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INNOVATIONScorecard

2017

INNOVATION Scorecard 2

WELCOME LETTERS 3

EXECUTIVE SUMMARY 8

Overview 9

Best & Brightest 12

Welcomes New Business Models 13

Tax-Friendliness 14

Entrepreneurial Activity 15

Fast Internet 16

Tech Workforce 17

Attracts Investment 18

Grants STEM Degrees 19

Innovation-Friendly Sustainable Policies 20

Open Roads & Open Skies 21

STATE PROFILES 22

METHODOLOGY 122

ACKNOWLEDGMENTS 125

Contents

LettersWELCOME


We started the Innovation Scorecard three years ago to decipher better how innovation can be a driving force for job creation, economic growth and entrepreneurship. We have seen that states with a light regulatory framework, favorable tax policies and strong support for STEM students more effectively attract investment and businesses. As policymakers nationwide seek strategies to grow their states’ economies, we encourage them to examine how different regions of the country are improving their economic agendas by embracing disruptive technologies. Ten states reached our highest ranking of Innovation Champion – four of them for the first time. In addition, two other states improved their rankings from our last Scorecard, and 13 states dropped over the last year. In 2016, several states took action to legalize ridesharing and homesharing statewide, although some cities have imposed unduly onerous requirements that make it difficult or even impossible for these services to operate. We also found that, while internet connectivity speeds improved nationwide, some municipalities imposed taxes on streaming media services. Some states also enacted more burdensome electronics recycling laws in 2016, which raised costs for manufacturers and consumers to little environmental benefit. Meanwhile, other states launched collaborative pilot projects to find ways to recycle more devices at a lower cost. Our assessment is based on ten indicators – quantitative and qualitative – including undergraduates earning STEM degrees and laws governing emerging new technologies. This year we added two new metrics to our

hello, again.


hello, again.calculation: To measure a state’s ability to recruit the best and brightest, we looked at laws prohibiting discrimination on the basis of sexual orientation or gender identity; and we examined regulatory frameworks for self-driving cars, the key to a future of expanded mobility, connectivity and increased safety. CTA’s Scorecard highlights state-level strategies that work – and those that don’t – to create fertile ground for innovation from coast to coast. Read on to see how your state stacks up against the competition.

Gary Shapiro

President and CEO,Consumer Technology Association (CTA)TM


The fastest-growing industries in the U.S. are very different than they were when I was growing up in northern Rhode Island, not far from the birthplace of America’s Industrial Revolution. With the relentless pace of technological change, the blurring distinction between manufacturing and services, and increasing digitization, these industries are even different than they were two years ago, when I was sworn in as Rhode Island’s governor.

There are a number of states that are or were in the same position as Rhode Island was after the Great Recession—weakened by the decline of some of our core industries. But since my administration shifted our state’s focus onto innovation, more than a dozen companies and new developments have committed to directly and indirectly bring over 2,000 new jobs to Rhode Island through expansion or relocation. These include familiar names in life sciences, high tech and beyond: General Electric, eMoney Advisor, Virgin Pulse—the health and wellness branch of Sir Richard Branson’s Virgin Group—and life sciences giant Johnson & Johnson will all soon arrive here. By the time the Consumer Technology Association released its 2016 Innovation Scorecard, Rhode Island had improved to the Innovation Leader category.

While Rhode Island has always been known for our world-class network of colleges and universities, we’ve recently invested more deeply in training workers for a 21st century economy by rolling out education and skills development programs like P-TECH, CS4RI and the Wavemaker Fellowship. This past March we hosted three days of manufacturing- and

welcome, Governors.


maker-focused pop-ups for residents, and we’ve also activated incentives like our Innovation Vouchers, which allow eligible companies to fund R&D assistance from a R.I. university, research center or medical center. Additionally, our Industry Cluster Grants now encourage companies in the same sector to work together to solve problems, exchange ideas and develop talent.

The CTA Innovation Scorecard is one of the ways those of us in Rhode Island have been grading ourselves on all of the work we’ve done in recent years to improve our business climate. In 2017, we either maintained or boosted grades in all 10 CTA Scorecard categories in 2017. Most notably, our Welcomes New Business Models grade rose to an ‘A-’ from a ‘B’ grade in 2016—proof that it’s been a big year for business in the nation’s smallest state.

I invite you to take a close look at your own state’s Innovation Scorecard. The insights it can provide into your future are invaluable.

Gina M. Raimondo

Governor, Rhode Island

8

SummaryEXECUTIVE


Half a century ago, few people would have predicted that hundreds of millions of Americans would have powerful computers in the palms of their hands. Twenty years ago, only the most forward-leaning technologists realized how dramatically the internet would reshape the enter-tainment industry. Even a decade ago, the idea that you could pull a phone out of your pocket anywhere in town, touch a few icons and have a car pick you up within minutes would have seemed the stuff of science fiction.

Yet today, all of those things are realities thanks to countless inventors and entrepreneurs and the investors who took a chance on them. And where these technological pioneers start their companies and create their innovations often comes down to where policies are most sup-portive of them.

Policymakers who maintain sensible tax structures, allow cutting-edge technologies to flour-ish and welcome new business models make their states more livable for their residents and sustain innovation for us all. The states that best enable innovators to do their work draw en-trepreneurs from across the country, creating high-quality jobs and healthy economic growth.

The annual CTA Innovation Scorecard grades every state on 10 criteria – quantitative and qualitative – and ranks them in four tiers: Innovation Champions, Innovation Leaders, Innova-tion Adopters and Modest Innovators.

Innovation Champions

Modest Innovators

Innovation Adopters

Innovation Leaders

Overview

10

The 2017 Innovation Champions are the top-scoring states in the nation, earning high marks for maintaining strong right-to-work and LGBTQ legislation, fast internet access, a robust and business-friendly entrepreneurial climate, highly skilled workforces and openness to new business

models and technologies. Four new states were crowned Innovation Champions in 2017, including Colorado, Maryland, New Hampshire and Washington — all of which have strong tech workforces and significant numbers of college students graduating with STEM degrees.

ColoradoDelaware MarylandMassachusettsMichiganNew HampshireNorth DakotaUtahVirginiaWashington

ArizonaConnecticutFloridaGeorgiaIllinoisIndianaIowaKansasMinnesotaMissouriNebraskaNorth CarolinaOregonPennsylvaniaRhode IslandSouth DakotaTexasVermontWisconsinWyoming

1. Innovation Champions

2. Innovation Leaders

Scoring high grades on a combination of the 10 innovation criteria, Innovation Leaders again comprise the largest group in Innovation Scorecard. These states typically report high levels of entrepreneurial activity, relatively favorable attitudes toward new business models and strong per capita numbers of

tech jobs and STEM degrees granted to undergraduates. Two states improved their ranking to Innovation Leader this year: Connecticut and Illinois.

Innovation Champion

Innovation Leader


Innovation Adopters show strong pro-innovation policies and trends in some categories, but not most. Alabama, Arkansas and Louisiana all have strong Right-to-Work laws, but lack key elements of the infrastructure needed for new businesses to flourish: fast internet connections, large tech

workforces and significant numbers of college graduates with science and engineering degrees.

AlabamaCaliforniaIdahoMaineMontanaNevadaNew JerseyNew YorkOhioOklahomaSouth Carolina

AlaskaArkansasHawaiiKentuckyLouisianaMississippiNew MexicoTennesseeWest Virginia

3. Innovation Adopters

4. Modest Innovators

With only nine states, the lowest tier on the Innovation Scorecard has the fewest members. The Modest Innovators have room to improve across most of the Scorecard categories, with slower internet connections, small tech workforces, low numbers of STEM graduates and slow or declining entrepreneurial activity.

Each of these states also lacks one or both components of the Best & Brightest category: Either a right-to-work law or a law prohibiting discrimination on the basis of sexual orientation or gender identification.

Modest Innovator

Innovation Adopter

12

The Best & Brightest grade draws on two components: Right-to-Work laws and LGBTQ protections. Right-to-Work laws allow work-ers to choose whether or not to join labor unions, rather than being forced to do so. In 2016, West Virginia joined the ranks of right-to-work states, bringing the total to 26 — an important step on the path toward greater economic freedom and innovation. Right-to-work states report higher personal incomes and job growth. Data as far back as the 1960s show that right-to-work states experience faster economic growth than others — and often faster population

growth, as well. (NOTE: As of press time in May 2017, Kentucky and Missouri had also passed Right-to-Work laws, bringing the current count to 28.)

This year, the Innovation Scorecard adds LGBTQ protections, grading states on how they protect employees against discrimination on the basis of sexual orientation or gender identification. States that received poor grades have only federal laws in place or laws that prohibit municipalities from passing non-discrimination laws. Though North Carolina has since repealed HB2, its controversial measure eliminating LGBTQ anti-discrimination laws statewide and preempting new ones, it shows that the repercussions can be great.

Best & Brightest

Iowa Nevada Utah Wisconsin Alabama Arizona Florida Georgia Idaho Indiana Kansas Louisiana Michigan Mississippi Nebraska North Carolina North Dakota

Oklahoma South Carolina South Dakota Texas Virginia West Virginia Wyoming Arkansas Tennessee California Colorado Connecticut Delaware Hawaii Illinois Maine Maryland

Massachusetts Minnesota New Jersey New Mexico New York Oregon Rhode Island Vermont Washington New Hampshire Alaska Kentucky Missouri Montana Ohio Pennsylvania

AAAB+B+B+B+B+B+B+B+B+B+B+B+B+B+

B+ B+B+B+B+B+B+BBBBBBBBBB

BBBBBBBBB-C+C+C+CCD+D

State Grade State Grade State Grade

Source: CTA


Welcomes New Business Models

By the end of 2016, the majority of states had legalized ridesharing state-wide. While the services also operate in some jurisdictions without state laws governing them, only four states have restricted them: Alaska, Flor-ida, New York and Texas. The Welcomes New Business Models category also takes into account state and local policies affecting homesharing companies, such as airbnb and VRBO. Many states have embraced one of these new business models, while enacting policies that have ham-pered services in the other. While every state in the nation apart from the four above has state or local policies affecting ridesharing, only seven

states have state or local policies positively affecting homesharing.

ArizonaIdahoRhode IslandNorth CarolinaPennsylvaniaDelawareIndianaKansasMaineMississippiNew HampshireNew MexicoNorth DakotaOhioSouth CarolinaTennesseeVirginiaWest VirginiaArkansas

MarylandMassachusettsNebraskaSouth DakotaWashingtonColoradoNevadaIllinoisIowaMichiganMontanaNew JerseyAlabamaConnecticutGeorgiaKentuckyLouisianaMissouriOklahoma

UtahVermontWisconsinWyomingOregonMinnesotaCaliforniaFloridaTexasHawaiiAlaskaNew York

AAAB+B+B+B+B+B+B+B+B+B+B+B+B+B+B+ B+

B+B+B+B+B+BBBBBBBBBBBBBB

BBBBB-C+C+C+CCD+D


Source: CTA

14

The Scorecard rewards simple, lean tax structures that offer attrac-tive rates to new businesses, encouraging investment and job cre-ation. A state’s Tax Friendliness grade is derived from numerical scoring data for corporate and individual income tax, sales tax, un-employment insurance tax and property tax rates. Of the 25 states that received a ‘B’ or higher in Tax Friendliness, 19 earned either Innovation Leader or Innovation Champion titles, and most show strong or improving numbers in Entrepreneurial Activity.

Tax Friendliness

WyomingSouth DakotaAlaskaFloridaNevadaMontanaNew HampshireIndianaUtahOregonNorth CarolinaMichiganTennesseeTexasMissouriColoradoWashingtonDelawareWest VirginiaIdahoArizonaIllinoisKansasPennsylvaniaNebraska

A+A+A+AA-A-B+B+B+B+B+BBBBBBBBBBBBBB

State Score Grade

7.7607.4907.2906.8606.4606.2706.1105.9605.9605.7805.7305.6405.5805.5705.4505.3805.3805.3205.3205.2205.2105.2105.2105.1805.140

HawaiiMassachusettsMississippiNorth DakotaMaineOklahomaAlabamaVirginiaKentuckyNew MexicoGeorgiaSouth CarolinaArkansasWisconsinIowaLouisianaMarylandConnecticutRhode IslandOhioMinnesotaVermontCaliforniaNew YorkNew Jersey

B-B-B-B-B-B-C+C+C+C+CCCCCC-C-C-C-C-D+D+D-FF

State Score Grade

5.1305.1305.1304.9804.9604.9504.9104.9004.8804.8504.6804.6604.6004.5704.5104.3904.3604.3404.3004.2704.1904.1303.7603.6103.410

Source: Tax Foundation "2017 State Business Tax Climate Index", September 2016 (p. 5).


This category measures the number of net jobs created by small and young firms (firms employing fewer than 50 people) and the average number of small firms created per capita, based on the last five years of historical data available (for 2017, the period is 2010-2014). Entrepreneurial Activity remained an uneven category this year, with 30 states earning an ‘A’ or ‘B,’ and 20 states earning a ‘C’ or lower. Not surprisingly, most of the states that attracted large amounts of venture capital and R&D investment also scored highly in Entrepreneurial Activity.

Entrepreneurial Activity

North Dakota Arkansas Wyoming Montana Colorado South Dakota New York Vermont Maine Oregon Utah Florida Nevada Nebraska New Jersey Delaware Idaho Washington New Hampshire Massachusetts California Minnesota Texas Alaska Rhode Island

A+AA-A-B+B+B+B+B+B+B+B+BBBBBBBBBBBBB

State Score Grade

Oklahoma Virginia Kansas Connecticut Maryland Hawaii Missouri Louisiana Illinois Wisconsin Pennsylvania North Carolina Georgia South Carolina New Mexico Iowa Michigan Indiana Ohio Tennessee Kentucky Alabama Mississippi West Virginia Arizona

B-B-B-B-B-C+C+C+C+C+C+CCCCCCC-C-C-D+D+D+DF

State Score Grade

0.9380.7170.7080.6510.5790.5380.5370.5320.5240.4890.4770.4760.4520.4340.4280.4280.4160.4110.4070.4040.3890.3870.3820.3750.372

0.3490.3400.3280.3250.3170.3050.3020.2990.2930.2800.2770.2670.2600.2450.2420.2270.2250.2180.2060.2060.1630.1620.1540.1100.000

Source: New Job Creation: US Census Bureau Business Dynamics Statistics (Firm Age by Firm Size by State, 2010-2014) New Firm Creation: US Census Bureau Business Dynamics Statistics (Firm Size by State, 2010-2014)

16

Starting and building a business doesn’t require just investors with deep pockets or workers with tech pedigrees. Before companies can thrive, they must have the technical infrastructure to get off the ground, and for most innovative companies today that means high-speed internet connections. In 2016, most states saw the average speed of their internet connections (measured in kbps) rise considerably — a welcome sign. The five fastest states were Rhode Island, Delaware, Massachusetts, Utah and Maryland.

Fast Internet

Source: Akamai "State of the Internet" report. Average broadband speed, Q2 2016

Rhode IslandDelawareMassachusettsUtahMarylandNew JerseyVirginiaNew YorkWashingtonPennsylvaniaMichiganCaliforniaNorth DakotaConnecticutOregonNew HampshireNevadaFloridaVermontTennesseeIllinoisIndianaGeorgiaMinnesotaTexas

A+A+A+A+A+AAAA-B+B+B+B+B+B+BBBBBBBBBB

State

Avg.kbps Grade

South DakotaColoradoMissouriArizonaNorth CarolinaWisconsinNebraskaWyomingOklahomaSouth CarolinaAlabamaKansasHawaiiMontanaIowaNew MexicoLouisianaMaineWest VirginiaAlaskaOhioArkansasMississippiKentuckyIdaho

B-B-B-C+C+C+C+C+C+CCC-C-C-D+D+D+DD-D-D-FFFF

State Score Grade

19,60719,51719,01618,86818,611

18,39517,97817,78717,237

16,46416,15016,13415,78915,76115,75615,40015,33415,18715,177

15,09415,00014,84814,70214,69314,689

14,53414,15314,10214,07514,00513,97313,93413,77013,74013,47913,31612,96212,74212,64312,47512,36712,19711,64111,44811,20811,02710,88110,81410,75010,407


New businesses rise and fall in part according to the caliber of their employ-ees. The states that can attract and nurture vibrant tech workforces have an advantage in creating a culture of innovation. This category measures the number of technology-related jobs per capita in a state. Seven states scored higher than a ‘B’ in this field: Massachusetts, Virginia, Colorado, Washing-ton, Minnesota, Maryland and Utah.

Tech Workforce

MassachusettsVirginiaColoradoWashingtonMinnesotaMarylandUtahNew HampshireCaliforniaConnecticutWisconsinNorth DakotaTexasNebraskaMichiganArizonaOregonNew JerseyIllinoisGeorgiaOhioNew YorkRhode IslandDelawarePennsylvania

A+A+AAAAA-B+B+B+B+B+BBBBBBBBBBBBB

State Tech Jobs Grade

0.0566572 0.0559266 0.0515391 0.0512437 0.0506606 0.0504663 0.0450127 0.0436546 0.0425912 0.0424247 0.0415879 0.0411543 0.0394479 0.0392917 0.0392214 0.0388234 0.0386863 0.0386356 0.0385866 0.0383715 0.0380722 0.0377772 0.0377553 0.0374972 0.0374253

Per Capita

370,970447,470259,200344,590268,700291,370124,41057,470

1,586,690151,630236,51027,680

991,94071,760

387,650248,160148,210

339,680495,090371,730439,220732,050

39,74033,670

475,390

MissouriKansasVermontNorth CarolinaIowaIndianaSouth DakotaFloridaTennesseeOklahomaMaineAlaskaSouth CarolinaAlabamaWyomingNew MexicoMontanaKentuckyIdahoNevadaHawaiiArkansasLouisianaWest VirginiaMississippi

B-B-B-B-B-C+C+C-C-C-C-C-C-D+D+D+D+DDDDDD-FF

State Tech Jobs Grade

0.0367545 0.0367317 0.0362930 0.0358597 0.0357837 0.0342515 0.0336412 0.0309032 0.0308457 0.0305277 0.0304134 0.0300325 0.0295544 0.0286627 0.0280150 0.0275935 0.0275921 0.0271399 0.0265951 0.0265761 0.0265235 0.0260947 0.0236380 0.0220670 0.0204496

Per Capita

220,120104,800

22,710341,940109,010222,080

27,390581,020195,750114,52040,40021,330

136,700137,000

15,79056,82027,300117,77041,69071,770

36,08076,090

107,16040,89060,680

Source: U.S. Bureau of Labor Statistics

18

Attracts Investment

Measured by venture capital (VC) and research and development (R&D) dollars per capita, the Attracts Investment category closely mir-rors a state’s overall success on the 2017 Scorecard. More than half of the states received a grade of ‘B’ or higher. Of the 25 states that earned a ‘B’ grade or higher, all but five are Innovation Leaders or Champions. California remained the dominant national leader in total VC invest-ment, drawing more funding than every other state combined. But on a per capita basis, several small states are on par with the Golden State, including northeastern tech hotspot Massachusetts. Meanwhile, rural

states with small pools of tech workers such as Alaska, Mississippi and Wyoming, had diffi-culty drawing VC and R&D dollars.

MassachusettsCaliforniaDelawareWashingtonConnecticutNew JerseyNew HampshireMichiganOregonUtahMinnesotaNew YorkIllinoisMissouriColoradoMarylandPennsylvaniaIndianaNorth CarolinaArizonaIdahoWisconsinVirginiaTexasOhio

State

VC investment $

per capitaGrade

A+A+A-A-B+B+B+B+B+B+BBBBBBBBBBBBBBB

KansasIowaVermontGeorgiaRhode IslandFloridaNebraskaKentuckyAlabamaNorth DakotaNew MexicoMaineTennesseeNevadaSouth CarolinaSouth DakotaHawaiiWest VirginiaOklahomaMontanaArkansasLouisianaMississippiAlaskaWyoming

State Grade

B-B-B-C+C+CC-D+D+D+D+D+D+DDD-D-D-D-D-FFFFF

$824.27 $752.13 $24.53 $127.91 $84.00 $92.27 $88.43 $29.16 $59.74

$184.28 $86.28

$278.40 $95.99 $39.50

$109.22 $124.59 $59.50 $10.52 $47.92 $27.98 $10.00 $15.98 $71.55

$48.98 $17.87

R&D investment $

per capita

$2,656.69 $2,399.02 $2,572.57 $2,209.82 $2,241.13 $1,594.88 $1,553.40 $1,611.25

$1,470.87 $1,065.53 $1,247.00

$620.91 $1,020.68 $1,197.88

$899.15 $826.18 $847.16

$999.26 $847.68 $814.77 $789.75 $743.28 $555.55 $618.40 $703.68

VC investment $

per capita

$4.38 $5.33

$11.80 $65.01 $20.35 $58.28 $19.91 $16.49

$5.34 $0.00

$24.63 $9.58

$24.80 $10.02

$1.88 $0.00 $3.64 $0.76 $0.75

$11.83 $4.82

$10.31 $0.00 $0.00 $0.00

R&D investment $

per capita

$680.66 $673.59 $648.83 $415.27 $542.48 $308.22 $343.31 $294.74 $327.01

$340.47 $252.04 $274.77 $224.23 $194.40 $219.66 $201.43 $157.32 $165.14 $134.62 $92.98 $98.77 $78.09

$71.11 $64.77 $49.68

Source: VC Investment Source: PwC/CB Insights MoneyTree™ Report, Q4 2015, Q2 2016 and Q3 2016 R&D Investment Source: NSF Business Research and Development and Innovation: 2013 (Released August 2016) (Table 22)


States awarding large numbers of undergraduate degrees in science, technology, engineering and mathematics fields (STEM) are educat-ing and training the entrepreneurs of the future, as well as the em-ployees who will work for those pioneers’ companies. The category compares the average number of students, 18-24 years old, graduating with STEM degrees, against the national average of 20.8 per 1,000. High performers, including Vermont, Iowa, Rhode Island and Massa-chusetts, benefit from strong public universities. Only 10 percent of the states earned an ‘A’ or higher.

Grants STEM Degrees

StateSTEM Degrees

conferred per 1,000people 18-24 Grade State Grade

VermontIowaRhode IslandMassachusettsArizonaNew HampshireMaineWest VirginiaPennsylvaniaUtahMarylandColoradoMinnesotaVirginiaNew YorkOregonDelawareConnecticutWisconsinSouth DakotaIndianaMontanaWashingtonMissouriIdaho

A+A+A-A-A-B+B+B+B+B+B+B+B+B+BBBBBBBBBBB

NebraskaMichiganNorth CarolinaCaliforniaNew JerseyIllinoisAlabamaKansasOhioNorth DakotaFloridaHawaiiSouth CarolinaGeorgiaTennesseeKentuckyLouisianaOklahomaWyomingArkansasTexasNew MexicoMississippiNevadaAlaska

B-B-B-B-C+C+C+C+C+C+CCCCC-C-C-C-D+D+DDDFF

42.338.732.532.230.728.426.825.825.425.425.125.024.824.523.923.923.823.323.221.921.521.120.620.220.1

19.819.519.218.918.518.217.617.617.617.316.616.516.115.715.114.714.314.313.513.012.812.411.69.58.6

STEM Degreesconferred per 1,000

people 18-24

Source: NSF, Bachelor's degrees in science and engineering conferred per 1,000 individuals 18-24 years old, by state: 2013.

20

When states adopt policies that promote sustainability without inhibiting the growth of new technologies and the companies that produce them, both the economy and the environment win. Well-intended policies on electron-ics recycling, energy efficiency, packaging and materials can either encour-age or discourage innovation. In the 2017 Innovation Scorecard, most states earned neutral grades for enacting or maintaining sustainability policies that promote innovation. A few states received high marks for taking steps to adopt more positive policies, under which electronics are recycled in a market-based system, or the state and industry share the costs of doing so,

including Arkansas, Colorado and Nebraska.

Innovation-Friendly Sustainable Policies

NebraskaArkansasDelawareUtahAlabamaAlaskaArizonaColoradoFloridaGeorgiaIdahoIowaKansasKentuckyLouisianaMassachusettsMichiganMississippiMissouri

A-B+B+B+BBBBBBBBBBBBBBB

State Grade

MontanaNevadaNew HampshireNew MexicoNorth DakotaOhioOklahomaSouth CarolinaSouth DakotaTennesseeTexasVirginiaWyomingHawaiiIndianaMarylandMinnesotaWest VirginiaWisconsin

State Grade State Grade

North CarolinaVermontCaliforniaIllinoisOregonPennsylvaniaRhode IslandWashingtonConnecticutMaineNew YorkNew Jersey

C+C+CCCCCCD+D+D+D

Source: CTA

BBBBBBBBBBBBBB-B-B-B-B-B-


This category combines two components: statewide laws regarding drones and self-driving vehicles (SDVs). As driverless vehicle technology advances, states and cities are rushing to be first to operate self-driving vehicles on their roads successfully. Only three states earned a grade lower than a ‘B’ for self-driving vehicles by instituting additional requirements for SDVs that would hinder their development.

