The Transatlantic Subnational Innovation Competitiveness Index
This report is a collaboration between the Information Technology and Innovation Foundation (ITIF), the Institute for Competitiveness (I-Com), the Macdonald-Laurier Institute, and the German Economic Institute (iW)
Innovation ecosystems are increasingly complex and diverse, but there are common markers of core strength. In this report, the Information Technology and Innovation Foundation, the German Economic Institute, the Institute for Competitiveness, and the Macdonald-Laurier Institute benchmark 96 states and provinces across Germany, Italy, the United States, and Canada.
KEY TAKEAWAYS
Governments at all levels are introducing strategies to stimulate national and regional innovation capacity to improve their competitive positions in the race for leadership in the technology- and innovation-driven global economy.
Based on 13 indicators of strength in knowledge, globalization, and innovation capacity, the five top-ranked states are Massachusetts, California, Baden-Württemberg, Berlin, and Washington. The bottom five are Apulia, West Virginia, Sicily, Calabria, and Mississippi. § German states generally perform much better than those of the United States, Canada, and Italy; however, three of the top five are in the United States.
On knowledge economy indicators, America outperforms peers in higher-education attainment, and Canada attracts the most skilled immigrant workers, while Germany exhibits strength in scientific, technical, and professional employment.
In the globalization category, Canada, followed by the United States, leads in inward foreign direct investment (FDI), while Germany and Italy produce greater levels of hightech exports relative to regional gross domestic product (GDP).
In measurements of innovation capacity, Germany and the United States have clear leadership in research and development (R&D) intensity and venture capital (VC), while Italy performs well in R&D personnel and business creation.
Governments should consider these unique strengths, weaknesses, challenges, and opportunities to craft region-specific policies to bolster innovation competitiveness.