signals declining economic conditions and the inability to keep the

innovative talent that will spawn economic growth in the future.

Compensation: Compensation data convey how much workers make based on

their place of work. Likewise, proprietors income is also based on place of work.

Compensation and proprietors income, therefore, probably provide a strong

relationship between the activities of innovation and the rewards of innovation

based on the location of innovation.

Growth in Per Capita Personal Income: As an alternative to measuring

remuneration based on place of work, per capita personal income (PCPI) measur

incomes by place of residence. Because PCPI includes other forms of income in

addition to wages, salaries and fringe benefits, it is a more comprehensive measu

of well-being. That said, the linkage between where innovation occurs (county of

work) and the financial rewards of innovation (county of residence) is less direct.

State Context Sub-Index

A fifth category, state context, seeks to capture data that are theoretically important but

available only at the state level. It is composed of science and engineering graduates fro

state institutions per 1,000 residents of the state and research and development spendin

per capita. The state context category is not given as much attention because it is not

used for the index calculation and because the indicator becomes diluted if a region

crosses state boundaries.


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More Information

Calculating the Innovation Index

What the Innovation Index Research Shows










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Innovation IndexMethodologyDeveloping the Innovation Index began by identifying possible indicators used in previou

analyses, as well as researching additional indicators that were theoretically important a

available at the county level. This page overviews the rationale behind the selected inde

components.

Human Capital Sub-Index

Variables included in the human capital sub-index suggest the extent to which a countys

population and labor force are able to engage in innovative activities. Counties with high

levels of human capital are those with enhanced knowledge that can be measured by hi

educational attainment, growth in younger age brackets of the workforce (signifying

attractiveness to younger generations of workers), and a sizeable number of innovation-

related occupations and jobs relative to the overall labor force.

Education: Educational attainment measures the skills and knowledge that

contribute to a populations capacity to innovate. The research team was

particularly interested in individuals in the labor force with tertiary degrees. Thus,

educational attainment was divided into two categories:

1. Some college or an associates degree2. Bachelors degree or higher

The distinction is made to capture the relative importance of a knowledge

differential, together with regional distinctions in the types of degrees earned. In

many states, educational funding mechanisms favor 4-year universities. Elsewher

state policy tends to favor 2-year community colleges and vocational schools. An

important educational differential is also present within states and counties where

higher concentrations of bachelors degrees tend to surround metropolitan areas,

whereas associate degree concentrations tend to be elevated in more rural

counties where fewer residents have the resources or ability to travel to distant

four-year institutions. Community colleges and vocational schools are more widelydispersed and proximate to rural residents. They also tend to provide education a

a lower cost, with easier access, and tend to offer more flexible course schedules

such as evening or weekend courses. Community colleges are also more likely to

cater to a regions economic development needs than larger universities.

Population Growth Rate: A growing population is desirable. But growth in the

number of newborns or retirees does little to suggest whether those persons most

likely to engage in innovative activities are present. For this reason, population

growth rates are confined in this study to ages 25 to 44. The lower bound ensures

transient college students typically aged 18 to 21 become less of a factor in

influencing the overall rate of growth, whereas the upper bound signifies a point a

Innovation Index

Use the index toinvestigate yourregion's innovation

capabilities


Cluster Analysis


View Occupation Clusters

View Industry Clusters

Investment Analysis

Understand the regionaldevelopment process andaccess tools to help guidepublic investment decisions

View Guidelines for

Regional Investment


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This project is funded in part by the U.S. Commerce Department's EconomicDevelopment Administration. Work was conducted by the Purdue Center forRegional Development, the Indiana Business Research Center at IndianaUniversity's Kelley School of Business, Strategic Development Group, Inc.,the Rural Policy Research Institute, and Economic Modeling Specialists,

Inc. The project received additional support from the State of Indiana through theIndiana Office of Community and Rural Affairs.

This website was produced and is maintained by the Indiana Business Research Centerat Indiana Universitys Kelley School of Business. Questions and comments about thesite may be emailed to [email protected].


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What the Innovation IndexResearch ShowsInterpreting the Innovation Index (also known as the portfolio index) can get complex

given its broad, multi-metric nature with both innovation inputs and outputs. In order to

identify those specific factors with the greatest influence on economic growth, while

controlling for some non-innovation factors, the research team statistically analyzed the

innovation input data. Interpreting the results is simpler than the portfolio approach

because there is only one output measureeconomic growth (i.e., GDP-per-worker

growth).

In updated research using a descriptive cross-sectional regression model, the researchteam found that the following indicators have a positive and significant relationship to

increases in GDP per worker:

1. Change in high-tech employment share

2. Average small establishments per 10,000 workers

3. Percent of population, ages 25-64, with some college or an associates degree

4. Population growth rate for ages 25-44

In addition, change in broadband density also proves to be significant when the model

focuses on a smaller time span (2002-2007).

An empirical index based on statistical analysis would include only these factors thatpositively influence growth. That said, additional analysis currently underway will point to

which factors may be more important given a region or countys characteristics. For

example, there may be a rural/urban divide in terms of which factors have more influenc

on growth. In addition to spatial characteristics, population density or resource

endowments may also affect growth. As longer time series become available, longitudina

analysis will also help to establish which factors tend to drive economic growth at a

regional level.

More Information

Innovation Index Methodology

Calculating the Innovation Index







This project is funded in part by the U.S. Commerce Department's Economic Development Administration. Work wasconducted by the Purdue Center for Regional Development, the Indiana Business Research Center at Indiana University

Kelley School of Business, Strategic Development Group, Inc., the Rural Policy Research Institute, and Economic Model

Innovation Index

The Index helpsyou understandyour region's

innovation performance andpotential


Cluster Analysis


View

ncrpc innovation index data

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