On drones, 12 states received a grade of ‘C+’ or lower. In these states, legisla-tion was overly restrictive and vague, often criminalizing drone operations

authorized by the Federal Aviation Administration (FAA). Some of these states also created new drone-specific crimes, rather than addressing drones under existing privacy laws or codes that gov-ern other technologies. The FAA maintains exclusive jurisdiction over drone safety including flight altitudes, flight paths and no-fly zones. Local and state officials should support national rules that provide an organized and consistent policy framework for the growing number of consumers and commercial operators using drones, and for new companies developing drones and drone-related services.

Open Roads & Skies

Source: CTA

AlaskaArkansasColoradoConnecticutGeorgiaHawaiiIndianaIowaKansasKentuckyMaineMarylandMichiganMinnesotaMississippiMissouriMontanaNebraskaNew Hampshire

New JerseyNew MexicoNew YorkOhioPennsylvaniaSouth CarolinaSouth DakotaVermontVirginiaWashingtonWest VirginiaWyomingAlabamaArizonaDelawareNorth DakotaMassachusettsTexasNevada

CaliforniaIdahoIllinoisLouisianaNorth CarolinaOklahomaOregonRhode IslandUtahFloridaWisconsinTennessee

AAAAAAAAAAAAAAAAAAA

AAAAAAAAAAAAB+B+B+B+BBB-

C+C+C+C+C+C+C+C+C+CCD-


22

WHAT DID WE DO RIGHT?Alabama earned a ‘B’ in Welcomes New Business Mod-els, legalizing ridesharing in Tuscaloosa and Auburn and reaching a statewide insurance agreement for the services, and reaching a statewide tax agreement for homesharing.

WHERE HAVE WE MOST IMPROVED?Alabama’s grade in Entrepreneurial Activity increased to a ‘D+’ from an ‘F’ in 2015. The state added more than 78,500 new jobs from over 50,700 new small businesses from 2010-2014.

WHAT CAN WE DO BETTER NEXT YEAR?Alabama ranks 34th in the nation in Attracting Invest-ment and lacks strong protections against discrimina-tion on the basis of sexual orientation or gender identi-ty. Progress in these areas may improve future rankings.

A growing tech workforceLong an automobile manufacturing hub, Alabama con-tinues to innovate in the transportation industry. In 2016, State Sen. Del Marsh introduced a bill allowing self-driving cars with proper licensing and insurance to drive on public roads. Although the bill failed last year, it highlights how welcoming the state is becoming to new transportation technologies. At the end of 2016, a state legislative committee on self-driving cars also established a research institute at Auburn University to educate lawmakers on the science behind driverless cars, enabling policymakers to draft laws that protect citizens while encouraging innovation.

Alabama’s Tech Workforce has expanded significantly, and now tops 137,000, making it 25th in the nation. The state earned a ‘B+’ in Open Roads & Skies, with no laws restricting consumer usage of drones and SJR 81 estab-lishing a joint legislative committee to study laws that may impede self-driving cars.

Despite this progress, many technology companies are grappling to find qualified tech talent to fill jobs. In 2016, Alabama’s overall unemployment rate remained stubbornly high — with one statistic showing that by March 2017, it reached 6.4 percent — the third-worst in the country, according to the Associated Press. Alabama Community College System Board of Trustees member Blake McAnally says investing in education can help bring down unemployment and create high-tech jobs. “People are what changed the game,” McAnally says, “and we in Alabama have got to get very serious and very excited about training people and training people to be ready to go work in this high-tech industry.”

Sources: (AL) (BizJournal) (WHNT) (AL) (AL) (Wired) (OANow) (NCSL)

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment



Sustainable Policies

Open Roads & Skies

B

C

C+

D+

C+

D+

D+

B

B

B+

Innovation Adopter

Alabama

http://www.al.com/business/index.ssf/2017/03/lyft_in_alcom_business_news.html

http://www.bizjournals.com/birmingham/news/2016/03/03/how-alabamas-tech-job-market-is-performing.html

http://whnt.com/2017/02/27/high-tech-manufacturing-jobs-are-in-high-demand-the-state-wants-to-prepare-its-workforce/

http://blog.al.com/comebacktown/2017/03/birmingham_becoming_the_epicen.html

http://www.al.com/business/index.ssf/2017/03/alabama_unemployment_growing_n.html#incart_river_index

https://www.wired.com/2016/12/google-honda-waymo-on-self-driving-cars/

http://www.oanow.com/news/legislative-committee-meets-to-prepare-for-the-coming-of-self/article_1ece077c-decd-11e6-8265-97655265ad80.html

http://www.ncsl.org/research/transportation/autonomous-vehicles-legislation.aspx%23Introduced%202016


HERE IS WHAT THEY HAD TO SAYAnyone who plays tennis knows all too well the chore of trudging all over the court to collect leftover tennis balls at the end of a practice session. But if you play regularly, the seemingly endless process of picking up after your-self can lead to extra stress on your back and waste time you’d rather spend playing or practicing.

Haitham Eletrabi, an Auburn University alum and tennis player with a background in business and engineering, has spent two years building a smart robot – Tennibot – to make life easier for himself and other players. “Think of it as a personal tennis ball boy,” says Eletrabi. “It takes out the worst part of the sport.”

Using a camera, Tennibot recognizes a ball by its shape, size and color. Then it moves towards the ball and picks it up, employing smart algorithms that make Tennibot’s movements more efficient. The device also connects to a smartphone app, which tracks the number of balls you hit and the frequency of your activity.

Tennibot came about thanks, in part, to an incubator space at Eletrabi’s alma mater in Auburn. After re-ceiving innovation awards and funding from angel investors, Eletrabi now plans to launch the device within the next year.

Open Roads & Skies

Alabama got a ‘B’ in self-driving cars after enacting SJR 81 to study laws that impede use of the vehicles, and an ‘A’ in drones, for a total grade of ‘B+’.

Best & BrightestDespite having no state law protecting against LGBTQ discrimination, Alabama does have a Right to Work law in place, earn-ing it a total grade of ‘B’.

Welcomes New Business ModelsAlabama legalized ridesharing in Tuscalo-osa and Auburn, and reached a statewide insurance agreement for homesharing.

Entrepreneurial ActivityAlabama saw an increase in the num-ber of jobs and firms created over the last five years — an average of 78,638 jobs and 50,713 new firms — rising to a ‘D+’ from an ‘F’.

24

WHAT DID WE DO RIGHT?Alaska earned an ‘A+’ in Tax Friendliness, ranking 3rd in the country. The state has no sales tax or indi-vidual income tax, and its oil tax revenues allow it to maintain low taxes across the board.

WHERE HAVE WE MOST IMPROVED?Alaska earned an ‘A’ in Open Roads & Skies, with no laws restricting self-driving cars or consumer usage of drones on the books.

WHAT CAN WE DO BETTER NEXT YEAR?Alaska received an ‘F’ in Grants STEM Degrees, producing only 8.6 graduates per 1,000 undergrad-uates with the credentials, substantially below the national average of 20.8 graduates per 1,000 — and last in the nation. The state should enact policies that result in more STEM graduates.

Modest Innovator

Drones propel innovationAlaska is the largest state in the country geograph-ically, but one of the least populous. Its vastness, di-verse environments, and abundance of wildlife are the very things that propel innovation in the state. For example, Alaska’s dangerous terrain has made it a breeding ground for drone technologies. With access to a large workforce of trained pilots, and pro-innova-tion state policies, the University of Alaska Center of Unmanned Aircraft Systems Integration is one of six federal drone research centers in the United States, according to The New York Times.

Alaskans predict drones will become instrumental to life in their state and are starting education ear-ly. “There are a lot of people using [drones] to teach physics of flight,” says Lee Butterfield, a teacher at South High School in Anchorage, “but none with the express purpose to prepare kids for jobs within the economy.” The school became the first in the state to add a class to its curriculum to educate students on the technology, operation and growing business ap-plications of drones.

Alaska’s economy is dominated by energy produc-tion. But as oil prices sink, The Alaska Journal of Com-merce reports, “diversify the economy” has become the rallying cry. To offset the stagnating oil business on which the state has long relied, Alaska launched a tech accelerator last summer, supporting local com-panies with an eye toward incubating technologies that are focused on the state’s Arctic environment.

Sources: (NYT) (ADN) (GovTech)

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

D

D-

F

C-

A+

F

B

D+

B

A

Alaska

https://www.nytimes.com/2016/12/29/us/alaska-pilot-shortage.html%3F_r=0

https://www.adn.com/alaska-news/education/2016/05/22/this-anchorage-high-school-is-bringing-drones-into-the-classroom/

http://www.govtech.com/budget-finance/Alaska-Launches-Tech-Accelerator.html


HERE IS WHAT THEY HAD TO SAYIn 2011, one of the most powerful earthquakes in recorded history hit Japan, triggering an enormous tsunami and dev-astation across the country. But for years afterwards, thou-sands of miles across the Pacific Ocean, the impact was also felt on the coastlines of Alaska, where millions of pounds of debris washed ashore.

John Parker, a serial entrepreneur and longtime aviation safety investigator living on Alaska’s Kenai Peninsula, had an idea to help with the massive cleanup effort. “I woke up one night and realized what everybody needed: information,” says Parker. The company he founded, Integrated Robotics, equips drones with the sophisticated technologies necessary to perform difficult information-gathering operations such as debris cleanup.

The company’s drones can do everything from identifying a growing wildfire before it spreads out of control, to finding oil spills hidden from plain view underneath the ice. In Alaska, home to vast swaths of sparsely pop-ulated and rugged terrain, these drones have become indispensable, allowing drones to go into areas that are too expensive or dangerous for humans. “We have a lot of search and rescues — there are virtually more planes per capita in Alaska than there are automobiles,” says Parker. “In a lot of situations, helicopters go out that are crewed by good people, but are thwarted from going near the crash scenes because of bad weather.”

Using Integrated Robotics technologies now in development, rescue drones will be able to fly for over 90 hours in these rescue operations. That’s far longer than most current drones can stay airborne, and will make enable drones to find downed pilots and passengers without risking the lives of the rescuers.

Tax Friendliness

Alaska ranks 3rd for its tax policies thanks to oil tax revenues that allow it to main-tain low taxes across the board.

Entrepreneurial Activity From 2010 to 2014, Alaska saw 15,556 new jobs and 10,282 new startups (firms of under 50 employees) created, earning it a grade of ‘B’.

Open Roads & Skies Alaska got an ‘A’ in self-driving cars and an ‘A’ in drones, earning it a total grade of ‘A’.

Sustainable PoliciesBecause Alaska has no exception-ally onerous e-cycling policies on the books, it earned a grade of ‘B’.

26

WHAT DID WE DO RIGHT?Arizona earned an ‘A-’ in Grants STEM Degrees, ranking 5th in the nation, and producing 30.7 students per 1,000 undergraduates, well above the national average of 20.8.

WHERE HAVE WE MOST IMPROVED?Arizona earned a ‘B+’ for Open Roads & Skies after pass-ing SB 1449, prohibiting municipalities from enacting drone restrictions, ensuring a consistent statewide ap-proach. The grade also reflects Gov. Doug Ducey’s ex-ecutive order permitting the testing and operation of self-driving cars on public roads.

WHAT CAN WE DO BETTER NEXT YEAR?Arizona earned an ‘F’ in Entrepreneurial Activity, as the number of new jobs created across the last five-year period for which data is available (64,429) stood at less than 2/3 the number created across the same timeframe in last year’s scorecard (101,719).

A mecca for companies fleeing high costsArizona has evolved from a call center capital to one of the fastest-growing tech economies in the country. Since 2000, tech employment in the Phoenix region has grown nearly 80 percent, says Chris Camacho, CEO of the Greater Phoenix Economic Council. Home to es-tablished companies, growing technology startups and young talent, the state is a breeding ground for new in-novations. Camacho credits Arizona’s low cost of living, supportive business climate, modest operating costs and access to a large, talented workforce for propelling the state forward.

In 2016, Forbes named the Phoenix-Mesa-Scottsdale area the “City Winning the Battle for Information Jobs,” beating out San Francisco and Silicon Valley. In fact, several companies from those areas — including Apple, Shutterfly, Uber, Weebly and Yelp — are expanding into the greater Phoenix metropolitan region and creating local job opportunities. JLL Research ranked Phoenix third nationally for job growth in the technology and information sector, citing the low cost of living. JLL es-timates that relocating from Silicon Valley to Phoenix could save companies up to 42 percent in annual costs per employee and 76 percent in total lease costs.

Arizona’s technically educated workforce attracts com-panies that might move to other states offering similar cost savings. Universities like Arizona State University and Grand Canyon University have implemented tech initiatives and entrepreneurship programs geared at preparing students for careers in the field. In fall 2016, the Phoenix Coding Academy opened to educate stu-dents on STEM-specific topics like programming and software development.

Sources: (BizJournals) (AZCentral) (Ahwatukee) (Technical.ly) (CNN)

Arizona

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

B

C+

A-

B

B

B

F

A

B

B+

Innovation Leader

http://www.bizjournals.com/phoenix/blog/techflash/2016/06/tech-sector-leading-the-way-for-phoenix-job-growth.html

http://www.azcentral.com/story/money/business/jobs/2016/04/01/phoenix-area-attracting-west-coast-tech-companies/82478092/

http://www.ahwatukee.com/business/article_cf36ca68-faa7-11e6-b67a-c7102715a00b.html

http://technical.ly/2016/07/13/phoenix-tech-startups/

http://money.cnn.com/2016/12/22/technology/uber-self-driving-cars-arizona/


HERE IS WHAT THEY HAD TO SAYChandler-based startup Local Motors, Inc. brings together automotive engineers, manufacturers and enthusiasts in a “global co-creation community” that builds custom cars from the ground up using cutting-edge technology.

Founded by John B. Rogers, a former Marine infantry commander, Local Motors employs 3D printing to produce small batches of vehicles, specifically designed for the region where they’re manufactured — made in plants that Local Motors calls “microfactories.”

“In Phoenix, a solar-powered car would make more sense than in Seattle, and a motorcycle may make more sense for a small island like Hawaii than the sub-zero temperatures in Minnesota,” says Jacqueline Keidel, a public af-fairs representative, Local Motors. The company also engages local residents in the process, crowdsourcing de-sign challenges and getting input about what kinds of vehicles the community wants to drive.

This year, Local Motors will debut Olli, a self-driv-ing electric minibus that can shuttle up to a dozen people around colleges, corporate campuses, or even city streets. And IBM’s Watson artificial in-telligence platform enables passengers to speak to Olli, asking the bus itself for suggested land-marks or restaurants at which to stop. Production will ramp up as Local Motors expands its network of microfactories and local communities will get to shape smart cars for their own streets.

Grants STEM Degrees

Arizona ranked 5th in the nation in 2016, graduating an average of 30.7 students 18-24 years old with STEM degrees, above the national average of 20.8.

Tech WorkforceArizona saw the number of tech jobs in-crease to 248,160 in 2016, among the top 20 in the nation, resulting in a final grade of ‘B’.

Open Roads & SkiesGov. Doug Ducey signed an EO directing agen-cies to support testing and operation of auton-omous vehicles, and SB 1449 prohibiting local regulation of drones, earning Arizona a ‘B+’.

Tax FriendlinessArizona is ranked 21st in the nation for its tax friendly policies, as it con-tinues to lower its corporate income tax rates, earning a grade of ‘B’.

30.7Science &

Engineering degrees

conferred per 1,000 people

18-24

28

WHAT DID WE DO RIGHT?In 2016, Arkansas implemented a shared responsibility law that requires state and industry to share the costs of recycling electronics. As a result, the state earned a ‘B+’ in Innovation Friendly Sustainable Policies.

WHERE HAVE WE MOST IMPROVED?Arkansas’ grade in Entrepreneurial Activity increased to an ‘A’ from a ‘C-’ in 2015. The state added over 130,000 new jobs from 2010-2014, more than double the num-ber in last year’s Scorecard, from just under 34,000 new small businesses.

WHAT CAN WE DO BETTER NEXT YEAR?Arkansas earns an ‘F’ in Attracts Investment, ranking 46th in the nation overall for combined venture capital and R&D investments per capita. The state also lacks strong protections against discrimination on the basis of sexual orientation and gender identity, and bars munici-palities from passing laws that provide greater protection.

From wheels to wirelessFrom the Ozark Mountains in the north to the Timber-lands of the south and the eastern Mississippi River lowlands, Arkansas’ geography has it all. But the state’s rural environment has stymied modernization of the state’s infrastructure, especially when it comes to the in-ternet. In June 2016, State Rep. Warwick Sabin started a research effort to find internet coverage holes in order to draft a bill to bring high-speed connections to every home and business in the state.

Arkansas’ central location and pro-business policies are helping it transition from a manufacturing economy to one dominated by knowledge-based businesses. The state is home to corporate giants such as Tyson Foods and freight trucker J.B. Hunt. Its capital, Little Rock, is a player in the emerging FinTech and big data scenes, with companies including Acxiom, ABC Financial, and Fidelity Information Systems (formerly Systematics, Inc.) operating there. And today, innovators continue to propel entrepreneurial activity forward, breathing life into the slogan “Arkansas is tech.”

“If we can’t produce [technology] workers, we’re not go-ing to be able to attract and keep the industry we want,” says Gov. Asa Hutchinson. To that end, Arkansas re-quires all high schools to teach computer science, one of the first successfully implemented policies of its kind in the nation. With additional accelerator programs, as well, Arkansas’ transformation is underway.

Sources: (Arkansas News) (Magnolia Reporter) (Technical.ly) (KATV) (Wash. Times)

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

C

F

D+

D

C

F

A

B+

B+

A

Modest Innovator

Arkansas

http://www.arkansasnews.com/news/20170218/new-laws-seek-to-boost-arkansas-innovation-technology-sector

http://www.magnoliareporter.com/news_and_business/opinion/article_44761d46-fb17-11e6-bcc8-d3c8bb865abf.html

http://technical.ly/2016/04/13/little-rock-returning-fintech-roots/

http://katv.com/news/local/slow-internet-speeds-could-hurt-arkansas-entrepreneurs

http://m.washingtontimes.com/news/2016/apr/4/sluggish-internet-speeds-plague-arkansas-growing-t/



From 2010 to 2014, Arkansas saw 130,630 net jobs created — 2nd per capita in the nation — and an average of 33,960 new firms created, earning it a grade of ‘A’.

130,630Net jobs created from 2010 to 2014

Best & BrightestDespite having no state law protecting against LGBTQ discrimination, Arkansas does have a Right to Work law in place, earning a total grade of ‘C’.

Open Roads & SkiesArkansas got an ‘A’ in self-driving cars and an ‘A’ in drones, earning a total grade of ‘A’.

Sustainable PoliciesArkansas has a law under which businesses and the state share the costs of electronics recycling, earning the state a grade of ‘B+’.

Rural Arkansas strives to get online, but Little Rock is home to a range of tech companies, including the marketing services company Acxiom and the data processing firm Fidelity Information Systems (for-merly Systematics, Inc.).

30

WHAT DID WE DO RIGHT?California ranks 2nd in the country overall in Attract-ing Investment. It earned $752.13 in VC per capita and $2,399.02 in R&D per capita — 2nd and 3rd in the nation, respectively, earning the state an ‘A+’.

WHERE HAVE WE MOST IMPROVED? California saw its grade rise to ‘C’ in Innovation Friendly Sustainable Policies, as it embarks carefully and responsi-bly on a process to review its electronics recycling program in order to meet the state’s 35 percent recycling goal.

WHAT CAN WE DO BETTER NEXT YEAR? California earned a ‘C+’ overall in Open Roads & Skies, with a ‘D’ in self-driving cars, having passed AB 1592 authorizing only limited testing for the vehicles; and an ‘A’ in drones, after Gov. Jerry Brown vetoed four bills that would have restricted drone technology. The state should reduce regulations on testing for driverless cars.

The tech capital of the worldCalifornia’s technology-rich economy is the envy of the world. No place is more synonymous with innovative startups than Silicon Valley — so much so that growing tech hubs outside the state have adopted spins on the nickname. Charleston, SC is Silicon Harbor; Portland, OR is Silicon Forest; Austin, TX is Silicon Hills; and Salt Lake City, UT is Silicon Slopes.

The San Francisco Bay Area continues to create the most tech jobs nationally, primarily due to the de-cade-long growth spurt of social media and business applications development. Silicon Valley is home to gi-ants including Apple and Google, and the greater San Francisco area is home to technical service firms such as Salesforce and Uber. The Bay Area has achieved rap-id job creation: From 2006 to 2016, Forbes reports, it saw 90 percent growth in tech-related positions.

California attracts some of the greatest amounts of ven-ture capital and R&D investment in the world, boasts the densest tech workforce and the highest amount of entrepreneurial activity. The state continues to be a hub for the tech and film industries, but saddles businesses with excessive state and local taxes and astronomical costs of living. Nearby states with friendlier tax and innovation policies, including Arizona, Colorado, Ore-gon, Texas, Utah and Washington, are finding increas-ing success in wooing tech companies to create jobs outside California.

Sources: (Mercury) (Forbes)

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

C

B+

B-

B+

D-

A+

B

C+

C

C+

Innovation Adopter

California

http://www.mercurynews.com/2016/07/21/california-ranked-as-least-business-friendly-state-blows-past-all-others-in-job-creation/

https://www.forbes.com/sites/joelkotkin/2017/03/16/technology-jobs-2017-san-francisco-charlotte-detroit/#101dd49938f6


HERE IS WHAT THEY HAD TO SAYIn 2007, Derek Belch was a kicker on the Stanford University football team and a student in professor Jeremy Bailenson’s vaunted Virtual Human Interaction Lab. Belch was convinced that virtual reality (VR) could help prepare his fellow players more effectively for upcoming games than traditional game footage filmed from the sidelines or the end zone. At the time, the technology wasn’t mature enough to make Belch’s dreams a reality, but Bailenson saw the potential.

Six years later, Belch became an assistant coach at Stanford and worked hand in hand with Bailenson to develop a 360° immersive video technology that enables players to relive their practices from their own perspectives. “We’re using VR to improve human performance,” says Belch. “When someone actually puts it on, we give them an authentic, realistic 360-degree view of what they would experience when they’re supposed to do their given task.”

Today, STRIVR has become a stunning success. The Dallas Cowboys, Arizona Cardinals, San Francisco 49ers, Minnesota Vikings and New York Jets from the NFL; and many NCAA foot-ball programs use the technology to better train their players. Bailenson has hosted Fortune 500 CEOs, members of Congress, NFL Commission-er Roger Goodell and NBA Commissioner Adam Silver to learn about STRIVR’s game-changing technology.

Attracts Investment

In 2016, California earned the 2nd most venture capital per capita and 3rd most R&D per capita, resulting in a combined rank of 2nd in the nation.

Fast InternetCalifornia’s average Internet connection increased to 16,134 kbps in 2016, among the top 15 in the nation, resulting in a ‘B+.’

Entrepreneurial ActivityFrom 2010 to 2014, California saw 960,435 new jobs and 465,084 new startups (firms of under 50 employees) created, earning it a grade of ‘B’.

Tech WorkforceCalifornia saw the number of tech jobs increase to 1,586,690 in 2016, the most in the nation, earning it a grade of ‘B+.’

32

WHAT DID WE DO RIGHT?Colorado received a ‘B+’ in Grants STEM Degrees. The state produced an average of 25 undergraduate stu-dents with STEM degrees per 1,000, above the national average of 20.8.

WHERE HAVE WE MOST IMPROVED?Colorado jumped to an ‘A’ in 2016 from a ‘B’ in 2015 for Tech Workforce, as the number of technology-related jobs increased by more than 12,000 jobs.

WHAT CAN WE DO BETTER NEXT YEAR?Colorado needs a higher concentration of tech work-ers and a greater influx of capital to maintain its new-ly-minted status as an Innovation Champion.

A destination for the young and ambitiousColorado made history when a self-driving vehicle made the world’s first commercial delivery there. On a sunny morning in October 2016, Anheuser-Busch and Uber’s recently acquired truck startup Otto successful-ly transported a cargo of Budweiser from Fort Collins to Colorado Springs — 120 miles away — with no one behind the wheel. As the historic delivery makes clear, the Centennial State champions new technologies, and the approach is paying off, as Colorado has been named a new Innovation Champion.

In recent years, Colorado has become a hotbed of in-novation. The state is one of several to have benefited by the higher costs of living and hiring employees in coastal states like California, and in fact, a significant percentage of its tech workforce comes from California or Texas, rather than state universities.

“The net inflow of people to Colorado each year more than doubled between 2011 and 2015,” US News reports. “Colorado’s population of 25 to 29 year olds, specifical-ly, jumped nearly 11 percent between 2012 and 2015 – more than double the national average.”

Colorado Springs is home to the U.S. Air Force Acad-emy, and has long been a hub for the aerospace and defense industries, thanks to Peterson Air Force Base and nearby Fort Carson. Though often still considered a military town, the city has seen the rise of consumer technology companies. Tech startups continue to be at-tracted by Colorado’s low cost of living and atmosphere of innovation, fostered in part by prominent companies such as Intel and HP.

Sources: (US News) (Bloomberg) (New Yorker) (ChalkBeat) (CSBJ)

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

C

B-

B+

A

B

B

B+

B

B

A

Innovation Champion

Colorado

https://www.usnews.com/news/best-states/articles/2017-02-28/attracting-young-skilled-workers-drives-a-states-economic-growth

https://www.bloomberg.com/news/articles/2016-10-25/uber-self-driving-truck-packed-with-budweiser-makes-first-delivery-in-colorado

http://www.newyorker.com/business/currency/the-tech-booms-second-cities

http://www.chalkbeat.org/posts/co/2017/02/24/colorado-lawmakers-are-stepping-in-to-help-prepare-students-for-the-states-booming-tech-sector/

http://www.csbj.com/2016/06/03/governor-signs-workforce-law/


HERE IS WHAT THEY HAD TO SAYWith the rise of portable music players and smartphones, high-end headphones have come a long way. And for over five decades, Colorado-based Westone has been making custom earpieces for applications more demand-ing than listening to music in the car. The company’s products can be found protecting the ears of workers at industrial plants, keeping professional musicians in tune and making life easier for the hearing impaired.

“Westone’s earpiece designs are based on balanced armature drivers and speakers, used to reproduce sound in a balanced, non-fatiguing manner,” says Michelle Dailey, Westone’s product and marketing project manager. “What really makes our earpieces special is the sustained comfort they bring users for elongated periods of time.”

For U.S. Air Force pilots, Westone’s earpieces can make an even greater difference. Fighter aircraft can generate loud noise and pilots’ lives often depend on communicating with other pilots and ground crews. Westone partnered with a research lab at the Air Force to develop a unique earpiece that blocks out the noises pilots don’t need while maintaining their situational awareness and en-abling them to hear each other even in the most critical moments.

Tech Workforce

Colorado saw the number of tech jobs increase to 269,200 in 2016, 3rd in the nation per capita.

Grants STEM DegreesIn 2016, Colorado produced an average of 25.0 STEM graduates, above the national av-erage of 20.8, earning it a grade of ‘B+’.

Entrepreneurial ActivityFrom 2010 to 2014, Colorado saw 154,377 new jobs and 80,063 new startups (firms of under 50 employees) created, earning it a grade of ‘B+’.

Attracts InvestmentIn 2016, Colorado was 7th in the na-tion for VC per capita 15th for R&D per capita, earning it a combined rank of 7th, and a grade of ‘B’.

A

34

WHAT DID WE DO RIGHT?Connecticut received a ‘B+’ in Attracting Investments, ranking 23rd overall in the nation and receiving $84 in venture capital per capita and $2,241 in R&D per capita — 12th and 4th in the nation, respectively.

WHERE HAVE WE MOST IMPROVED?Connecticut earned a ‘B+’ in Fast Internet this year, as the speed of an average connection there skyrocketed to 15,761 kbps —15th fastest in the nation.

WHAT CAN WE DO BETTER NEXT YEAR?Connecticut received a ‘D+’ in Innovation Friendly Sustainable Policies after it enacted new packaging re-quirements, which are still evolving, on top of an e-re-cycling system that limits tech sales by requiring man-ufacturers to pay twice as more as the program costs.

Fighting to keep talent in stateThough not a 2017 Innovation Champion, Connecticut was one of six states to improve its ranking this year. The state encourages advanced manufacturing with initiatives such as the Connecticut Manufacturing In-novation Fund, a $60 million fund that matches grants to manufacturers to assist with equipment, R&D and training. As Connecticut rebalances its economy to-ward growing industrial sectors, it can capitalize on the entrepreneurial zeal of its workforce and remain a lead-er in the race for innovation.

Connecticut’s greatest challenge is keeping tech talent and companies from going elsewhere. A study conduct-ed by the Connecticut Business & Industry Association found more than 26 percent of all companies surveyed in state plan to move somewhere else in the next five years. Connecticut is working to appeal to young entre-preneurs and develop a more vibrant business commu-nity that keeps local talent in state.

To support that effort, in the fall of 2016, Connecti-cut hosted a “VentureClash” competition at the Yale School of Management, where companies pitched their ideas to a panel of six judges. The winning companies received varying levels of investment, ranging from $500,000 to $1.5 million, and in return, those companies agreed to set up their headquarters in Connecticut. “We’re trying to bring in new ideas, new energy into the state,” Matthew McCooe, chief executive officer of Con-necticut Innovations, a sponsor of the event, tells The Hartford Courant.

Sources: (TechCo) (Norwich Bulletin) (Hartford Business) (CTPost)

Connecticut

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

C

B+

B

B+

C-

B+

B-

B

D+

A

Innovation Leader

http://tech.co/connecticut-businesses-look-rebound-2016-2016-10

http://www.norwichbulletin.com/news/20170304/report-manufacturing-healthcare-seen-as-growth-areas-for-eastern-connecticut-jobs

http://www.hartfordbusiness.com/article/20161025/NEWS01/161029966/ct-climbs-in-national-high-tech-sector-rankings

http://www.ctpost.com/local/article/Connecticut-emerging-as-new-frontier-for-10949169.php


HERE IS WHAT THEY HAD TO SAYPhill Giancarlo and Dave Benoit worked together for years in invest-ment management. In 2015, they decided to start a company that keeps people safe.

“There were a lot of things going on at the time,” says Giancarlo. “A home invasion in Connecticut, the Sandy Hook shootings and a lot of other violence that we were seeing personally — it certainly impacted our state and the people that we knew.”

That impulse turned into Wearsafe: a tiny fob that allows people to get help in dangerous or threatening situations. With one discreet press of a button, a Wearsafe user can send an alert to a group of contacts. “They can do it unobtrusively so that someone doesn’t know they’re calling for aid — that is critical,” says Giancarlo, who consulted the military, Secret Service and CIA on how to respond to emergencies.

Those contacts are instantly joined into a “virtual situation room,” where they can see their loved one’s location, hear audio, and come up with a response plan. Wearsafe also vibrates to notify the user the alert has been sent, and vibrates again every time someone replies – giving the user peace of mind that the call has been heard.

If a user’s contacts believe police or other first responders need to receive messages and hear audio from the de-vice, Wearsafe enables the contacts to share it whether or not authorities have the app installed.

With partnerships planned for workplaces, universities and other communities, Giancarlo and Benoit are making good on their mission to protect people.

Tech Workforce

Connecticut saw the number of tech jobs increase to 151,630 in 2016, the 10th most per capita in the nation, earning it a grade of ‘B+’.

Fast InternetConnecticut’s average Internet connection jumped to 15,761 kbps in 2016, among the 15 fastest in the nation, earning a ‘B+’.

Attracts InvestmentConnecticut’s VC per capita was 12th in the nation and R&D per capita was 4th in the nation, earning it a combined rank of 23rd.

Grants STEM DegreesIn 2016, Connecticut produced an average of 23.3 STEM gradu-ates, top 20 in the nation, earning a grade of ‘B’.

B+

36

WHAT DID WE DO RIGHT?With a grade of ‘A-,’ Delaware ranks 3rd in the nation for overall investment. The state also earned a ‘B+’ overall in Open Roads & Skies, with an ‘A’ in self-driving cars and a ‘B+’ in drones, having passed a state law preempting municipalities from enacting drone regulations.

WHERE HAVE WE MOST IMPROVED?In the past year, Delaware’s average internet speed jumped by over 15 percent, earning it a grade of ‘A+,’ and a rank of 2nd-fastest in the country.

WHAT CAN WE DO BETTER NEXT YEAR?Delaware should pass a Right-to-Work law that gives workers the freedom to decide whether or not to join a union.

Small state, big growthDelaware has once again been named an Innovation Champion this year. The nation’s first state saw many achievements this year, from increasing the number of STEM degrees its undergraduate students earned to en-acting laws that opened its roads and skies to innovative new products.

Boasting an average data rate of 19,517 kilobits per second, Delaware came in second only to Rhode Island in inter-net speed, where it nearly doubles the rate of the slowest state. The state saw modest gains in many categories — including the amount of venture capital investment and the number of new jobs created by small firms.

The second-smallest and sixth-least populous state, Del-aware benefits by its location between the financial in-stitutions of New York and the regulatory institutions of Washington, and its business-friendly corporation law. According to the state Division of Corporations, as of 2012, more than 50% of U.S. publicly traded companies and 63% of the Fortune 500 are incorporated in Delaware.

Under the tenure of former Gov. Jack Markell, Delaware rolled out programs such as a 12-week computer coding class called Zipcode Wilmington, and Pathways to Pros-perity, a program through which educational institutions partner with businesses to teach valuable job skills. These efforts help fight unemployment by training people for jobs that are available now.

In addition to educating its workforce, Delaware also passed a new corporate tax, which eases the sales tax burden. Under the new structure, businesses are taxed on sales only — rather than sales, property and employees.

Sources: (DO News Journal) (DO News Journal) (DO News Journal) (Technical.ly)

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

C

A+

B

B

B

A-

B

B+

B+

B+

Innovation Champion

Delaware

http://www.delawareonline.com/story/news/politics/2016/01/21/legislature-passes-tax-changes-slavery-apology/79134690/

http://www.delawareonline.com/story/news/politics/2016/01/21/state-of-the-state/79114340/

http://www.delawareonline.com/story/opinion/contributors/2016/03/29/how-would-right--work-law-benefit-delawareans/82403214/

http://technical.ly/delaware/2016/01/08/delawares-internet-speed-winning/


Delaware came in 2nd to Rhode Island in internet speed, jumping to 19,517 kbps in 2016 from 16,867 kbps in 2015.

Grants STEM DegreesIn 2016, Delaware was producing an average of 23.8 STEM graduates, above the national average of 20.8, earning a grade of ‘B’.

Sustainable PoliciesMany electronics are recycled through the Delaware Solid Waste Authority, which pro-vides excellent collection opportunities.

Attracts InvestmentDelaware’s VC per capita was 25th in the nation and R&D per capita was 2nd in the nation, earning it a combined rank of 3rd, and a grade of ‘A-’.

FAST INTERNET19,517

avg. kbps.

2,650 avg. kbps. change from 2015

Many Americans pass through Delaware on the I-95 power corridor between Washington and New York. A fitting way to encounter the First State: huge num-bers of U.S. companies are incorporated there, so in a sense all roads pass through it.

38

WHAT DID WE DO RIGHT?With a grade of ‘A,’ Florida is ranked 4th in the nation in Tax Friendliness. The state has no individual income tax and ranks well in unemployment insurance tax.

WHERE HAVE WE MOST IMPROVED?Florida rose to a ‘B+’ this year in Entrepreneurial Activ-ity. It added more than 522,000 new jobs to the state workforce this past year, making it one of the top five producers of new jobs in the country.

WHAT CAN WE DO BETTER NEXT YEAR? Florida earned a ‘C’ in Open Roads & Skies, with a ‘B’ in self-driving cars for a state law permitting their opera-tion by licensed drivers; and a ‘D’ in drones, to which it applies duplicative privacy laws. Florida should reverse its drone laws to prevent clashes with FAA rules.

Innovation from earth to orbit Credited with the rise of computers and the birth of Florida’s information technology industry, Thom-as John Watson Jr. took over for his father at IBM in 1950s. And in 1981 — the year the Space Shuttle carried its first crew to orbit — IBM built its first personal com-puter in Boca Raton, thrusting the state into the high-tech limelight.

Today, Florida’s start-up scene is highly competitive, and Miami, Orlando, Tampa and Gainesville are all contenders for the title of state tech capital. With tech businesses focused on Latin American markets, tour-ism, hospitality, commercial space travel and health-care, each city has its niche, but the lack of venture cap-ital has slowed growth. Though its tech scene is smaller than those of the other cities, Gainesville is well known for the University of Florida, which prepares young en-trepreneurs to enter the local workforce. The stretch of I-10 from Tampa through Orlando and Cape Canaveral has been labeled the “High-Tech Corridor” for the vari-ous ventures that span the region.

NASA’s legendary Kennedy Space Center has made Florida an indispensable hub for businesses including Boeing and SpaceX. Almost half a century after the gargantuan Saturn V blasted off from Launch Com-plex 39A, carrying the Apollo missions to the moon, the space industry continues to draw some of the finest engineers in the country to the Florida coast, where the roar of the rockets gives hope and inspiration to a new generation of innovators and entrepreneurs.

(Florida Today) (Sun-Sentinel) (Motherboard) (FL High Tech Corridor Council)

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

B

B

C

C-

A

C

B+

C+

B

C

Innovation Leader

Florida

http://www.floridatoday.com/story/tech/science/space/2016/07/08/new-spirit-innovation-transforming-space-industry/86531062/

http://www.sun-sentinel.com/opinion/commentary/fl-viewpoint-tech-20160411-story.html

https://motherboard.vice.com/en_us/article/florida-wants-a-slice-of-the-tech-industry

http://www.floridahightech.com/about/

http://www.floridahightech.com/about/


Tax Friendliness

Florida ranks 4th in the nation in Tax Friendliness, thanks to its lack of individual income tax and favorable unem-ployment insurance taxes.

Fast InternetFlorida saw the speed of its average internet connection increase to 15,187 kbps in 2016, among the 20 fastest in the nation, earning a ‘B’.

Entrepreneurial ActivityFrom 2010 to 2014, Florida saw 522,696 net jobs and 267,072 new firms created, 4th in the nation in each.

Tech WorkforceFlorida saw the number of tech jobs increase by more than 22,000 to 581,020 in 2016, 4th highest in the nation.

The third-most populous state, Florida is home to tech com-panies and significant research institutions. A sister site for the San Diego-based Scripps Research Institute’s advanced biomedical science facility operates in Jupiter, at the north end of the Miami metropolitan area. (Courtesy: Scripps)

40

WHAT DID WE DO RIGHT?Georgia received a ‘B’ in Tech Workforce, once again ranking in the top 15 states for tech jobs, reaching 371,730 in 2016. Georgia also earned an ‘A’ in Open Roads & Skies, after Gov. Nathan Deal vetoed HB 779, allowing the FAA to create federal rules on drones.

WHAT HAVE WE MOST IMPROVED? Georgia earned a ‘C‘ in Entrepreneurial Activity, up from a ‘C-‘ in 2015, as the state created over 198,000 jobs from 2010-2014. This earns Georgia a rank of 9th in the nation for net jobs created.

WHAT CAN WE DO BETTER NEXT YEAR?Georgia fell to a ‘B’ in Welcomes New Business Models. Homesharing companies like airbnb are operating, but Savannah and Atlanta have instituted onerous regula-tions, and homeowners are fighting for the right to rent their spaces as many days per year as they would like.

Breaking barriers in tech educationHome to a range of innovative payment processors and financial technology companies, the Peach State has made itself a significant player in entertainment, manufacturing and technology. The Georgia Depart-ment of Economic Development maintains six Centers of Innovation, institutions unlike any others across the country, which support aerospace, agribusiness, energy technology, information technology, logistics and man-ufacturing businesses in the state. These centers main-tain a tech ecosystem built on partnerships between private, state and federal institutions.

Georgia is now one of the top states in the country for drone businesses, and tax credits give drone startups there even more opportunities.

The state also has a long history of supporting tech education and, most recently, developed a program to increase the number of women and minority students earning STEM degrees at state universities by culti-vating potential applicants before college. Gwinnett County, Georgia’s largest public school district, estab-lished an after-school program for middle school girls interested in STEM fields, which provides a supportive community and access to STEM classes. These efforts, in conjunction with continued support from the Board of Education and college professors, are helping Geor-gia overcome the gender gap in engineering.

Georgia’s high-tech workforce and thriving technology ecosystem will continue to support innovation there for years to come.

Sources: (CBS) (Business Facilities) (AJC) (Augusta Chronicle) (Center for Digital Ed.)

Georgia

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

B

B

C

B

C

C+

C

B

B

A

Innovation Leader

http://www.cbs46.com/story/34614999/why-all-eyes-are-on-georgia-businesses

https://businessfacilities.com/2017/02/economic-development-deal-of-the-year-bronze-award-georgia/

http://airport.blog.ajc.com/2016/04/13/drone-business-is-big-in-georgia-industry-group-says/

http://chronicle.augusta.com/business/2016-12-10/growing-business-georgia-centers-innovation-helping-businesses-succeed

http://www.centerdigitaled.com/k-12/Georgia-Schools-Set-Out-to-Involve-More-Girls-in-STEM.html

http://www.centerdigitaled.com/k-12/Georgia-Schools-Set-Out-to-Involve-More-Girls-in-STEM.html


HERE IS WHAT THEY HAD TO SAYConsumers are now able to collect a seemingly infinite amount of data about every aspect of their daily lives, from how many steps they walk to how many hours they spent in REM sleep. But for the founders of Responsive Surface Technology (ReST), data is only part of the equation.

“Our take is that it has to be actionable,” said Lloyd Sommers, general manager, the ReST Bed — the only mat-tress on the market that automatically responds and adjusts firmness based on how the user is sleeping.

“One reason people toss and turn and don’t sleep well is because pressure builds up between their body and the surface of the mattress,” said Sommers. The ReST Bed uses a patented fabric that monitors over 2,000 pressure points and changes firmness in real-time based on the position of the sleeper. Users can also manually set sup-port levels in different areas of the bed for their specific needs, whether they’re dealing with a back injury, training for a triathlon or trying to find the most comfortable position while pregnant.

Atlanta, home to several traditional bedding companies, a thriving tech scene and strong engineering programs at universities such as Georgia Tech, was a natural choice for ReST to headquarter.

Sommers envisions a country where consumers use the ReST bed along with other smart home sensors and connected devices to seam-lessly trigger their ideal sleep conditions from the mattress and air quality to light and temperature — anywhere they lay their heads. “Our vision is to be a platform for the perfect sleep environment,” he says.

Tech Workforce

Georgia ranked 10th in the nation in 2016 for tech jobs, which increased by more than 20,000 to 371,730, earning the state a grade of ‘B’.

Best & BrightestThough Georgia does not have a state law protecting against LGTBQ discrimination, it does have a Right to Work law in place, earning it a ‘B.’

Open Roads & SkiesGeorgia got an ‘A’ in self-driving cars and a ‘A’ in drones, after passing a state law preempting municipalities from regulating drones, earning a total grade of ‘A’.

Entrepreneurial ActivityFrom 2010 to 2014, Georgia saw 198,702 new jobs and 110,376 new startups (firms of under 50 employees) created, earning it a grade of ‘C’.

B

42

WHAT DID WE DO RIGHT?Hawaii received a ‘B-‘ in Tax Friendliness, one of its best grades in the Innovation Scorecard. The expiration of its temporary tax increases eliminated the top three in-dividual income tax brackets and lowered the top mar-ginal rate from 11 to 8.5 percent.

WHERE HAVE WE MOST IMPROVED? Hawaii received a ‘C’ in Welcomes New Business Mod-els this year. Ridesharing companies are operating in the island, where very few regulations impede them, but homesharing services endure substantial restrictions in most major municipalities.

WHAT CAN WE DO BETTER NEXT YEAR?Hawaii received a ‘D-’ in Attracting Investment. Overall, the state ranked 42nd in the nation — 42nd in venture capital per capita and 43rd in R&D per capita. Making im-provements in these areas may improve future rankings.

Turning tourism into techThe island state is making efforts to expand its technol-ogy sector, and hoping for big returns on investments. Gov. David Ige has made innovation a central goal of his administration, but redirecting an isolated economy long reliant on tourism will require building workforce expertise and enacting laws that are friendlier to busi-nesses.

Hawaii has suffered from “brain drain,” struggling to bring home students who go out of state for college and skilled workers who take jobs on the mainland. To address the growing demand for tech workers, Gov. Ige kicked off 2016 by announcing $6.8 million in grants to support STEM education in Hawaii from grade schools to college. A portion of the grants will estab-lish a pathway to STEM degrees by helping at least 48 Hawaii high schools implement programs in computer science, engineering or biomedical science.

Hawaii’s High Technology Development Corporation, an agency in its Department of Business, Economic De-velopment & Tourism, has an 80/80 initiative, through which it hopes to create 80,000 technology jobs paying $80,000 per year by 2030. The corporation was one of 15 selected by President Obama to join a national initia-tive called TechHire to train workforces for technology jobs, reports Pacific Business News. “Our state’s unique business and cultural environment has made it an ideal setting for innovative tech companies to grow and suc-ceed,” says U.S. Senator Brian Schatz. “That’s why mak-ing sure Hawaii has a competitive high-tech workforce is important for our local economy.”

Sources: (BizJournals) (HTDC) (BizJournals) (KITV)

Hawaii

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

C

C-

C

D

B-

D-

C+

C

B-

A

Modest Innovator

http://www.bizjournals.com/pacific/news/2016/12/13/leaders-in-hawaii-s-innovation-sector-call-for.html

http://www.htdc.org/hawaii-is-part-of-techhire-programs-expansion

http://www.bizjournals.com/pacific/news/2016/03/09/obama-selects-hawaii-for-techhire-program.html

http://www.kitv.com/story/30920490/gov-ige-announces-68-million-for-stem-jobs


Tax Friendliness

Hawaii is ranked 26th in the nation for its tax friendly policies and the recent expiration of temporary tax increases earned the state a ‘B-.’

Entrepreneurial ActivityFrom 2010 to 2014, Hawaii saw 28,966 new jobs and 16,933 new startups (firms of under 50 employees) created, earning it a grade of ‘C+’.

Open Roads & SkiesHawaii got an ‘A’ in self-driving cars and an ‘A’ in drones, earning a total grade of ‘A’.

Sustainable PoliciesDespite Hawaii’s recycling policies remaining tied to outdated weight measures, the state’s laws did im-prove in 2015, earning a ‘B-’.

Hawaii’s geographic isolation from the economic opportunities on the U.S. mainland — the islands sit almost 2,500 miles from the California coast — makes it hard to keep people there. The 13,808-foot summit of Mauna Kea, however, draws astronomers from all over the world: Its clean air, low humidity, and geographic position make it ideal for observatories, of which there are over a dozen.

44

WHAT DID WE DO RIGHT? Idaho earned an ‘A’ in Welcomes New Business Models. In March 2016, the state passed HB 511, which barred homeowner associations from outlawing short-term rentals in their neighborhoods.

WHERE HAVE WE MOST IMPROVED? Idaho received a ‘C+’ in Open Skies and Roads, main-taining its ‘D’ for drones for a 2013 law which prohibits their use for surveillance, but earning an ‘A’ in self-driv-ing cars for not restricting the new transportation tech-nology.

WHAT CAN WE DO BETTER NEXT YEAR?At an average speed of 10,407 kbps, Idaho currently ranks last in the country in Fast Internet. Old copper lines and a rural landscape make it difficult for compa-nies to deliver high-speed service.

A great outdoors with a growing tech businessSet in the foothills of the Rocky Mountains, Idaho is home to industries ranging from manufacturing to agribusiness, mining, forestry and recreation. But the state also has a history of innovation dating back to the 1970s, when Hewlett-Packard laid the groundwork for its LaserJet division in Boise. Today, Idaho is home to Micron Technology, the only U.S.-based memory chip manufacturer and one of the largest in the world.

Technology is one of Idaho’s fastest-growing industries, and the Boise Valley is home to a variety of high-tech businesses, from analytics companies to internet ser-vices and solar providers. Though the state’s infrastruc-ture is outdated and its workforce is widely dispersed, that hasn’t slowed the growth of high-tech companies in Idaho, which has increased 61 percent in the last de-cade according to the Idaho Department of Commerce.

Today, Idaho is home to over 41,000 tech jobs, and the Department of Commerce expects the sector to grow 13.7 percent over 10 years. Idahoans draw inspiration from the many opportunities the great outdoors has to offer, and develop recreational technologies and out-door products they can test right in their backyards.

Idaho is also home to a growing aerospace industry, with companies including Quest, Empire Airlines and Horizon benefiting from large international airports in nearby Portland and Seattle.

Sources: (Boise Valley Economic Partnership) (Idaho Commerce) (ID Legislature) (KIFI-KIDK) (Direct Communications)

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

B

F

B

D

B

B

B

A

B

C+

Innovation Adopter

Idaho

http://www.bvep.org/sectors/technology.aspx

http://commerce.idaho.gov/site-selection/key-industries/technology-and-innovation/

https://legislature.idaho.gov/sessioninfo/2016/legislation/H0511/

https://legislature.idaho.gov/sessioninfo/2016/legislation/H0511/

http://www.localnews8.com/news/kifi-top-story/idaho-internet-speeds-not-so-speedy_20160914093605615/80349876

http://directcom.com/st-charles-idaho-get-fiber-home-gigabit-internet-speeds/


Tax Friendliness

Idaho is ranked 20th in the nation for its tax friendly policies, resulting in a grade of a ‘B.’

Grants STEM Degrees:In 2016, Idaho produced an average of 20.1 STEM graduates, just at the nation average of 20.8, earning it a grade of ‘B’.

Welcomes New Business ModelsRidesharing and homesharing is legal statewide in Idaho. It also requires state-wide tax collection, and preemption of local municipalities from enacting restrictions for homesharing.

Attracts InvestmentIn 2016, Idaho’s VC per capita was 36th in the nation and R&D per cap-ita was 20th, earning it a combined rank of 21st, and a grade of ‘B’.

Though Idaho is well known for providing a third of the country’s potato crop, Boise-based Micron Technology is one of the largest semiconductor manufacturers in the world, producing many of the memory chips that enable us to store our pictures in our cameras and smartphones.

46

WHAT DID WE DO RIGHT?Illinois received a ‘B’ in Tech Workforce, which in-creased by nearly 16,000 to a total of almost 500,000 tech jobs, putting Illinois in the top 10 states.

WHERE HAVE WE MOST IMPROVED?Illinois earned a ‘B’ in Fast Internet, up from a ‘B-’ last year. The average connection speed in the state jumped almost by 3,000 kbps to 15,000 kbps.

WHAT CAN WE DO BETTER NEXT YEAR?Illinois earned a ‘C’ in Innovation Friendly Sustainable Policies, as its electronics recycling law is onerous com-pared to those of other states, and it requires manufac-turers to pay taxes on recycling proceeds. Though the grade reflects an improvement from last year’s ‘D+’, Illi-nois can do more to improve in this category.

The city of big shoulders boasts brain power tooIllinois is often described as two places: Chicago and everything else. A recent report from KPMG surveyed more than 800 tech leaders outside of Silicon Valley and named Chicago the sixth-most innovative area in the world, alongside Berlin and Washington, DC. The state’s tech industry is driven in significant part by the videogame sector, which Forbes reports employs over 4,000 Illinoisans and generates $158 million in annual revenue for the state.

Though not a 2017 Innovation Champion, Illinois was one of six states to improve its ranking this year.

The Illinois Science & Technology Coalition reports that students, faculty and staff of Illinois universities founded 285 companies in the 2015-2016 academic year — almost double the number of the previous year. The state’s universities offer training grounds for entrepre-neurs to kickstart new businesses, and every year Chi-cago Mayor Rahm Emanuel, World Business Chicago and the University of Illinois hold ThinkChicago, a networking event among engineering and design stu-dents, startups and large tech companies. It’s no coin-cidence the bi-annual event occurs during Chicago’s two most prominent events — the Lollapalooza music festival and the Chicago Ideas Week.

Surveys of ThinkChicago 2016 participants found that 87 percent of program alumni indicated they were “like-ly to very likely” to move to Chicago for work post-grad-uation, up from 53 percent in the previous year, as re-ported in ChicagoInno.

Sources: (Built in Chicago) (ChicagoInno) (Fortune) (World Business Chicago) (Technical.ly)

Illinois

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

C

B

C+

B

B

B

C+

B

C

C+

Innovation Leader

http://www.builtinchicago.org/2017/03/09/tech-roundup

http://chicagoinno.streetwise.co/2017/02/15/mayor-emanuel-and-chicago-tech-leaders-take-talent-retention-effort-national/

http://fortune.com/2015/02/24/10-successful-states-video-game-development/

http://www.worldbusinesschicago.com/thinkchicago/

http://www.worldbusinesschicago.com/thinkchicago/

https://technical.ly/2016/03/01/chicago-tech-scene-strengths/


HERE IS WHAT THEY HAD TO SAYPeople are taking more photos than ever before, but technologies for organizing, searching and sharing those images have lagged behind. Too often our favorite photos end up gathering digital dust on hard drives or cloud servers where they’re vulnerable to invasions of privacy.

Monument Labs has created a solution: an intelligent, scalable, effortless system the entire family can use to store and share photos in one place. Their flagship product is Monumentis, a hard-drive storage system and app that automatically analyzes, organizes, and backs up your photos. And because the device sits at home, your memories are always protected.

Co-founder Ercan Erciyes says Monument’s artificial intelligence (AI) is what sets it apart from its competi-tors. The device recognizes faces and even locations, meaning if you want to pull up photos from last winter’s ski trip all you need to do is type “snow” into the app. Monument’s AI can also follow rules that make sharing seamless — such as automatical-ly putting photos with a user’s children in a family album and then sharing it with the grandparents.

“Our vision is to make photo and video manage-ment as easy as taking them,” Erciyes said. Today, demand for the device is sky high: The company has raised almost a million dollar towards mass production from crowdfunding alone.

Tech Workforce

Illinois ranked 5th in the nation in tech jobs in 2016, thanks to a healthy increase of 16,000.

Fast InternetIllinois saw the speed of its average internet connection jump to 15,000 kbps in 2016, an increase of more than the national average, earning it a grade of ‘B’.

Entrepreneurial ActivityFrom 2010 to 2014, Illinois saw 257,320 new jobs and 164,778 new startups (firms of under 50 employees) created, earning it a grade of ‘C+’.

Attracts InvestmentIn 2016, Illinois' VC per capita was 8th in the nation and R&D per capita was 13th in the nation, earn-ing it a combined rank of 13th.

B

48

WHAT DID WE DO RIGHT?Indiana earned a ‘B+’ in Tax Friendliness, ranking 8th in the nation. The state completed a four-year phasedown of its corporate income tax rate from 8.5 to 6.5 percent, and recent legislation scheduled additional rate reduc-tions through 2022.

WHERE ARE WE MOST IMPROVED? Indiana earned an ‘A’ in Open Roads & Skies, with no laws restricting consumer usage of drones or self-driv-ing cars. With authorization to use drones for search and rescue operations, law enforcement officers can now react faster than ever before.

WHAT CAN WE DO BETTER NEXT YEAR?Though Indiana created about 119,000 new jobs in 2016, it received a ‘C-‘ in Entrepreneurial Activity — its lowest grade across all categories.

Life sciences lift the economyIndiana is perhaps best known as the home of the Indi-anapolis 500, but the Hoosier State also has a growing culture of innovation. In fact, 22 Indiana tech firms made the list of Inc. Magazine’s “America’s Fastest-Growing Private Companies.” The Indiana Business Research Center at Indiana University found that the state is the nation’s second-largest exporter of life sciences prod-ucts, with $9.9 billion in exports accounting for almost a third of the state’s output in the year ending September 30, 2015.

Indiana has an affordable cost of living and a mar-ket-based electronics recycling policy, although one unduly burdensome to industry. In recent years, the state has also made strides in improving the technical education on offer.

In July 2016, then-Gov. Mike Pence announced a $1 billion investment to spur innovation over the next de-cade. The funds span everything from grade school to entrepreneurial education and new programs designed to help build small businesses, and encourage invest-ments in early-stage, mid-level and high-growth com-panies. Granting 21.5 STEM degrees per 1,000 under-graduates — just over the national average of 20.8 per 1,000 — the state benefits from a young and educated workforce thanks to schools including Indiana Univer-sity, Purdue University, the University of Notre Dame and Rose-Hulman Institute of Technology.

As Jim Schellinger, president of the Indiana Economic Development Corporation, puts it: “Indiana’s tech in-dustry is on the move, and the nation is taking notice.”

Sources: (Tech Point) (Xconomy) (IndyStar) (Building Indiana) (WOWO)

Indiana

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

B

B

B

C+

B+

B

C-

B+

B-

A

Innovation Leader

http://www.biocrossroads.com/indianas-life-sciences-industry/



http://techpoint.org/2016/08/indiana-tech-companies-make-inc-5000-fastest-growing-list/

http://www.xconomy.com/indiana/2016/07/05/3-things-you-probably-dont-know-about-indiana-innovation/

http://www.indystar.com/story/money/2016/09/09/what-makes-indiana-tech-hub/89962386/

http://buildingindiana.com/technology-industry-on-the-rise-in-indiana/

http://www.wowo.com/pence-announces-1-billion-investment-indiana-innovation-entrepreneurship/


HERE IS WHAT THEY HAD TO SAYTwo veterans of cutting-edge product design have reimagined one of the classic childhood toys: the rubber ducky. Matt MacBeth and Don Inmon are the founders of the Indiana-based pi lab and the creators of Edwin the Duck.

The “smart duck” is powered via Bluetooth and connects to a mobile app, allowing children to unlock new worlds of play and learning. Edwin streams songs and lullabies, takes kids on interactive multimedia adventures and is still completely waterproof.

On the surface, Edwin looks like a typical yellow, rubber duck. “The nostalgia element is instantly there,” says Inmon. “We knew the product had to own bath time. Among all our other aspirations, we knew it had to own that space but also do a lot more than sit and float in a tub. We had to make it reliable and fun at the same time.”

“When we started the company, we didn’t know Indianapolis was a place for tech entrepreneurs,” says Inmon. Pi lab is based in Car-mel, Indiana, just north of the state capital. “We quickly learned there were a lot of young people who want to foster innovation here and a lot of people that want to keep talent in the state.”

The talent pool has helped MacBeth and Inmon hire locally for many of their needs- from fabricators to animators – to help create the app that connects to Edwin. They’ve also benefited from tax credits Indiana makes available for job training and for state resi-dents who invest in their company.

Tax Friendliness

Indiana ranked 8th in the nation for its tax friendly policies, completing a four-year phasedown of its corporate income tax rate.

Attracts InvestmentIndiana’s VC per capita was 33rd in the nation and R&D per capita was 14th in the nation, earning it a combined rank of 18th.

Open Roads & SkiesIndiana got an ‘A’ in self-driving cars and an ‘A’ in drones, earning a total grade of ‘A’.

Entrepreneurial ActivityFrom 2010 to 2014, Indiana saw 119,174 new jobs and 73,300 new startups (firms of under 50 employees) created, earning it a grade of ‘C-’.

50

WHAT DID WE DO RIGHT?Iowa earned an ‘A+’ for Grants STEM Degrees, ranking 2nd in the nation for STEM undergraduates, producing over 38 students per 1,000 — far above the national av-erage of 20.8.

WHERE DID WE MOST IMPROVE?Iowa earned a ‘B-‘ in Attracts Investments, up from a ‘C+’ last year. The state now rank 27th in the nation for overall investment — 39th in venture capital investment per capita and 24th in R&D per capita.

WHAT CAN WE DO BETTER NEXT YEAR?Iowa earned a ‘D+’ in Fast Internet, with an average speed of only 12,475 kbps. Though the speed reflects a jump of almost 3,000 kbps since last year, it places the state only 40th in the nation.

Tremendous tech educationThough farming remains the backbone of its economy, the Hawkeye State has witnessed an ongoing transition to advanced manufacturing, information technology and financial services. And Iowa’s agribusinesses them-selves have begun capitalizing on new technologies.

In 2016, the Greater Des Moines Partnership and the Cultivation Corridor, which supports agricultur-al bioscience, biotech and advanced manufacturing, launched the AgriTech Accelerator. As interim director Tej Dhawan explains in an Agriculture.com feature, the accelerator fosters innovation by connecting leading agriculture businesses and farm groups to startups working with cutting-edge technologies. It will host it first class in July 2017.

Iowa boasts a well-trained workforce, thanks to colleges that offer exceptional STEM programs, such as the Iowa State University of Science and Technology in Ames, birthplace of the world’s first electronic digital computer.

Today, the statewide Elevate Advanced Manufacturing campaign promotes educational opportunities and ca-reers in the field.

“Iowa is known for its pro-business climate and that helps us to attract projects to our state and it helps us to keep existing industry expansions right here,” says Debi Durham, director of the Iowa Economic Develop-ment Authority. “We have maintained an overall low cost of doing business ranking despite a tax climate that is less than desirable for companies that are in the supply chain of our largest manufacturers.”

Sources: (IA Assoc. of Business and Industry) (Agriculture.com)

Iowa

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

A

D+

A+

B-

C

B-

C

B

B

A

Innovation Leader

https://www.iowaabi.org/news/business-record-iowa/story/doing-business-in-iowa-how-iowa-ranks/

http://www.agriculture.com/news/technology/iowa-agritech-accelerator-to-drive-innovation


HERE IS WHAT THEY HAD TO SAYDistracted driving has reached epidemic proportions, with an estimated one in four traffic accidents now caused by smartphone use at the wheel. Human cost aside, insurance companies spend more than $3 billion per year on distracted-driving related claims, according to Smart Drivinc.

Distracted driving is a personal issue for Shashaanka Ashili, the company’s founder, whose wife was involved in a non-fatal accident with a distracted driver in 2014. The incident inspired Ashili, a hardware engineer and optical physicist, to start Smart Drivinc. The tech startup produces a two-part device designed to help drivers pay attention. “We tend to think we are the best drivers,” Ashili says. “Unfortunately, our brains are not wired to perform multi-tasking at such a high rate.”

The Smart Drivinc app works in tandem with a quarter-sized hardware device installed on the windshield. When the car is in motion, the system puts the driver’s phone into Smart Mode, limiting its functionality. This carrot-and-stick approach saves insurance companies and, ultimately, consumers money and makes roads safer.

Smart Drivinc also got a big boost by taking ad-vantage of Des Moines’ role as a global hub of the insurance industry. The company tapped into the Global Insurance Accelerator, which matched in-surance-related startups with investors and busi-ness mentors.

Grants STEM Degrees

In 2016, Iowa produced an average of 38.7 students 18-24 years old with STEM degrees, 2nd highest in the nation, earning it a grade of ‘A+’.

Best & BrightestIowa has a Right to Work law and a state law in place protecting against LGTQ discrimi-nation, earning a total grade of ‘A’.

Open Roads & SkiesIowa got an ‘A’ in self-driving cars and an ‘A’ in drones, earning a total grade of ‘A’.

Attracts InvestmentsIn 2016, Indiana was 39th in the nation for VC per capita and 24th for R&D per capita, earning it a combined rank of 27th, and a grade increase to ‘B-’.

38.7Science &

Engineering degrees


18-24

52

WHAT DID WE DO RIGHT?Kansas earned an ‘A’ in Open Roads & Skies, as the state has no laws on the books restricting consumer usage of drones or self-driving cars.

WHERE HAVE WE MOST IMPROVED?Kansas earned a ‘B’ in Innovation Friendly Sustain-able Policies. The state has no exceptionally onerous e-cycling policies, and Leavenworth, Johnson and Law-rence counties provide recycling events and facilities to dispose of hazardous electronic waste materials.

WHAT CAN WE DO BETTER NEXT YEAR? Kansas declined to a ‘C-’ in Fast Internet this year. With an average connection speed of under 13,000 kbps, the state ranks among the bottom 15 in the nation.

Creating incentives to fight brain drainAt the heart of the country, Kansas is known as one of the nation’s most productive agricultural states, but it’s also a fast-growing tech hub. Several factors drive growth in the state, chief among them its low costs of living and doing business. Kansas was also one of the first states to welcome Google Fiber, the super-fast in-ternet service — a considerable draw for startups.

However, the state continues to suffer a brain drain, as few people who graduate from state universities choose to stay in the area. In 2012, Gov. Sam Brownback sought to reverse that trend by signing a law encouraging high school students to take technical education courses by providing them with free tuition. The legislation also incentivizes school districts to promote technical edu-cation, pledging $1,000 to them for each student who graduates with a credential relevant to the workforce. “The value of obtaining an industry-recognized creden-tial by the time a student graduates from high school is immense,” Gov. Brownback said in signing the bill at Wichita Area Technical College’s main campus.

In an effort to connect students with local post-gradu-ate opportunities to keep them from relocating to other states, Wichita State University has started an initiative other schools can replicate. At WSU’s 120-acre Inno-vation Campus, private companies operate alongside the university’s research facilities and employ students while they are still in school, giving them valuable ex-perience working on real-world projects.

Sources: (BizJournals) (Lawrence Journal-World) (Wichita Area Techni-cal College) (Lvks.org) (LawrenceKS.org) (Johnson County Gov.)

Kansas

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

B

C-

C+

B-

B

B-

B-

B+

B

A

Innovation Leader

http://www.bizjournals.com/kansascity/news/2016/07/20/top-20-tech-momentum-markets.html

http://www2.ljworld.com/news/2016/aug/10/kansas-exporting-college-graduates-other-states/

http://watc.edu/news/governor-brownback-signs-career-and-technical-education-bill-at-watc/

http://watc.edu/news/governor-brownback-signs-career-and-technical-education-bill-at-watc/

http://www.lvks.org/eGov/apps/document/center.egov?view=item;id=725

https://lawrenceks.org/swm/computer/

http://www.jocogov.org/dept/health-and-environment/environment/recycling/electronics


Open Roads & Skies

Kansas got an ‘A’ in self-driving cars and an ‘A’ in drones, earning a total grade of ‘A’.

Grants STEM DegreesIn 2016, Kansas improved its average of STEM graduates to 17.6, earning it a grade increase to ‘C+’.

Sustainable PoliciesKansas has no exceptionally onerous e-cycling policies on the books, earning a grade of ‘B’.

Tax FriendlinessKansas is ranked 23rd for its tax friendly policies, earning a grade of ‘B’.

Though one might think first of the sweeping vistas of the Great Plains, Kansas is home to the telecom company Sprint, aircraft component manufacturer Spirit AeroSystems and engineering consultancy Black & Veatch. (PHOTO CREDIT: Michael Robinson/HOK Design, an HOK Design Project)

54

WHAT DID WE DO RIGHT?Kentucky earned an ‘A’ in Open Roads & Skies, as the state has no laws restricting consumer usage of drones or self-driving cars.

WHERE HAVE WE MOST IMPROVED?Kentucky earned a higher grade in Entrepreneurial Activity this year, creating over 72,000 new jobs from almost 46,000 small businesses.

WHAT CAN WE DO BETTER NEXT YEAR?Despite efforts to install fiber optic connections, Ken-tucky received an ‘F’ in internet speed. With an aver-age connection speed of just 10,750 kbps, the state is the second-slowest in the nation.

Courting new business, big and smallThough some know it only as a home of horse races and bourbon, Kentucky is also becoming a more desirable destination for tech companies. The city of Lexington is now home to major corporations, including Amazon, Toyota and Xerox.

In Louisville, two hours west, tech growth is also blos-soming. Thanks to the GE Appliances’ headquarters in the city, startups have begun to recruit young talent to help jumpstart their ventures. In addition, the city’s free three-month coding program, called Code Louisville, helps train new software developers whose talents can serve many tech companies. The program has been so successful that 13 other counties have replicated it.

One driving force behind the state’s technological transformation is Gov. Matt Bevin’s Kentucky Red Tape Reduction Initiative, announced on July 6, 2016. The pro-business program makes Kentucky more ap-pealing to entrepreneurs, start-ups, small businesses and investors. Gov. Bevin has reduced regulatory bur-dens and implemented tax credits for both small busi-nesses and angel investors, encouraging investments in Kentucky companies and supporting additional job creation in the state.

Kentucky’s overall business climate remains mixed. Though the state gained ground in granting STEM de-grees this year, it continues to lag behind the national average. The state also suffers from relatively low in-ternet speeds and onerous municipal regulations on homesharing.

Sources: (Biz&TaxHax) (Forbes) (KY Innovation Network) (Phys.org)

Kentucky

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

D

F

C-

D

C+

D+

D+

B

B

A

Modest Innovator

https://bizandtaxhax.com/2016/11/15/the-kentucky-red-tape-reduction-initiative-top-3-benefits-to-kentucky-investors-entrepreneurs-start-ups-and-small-businesses/

http://www.forbes.com/sites/ashoka/2016/06/30/kentucky-entrepreneur-nate-morris-is-disrupting-the-worlds-toughest-industry-garbage/#1a7412222592

http://kyinnovation.com/16-reasons-to-be-do-business-in-kentucky-in-2016/

https://phys.org/news/2016-01-funding-issues-plague-kentucky-high.html


HERE IS WHAT THEY HAD TO SAYNate Morris owes his success as an entrepreneur to the state of Kentucky. Morris’ company, Rubicon Global, is turning the waste management industry on its head –some even call it “the Uber of trash collection.”

Rubicon uses cloud technology to collect haulers with businesses that need waste removal. When Silicon Valley and Bay Area investors paid him little attention, Morris found support in his home state. In fact, he credits his Kentucky surroundings with the idea for the whole business. “It came through seeing a problem and a solution that I would have missed entirely had I been in Silicon Valley or New York,” Morris says.

“The thing that people don’t know about the trash business is that the big waste companies make all their money by taking your trash to the landfill that they own,” added Morris. “They may seem like transportation or truck-ing companies, but they’re actually in the real estate business. They’re putting your trash into their real estate asset and charging you a monthly rental fee. A handful of companies own billions and billions of dollars of these assets, and they have no financial incentive to recycle.”

“We can use technology to build a network of independent haulers around the country, provide service, but not be de-pendent on a landfill to derive a majority of our revenue,” Morris explains. “This frees us to find things like anaerobic digestion, increased recycling, single-stream cycling, com-posting – all of these alternatives to landfills that are better for the environment and can save the customer money.”

Open Roads & Skies

Kentucky’s highest grade was in Open Roads & Skies, with no laws restricting self-driving cars or drone activity.

Welcomes New Business ModelsRidesharing is legal statewide in Kentucky. No state law governs homesharing, which faces several onerous municipal regulations, earning the state a total grade of ‘B’.

Tax FriendlinessKentucky is ranked 34th in Tax Friendli-ness, earning it a grade of ‘C+’.

Innovation-Friendly Sustainable PoliciesKentucky has no exceptionally oner-ous e-cycling policies on the books, earning it a grade of ‘B’.

56

WHAT DID WE DO RIGHT?Louisiana earned a ‘B’ in Innovation Friendly Sustain-able Policies. The state Department of Environmental Quality provides many drop-off locations, events and resources to dispose safely of e-waste.

WHERE HAVE WE MOST IMPROVED?Louisiana earned a ‘B’ in Welcomes New Business Mod-els, as New Orleans legalized homesharing in October 2016; and municipalities including New Orleans, Jef-ferson Parish and Ascension Parish passed legislation permitting ridesharing, as well.

WHAT CAN WE DO BETTER NEXT YEAR?In the Open Roads & Skies category, Louisiana received an ‘A’ in self-driving cars, establishing a definition of autono-mous technology in the Highway Regulatory Act; but a ‘D’ in drones, to which it applies duplicative privacy laws. The state should not pass laws that clash with FAA rules.

Low costs draw tech firms to the Silicon BayouAfter the devastation of Hurricane Katrina, local inno-vators rose to the challenge and incorporated technolo-gy into their mission to rebuild. What began as disserta-tion research at Louisiana Tech University’s Trenchless Technology Center developed into a groundbreaking advance. Researchers built an ultra-wide-band pulsed radar system to identify undocumented underground damage to pipes, tunnels and other infrastructure. As a result, the Federal Emergency Management Agency awarded $75 million in funding to the city of Slidell, which sits at the northeast end of Lake Pontchartrain, to begin the underground utility restoration process — more than double the city’s annual budget. The success of the new technology has fostered new hope.

Louisiana itself is known in some quarters as the “Sili-con Bayou.” In 2005, the state began offering substantial tax credits for digital media and software development to lure entrepreneurs, tech companies and venture capi-talists to the area. “We are the most cost-attractive place in America,” says Michael Hecht, CEO and president of the regional economic development alliance Greater New Orleans Inc., citing costs of labor and real estate.

Louisiana Tech has earned national recognition for the high return on investment it affords graduates. Though Louisiana suffers from an ongoing budget cri-sis, New Orleans has nonetheless been recognized as the “biggest brain magnet,” “the coolest start-up city in America” and “the next great tech city.”

Sources: (ABiz) (LA Tech) (Best of New Orleans) (Engineering 360) (LA Tech) (LA DEQ) (NOLA.com) (NOLA.com)

Louisiana

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

B

D+

C-

D-

C-

F

C+

B

B

C+

Modest Innovator

http://theind.com/article-24590-entrepreneurs-wanted-for-get-started-louisiana.html

http://news.latech.edu/2016/08/25/louisiana-tech-researchers-use-underground-radar-to-locate-post-katrina-damage/

http://www.bestofneworleans.com/gambit/louisianas-tech-industry-reality-or-virtual-reality/Content?oid=2918935

http://insights.globalspec.com/article/3193/underground-radar-for-post-katrina-damage



http://deq.louisiana.gov/assets/docs/Land/DropoffProgramsforE-Recycling.pdf

http://www.nola.com/politics/index.ssf/2016/10/short_term_rentals_council.html

http://www.nola.com/politics/index.ssf/2016/09/jefferson_legalizes_ride-shari.html


HERE IS WHAT THEY HAD TO SAYIn 2008, a Los Angeles commuter rail collision brought national attention to a growing problem: distracted driving. Investigators say a train engineer was texting while operating the train – the resulting accident killed 25 people and injured scores more. It also caught the attention of Robert Guba, who had recently noticed his teen-age son was succumbing to the same kind of distractions behind the wheel.

Guba’s efforts to solve the problem of distracted driving evolved into Cellcontrol, a Baton Rouge-based company whose technology helps keep drivers off their phones while at the wheel. The product employs a hardware device mounted under the rearview mirror that restricts smartphone usage based on where the phone is located in the car and who is using it. That means a driver can pass the phone to a passenger whose access will be unrestricted or a parent can customize the device’s settings to block certain apps when novice drivers are at the wheel.

At the same time, Cellcontrol’s software collects and analyzes a range of data on driver performance to help driv-ers understand how well they’re driving and make safety improvements. “How often and how harshly they brake, how much they speed, where they are, what routes they’re driving,” explains Jesse Hoggard, vice president of marketing, Cellcontrol. “You can track cornering, aggressive ma-neuvers — all the things that would make you flunk your driver’s education test.”

The result is a system that works proactively to make roads safer. “Our average right now is a 50 percent reduction in accidents, typically beginning in the first month,” says Hoggard. “We’re saving lives and then on top of that, there’s the cost savings from insurance premiums, repairs and productivity loss.”


Louisiana’s overall grade rose to a ‘B’ this year; a 'B-' for ridesharing, which operates under a statewide TNC insurance law; and a 'B+' in homesharing, which operates under positive local laws.

Best & BrightestThough Louisiana does not have a state law protecting against LGTBQ discrimination, the state does have a Right to Work law, earning a total grade of a ‘B.’

Sustainable PoliciesLouisiana has no exceptionally onerous e-cycling policies on the books, earning a grade of ‘B’.

Grants STEM DegreesIn 2016, Louisiana improved its average of STEM graduates to 14.3, earning it a grade increase to ‘C-’.

58

WHAT DID WE DO RIGHT?Maine received a ‘B+’ in Grants STEM Degrees, with 26.8 of every 1,000 undergraduate college students graduating with them, well above the national average of 20.8.

WHERE HAVE WE MOST IMPROVED?Maine received a ‘B-’ in Tax Friendliness — up from a ‘C+‘ last year — thanks in part to lowering its individual income tax rates.

WHAT CAN WE DO BETTER NEXT YEAR?Maine earned a ‘D+’ in Innovation Friendly Sustainable Policies. The state is one of only five requiring manu-facturers to pay for local electronic recycling drop-offs, and compliance is difficult due to conflicting local laws, additional reporting requirements and registration complications.

Moving up as people move inWith its bustling tech scene, Portland is home to sev-eral significant companies including household names such as CashStar and L.L. Bean. Maine attracts people who seek a better work-life balance and easy access to nature — both of which are major draws. As the Maine Association of Realtors reports, in 2016, the state saw home sales rise almost 12 percent, compared to less than one percent in the rest of the nation.

Maine still suffers from a chronic shortage of young and talented tech workers, but universities and state legisla-tors hope to help meet that challenge. The “Innovate for Maine” program at the University of Maine connects college interns with more than 100 local companies to keep young talent in state. In addition, in the summer of 2016, the federal government provided $4 million in funding for the Coastal Counties Workforce in Bruns-wick, as part of the nationwide TechHire initiative that to train workers for jobs in information technology.

In Fairfield, fifteen-year old Alex Jason started collect-ing Apple computers at age 10, and has now amassed 200 machines. With the help of his father Bill, Alex laid the groundwork for the Maine Technology Museum, which features displays of his computer collection, as well as interactive exhibits on renewable energy, space exploration and virtual reality. In January 2017, the mu-seum opened to the public, inspiring young Mainers to study science, technology, engineering and mathemat-ics — a critical effort.

Sources: (WLBZ) (WTOP) (BostInno) (WCSH) (NYT) (HuffPost)

Maine

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

C

D

B+

C-

B-

D+

B+

B+

D+

A

Innovation Adopter

http://www.wlbz2.com/news/local/innovate-for-maine-placing-talent-with-state-companies/421935293

http://wtop.com/tech/2016/07/feds-provide-4m-to-bolster-workforce-for-maine-it-industry/

http://bostinno.streetwise.co/2017/03/06/wex-exec-on-why-portland-maine-is-hot-spot-for-tech-companies/

http://www.wcsh6.com/news/local/2016-was-record-year-for-maines-real-estate-market/393652942

https://www.nytimes.com/2016/05/10/technology/apple-computer-museum-maine-teenager-alex-jason.html?_r=0

http://www.huffingtonpost.com/entry/why-america-is-failing-so-badly-at-recycling-old-electronics_us_5640bc6ae4b0307f2cae1398


Grants STEM Degrees

In 2016, Maine produced an average of 26.8 STEM gradu-ates, above the national average of 20.8 and 7th highest in the nation, earning a ‘B+’.

Tax FriendlinessMaine ranks 30th in the nation for its tax friendly policies, lowering individual income tax rates, earning a grade increase of ‘B-’.

Open Roads & SkiesMaine got an ‘A’ in self-driving cars and an ‘A’ in drones, earning a total grade of ‘A’.

Entrepreneurial ActivityFrom 2010 to 2014, Maine saw 28,465 new jobs and 26,479 new startups (firms of under 50 employees) created, earning it a grade of ‘B+’.

26.8Science &

Engineering degrees


18-24

The picturesque state on the Atlantic coast has had a hard time attracting tech talent, but as it becomes a more desirable place to live, it draws people looking for some of the same recreational opportunities they would find in mountain states like Colorado.

60

WHAT DID WE DO RIGHT?Maryland earned an ‘A’ in Tech Workforce, with over 290,000 technology jobs in 2016.

WHERE HAVE WE MOST IMPROVED?Maryland rose from a ‘B+’ to an ‘A+’ in Fast Internet, as an average connection in the state jumped to 18,611 kbps – fifth-fastest in the nation.

WHAT CAN WE DO BETTER NEXT YEAR?Maryland received a ‘C-’ in Tax Friendliness and ranked among the bottom 10 states. The state has relatively un-favorable policies, especially in individual income tax.

Urban renewal and ongoing growthMaryland’s tech ecosystem is growing fast, and in 2017 the state became a first-time Innovation Champion. Maryland boasts healthcare technology, cybersecurity and cloud data service companies with great potential. A short train ride from the District of Columbia, New York City and Philadelphia, Baltimore enjoys easy ac-cess to booming cities — without their high costs of liv-ing and housing prices — and its proximity to the fed-eral government provides critical funding for research and entrepreneurship.

Baltimore also is home to several institutions of high-er education, including Johns Hopkins University and Hospital, the University of Maryland and the Universi-ty of Baltimore, each a pipeline of talent for Maryland’s workforce. In January 2016, Gov. Larry Hogan signed legislation providing $10 million in funding for the Pathways in Technology Early College High School Program, an initiative aimed at preparing high school students for high-tech jobs. The program began at two Baltimore schools in fall 2016 and is expected to expand to the Eastern Shore, Western Maryland and Prince George’s County. “It’s a true partnership between the business, the local school system and the community college,” Keiffer J. Mitchell Jr., a senior adviser to Ho-gan, tells The Baltimore Sun.

As Maryland becomes more competitive at the nation-al level, it hopes to expand the innovation economy across the state. Yet the growth also is readily apparent in downtown Baltimore, as tech and creative businesses reimagine city landmarks, from AOL’s move to the Nat-ty Boh Tower, to the co-working office space at Power Plant Live!

Source: (DCInno) (MD Public Schools) (Inman) (Technical.ly) (GovTech)

Maryland

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

C

A+

B+

A

C-

B

B-

B+

B-

A

Innovation Champion

http://technical.ly/baltimore/2014/08/21/aolad-com-moving-natty-boh-tower/

http://technical.ly/baltimore/2014/08/21/aolad-com-moving-natty-boh-tower/

http://technical.ly/baltimore/2016/06/16/spark-coworking-expansion-offices/

http://technical.ly/baltimore/2016/06/16/spark-coworking-expansion-offices/

http://dcinno.streetwise.co/2015/12/30/top-maryland-tech-startups-to-watch-in-2016/

http://www.marylandpublicschools.org/programs/Pages/ptech/index.aspx

http://www.inman.com/2016/01/15/baltimore-start-ups-and-tech-industry-are-growing-thriving/

http://technical.ly/baltimore/2016/09/23/downtown-baltimore-startup-map/

http://www.govtech.com/policy/Maryland-Governor-Signs-Law-to-Bolster-Tech-Workforce.html


HERE IS WHAT THEY HAD TO SAYFew companies share the distinction of being able to help everyone from autistic children to elderly patients with Parkinson’s disease to professional athletes, law enforcement members and military officers. But, by draw-ing on 40 years of eye-tracking research and vision science, Bethesda-based company RightEye has developed technologies with a remarkable range of applications in health and productivity.

After a career as a professional tennis player and later a coach, RightEye co-founder Dr. Melissa Hunfalvay completed a master’s degree in clinical psychology and a doctorate in kinesiology and began researching the differences between how amateur and professional athletes look at their surroundings. She discovered players could improve their performance by sharpening their visual responses at critical moments.

As it turned out, Hunfalvay’s work had potential far beyond the tennis court. Many physical conditions can be identified through eye movement, including traumatic brain inju-ry, concussions, neurodegenerative disorders such as Parkinson’s and Alzheimer’s disease, diabetes, autism, Attention Deficit and Hyperactivity Disorder and glaucoma.

Today, RightEye provides fast and accurate optical tests for many medical conditions. This year, the company will introduce a test for Parkinson’s and 16 other movement disorders, which can ap-pear similar. “Today, Parkinson’s is misdiagnosed almost 50 per-cent of the time,” says Barbara Barclay, president, RightEye. “Hav-ing objective eye movement information will help with that. Each test costs only a few dollars and takes under five minutes.”

Maryland ranked 5th in the nation in 2016 as the speed of an average internet connection jumped to 18,611 kbps.

Grants STEM DegreesIn 2016, Maryland produced an average of 25.1 STEM graduates, above the national average of 20.8, earning it a grade of ‘B+’.

Attracts InvestmentIn 2016, Maryland was 6th in the nation for VC per capita and 18th for R&D per capita, earning it a combined rank of 16th, and a grade of ‘B’.

Tech WorkforceMaryland saw the number of tech jobs increase to 291,370 in 2016, top 20 in the nation, earning it a final grade of ‘A’.

FAST INTERNET18,611

avg. kbps.

62

WHAT DID WE DO RIGHT?Massachusetts received an ‘A+’ in Attracting Invest-ments. With venture capital investments of $824.27 per capita and R&D of $2,656.69 per capita, the state ranks first in the country in both areas.

WHERE HAVE WE MOST IMPROVED?Massachusetts jumped to an ‘A+’ in the Tech Workforce category from a ‘B’ in 2015. The state now has over 370,000 tech jobs, and ranks in the top 15 in the nation.

WHAT CAN WE DO BETTER NEXT YEAR?Massachusetts should reverse an executive order that gives localities veto power over the testing of self-driv-ing cars and pass a Right-to-Work law.

Bay State is a tech powerhouse With astonishing amounts of investment and some of the finest research institutions in the world, Massachu-setts once again ranks as an Innovation Champion. The Bay State leads the nation in both venture capital invest-ment and R&D, and ranks 4th in producing STEM grad-uates, with dozens of top universities including Harvard and the Massachusetts Institute of Technology.

Healthcare and technology are the engines of the state’s economy, and both draw substantial amounts of research funding. “Massachusetts got on very early to the idea of trying to promote itself as an R&D center,” says Greg Sul-livan, research director of the Pioneer Institute, a public policy research shop. The secret to the state’s success in innovation is its mix of tax incentives favorable to busi-nesses, research partnerships between big-name univer-sities and local companies and the continual transforma-tion of research into market-ready products.

Massachusetts’ workforce is one of the most educated in the nation, with an estimated 67.5 percent of work-ing adults holding a higher education degree. Many of the most exciting companies — and the highest-paying jobs — bridge the worlds of bio and tech. Athenahealth, headquartered in Watertown, just west of Cambridge, offers network-enabled health services, including cloud-based electronic health records, medical billing, care coordination and population health management — backed by a network of more than 80,000 providers.

People don’t come to Massachusetts for the taxes or the climate, Tim Connelly, CEO of Mass Technology Collab-orative, tells WBUR. “It really is the dynamic employment opportunities, industry groups and academic pathways.”

Sources: (Boston Globe) (WBUR) (BizJournals)

Massachusetts

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

C

A+

A-

A+

B-

A+

B

B+

B

B

Innovation Champion

https://www.bostonglobe.com/business/2016/12/22/massachusetts-again-beats-california-most-innovative/x4SPKKzfXZZlvcIDF1lr1J/story.html

http://www.wbur.org/bostonomix/2017/03/02/key-findings-massachusetts-innovation-economy-index

http://www.bizjournals.com/boston/news/2017/03/02/massachusetts-tech-group-says-bay-state-is-still.html


Attracts Investment

Massachusetts ranks 1st in the nation for attracting the most investments per capita in both venture capital and re-search & development.

Fast InternetMassachusetts’ average internet connection jumped to 19,016 kbps in 2016, 3rd fastest in the nation, earning the state a grade of ‘A+’.

Tech WorkforceMassachusetts saw the number of tech jobs increase to 370,970 in 2016, earning the state a final grade of ‘A+’.

Grants STEM DegreesIn 2016, Massachusetts produced an average of 32.2 STEM grad-uates, 4th most in the nation, earning it a grade of ‘A-’.

The concentration of universities in and around Boston is second to none, so when it comes to R&D, no state can match Massachusetts.

64

WHAT DID WE DO RIGHT?Michigan earned a ‘B’ in Tech Workforce, ranking 9th in the nation. The state earned an overall grade of ‘A’ for Open Roads & Skies, with an ‘A’ in self-driving cars, having proposed bills expanding their testing and op-eration — even in ridesharing applications and without a licensed driver — and an ‘A’ in drones.

WHERE HAVE WE MOST IMPROVED?Michigan’s Attracts Investment grade increased to a ‘B+’. The state now ranks 8th in the nation for combined venture capital investments per capita and R&D per capita, ranking 21st and 6th in each, respectively.

WHAT CAN WE DO BETTER NEXT YEAR?Michigan’s lowest grade on the scorecard was a ‘C’ in Entrepreneurial Activity, creating 180,691 jobs across 2010-2014.

Innovation on wheels and wingsA returning Innovation Champion, Michigan contin-ues to capitalize on new technologies to maintain its top-tier status. The taste of victory is sweet: At Hope College, in the city of Holland, students and faculty can now receive frozen yogurt deliveries straight to their door — by drone.

Orange Leaf Frozen Yogurt tested its first drone deliv-ery to the campus in October 2016 and plans to con-tinue deliveries as part of a program dubbed “Project Flying Orange Unicorn.” The company’s six-propeller black drone can carry up to 30 pounds of yogurt at a speed of 30 miles an hour. A 15-minute trip, in which a human pilot flew the drone over a span of a mile, demonstrated the safety and ease of drone deliveries.

Since drones first rose to prominence, government agencies have made most of the headlines about them, employing them for search and rescue missions, sur-veillance and streaming video of natural disasters to direct emergency response teams on plans of action. Orange Leaf is one of several companies opening the door to drones’ commercial use, enabling it to serve more customers in less time.

True to Michigan’s industrial roots, a significant amount of innovation there centers on transportation technologies. The state earned top marks for self-driv-ing vehicles, on which Michigan has no restrictions, allowing the vehicles to be tested without drivers on board, and even used for ridesharing.

With efforts like these, Michiganders hope to lead the next revolutions in transportation — on land and in the air.

Sources: (USA Today) (Upper Michigan Source) (Toledo Blade) (US News)

Michigan

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

B

B+

B-

B

B

B+

C

B

B

A

Innovation Champion

http://www.usatoday.com/story/tech/nation-now/2016/10/05/frozen-yogurt-delivered-drone-michigan-college-campus/91597882/

http://www.uppermichiganssource.com/content/news/University-of-Michigan-Michigan-Tech-designated-as-Innovation-Hubs-in-MEDCs-statewide-MTRAC-program-415006683.html

http://www.toledoblade.com/Technology/2016/03/05/Tech-industry-growing-in-Michigan.html

https://www.usnews.com/best-graduate-schools/top-engineering-schools/university-of-michigan-ann-arbor-02088


HERE IS WHAT THEY HAD TO SAYNew Hudson-based Pratt & Miller specializes in designing high-performance vehicles for the most challenging conditions: the racetrack and the battlefield.

Corvette race cars engineered by Pratt & Miller have won the prestigious “24 Hours of Le Mans” — the world’s greatest endurance race — eight times, beating out factory-supported teams from Ferrari, Porsche and other powerhouses. And last year, Corvette Racing became the first team in International Motor Sports Association history to reach 100 all-time victories, with Pratt & Miller partnering for all of them.

On the battlefield, speed, durability and efficiency — the same qualities that make a winning race car — can mean the difference between life and death. Pratt & Miller has developed lightweight tactical vehicles and a range of accompanying technologies, from vehicle sub-sys-tems to safety innovations.

In April 2016, the company was one of eight com-panies selected by the Department of Defense’s Defense Advanced Research Projects Agency (DARPA) to pioneer a new class of mobile vehi-cles that protect their occupants while defying the axiom “more armor equals better protection.”

Attracts Investment

Michigan ranked 21st in the nation for VC per capita and 6th for R&D per capita, earn-ing it a combined rank of 8th, and a grade increase to ‘B+’.

Fast InternetMichigan’s average internet connection in-creased to 16,150 kbps in 2016, 11th fastest in the nation, resulting in a final grade of ‘B+’.

Open Roads & SkiesMichigan got an ‘A’ in self-driving cars, propos-ing bills to expand testing and operation; and an ‘A’ in drones, earning a total grade of ‘A’.

Tech WorkforceMichigan saw the number of tech jobs increase by more than 15,000 to 387,650 in 2016, 9th in the nation, resulting in a final grade of ‘B’.

66

WHAT DID WE DO RIGHT?Minnesota earned a ‘B+’ in Grants STEM Degrees, with 24.8 of every 1,000 undergraduate college students graduating in a STEM field, above the national average of 20.8 per 1,000.

WHERE HAVE WE MOST IMPROVED?Minnesota has enjoyed a post-Great Recession job spike, and this year it jumped grades in Tech Work-force, earning an ‘A’.

WHAT CAN WE DO BETTER NEXT YEAR?Minnesota earned a ‘D+’ in Tax Friendliness. The state ranks 46th in the nation in the category, and its corpo-rate income and individual income taxes are particular-ly burdensome.

Tech workforce surges in the North Star StateMinnesota has long been reliant on its farming, logging and manufacturing industries, but it also has a rich his-tory of technological achievement. Large corporations such as Honeywell started in the state, and helped es-tablish it as a forerunner in innovation. The state also is home to an impressive concentration of STEM under-graduates and tech jobs.

But Minnesota is struggling to keep highly-skilled workers from leaving for greener pastures. The Minne-sota High Technology Association, a non-profit tech-nology association, finds that employers throughout the state are struggling to find qualified candidates for manufacturing positions. In response, the association is providing support for an internship program called “Scitechsperience,” which places interns in tech posi-tions at small companies around the state.

Employer demand is increasing rapidly, specifically in healthcare, which accounts for 60 percent of STEM-re-lated jobs. The Twin Cities are home to a thriving medi-cal community rife with technical opportunities.

“I think if you look more at investments in startups … over the last six to eight years there’s been a tremen-dous uptick in activity,” says John Stavig, director of the Holmes Center for Entrepreneurship at the Carl-son School of Management. These, he adds, “are lead indicators of more companies being formed, and more talent coming into the process, and more organizations or enablers.”

Sources: (Carlson School at UMN) (Star-Tribune) (GovTech) (DMC.MN)

Minnesota

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

C

B

B+

A

D+

B

B

C+

B-

A

Innovation Leader

https://carlsonschool.umn.edu/news/infographic-4-trends-fueling-minnesotas-tech-industry-boom

http://www.startribune.com/challenge-for-hot-minnesota-tech-sector-filling-jobs/400717591/

http://www.govtech.com/people/Brain-Drain-Lowering-Minnesotas-Tech-Workforce.html

https://dmc.mn/documntary-the-story-of-technology-in-minnesota/


HERE IS WHAT THEY HAD TO SAYAccording to the U.S. Census Bureau, more than one-sixth of the country is now over 60 years old – and that number is projected to grow over the next several decades, reaching more than 25 percent by 2050. As more aging Americans come to depend on care from loved ones and health care providers, companies such as Reemo are reimagining senior care.

Reemo connects to a smart watch that uses multiple sensor inputs and environmental factors to track a user’s health and wellness throughout the day. The platform connects seniors to caregivers or family members, provid-ing them the opportunity to keep an eye on their loved ones remotely. The device monitors activity levels, key health indicators and provides a messaging system between seniors and their caregivers.

Also, Reemo connects with health care providers who have access to long-term and day-to-day data about their pa-tients’ well-being. “For senior care providers, we give them a holistic way to manage by exception,” says John Valiton, chief revenue officer, Reemo. “It allows them to know which seniors are doing well at a given moment and which are deviating from baselines – to know who needs a little more at-tention and when.” At assisted living communities, for example, this makes it possible for a health care provider to know which patients are up at night without having to visit every resident.

Reemo also makes it easier for seniors recovering from oper-ations or dealing with chronic diseases to manage their care and treatment without leaving home. “We focus on solving the problem of ‘aging in place’ for seniors,” says Valiton. “It all centers on connectivity — both to adult children and family members and to their care centers.”

Tech Workforce

Minnesota saw the number of tech jobs increase to 268,700 in 2016, the 5th most per capita in the nation, earning it a final grade of ‘A’.

5thmost per capita in the nation

Grants STEM DegreesIn 2016, Minnesota produced an average of 24.8 STEM graduates, more than the national average of 20.8, earning it a grade of ‘B+’.

Open Roads & SkiesMinnesota got an ‘A’ in self-driving cars and an ‘A’ in drones, earning a total grade of ‘A’.

Attracts InvestmentIn 2016, Minnesota was 11th in the nation for VC per capita and 10th in the nation for R&D per capita, earning it a combined rank of 11th, and a grade of ‘B’.

A

68

WHAT DID WE DO RIGHT?Mississippi received an ‘A’ in Open Roads & Skies, with no laws on the books restricting self-driving car activ-ity, and only recommended community-based safety guidelines for drone activity.

WHERE HAVE WE MOST IMPROVED?Mississippi jumped to a ‘B+’ in Welcomes New Business Models. Ridesharing is legal statewide, and although no state law governs homesharing municipalities may have local collection and remittance of taxes.

WHAT CAN WE DO BETTER NEXT YEAR?Mississippi earned a ‘D’ in Grants STEM Degrees, with only 11.6 per 1,000 undergraduate students earning them, far fewer than the national average of 20.8.

The Magnolia State struggles to get online Mississippi made minimal improvements this year, and slid backward in Tax Friendliness and Fast Internet, even as most surrounding states saw gains.

Mississippi has the highest percentage of people with-out reliable, fast internet service. While surrounding states have approached companies with incentives to deliver internet service to all residents, Mississippi leg-islators have made no efforts to bridge the gap, leaving a large portion of their population without a key cata-lyst for innovation.

The state has only 60,680 tech jobs. In addition, it con-tinues to see negligible VC investment and R&D invest-ment of only $71 per capita in 2016 — down from $92 per capita in 2015.

On the positive side, Mississippi has a Right-to-Work law, allowing residents to choose whether or not to join unions, and no exceptionally onerous electronics recy-cling policies. The state also saw a jump in its grade for Welcomes New Business Models, thanks to positive ridesharing and homesharing policies. In July 2016, Gov. Phil Bryant signed a bill legalizing ridesharing services across the state. HB 1381 puts the state’s In-surance Department in charge of regulating the com-panies, requiring background checks and $1 million insurance policies for each driver, and charging each transportation network company a $5,000 annual fee.

Sources: (TriplePundit) (DroneLawsHQ) (PropertyCasualty 360)

Mississippi

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

B

F

D

F

B-

F

D+

B+

B

A

Modest Innovator

http://www.triplepundit.com/2016/06/mississippi-residents-struggle-to-access-high-speed-internet/

http://www.dronelawshq.com/united-states-drone-laws/mississippi-drone-laws/

http://www.propertycasualty360.com/2016/04/06/mississippi-becomes-latest-state-to-regulate-uber


Open Roads & Skies

Mississippi’s highest grade was in Open Roads & Skies, with no laws restrict-ing self-driving cars or drone activity.

Best & BrightestThough Mississippi does not have a state law protecting against LGTBQ discrimina-tion, the state does have a Right to Work law, earning a grade of a ‘B.’

Welcomes New Business ModelsMississippi got an ‘A’ in ridesharing, which is legal statewide; and a ‘B’ in homesharing, which local law may provide for the municipal-level collection and remittance of taxes, earning a ‘B+’.

Innovation-Friendly Sustainable PoliciesMississippi has no exceptionally onerous e-waste policies on the books, earning it a grade of ‘B’.

Mississippi’s largest private employer, Ingalls Shipbuild-ing, produces surface ships for the U.S. Navy. The state’s Right-to-Work law has also helped attract many other ad-vanced manufacturers, including GE, Toyota and Nissan.

70

WHAT DID WE DO RIGHT?With a grade of ‘B’, Missouri is ranked 15th in the nation for Tax Friendliness. In 2015, state policymakers passed an in-come tax reduction that lowered the top rate by 0.1 percent each year starting in 2017. The state also lacks burdensome rules limiting drone usage or self-driving cars.

WHERE HAVE WE MOST IMPROVED?Missouri received a ‘B’ in Innovation Friendly Sustainable Pol-icies and has set up a voluntary e-cycling program that edu-cates the public about the benefits of recycling old electronics and creates drop off locations to make recycling easier.

WHAT CAN WE DO BETTER NEXT YEAR?Missouri received a ‘D’ in Best & Brightest due to its lack of both a Right-to-Work law and legislation pro-hibiting discrimination on the basis of sexual orienta-tion or gender identity. Ridesharing operates in some cities, but Missouri should join the 35 other states that have legalized it statewide.

A new startup frontierSt. Louis and Kansas City have reinvented themselves as strong players in the 21st Century tech revolution, earning national attention for their commitment to in-novation.

Boeing, Unisys and Hudson’s Bay Company have all expanded their tech operations in St. Louis, now one of the fastest creators of tech-related jobs in the country.

Meanwhile, Kansas City was the first in the world to get Google Fiber broadband internet access. The city boasts internet-enabled kiosks that connect users with local attractions and an on-demand public transit pro-gram inspired by ridesharing applications. KC also maintains an open data portal from the local govern-ment to the citizens, enabling them to become more informed participants in politics.

Kansas City is also home to PlanIT Impact, a cloud-based web application that enables city planners to build sustainable infrastructure. As Ryan McCauley of Government Technology explains, the tool encompass-es “energy, water use, stormwater drainage, greenhouse gas emissions and more.”

Missouri sits near the middle of the pack in Grants STEM Degrees, producing 20.2 per 1,000 undergradu-ates — just under the national average of 20.8. The state ranks 14th overall in Attracts Investment, with just un-der $40 per capita in venture capital and about $1,165 per capita in R&D. Missouri also earned an ‘A’ in Open Roads & Skies, with no laws on the books restricting self-driving cars or consumer usage of drones.

Sources: (Fox) (CNN) (GovTech) (Source)

Missouri

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

D

B-

B

B-

B

B

C+

B

B

A

Innovation Leader

http://fox2now.com/2017/03/08/microsoft-moving-from-creve-coeur-to-cortex-campus/

http://www.cnn.com/2017/02/16/travel/st-louis-kansas-city-missouri-revitalization/

http://www.govtech.com/fs/Cool-Cities-Rely-on-Technology-Smart-Cities-Rely-on-Data-and-Partnerships.html

http://www.govtech.com/fs/Kansas-City-Mo-Installs-First-Smart-City-Kiosks-Downtown.html


HERE IS WHAT THEY HAD TO SAYIn 2014, Sam Rudolph came across an article about the archaic state of breast pumps, which haven’t changed much since first becoming widely-used decades ago. As someone who wanted to be a mom one day — a working mom, who planned to breastfeed — the article hit home. Rudolph, who was working in sports at the time, set out to bring the breast pump up to speed with the rest of today’s user-friendly, sleek consumer products.

With conventional breast pumps, says Rudolph, “It’s impossible to wear a shirt. It’s impossible to do it in any kind of discreet manner. Women are forced to isolate themselves — both working moms and stay-at-home moms. It’s something that all moms grapple with.”

Working with her husband, who has a background in engineering, Rudolph devised Babyation, the first breast pump to move the bottle off of the breast, making it possible for women to keep to a pumping schedule without dropping everything. “Study after study agrees that moms should breastfeed for six months,” says Rudolph. “But the problem is maternity leave is three months — and it’s really hard to get up from your desk three times a day for 30 minutes each time.”

Rudolph and Miller decided to build their company in Missouri after receiving an Arch Grant – a $50,000 eq-uity-free investment for entrepreneurs who locate their startups in St. Louis and one of only a few grants in the country that does not take a stake in the company. As Rudolph puts it: “People here have embraced startups and entrepreneurs as a way for the city to thrive.”

Tax Friendliness

Missouri is ranked 15th in the nation for its tax friendly policies, passing an income tax reduction, earning the state a grade of ‘B’.

Grants STEM DegreesIn 2016, Missouri produced an average of 20.2 STEM graduates, right at the national average of 20.8, earning it a grade of ‘B’.

Open Roads & SkiesMissouri got an ‘A’ in self-driving cars and an ‘A’ in drones, earning a total grade of ‘A’.

Attracts InvestmentMissouri was 20th in the nation for VC per capita and 11th for R&D per capita, earning it a combined rank of 14th, and a grade of ‘B’.

72

WHAT DID WE DO RIGHT?Montana ranks 6th in the nation for Tax Friendliness, earning a grade of an ‘A-.’ The state has no sales tax.

WHERE WERE WE MOST IMPROVED?Montana’s grade in Open Roads & Skies rose to an ‘A,’ as the state has no laws restricting consumer usage of drones or self-driving cars.

WHAT CAN WE DO BETTER NEXT YEAR?Although the Montana High Tech Alliance reports that the high-tech industry is outpacing the state economy, the state only has 27,300 technology-related jobs, re-ceiving a ‘D+’ in Tech Workforce, and ranking 47th in the nation. As Montana looks to diversify its economy, it should cultivate an educated workforce.

Chasing investment in Big Sky CountryMontana is best known for its natural beauty. Recre-ational opportunities abound, and a work-life balance unlike that of any other state draws people there. Mon-tana public officials, however, are known to lament that as a result of a lack of jobs and low wages, “our greatest export is our kids.”

Montana struggles mightily in the Attracts Invest-ments category, ranking 45th in the nation overall, with less than $12 per capita in venture capital and under $100 per capita in R&D.

In spite of the scarcity of venture capital, the Missou-la-based tech startup Submittable received a $1.3 mil-lion funding round, the largest of any company in the state. Submittable creates and sells software that can accept and review text, images, audio and video content to enable teams to review it collaboratively and visual-ize their workflows in a central location. The company boasts clients including CBS, National Geographic, The New Yorker, the McKinsey Social Initiative, airbnb, and the NCAA.

Submittable shows a commitment to keeping promis-ing local college graduates in Montana.

“You know, I think one of the more criminal things we do is send all of our kids out of state,” says CEO and co-founder Michael FitzGerald. As it continues to thrive, Submittable will not only employ more people, but also show young entrepreneurs that they can build viable tech business in Montana. Resources are avail-able in the state, including Next Frontier Capital, the VC firm that invested in Submittable.

Sources: (Helena IR) (NBC Montana) (ABC Fox Montana) (Helena IR)

Montana

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

D

C-

B

D+

A-

D-

A-

B

B

A

Innovation Adopter

http://helenair.com/business/missoula-tech-company-submittable-raises-million-in-venture-capital-funding/article_10e2fbe7-20c1-5646-9627-419324b573c8.html

http://www.nbcmontana.com/news/ktvm/high-tech-industry-grows-in-bozeman_20160512152541714/10381820

http://www.abcfoxmontana.com/story/31260366/montana-tech-industry-booms-brings-higher-wages

http://helenair.com/business/the-technology-standard-innovation-and-entrepreneurship-grow-in-montana-s/article_57d6c7fa-d150-5b00-8fb6-e430cf521d63.html


Tax Friendliness

Montana ranked 6th in the nation in 2016 thanks to its lack of a sales tax, earning a grade of ‘A-’.

Grants STEM DegreesIn 2016, Montana produced an average of 21.1 STEM graduates, above the national average of 20.8, earning it a grade of ‘B’.

Open Roads & SkiesMontana got an ‘A’ in self-driving cars and an ‘A’ in drones, earning a total grade of ‘A’.

Entrepreneurial ActivityFrom 2010 to 2014, Montana saw 27,188 new jobs and 20,213 new start-ups (firms of under 50 employees) created, earning it a grade of ‘A-’.

Montana is the third-least population dense state in the nation — after only Alaska and Wyoming. With an economy based largely on ranching and grain farming, the state struggles to keep kids from moving out after high school or college.

74

WHAT DID WE DO RIGHT?Nebraska earned an ‘A’ for Innovation Friendly Sustain-able Policies, having launched a collaborative e-recy-cling pilot project with state industry as an alternative to government mandates.

WHERE WERE WE MOST IMPROVED?Nebraska earned an ‘A’ in Open Roads & Skies, having enacted no laws restricting consumer usage of drones or driverless cars.

WHAT CAN WE DO BETTER NEXT YEAR?Nebraska fell to a ‘C-’ in Attracts Investments this year, after suffering a significant drop in venture capital funding. In 2016, the state saw less than $20 per capita in VC, compared to over $60 in 2015. Improvements in this area may improve future rankings.

Accelerator and tech startupsHudl’s software enables high school, college and pro-fessional athletics teams to view, edit and analyze their game video. For two straight years, Hudl has been the fastest growing private company in Nebraska, expand-ing to over 100,000 teams in 30 sports in 40 countries. Today, the company has offices in Omaha, Boston, and London.

Founders Brian Kaiser, David Graff and John Wirtz started Hudl in 2006 after graduating from the Raikes School of Computer Science and Management at the University of Nebraska-Lincoln. They stayed in Lin-coln, and in 2015, their company received $72.5 million in the largest venture capital round in Nebraska history.

Coaches rave about the program.

“The saying is that ‘The tape don’t lie,’ so it’s great to take the things that happen on the floor and slow them down,” Shaka Smart, University of Texas head coach and leader of men’s USA Basketball U18, tells Hudl con-tent producer Dan Hoppen. “Be able to pause, rewind and play a segment back over and over again and just learn, first of all as a coach, what some of the things are that we need to do better as a team.”

Hudl has expanded into football and soccer, and plans to get involved in golf and other individual sports. Wirtz, chief of Hudl’s product team, said the company plans to allocate its new funding to new offices and de-partments, recruiting top talent — good news for tech-nology employment in Nebraska and beyond.

Sources: (Lincoln Journal Star) (Omaha World-Herald)

Nebraska

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

B

C+

B-

B

B

C-

B

B+

A-

A

Innovation Leader

http://journalstar.com/hudl-s-is-biggest-tech-investment-recorded-in-nebraska/article_7d88c1ca-7139-58b9-b42c-5d0a01e8e8c7.html

http://www.omaha.com/news/metro/pilot-program-aims-to-give-nebraskans-better-access-to-electronics/article_a0a0c8f5-5a29-596c-bace-ef36e4b8babe.html



Nebraska launched a collaborative e-cycling pilot project with state industry as an alternative to government mandates, earning a grade of ‘A-’.

Tech WorkforceNebraska saw the number of tech jobs increase by more than 2,000 to 71,760 in 2016, resulting in a final grade of ‘B’.

Open Roads & SkiesNebraska got an ‘A’ in self-driving cars and an ‘A’ in drones, earning a total grade of ‘A’.

Tax FriendlinessNebraska is ranked 25th in the nation for its tax friendly policies, earning a grade of ‘B’.

Nebraska produces large quantities of grain and livestock, and is one of the bottom 10 states by population density. The lack of large urban centers makes it difficult for startups to attract investment.

76

WHAT DID WE DO RIGHT?Nevada earned an ‘A-’ in Tax Friendliness, ranking 5th in the nation. The state imposes gross receipts taxes but has no corporate or individual income taxes.

WHERE HAVE WE MOST IMPROVED?Nevada received a ‘B’ in Entrepreneurial Activity, cre-ating an average of 73,756 new jobs between 2010-2014, the most recent for which data is available — almost 15,000 more than the five-year period from 2009-2013.

WHAT CAN WE DO BETTER NEXT YEAR?Nevada is the second-last state in the nation in produc-ing undergraduates with STEM degrees, earning an ‘F’ in this category. As technology evolves, Nevada needs to develop today’s talent to ensure it can grow into the workforce of tomorrow.

Attracting Fortune 500 companiesThe Silver State has long since transitioned from a mining capital to one of entertainment, gambling and tourism. Nevada’s economy, employment and entrepre-neurial activity all appear to be on the upswing after the 2008 recession. Innovation is Gov. Brian Sandoval’s top priority, and the state is on a roll.

Though housing prices are rising as people move in, CNBC reports that Nevada’s jobless rate is at its lowest in about eight years.

Las Vegas is home to a range of specialized tech jobs in areas ranging from security to gaming technology — not to mention CTA’s own CES®, the global stage for innovation, held in the city each January — but Neva-da also has several attractive policies in place for busi-nesses. With no state income tax, Nevada’s tax burden is lower than that of neighboring California, and costs of living are lower, as well. Meanwhile, Zappos founder Tony Hsieh’s “Downtown Project” has jumpstarted a nascent startup community in Las Vegas.

Nevada earned a ‘B-’ in Open Roads & Skies, with a ‘B’ in self-driving cars, which it allows to operate in the pres-ence of a human operator; and a ‘B-’ in drones, after the state established an airport to help NASA and others test drone technology. However, Nevada should revisit its 2015 law to ensure that consumer use of drones is not subjected to undue restrictions.

Nevada has also lured big Bay Area companies. In 2013, Apple built a data center near Reno, and in July 2016 Tesla opened its “Gigafactory” where it produces lithi-um-ion batteries. Gov. Sandoval estimates that over the next 20 years, the state will enjoy $100 billion in eco-nomic benefits from the facility.

Sources: (CNBC) (Review Journal) (Bloomberg) (The Atlantic)

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

A

B

F

D

A-

D

B

B

B

B-

Innovation Adopter

Nevada

http://www.cnbc.com/2016/03/17/nevada-economy-plays-winning-hand-heres-its-secret.html

http://www.reviewjournal.com/business/nevada-economic-development-chief-calls-innovation-priority

https://www.bloomberg.com/news/articles/2015-04-10/reno-wants-to-be-silicon-valley-s-back-office

https://www.theatlantic.com/business/archive/2016/02/the-downside-of-being-at-the-center-of-a-tech-boom/462186/


Tax Friendliness

Nevada ranked 5th in the nation in 2016 thanks to its lack of corporate and individ-ual income taxes, earning it a grade of ‘A-’.

Best & BrightestNevada got an ‘A+’ for its Right to Work law and an ‘A’ for its state law protecting against LGTBQ discrimination, earning a total grade of ‘A’.

Sustainable PoliciesNevada has no exceptionally onerous e-cycling policies on the books, earning a grade of ‘B’.

Entrepreneurial ActivityFrom 2010 to 2014, Nevada saw 73,756 new jobs and 36,961 new startups (firms of under 50 employees) created, earning it a grade of ‘B’.

What happens in Vegas stays in Vegas — except for CES, where companies show off the latest and greatest of the consumer technologies they sell around the world.

78

WHAT DID WE DO RIGHT?New Hampshire earned a ‘B+’ for Grants STEM De-grees, graduating 28.4 per 1,000 students, significantly above the national average of 20.8.

WHERE HAVE WE MOST IMPROVED?New Hampshire rose to a ‘B+’ from a ‘D’ in Welcomes New Business Models this year, as HB 1697 opened the roads to ridesharing companies and eliminated local regulations preventing the services from operating.

WHAT CAN WE DO BETTER NEXT YEAR?New Hampshire received its lowest grade, a ‘D+’, in the Best & Brightest category for failing to pass Right-to-Work laws. And although it has a state law against discrimination on the basis of sexual orientation, New Hampshire lacks a comparable measure for gender identity.

From mills to skills Home to a unique, thriving tech scene, New Hampshire has been named an Innovation Champion this year. Un-like most states, where big-name companies dominate, the economy is driven by small to medium-sized busi-nesses. The Merrimack River has been dubbed “Silicon Millyard” for its revitalized mill buildings turned start-up offices. And the state’s proximity to Boston makes it even more attractive — as do its lack of sales tax, lower cost of living and low congestion.

New Hampshire is home to innovative companies in a range of areas, including health care. In Jaffrey, just north of Massachusetts, Microcatheter Components manufactures tubing used in medical procedures. The microtubes, which have a wall thickness of one-third the width of a human hair, have been proven to lower mortality rates and the state has supported the compa-ny for years, advancing medical treatment.

New Hampshire also has no restrictions on either con-sumer usage of drones or self-driving cars. In June 2016, Gov. Maggie Hassan signed HB 1697, legalizing ridesharing statewide and preventing localities from enacting restrictions on the services. The law allows ridesharing companies to operate as long as they car-ry commercial insurance policies, conduct background checks for their drivers and enact a zero-tolerance pol-icy for the use of drugs and alcohol. All these require-ments are already common practice for Uber and Lyft, but the new measure will ensure that residents can ben-efit from ridesharing services across the state.

Sources: (NH Business Review) (Technical.ly)

New Hampshire

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

D+

B

B+

B+

B+

B+

B

B+

B

A

Innovation Champion

http://www.nhbr.com/November-25-2016/Jaffrey-firm-advances-microcatheter-production/

http://technical.ly/2016/08/11/new-hampshire-tech-startups/


HERE IS WHAT THEY HAD TO SAYAs a volunteer at the Charles Regatta, the largest rowing race in the country, Melissa Thompson has helped fish countless rowers out of the Charles River after they capsize or collide with bridges or each other. Thompson — who worked for decades at a molecular diagnostics company — knew the reason for the crashes was obvious: Rowers face backward as they race through the water. “After doing this for years and watching these collisions,” Thompson says, “I thought, ‘Why doesn’t someone put a camera on the darn thing?’”

In 2011, Thompson did just that, inventing a makeshift device from a car backup-camera system. Her first testers from the University of Massachusetts Amherst women’s crew team loved the system, which affixed a camera to the front of the boat and put a monitor in front of the rower’s field of vision so she could watch the boat’s path in the water. After several years of research and development, Thompson launched her product, Hyndsight, in Peterborough, New Hampshire. Today, Hyndsight is a wireless, water-resistant camera and monitor system that operates by radio frequency and, essentially, gives users eyes in the back of their heads.

Thompson quickly learned the uses for the device were limitless. “People came to me and asked, “Can I use it for trailering and watching my horses while they’re in tran-sit? Can I use it in my barn? Can it help me watch my kids by the pool?’” Hyndsight now helps farmers keep track of their livestock; parents keep an eye on their chil-dren and truckers drive more safely. The company’s next goal is to let sports audiences plug into the action, allow-ing spectators in a boat, bike or car races to watch from the racer’s point of view, right from their smartphones.

Grants STEM Degrees

New Hampshire produced an average of 28.4 STEM gradu-ates, sixth most in the nation and above the national average of 20.8, earning it a grade of ‘B+’.

Tech WorkforceNew Hampshire saw the number of tech jobs increasing by 400, totaling 57,470 in 2016, a gain sufficient to earn it a higher final grade of ‘B+’.

Attracts InvestmentNew Hampshire was 10th in the nation for VC per capita and 8th in the nation for R&D per capita, earning it a combined rank of 7th, and a grade of ‘B+’.

Tax FriendlinessNew Hampshire is ranked 7th in the nation for tax friendly policies, with no sales tax, earning a grade of ‘B+’.

28.4Science &

Engineering degrees


18-24

80

WHAT DID WE DO RIGHT?New Jersey earned a ‘B+’ in Attracts Investment, rank-ing 6th in the nation for combined venture capital and R&D funding.

WHERE HAVE WE MOST IMPROVED?New Jersey rose to an ‘A’ in Fast Internet this year, as the speed of its average connection jumped to 18,395 kbps from 14,142 kbps last year.

WHAT CAN WE DO BETTER NEXT YEAR?New Jersey ranks dead last in the nation for Tax Friend-liness, earning an ‘F’ for the state’s property tax, which is almost twice the national average of 1.19 percent.

Stepping forward into the sharing economyWhen it comes to the state’s overall friendliness to innovation, New Jersey continues to be a mixed bag, but it has made substantial strides in recent months. In December 2016, the state legislature sent Assem-bly Bill 3695 to Gov. Chris Christie’s desk for approval. The measure, which became law in February 2017 — a little too late to make it into this Scorecard — legalizes ridesharing across the state, requiring insurance and a zero-tolerance policy for the use of drugs and alcohol while working.

The law authorizes New Jersey’s attorney general to decide if Uber’s and Lyft’s background checks will be sufficient, or if drivers must submit to the state’s own stringent system. Ridesharing companies argue that the state background checks present undue hardship and will cause a chilling effect on their business. Most states that have legalized ridesharing do not impose state-run background checks on the companies.

The state raised its Best & Brightest grade from an ‘F’ to a ‘C,’ because it has a law against discrimination on the basis of sexual orientation or gender identity, although it lacks Right-to-Work legislation.

New Jersey has also taken a step backward in Innova-tion Friendly Sustainable Policies, which grades states based on their unique legislative, regulatory and private sector approaches to electronics recycling. Because the state passed a law authorizing the state to take over a privately-managed system that consistently recycled as much as the proud environmentalist states of Oregon and Washington had, New Jersey earned a grade of ‘D’ in the category.

Sources: (NJ Spotlight) (NJ Legislature)

New Jersey

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

C

A

C+

B

F

B+

B

B

D

A

Innovation Adopter

http://www.njspotlight.com/stories/16/12/20/keeping-safety-first-for-new-jersey-s-ridesharing-passengers/

http://www.njleg.state.nj.us/bills/BillView.asp?BillNumber=A3695


New Jersey ranked 6th in the nation in 2016 as the speed of an average internet connection there jumped to 18,395 kbps, 6th fastest in the nation, earning the state a final grade of ‘A’.

Tech WorkforceNew Jersey saw the number of tech jobs in-crease to 339,680 in 2016, among the top 15 in the country, resulting in a final grade of ‘B’.

Entrepreneurial ActivityFrom 2010 to 2014, New Jersey saw an average of 217,334 jobs and 127,580 new firms created, top ten in the nation in each, earning it a grade of ‘B’.

Attracts InvestmentNew Jersey was 9th in the nation for VC per capita and 7th in the nation for R&D per capita, earn-ing it a combined rank of 6th, and a grade of ‘B+’.

FAST INTERNET18,395

avg. kbps.

With large urban centers and a small overall area, it comes as little surprise that the Garden State is the most densely populated in the nation. New Jersey is typified by the contrast between laissez faire impulses, as in its decision to legalize ridesharing across the state; and the seizure of undue government control, as in electronics recycling.

82

WHAT DID WE DO RIGHT?New Mexico earned an ‘A’ in Open Roads & Skies, with no laws restricting consumer use of drones or self-driv-ing cars.

WHERE HAVE WE MOST IMPROVED?New Mexico raised its Best & Brightest grade from ‘F’ to ‘C,’ because it has a law against discrimination on the basis of sexual orientation or gender identity, although it hasn’t passed Right-to-Work legislation.

WHAT CAN WE DO BETTER NEXT YEAR?New Mexico’s Fast Internet grade fell to a ‘D+’ from a ‘C’ this year. With an average connection speed of 12,367 kbps, the state significantly lags the national average, and some residents in rural areas have no internet ac-cess at all. The state should make internet infrastruc-ture a top priority.

A proving ground for smart infrastructureFifteen square miles of desert outside Las Cruces may soon become home to a brand new $1 billion city. The catch is: No one will live there.

Pegasus Global Holdings, LLC is creating CITE, the Center for Innovation Testing and Evaluation. A repro-duction of an American town of 35,000 — whose design was reportedly inspired in part by Walt Disney World — the facility will enable companies to test intelligent transportation systems, green energy, Smart Grid, tele-communications, security technologies and more be-fore going to market. According to CNN, “CITE will include specialized zones for developing new forms of agriculture, energy, and water treatment,” collecting re-al-time feedback through an underground data network.

The project will enable innovators to test products with-out the red tape of working in inhabited cities, bringing universities, businesses and federal labs together in the shared pursuit of smart infrastructure. CITE will include urban, rural and suburban areas, along with state-of-the-art labs, meeting rooms and offices for its researchers and builders.

Though the project has faced delays, Pegasus plans to begin operations as soon as 2018.

Meanwhile, New Mexico rose to a ‘B+’ in Welcomes New Business Models, when Gov. Susana Martinez signed S. 168 to legalize ridesharing across the state. Though New Mexico lacks a legal framework for homesharing services, it allows them to operate — and Santa Fe and Taos collect and remit taxes for them.

Sources: (IJ.org) (CITE) (CNN) (Comm. Assoc. of Realtors NM) (RT)

New Mexico

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

C

D+

D

D+

C+

D+

C

B+

B

A

Modest Innovator

http://ij.org/new-mexico-legalizes-uber-and-lyft/

http://cite-city.com/index.html

http://edition.cnn.com/2015/10/06/business/test-city/

http://www.carnm.com/commercial-real-estate-news/high-speed-internet-gaps-leave-rural-new-mexicans-lacking-basic-right/

https://www.rt.com/usa/342132-billion-dollar-ghost-town/


HERE IS WHAT THEY HAD TO SAYPaul Droege was attending a solar power conference in Southern California, when a poll of the audience revealed something striking: of the 2,000 people in the room, only a few dozen were actually using solar power. “If these true believers are having trouble doing this, how is it ever going to be mainstream?” said Droege.

That was the inspiration for his company SunPort, which uses a small device to turn conventional power outlets into solar energy outlets, bringing solar energy to everyone. And that device handles everything in between the outlet and the solar panel, making the decision for consumers an easy one.

Most of us lack the resources and know-how to take advantage of solar energy markets, in which certificates are sold in much larger blocs than typical customers require. But the SunPort tracks customers’ energy usage and buys an equivalent amount of energy from specific suppliers of solar systems, by employing a federally-reg-ulated market of solar energy certificates. By using SunPorts — instead of installing solar panels on their rooftops — individuals and companies can help accel-erate the shift towards renewable energy.

Droege expects that in the coming years, the cost of solar will continue to come down as infrastructure and storage capabilities improve — and he’s doing his part to make that happen. “If consumers jump and say ‘We want to accelerate this,’ that makes a big difference.”

Open Roads & Skies

New Mexico’s highest grade was in Open Roads & Skies, with no laws restricting self-driving cars or drone activity.

Entrepreneurial ActivityFrom 2010 to 2014, New Mexico saw 40,867 new jobs and 23,033 new startups (firms of under 50 employees) created, earning it a grade of ‘C’.

Sustainable PoliciesNew Mexico has no exceptionally onerous e-cycling policies on the books, earning a grade of ‘B’.

Welcomes New Business ModelsNew Mexico got an ‘A’ in ridesharing, which is legal statewide; and a ‘B’ in homesharing, which no state law gov-erns, but where local law may provide for the municipal-level collection and remittance of taxes, earning a ‘B+’.

84

WHAT HAVE WE DONE RIGHT?New York earned a ‘B+’ in Entrepreneurial Activity, cre-ating an average of 563,689 new jobs over the five-year period from 2010-2014.

WHERE HAVE WE MOST IMPROVED?New York earned an ‘A’ in Fast Internet, jumping a full letter grade as the speed of its average connection rose to 17,787 kbps from 13,959 kbps.

WHAT CAN WE DO BETTER NEXT YEAR?New York allows county-level material restriction initia-tives that create significant compliance risks, saddling tech companies with unnecessary reporting require-ments, earning the state a ‘D+’ in Innovation Friendly Sustainable Policies. To improve its grade in the catego-ry, New York should revisit its electronics recycling law.

The FinTech capital of the worldNew York has been the financial center of the world for a century, so it comes as little surprise that it has also become the leading hub of financial technology. The state has solidified its standing in FinTech with the support of former Mayor Michael Bloomberg, whose eponymous company made him a fortune by circulat-ing financial data more quickly than its competitors.

FinTech startups promise to enable people to move money faster and at lower cost than existing mech-anisms allow — and are pressuring long-established financial institutions to deliver similar convenience to their customers. For its vast number of high-tech startups and companies, encompassing everything from FinTech to new media, software development and game design, Manhattan has earned the moniker “Sil-icon Alley.”

On the legislative and regulatory fronts, the state raised its Best & Brightest grade from an ‘F’ to a ‘C’ with a law banning discrimination on the basis of sexual orienta-tion or gender identity, although it lacks Right-to-Work legislation.

New York continues to present roadblocks to innova-tion, earning a ‘D’ in Welcomes New Business Models. The state had already stymied homesharing by making it illegal to rent rooms in multi-unit facilities for shorter than 30 days, but Gov. Andrew Cuomo cracked down even further — enacting a $1,000 fine on the first offense for even posting the offers online. The state legislature also failed to pass a Senate bill that would have expand-ed ridesharing outside of New York City.

Sources: (CityLab) (Engadget)

New York

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

C

A

B

B

F

B

B+

D

D+

A

Innovation Adopter

http://www.citylab.com/work/2016/12/how-fintech-is-changing-new-york/511691/

https://www.engadget.com/2016/10/21/new-york-passes-law-making-it-illegal-to-list-short-term-rentals/


HERE IS WHAT THEY HAD TO SAYRapidly evolving technologies such as virtual reality, augmented reality and beacons hold the promise to change almost every aspect of how we move within public and private spaces. How those changes take shape depends on companies such as Tessellate Studios, a New York City-based experiential design studio that creates interac-tive spaces for work, play and learning.

Tessellate employs architecture and technology to bring interactivity to locations such as museums and work-places. Creative Director Joseph Karadin co-founded the company last year with a group of former colleagues from another design firm. “We wanted to stay small,” says Karadin, “and we wanted to do things a little bit differ-ently.” For one of Tessellate’s current projects, the BioBus, the company helped outfit a mobile trailer with high-tech lab equipment to bring science education directly to students, no matter where they are.

The concept of interactive spaces first began to take off in the late 1990s and early 2000s, but ad-vances in technology over the last decade have radically changed how those ideas can be imple-mented. One of Tessellate’s core values is to use the latest tech to serve a given project’s mission – not the other way around. “We’ve learned really quickly that it all comes down to what the experi-ence is,” says Karadin. “And you have to start with that, before even thinking about what kind of tech-nology applies.”

Tech Workforce

New York ranked 3rd in the nation for tech jobs, which increased by more than 30,000 to 732,050 in 2016, earning the state a final grade of ‘B’.

Fast InternetNew York’s average internet connection jumped to 17,787 kbps in 2016, an increase of more than the national average, earning the state a final grade of ‘A’.

Entrepreneurial ActivityFrom 2010 to 2014, New York saw 563,689 new jobs and 300,096 new startups (firms of under 50 employees) created, earning it a grade of ‘B+’.

Grants STEM DegreesIn 2016, New York produced an av-erage of 23.9 STEM graduates, top 15 in the nation, earning it a grade of ‘B’.

B

86

Anti-LGBTQ bill stalls business growthNorth Carolina made national news last year with the controversial House Bill 2, known nationally as the “Bathroom Bill.” In March 2016, state lawmakers passed legislation that struck down LGBTQ anti-discrimina-tion laws statewide, prevented new ones from being passed, and required people to use public bathrooms associated with the gender of their birth. The bill was passed partly in response to local Charlotte legislation that allowed people to use the bathroom of their iden-tifying gender and prohibited discrimination based on sexual orientation.

Though repealed in early 2017, the law sparked an im-mediate backlash. Across North Carolina, businesses including large companies such as PayPal and Lions-gate backed out of earlier agreements, and the Associ-ated Press estimated that, in total, the law would cost the state more than $3.76 billion in lost business.

On a brighter note, North Carolina is now home a state-wide collaboration to encourage entrepreneurship. In the summer of 2016, HQ Raleigh and Packard Place partnered to open HQ Charlotte, a co-working space in Charlotte and the third location hosted by HQ. Even be-fore co-working became as popular as it is today, North Carolina had opened the country’s largest high tech and science park, The Research Triangle Park, in 1959. Since its founding, the park has provided fertile ground for hundreds of companies. In creating a connection between Charlotte and the greater Research Triangle area, leaders of the new HQ project hope to give the Charlotte tech ecosystem another shot in the arm.

Sources: (CNN) (AP) (Forbes) (Charlotte Observer) (Avidxchange) (Forbes) (Forbes)

North Carolina

WHAT DID WE DO RIGHT?North Carolina earned a ‘B+’ in Tax Friendliness. The state continues to cut corporate and personal income taxes, increasing state revenues and encouraging inno-vation. In only four years, the state has climbed all the way to the 11th-best business tax climate from 44th.

WHERE HAVE WE MOST IMPROVED?North Carolina saw its grade improve to a ‘C+’ in Open Roads & Skies, as it has no regulations on the books for self-driving cars. The state does, however, excessive-ly criminalize drones by applying duplicative privacy laws on them.

WHAT CAN WE DO BETTER NEXT YEAR?North Carolina received a ‘C+’ in Innovation Friendly Sustainable Policies due to a state law that includes an unachievable target for television recycling.

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

B

C+

B-

B-

B+

B

C

B+

C+

C+

Innovation Leader

http://www.cnn.com/2016/03/23/politics/north-carolina-gender-bathrooms-bill/

http://bigstory.ap.org/article/fa4528580f3e4a01bb68bcb272f1f0f8/ap-exclusive-bathroom-bill-cost-north-carolina-376b?

https://www.forbes.com/sites/corinnejurney/2016/11/03/north-carolinas-bathroom-bill-flushes-away-750-million-in-lost-business/#70f8c6c84b59

http://www.charlotteobserver.com/news/business/article79383807.html

https://www.avidxchange.com/news/avidxchange-acknowledged-well-funded-startup-n-c/

https://www.forbes.com/sites/matthunckler/2016/03/03/is-coworking-expansion-a-sign-of-growth-for-north-carolinas-tech-industry/#6754bcc914a4

https://www.forbes.com/sites/patrickgleason/2016/12/31/the-5-best-worst-state-tax-changes-of-2016-plus-whats-on-the-docket-for-2017/#168771442314


HERE IS WHAT THEY HAD TO SAYMohu, one of the top HDTV companies in the country, has dominated the market for one reason: their product is nearly invisible. In fact, they are so thin they can be painted onto walls or tucked behind paintings.

While TV cords can be a pain for the average consumer, Mohu CEO Mark Buff’s design evolved from a much more serious problem. In 2007, while Buff was earning a Ph.D. in electrical engineering from North Carolina State University, American deaths in the Iraq War were mounting in large part due to improvised explosive devices. The antennas used by U.S. military vehicles, designed to detect explosives, were long and noticeable —making the vehicles a potential target.

Buff and his colleagues first designed antennas for the Navy — including one that fit inside the mud flaps of the armored fighting vehicles in Iraq – with the goal to be as unobtrusive as possible.

The design soon became Mohu’s flagship Leaf antenna, which now helps people cut cords, reduce clutter and tune into free HDTV channels from 30 miles away, sometimes more. Mohu is the only U.S. manufacturer of digital antennas and employs 120 people in its Raleigh headquarters, near the research labs where Buff began his tinkering.

Mohu’s newest antenna, ReLeaf, is the industry’s first “green” antenna and is made of recycled paper and cable boxes. “We sourced local materials for ReLeaf near our headquarters in Ra-leigh,” said Buff. “So far, we have recycled approximately five tons of plastic, which equates to about 150 cubic yards of land-fill space and nearly 82 barrels of oil.”

Tax Friendliness

North Carolina was ranked 11th in the nation for its tax friendly policies, as it cut corporate and personal income taxes, earning a grade of ‘B+’.

Tech WorkforceNorth Carolina’s tech jobs increased by al-most 12,000 to 341,940 in 2016, among the top 15 in the nation, resulting in a grade of ‘B-’.

Entrepreneurial ActivityFrom 2010 to 2014, North Carolina saw 198,311 net jobs (10th in the nation) and 109,315 new firms created (11th in the nation), earning a grade increase to ‘C’.

Attracts InvestmentNorth Carolina was 19th in the nation for VC per capita and 16th for R&D per capita, earning a combined rank of 19th, and a ‘B’.

88

WHAT DID WE DO RIGHT?North Dakota added more net jobs per capita than any other state between 2010 and 2014. As a result, the state received an ‘A+’ in Entrepreneurial Activity.

WHERE HAVE WE MOST IMPROVED?With 27,680 new technology jobs created in 2016, North Dakota saw its Tech Workforce grade increase to a ‘B+’ in 2016 from a ‘B’ in 2015.

WHAT CAN WE DO BETTER NEXT YEAR?North Dakota earned a ‘D+’ in Attracts Investment, ranking 35th in the nation overall — 48th in venture capital per capita and 32nd in R&D per capita.

Starting tech education earlyRural states face particular challenges attracting en-trepreneurs and sparking innovation, but North Da-kota — a first-time Innovation Champion — is starting from the ground up, embracing tech education for all ages. Kayla Delzer, a third-grade teacher at Mapleton Elementary School, incorporates technology into ev-eryday learning. Each of her students has an iPad to use at stations throughout the classroom. Activities include creative writing and computer coding with an instruc-tional augmented reality app called Aug That, and peer reviewing digital portfolios through Seesaw, an online learning journal.

“Sixty-five percent of today’s schoolchildren will be employed in jobs that have not yet been created,” says Delzer, explaining why she integrates technology into the classroom. “We’re not now preparing students to be veterinarians or teachers or doctors. We are preparing kids for jobs that don’t exist yet with technology that has not yet been created.”

In addition to preparing the next generation for tech jobs, Delzer teaches her students how to interact safely on the internet, with her Seven Levels of Digital Citizen-ship curriculum. Many parents prohibit young children from using the web or social media, but Delzer believes that anyone taught how to use the tools appropriately will benefit from extra years of exposure, and she also offers a social media boot camp for parents.

When it comes to legislation and regulation, North Da-kota remains largely laissez faire. The state received a ‘B’ in self-driving cars, having passed only HB 1065 to provide for the study of the vehicles, and an ‘A’ in drones for allowing consumer use of the technology, earning a total grade of ‘B+’ in Open Roads & Skies.

Sources: (Bismarck Tribune)

North Dakota

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

B

B+

C+

B+

B-

D+

A+

B+

B

B+

Innovation Champion

http://bismarcktribune.com/news/state-and-regional/north-dakota-teacher-talks-technology-in-the-classroom-at-twitter/article_a4309b83-fd13-584e-afa2-68ba8491d88d.html


North Dakota

Fast InternetNorth Dakota’s average internet connection increased to 15,789 kbps in 2016, one of the top 15 in the nation, earning it a grade of ‘B+’.

Open Roads & SkiesNorth Dakota got a ‘B’ in self-driving cars, hav-ing passed HB 1065, providing for the study of the vehicles; and an ‘A’ in drones, earning a ‘B+’.

Tech WorkforceNorth Dakota saw the number of tech jobs increase to 27,680 in 2016, 12th most per capita in the nation, earning a grade of ‘B+’.


From 2010 to 2014, North Dakota saw 31,182 net jobs, 1st in the nation per capita, and an average of 12,291 new firms created, 5th in the nation per capita, earning it a grade of ‘A+’.

31,182net jobs from 2010 to 2014

One of the least densely populated and least populous states in the nation — 47th in both — North Dakota has become a drone mecca, allowing consumers to use the technology and encouraging them to test it there.

90

WHAT DID WE DO RIGHT?Ohio earned a ‘B’ in Tech Workforce, ranking 8th in the nation with 439,220 technology-related jobs. The state also has no laws restricting consumer use of drones or self-driving cars and no exceptionally onerous e-cy-cling policies on the books.

WHAT HAVE WE MOST IMPROVED?Ohio’s Fast Internet grade rose to ‘D-’ from ‘F’ this year, as its average internet speed jumped to 11,027 kbps in 2016 from only 4,831 kbps the previous year. Ohio also im-proved its Entrepreneurial Activity to a ‘C-’ from ‘D,’ as the state created about 16,000 new jobs between 2010-2014.

WHAT CAN WE DO BETTER NEXT YEAR?Its absence of Right-to-Work legislation and a law against discrimination on the basis of sexual orientation or gender identity are problematic to attracting the Best and Brightest. The state should consider passing laws that provide greater worker flexibility and protections.

Higher education takes the Buckeye State higher Once home to the Wright Brothers and the revolution of manned flight, today Ohio drives innovation through its higher education system, which includes dozens of strong public and private universities. The Ohio State University, Case Western Reserve University, Wright State and the University of Cincinnati, to name a few, are graduating many of tomorrow’s innovators and en-trepreneurs.

At the end of 2016, the Ohio Federal Research Net-work, a statewide consortium of 11 Ohio universities that share a goal of commercializing research efforts, landed a total of $8.5 million in funding for five of its centers. These centers have focuses ranging from arti-ficial intelligence to health technologies, mapping and high-tech manufacturing. Each center has a broad and dynamic impact on the state — drawing federal funding, creating new jobs and building innovative solutions.

A report from real estate company CBRE also rates Co-lumbus one of the top small destinations for attracting and growing tech talent. “Our smart and open business environment provides avenues for people interested in technology to enter the market,” Don DePerro, CEO of the Columbus Chamber of Commerce, tells the Colum-bus Dispatch. Entrepreneurial events like Startup Grind and GiveBackHack “not only attract top talent but also unite our tech community by empowering innovation through collaboration.”

Part of the appeal lies in Columbus’ low cost of living, which attracts Millennials who contribute to the grow-ing tech scene.

Sources: (Cleveland.com) (Aurora Advocate) (Crain’s Cleveland) (Dayton Daily News) (GovTech)

Ohio

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

D

D-

C+

B

C-

B

C-

B+

B

A

Innovation Adopter

http://www.cleveland.com/metro/index.ssf/2016/12/ohio_universities_receive_85_m.html

https://auroraadvocate.com/opinion/2017/02/06/capital-news-dont-overlook-the-hightech-initiatives-in-the-governors-budget-proposal

http://www.crainscleveland.com/article/20170213/NEWS/170219928/gov-john-kasich-visits-cwru-to-talk-innovation-the-state-budget-and

http://www.mydaytondailynews.com/news/opinion/tax-change-will-spur-innovation-bring-jobs/aEAECD3durWW6voBoqTT9L/

http://www.govtech.com/dc/articles/Columbus-Ohio-Top-Small-City-in-Attracting-Growing-Tech-Talent.html


HERE IS WHAT THEY HAD TO SAYEvery day, nearly one in four Americans suffer from chronic pain. It’s the most common cause of long-term dis-ability and one of the biggest drains on the U.S. health care system.

For years, TENS — which stands for Transcutaneous Electrical Nerve Stimulation — has helped many of these patients manage their pain. Now, Ohio-based iTens is taking a leap forward in treatment, transforming it into a convenient wearable device.

iTENS works by sending stimulating pulses across the skin and nerves, preventing pain signals from reaching the brain and releasing pain-fighting endorphins. “It’s almost like a waterfall of electricity going into the body,” says iTens CEO Josh Lefkovitz, who started the company during his senior year of col-lege.

iTens helps patients unplug from older, wired de-vices and take their pain management complete-ly on-the-go. Users can strap on the slim device under clothing to areas where they are in pain — such as the leg or lower back — adjust the electri-cal pulses on their smartphones until they’re feel-ing relief and save their favorite settings.

Tech Workforce

Ohio saw the number of tech jobs increase to 439,220 in 2016, among the top ten in the nation, resulting in a final grade of ‘B’.

Attracts InvestmentIn 2016, Ohio was 28th in the nation for VC per capita and 22nd for R&D per capita, earn-ing it a combined rank of 25th, and a grade increase to ‘B’.

Open Roads & SkiesOhio got an ‘A’ in self-driving cars and an ‘A’ in drones, earning a total grade of ‘A’.

Welcomes New Business ModelsRidesharing is legal statewide in Ohio. No state law governs homesharing, but local law may provide for municipal collection and remittance of taxes, earning the state a total grade of ‘B+’.

B

92

WHAT DID WE DO RIGHT?Oklahoma earned a ‘B’ in Innovation Friendly Sustain-able Policies for its voluntary computer recycling pro-gram, which helps protect the environment without stifling innovation. It also received an ‘A’ in ridesharing for legalizing it statewide and an ‘A’ in self-driving cars for no onerous rules on self-driving cars.

WHERE HAVE WE MOST IMPROVED?Oklahoma earned a ‘B-’ in Tax Friendliness. The state is in the process of lowering its income tax rate from 5.25 percent to 4.85 percent. So far, it has already met its first-year benchmark, cutting rates to 5.0 percent.

WHAT CAN WE DO BETTER NEXT YEAR?Oklahoma received a ‘D-’ in Attracts Investment, ranking 44th in the nation. The state should help en-trepreneurs find funding and develop tax credit strate-gies to encourage investment. It also received a ‘D’ for over-criminalizing drones.

From energy to techLying in the Great Plains, amongst prairies and mesas, Oklahoma is rich with reminders of the western fron-tier. The Sooner State might be better known as a pro-ducer of natural gas, oil and agricultural products than a budding tech capital, but today it’s part of the great American tech boom.

Oklahoma has not been quick to adopt new business practices. Its Open Roads & Skies grade has suffered from its state drone laws that clash with FAA rules. Gov. Mary Fallin signed HB 2599 prohibiting drones over critical infrastructure before the FAA released the fed-eral drone pilot certification. The state also lost ground in Welcomes New Business Models this year because homesharing services, which operate in the absence of a state law, face onerous permitting requirements in Oklahoma City.

Nonetheless, Oklahoma is becoming more encour-aging toward innovation. New companies are emerg-ing in mobile apps, the ever-present energy industry, healthcare and life sciences. “There’s a lot of cool com-panies the community should be proud of, but they aren’t going around tooting their own horns,” Kayvon Olomi, co-founder of Tulsa-based startup Whiteboard, tells the Tulsa World.

Graduates of the University of Tulsa’s Tandy School of Computer Science, one of the area’s biggest producers of skilled tech professionals, now have more opportunities in their backyard and are beginning to stay around after graduation. Though its low cost of living exerts a pull, Tulsa lacks the advantages larger cities enjoy — such as hosting major tech companies — in attracting tech tal-ent. But the main impediment to Oklahoma’s tech busi-nesses is the lack of capital for early-stage companies.

Sources: (Tulsa World) (Tulsa World)

Oklahoma

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

B

C+

C-

C-

B-

D-

B-

B

B

C+

Innovation Adopter

http://www.tulsaworld.com/business/technology/tulsa-s-tech-boom-city-s-tech-industry-might-not/article_79d17394-4b6e-5c6f-bf29-a4f51f8e5f8e.html

http://www.tulsaworld.com/business/smallbusiness/newly-opened-spaces-for-entrepreneurs-spark-startups-in-tulsa-according/article_30da1f48-5dde-52f5-a8a4-d4d05c37ac0c.html



Oklahoma has implemented a voluntary computer recycling program, earning a grade of ‘B’.

Best & BrightestThough Oklahoma has no state law protect-ing against LGTBQ discrimination, it has a Right to Work law in place, earning it a total grade of ‘B.’

Tax FriendlinessOklahoma is ranked 31st in the nation for its tax friendly policies, incorporating individual income tax rate reductions, earning a grade increase to ‘B-.’

Tech WorkforceOklahoma saw the number of tech jobs increase by more than 4,000 to 114,520 in 2016, top 30 in the nation, resulting in a final grade of ‘C-’.

As Oklahoma's agriculture industry shifts toward smart farming and begins employing more advanced technol-ogies to improve crop yields, rural areas will benefit by faster internet infrastructure.

94

WHAT DID WE DO RIGHT?Oregon earned a ‘B+’ in Tax Friendliness, ranking 10th in the nation. The state is one of five that does not have a sales tax, and its property tax rate is relatively low.

WHAT HAVE WE MOST IMPROVED? Oregon received a ‘B+’ Attracts Investments. The state ranks ninth in the nation for overall investment — 15th for venture capital funding per capita and 9th for R&D per capita.

WHAT CAN WE DO BETTER NEXT YEAR? When it comes to emerging technologies, Oregon could welcome innovation by supporting the FAA’s jurisdiction over airspace, which would improve its current ‘D’ grade for drones in the Open Roads & Skies category.

Tech booms in the forestThe Beaver State is becoming a highly livable hub of technology and professional services. The cluster of high-tech companies in Portland, which dates back to the 1940s, has earned the city the moniker “Silicon Forest.”

Tech employment is growing fast, and its output in the state has almost doubled since 2000. Oregon’s tech in-dustry now employs more than 78,000 people across 3,400 businesses, with a total estimated output of $25.4 billion.

Unsurprisingly, given Intel’s large footprint in the state, semiconductor and computer manufacturing account for about half of that number, but the industry is transition-ing toward software. New Relic, a San Francisco analytics firm, opened an outpost in Portland before the city be-came such a hot destination for developers. And the Or-egon Employment Department forecasts that the state’s tech industry will grow another 20 percent by 2024.

“High tech is certainly an important and growing sec-tor in our economy,” Josh Lehner of the Oregon Office of Economic Analysis tells The Oregonian. “It drives a lot of growth and vitality, certainly in the Portland met-ropolitan area.”

The state raised its Best & Brightest grade from an ‘F’ to a ‘C,’ because it has a law against discrimination on the basis of sexual orientation or gender identity — al-though it lacks Right-to-Work legislation.

As developers and technologists flock from surround-ing states — mostly from the less affordable Bay Area and Seattle — Oregon offers a culturally unique and ap-pealing alternative. As the city’s unofficial mantra goes, its eclectic locals “Keep Portland Weird.”

Sources: (BizJournals) (OregonLive) (QualityInfo)

Oregon

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

C

B+

B

B

B+

B+

B+

B-

C

C+

Innovation Leader

http://www.bizjournals.com/portland/news/2017/03/01/oregons-tech-industry-by-the-numbers.html

http://www.oregonlive.com/silicon-forest/index.ssf/2016/04/oregon_tech_jobs_surging_but_i.html

https://www.qualityinfo.org/-/oregon-s-high-tech-employment-trends-what-is-high-tech-


HERE IS WHAT THEY HAD TO SAYAs customers increasingly come to expect their de-vices to talk to each other, and draw on networked resources, Rigado helps companies create integrated low-power wireless connectivity solutions for consum-er and commercial applications. Rigado’s technology, which includes certified wire-less modules, gateways, and management tools can be found in Internet of Things devices such as fitness equipment, connected lighting and location-tracking solutions. For example, when Concrete Solutions want-ed to enable engineering firms to monitor construction sites remotely, in real time, Rigado developed a sensor that workers could zip-tie to rebar and bury in the concrete, and which transmits data as the concrete sets. “We’re providing building blocks for the Internet of Things,” says Kevin Tate, Chief Marketing Officer at Rigado. “We started by designed connected products, a lot of Bluetooth and WiFi implementations. Each time we put the chips down on a board, we would have to get it tested and certified. Then we thought, ‘why don’t we take what we’ve learned and build it into some high-performance, pre-certified building blocks? That way anyone who uses our module or gateways can focus on their own unique product, and not the wireless design and certification.” Because companies are only beginning to scratch the surface of what they can accomplish when they connect disparate parts of their operations, and IoT solutions can be complex, Rigado also boasts a full engineering sup-port services team that helps them define their objectives and accomplish them.

Tax Friendliness

Oregon is ranked 10th in the nation for its tax friendly policies, with no sales tax and a low property tax rate, earning it a grade of ‘B+’

Fast InternetOregon’s average internet connection increased to 15,756 kbps in 2016, among the top 15 in the nation, earning the state a grade increase to ‘B+’.

Entrepreneurial ActivityFrom 2010 to 2014, Oregon saw 102,528 new jobs and 58,660 new startups (firms of under 50 employees) created, earning it a grade of ‘B+’.

Attracts InvestmentOregon was 15th in the nation for VC per capita and 9th in the na-tion for R&D per capita, earning a combined rank of 9th, and a grade increase to ‘B+’.

96

WHAT DID WE DO RIGHT?With a grade of ‘B,’ Pennsylvania ranks 6th in the na-tion for Tech Workforce, with 475,390 technology-relat-ed jobs. It also earned a ‘B+’ in Grants STEM Degrees, with 25.4 students per 1,000 graduating in a STEM field, above the national average of 20.8.

WHAT HAVE WE MOST IMPROVED?The state improved its Welcome New Business Model grade to a ‘B+’ from ‘C+’ for legalizing ridesharing state-wide last year, and for Philadelphia’s move legalizing homesharing. In the future, the state could pass a state-wide bill to make homesharing operational everywhere.

WHAT CAN WE DO BETTER NEXT YEAR? Pennsylvania has neither a Right-to-Work law nor a law protecting employees from discrimination on the basis of sexual orientation or gender identity, resulting in a ‘D’ in Best & Brightest. It should consider passing pro-tections that attract talented workers to the state.

Fostering a spirit of innovationWith a history of innovation going all the way back to Benjamin Franklin, Pennsylvania now ranks among the top 10 states in the nation for tech jobs. Long reliant on its steel industry, the Keystone State has a renewed commitment to advanced manufacturing, and it is poised to capitalize on new opportunities.

The Mid-Atlantic region has a large base of young tech talent, and Harrisburg benefits considerably by its low cost of living and easy access to businesses in Philadel-phia, Baltimore, New York and Washington, DC — all of which are less than three hours away.

In 2016, the state capital held its third annual UPNEXT Fest, where eager startups pitched investors on their ideas. Harrisburg is also becoming a hub for tech com-panies hoping to taking advantage of its grants, tax-free zones, and affordable workspaces. Treff LaPlant, CEO of app developer Work Xpress, tells a local television station that he moved his business back to the city after relocating to Southern California because, “The sun-shine could not outshine the cost of doing business.”

Pennsylvania nonetheless had a few shortcomings in the areas of legislation and regulation, earning a ‘C’ in Innovation Friendly Sustainable Policies for its burden-some e-cycling law, which is subject to arbitrary inter-pretation by unelected bureaucrats. The state could do as others have and collaborate with the tech industry to reach a solution that protects the environment without stifling progress.

Sources: (BizJournals) (Pittsburgh Post-Gazette) (ABC)

Pennsylvania

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

D

B+

B+

B

B

B

C+

B+

C

A

Innovation Leader

http://www.bizjournals.com/pittsburgh/blog/morning-edition/2016/03/pennsylvania-no-8-state-for-tech-employment.html

http://www.post-gazette.com/opinion/Op-Ed/2017/03/02/Rep-Mike-Turzai-A-pipeline-to-a-stronger-Pennsylvania/stories/201703020073

http://abc27.com/2016/03/14/tech-companies-booming-in-harrisburg/


Pennsylvania

HERE IS WHAT THEY HAD TO SAYConnectify puts an end to some of smartphone users’ biggest annoyances —phones clinging to a weak Wi-Fi signal when there’s a faster cellular connection available or how hotels and airports charge for internet access per device.

Their app, Hotspot, launched in 2009 and now has 7 million active users, turning your PC into a Wi-Fi hotspot so you can share your internet connection with any person or mobile devices. In other words, no more paying per device. Hotspot can also extend the range of existing Wi-Fi networks by acting as a repeater, bringing the internet to hard-to-reach places in your home or office.

Their other product, Speedify, accelerates your wireless access by seamlessly moving your de-vice to the fastest available connection – whether it’s Wi-Fi, 4G or a combination – so you don’t get stuck in the slow lane.

CEO Alex Gizis said Connectify is adding strong encryption to the service. “We realized that we’re the middleman who can provide users with better security,” he said. Also, most of Speedify’s 600,000+ users are in fast-developing Asian markets, where reliable high-speed internet connections can be difficult to find. This Philadelphia-based company is expanding abroad.

Grants STEM Degrees

In 2016, Pennsylvania produced an average of 25.4 STEM graduates, among the top ten in the nation, earning it a grade of ‘B+’.

Fast InternetPennsylvania’s average internet connection increased to 16,464 kbps in 2016, among the top ten in the nation, earning the state a grade of ‘B+’.

Open Roads & SkiesPennsylvania got an ‘A’ in self-driving cars and an ‘A’ in drones, earning a total grade of ‘A’.

Tech WorkforcePennsylvania saw the number of tech jobs increase by almost 15,000 to 475,390 in 2016, 6th most in the nation, resulting in a final grade of ‘B’.

25.4Science &

Engineering degrees


18-24

98

WHAT DID WE DO RIGHT?Rhode Island earned an ‘A+’ in Fast Internet, ranking first in the nation, with a blistering average connec-tion speed of 19,607 kbps. The state also earned an ‘A-‘ in Grants STEM Degrees, ranking third in the nation, graduating 32.5 students per 1,000 in the field, well above the national average of 20.8.

WHAT HAVE WE MOST IMPROVED?Because Rhode Island legalized ridesharing statewide, it improved its Welcome New Business Model grade to an ‘A’ from a ‘B.’

WHAT CAN WE DO BETTER NEXT YEAR?Rhode Island comes in as one of the lowest-ranked states in Tax Friendliness, 44th overall, with a grade of ‘C-.’ The state ranked dead last in unemployment insurance tax, and was one of the lowest in individual income tax.

Advanced industries boast big job growthRhode Islanders are successful business owners, technolo-gy entrepreneurs and passionate educators. Over the past three years, the Ocean State has seen steady job growth in advanced manufacturing, information technology, nurs-ing, healthcare, digital graphics and computer science.

Rhode Island has a rich manufacturing and industrial his-tory, but after the global recession, it faced an uphill battle. To attract new talent and businesses, the state cut taxes and abolished unnecessary licenses that were hindering growth.

Rhode Island “can now claim the highest advanced in-dustries job growth rate in New England,” Gov. Gina Raimondo writes in a commentary in Quartz. “From 2013 to 2015 our rate of growth in advanced industries jobs increased by 285%.”

How does such a small state have such a significant impact?

For starters, Rhode Island’s STEAM Now Coalition offers programs to make STEAM (Science, Technology, Arts & Design + Math) programs more accessible and relevant to residents. The Wavemaker Fellowship also assists gradu-ates with student loans if they stay in Rhode Island or re-locate there. With the help of Microsoft, Rhode Island has become the first state to offer computer science courses in all K-12 schools. Initiatives like these have made the state one of the nation’s top producers of STEM graduates.

By introducing economic development incentives and investing in education and workforce development, Gov. Raimondo writes, “Rhode Island has rolled out a blueprint for other states that want to turn around their economies, shore up for long-run growth and produc-tivity, and contribute to a shared prosperity.”

Sources: (Independent View) (Quartz) (WPRI) (STEAM Center) (Quartz)

Rhode Island

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

C

A+

A-

B

C-

C+

B

A

C

C+

Innovation Leader

http://www.independentri.com/independents/ind/opinion/letters/article_ced6279d-9424-5c1b-a2f2-a8e72e79007e.html

https://qz.com/790386/rhode-island-governor-gina-raimondo-a-small-state-for-big-brains/

http://wpri.com/2016/06/26/raimondo-pressing-tech-companies-to-move-to-r-i/

http://www.ristemcenter.net/about/

https://qz.com/790386/rhode-island-governor-gina-raimondo-a-small-state-for-big-brains/


Rhode Island ranked 1st in the nation in internet speed, as an average internet connection there increased to a blistering 19,607 kbps in 2016.

Grants STEM DegreesIn 2016, Rhode Island produced an aver-age of 32.5 STEM graduates, 3rd in the nation, earning it a grade of ‘A-’.

Welcomes New Business ModelsRhode Island got an ‘A’ in ridesharing and an ‘A’ in homesharing, which is also legal, though has some municipal issues, earning an ‘A’.

Entrepreneurial ActivityFrom 2010 to 2014, Rhode Island saw 22,512 new jobs and 15,468 new startups (firms of under 50 employees) created, earning it a grade of ‘B’.

FAST INTERNET19,607

avg. kbps.

The second-most population dense state in the nation, Rhode Island is home to considerable numbers of tech employers, including CVS Health, the defense contractor General Dynamics and the aerospace conglomerate Textron.

100

WHAT DID WE DO RIGHT?South Carolina earned an ‘A’ in Open Roads & Skies. The state has no laws on the books restricting self-driv-ing cars or consumer use of drone technology.

WHAT HAVE WE MOST IMPROVED?South Carolina’s grade in Entrepreneurial Activity rose to a ‘C’ from a ‘D+’ this year, as the state added over 92,000 jobs to its workforce from 2010-2014, the latest five-year period for which data is available.

WHAT CAN WE DO BETTER NEXT YEAR?South Carolina earned a ‘D’ in Attracts Investment. The state ranks 40th in the nation overall — 43rd for ven-ture capital investment per capita and 39th for R&D per capita.

Palmetto State poised to grow twice as fast as the nationThough perhaps best known as a popular beach des-tination, in recent years, Charleston has earned the nickname “Silicon Harbor.” Despite being one of the smaller metro areas in the United States, it ranks as one of the fastest growing cities for software and internet technologies companies.

Entrepreneurs credit the local government for the fer-tile tech climate. S.C. Launch, a high-tech economic development agency, provides seed funding to local startups to make them more attractive for early-stage investments. Established tech giants, including Boeing and Google, also have offices in the area.

As South Carolina thrives, a Wells Fargo Securities report projects that its economy will outpace the na-tion as a whole, growing 3.8 percent while the country grows only 2.1 percent. The state is also expected to add 110,000 more jobs through 2017.

South Carolina’s Office of Innovation states four basic goals: Develop a critical mass of high-tech, high-impact companies in targeted clusters; create a supportive, connected innovation community; support access to capital for companies at all stages of development; and build workforce talent. The office provides direction on how to encourage the growth of innovation and tech-re-lated entrepreneurial activity within the state.

As state Secretary of Commerce Bobby Hitt tells The Times and Democrat, “Cultivating and supporting a strong innovation sector is critical for the future of our economy.”

Sources: (Bluffton Today) (T&D) (Upstate Business Journal) (Fast Com-pany) (Post and Courier) (Post and Courier) (SC Commerce)

South Carolina

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

B

C

C

C-

C

D

C

B+

B

A

Innovation Adopter

http://www.blufftontoday.com/opinion/2017-02-28/innovation-choice-south-carolina-s-future

http://thetandd.com/business/s-c-innovation-plan-unveiled-development-of-workforce-and-promotion/article_825b6948-2abc-5086-bd3b-fdb8ab496f0f.html

http://upstatebusinessjournal.com/news/report-tech-growth-in-south-carolina-better-than-national-average/

https://www.fastcompany.com/1839445/introducing-silicon-harbor-charleston-sc-home-twitpic-and-amazons-createspace

https://www.fastcompany.com/1839445/introducing-silicon-harbor-charleston-sc-home-twitpic-and-amazons-createspace

http://www.postandcourier.com/business/economists-s-c-economy-driven-by-charleston-upstate-to-outpace/article_20d79594-9860-5150-a45e-45ad33a47c84.html

http://www.postandcourier.com/business/south-carolina-tech-agency-to-offer-young-startups-grants/article_47f2a0e8-c854-11e6-be10-3333018985c0.html

https://www.sccommerce.com/sites/default/files/sc_innovation_plan_2013_0.pdf


HERE IS WHAT THEY HAD TO SAYWhile most people first heard of 3D printing only a few years ago, South Carolina-based 3D Systems has been at it for decades — in fact, before anyone else. In the early 1980s, founder Chuck Hull devised a technique called stereolithography, which uses a beam of ultraviolet light to “print” thin layers of a liquid material onto an intri-cate, solid product. Today, the company can print in a range of different processes in several different polymers and even directly on metal.

For companies making airplanes and cars, 3D Systems’ work affords the ability to create sophisticated, light-weight custom products that would be unimaginable to produce using conventional manufacturing processes. And for doctors and their patients, these tools can be life-saving. Surgeons use 3D Systems technology to build instrumentation unique to a patient’s anatomy, as in spinal fusions or the placement of heart stents and to pro-duce precise models of anatomy, enabling them to perform immensely challenging procedures, such as facial reconstructions.

3D Systems’ latest breakthrough, Figure 4, allows users to build in minutes what would ordinarily take hours — cre-ating a finished part every few seconds. “Our platform will revolutionize manufacturing by transforming production of both mass customized and complex end-use parts with a compelling total cost of operations versus conventional methods,” said Vyomesh Joshi, president and CEO, 3D Systems. “While others are realizing the need to transi-tion from prototyping to production, we are delivering real solutions across all key vertical markets and applica-tions that are helping customers solve problems today.”

Open Roads & Skies

South Carolina got an ‘A’ in self-driving cars and an ‘A’ in drones, earning a total grade of ‘A’.

Best & BrightestThough South Carolina does not have a state law protecting against LGTBQ discrim-ination, it does have a Right to Work law in place, earning a total grade of ‘B.’

Welcomes New Business ModelsSouth Carolina got an ‘A’ in ridesharing, which is legal statewide; and a ‘B’ in homesharing, which local law may provide for the munici-pal-level collection and remittance of taxes, earning a total grade of ‘B+’.

Entrepreneurial ActivityFrom 2010 to 2014, South Car-olina saw 92,012 new jobs and 52,075 new startups (firms of under 50 employees) created, earning it a grade of ‘C’.

102

WHAT DID WE DO RIGHT? South Dakota earned an ‘A+’ in Tax Friendliness. As one of the few states with neither a corporate nor an indi-vidual income tax, the state ranks 2nd in the country in the category.

WHERE HAVE WE MOST IMPROVED?Last year, South Dakota legalized ridesharing, raising its Welcomes New Business Model grade to a ‘B+’ from a ‘C.’

WHAT CAN WE DO BETTER NEXT YEAR?South Dakota earned a ‘D-’ in Attracts Investments and ranked among the bottom 10 in the nation. The state is tied for last in venture capital investment per capita and is 40th in R&D per capita.

Laissez faire laws bring low unemployment and high growthSouth Dakota’s economy has long been reliant on agricul-ture, but today hospitals and financial companies are the state’s leading employers, and manufacturing and biotech companies are also thriving. With low taxes and a favorable regulatory climate, the state is highly attractive to employers.

The state boasts one of one of the lowest unemploy-ment rates in the nation. At 1.9 percent, Sioux Falls has the lowest unemployment rate of any city in the United States, CNNMoney reports, and one of the fastest-grow-ing economies in the country. By comparison, as of this writing, the official national unemployment rate stands at 4.8 percent. “We’ve been called America’s next boom town,” Sioux Falls Mayor Mike Huether told CNN.

South Dakota earned an ‘A’ in Innovation Friendly Sus-tainable Policies, for no electronics recycling mandates. It also earned an ‘A’ in Open Roads & Skies, as it has no laws restricting consumer use of drone technology or self-driving cars.

Home to Mount Rushmore and Badlands National Park, South Dakota is also a major hub for Wall Street banks, including Citibank and Wells Fargo. According to the Federal Deposit Insurance Corporation, the state has $3 trillion in banking assets, more than New York, California, and Texas — combined.

Unfortunately, when it comes to filling job vacancies, not even extraordinary economic viability can over-come the fact that South Dakota is one of the least pop-ulous states in the country. Though it has created new technology-related jobs over the past year, South Dako-ta still ranks in the bottom 10 in Tech Workforce.

Sources: (Sioux City Journal) (Economist) (SD Ready to Work) (CNN) (Argus Leader)

South Dakota

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

B

B-

B

C+

A+

D-

B+

B+

B

A

Innovation Leader

http://siouxcityjournal.com/news/state-and-regional/south-dakota/sioux-falls-start-plan-to-address-worker-need/article_a0213201-2284-5da3-93a0-74c011e99f6c.html

http://www.economist.com/news/united-states/21614223-how-neglected-state-succeeding-quietly-booming

http://www.sdreadytowork.com/SouthDakota/media/SouthDakota/docs/KeyIndustries/IT-QuickStats.pdf?ext=.pdf

http://money.cnn.com/2016/09/08/news/economy/sioux-falls-lowest-unemployment-us/

http://www.argusleader.com/story/news/business-journal/2016/03/17/report-sd-last-nation-tech-jobs-pay/81726648/


HERE IS WHAT THEY HAD TO SAYFor decades, a family company in one of the most sparsely-populated states has been helping people living in rural areas keep a virtual eye on their properties.

Dakota Alert’s wireless security systems include motion detectors and vehicle sensors that let property owners know what’s going on in and around their land. The company’s customers range from suburban homeowners who want notifications when a car pulls into the driveway, to farmers sitting on hundreds of acres who want to protect their families from black bears.

“South Dakota is a wonderful state for business,” says Jason Quam, vice president, Dakota Alert. “The state has a very good business climate, an educated workforce and a low cost of living.”

Quam’s father started the company in 1991 in Elk Point, a town of several thousand located a few miles from South Dakota’s borders with Iowa and Nebraska. “We don’t have a state income tax and we don’t have taxes on inventory,” Quam says. “Basically, if you name a tax that another state has, we probably don’t have it.”

Tax Friendliness

South Dakota is ranked 2nd in the nation for its tax friendly policies, with no corpo-rate or individual income taxes, earning a grade of ‘A+’.

Grants STEM DegreesIn 2016, South Dakota produced an average of 21.9 STEM graduates, above the national average of 20.8, earning it a grade of ‘B’.

Welcomes New Business ModelsSouth Dakota got an ‘A-’ in ridesharing, which HB 1091 legalized statewide; and a ‘B’ in home-sharing, which local law may provide for the municipal-level collection and remittance of taxes, earning a total grade of ‘B+’.

Entrepreneurial ActivityFrom 2010 to 2014, South Dakota saw 21,192 net jobs and 14,213 new firms created, among the top 15 states per capita in each, earning it a grade of ‘B+’.

104

WHAT DID WE DO RIGHT?Tennessee earned a ‘B’ in Fast Internet, as the speed of its average connection increased to 15,094 kbps, over 3,000 kbps higher than last year.

WHERE HAVE WE MOST IMPROVED?Tennessee earned a ‘C–’ in Entrepreneurial Activity, as the state added 19,670 new jobs to its workforce be-tween 2010-2014 and saw a 22 percent decrease in the number of new small businesses created.

WHAT CAN WE DO BETTER NEXT YEAR?Tennessee earned a ‘D-’ in Open Roads & Skies, after passing SB 1561, placing restrictions on the testing and operation of self-driving cars; and SB 2106, prohibiting drones from flying near critical infrastructure, creating a clash with the FAA. Tennessee should defer to the FAA on drones.

Nashville boasts big job growthThe Volunteer State is witnessing some of the most ex-tensive construction in the country, as developers rush to meet the rising demand for homes. As The Washing-ton Post reports, Nashville is in the midst of a sustained building boom. While the music and medical indus-tries have driven past population explosions, this one owes its origins to technology.

Moody’s Analytics reports that between 2010 and 2015, the number of high-tech jobs in Nashville increased 30 percent.

“We’ve got a perfect storm that combines organic bene-fits like low cost of living and an extremely talented work-force,” says Charlie Brock, CEO of Launch Tennessee, a state-funded non-profit that supports innovation. “…with a significantly enhanced early stage capital scene and a commitment from the highest levels of state government to make Tennessee the best place to start a new business.”

A new LG washing machine manufacturing facility will soon come to Clarksville, bringing even more jobs to the state. “LG’s decision to establish new manufactur-ing operations in Tennessee is a testament to the busi-ness-friendly environment, ideal location and high-ly-skilled workforce we offer to companies,” Gov. Bill Haslam told a local reporter.

Nonetheless, Tennessee lost ground on the Scorecard this year, especially in Open Roads & Skies. Gov. Haslam signed SB 1561, which includes a new certification for self-driving vehicle manufacturers and special licensing requirements for operators, which could hinder test-ing and growth; and SB 2106, which establishes vague guidelines on flying drones near critical infrastructure.

Sources: (News Channel 5) (Durango Herald/Washington Post) (Launch Tennessee)

Tennessee

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

C

B

C-

C-

B

D+

C-

B+

B

D-

Modest Innovator

http://www.newschannel5.com/news/new-lg-plant-to-bring-600-jobs-to-clarksville

https://durangoherald.com/articles/138698-fast-growing-tech-sector-is-fueling-a-u-s-housing-boom

http://launchtn.org/2016/04/investment-tennessee-startups-reaches-1-billion/


HERE IS WHAT THEY HAD TO SAYThanks to Memphis-based company Proxbox’s Internet of Things (IoT) technology you can now tour a home for sale without setting foot in it.

Proxbox uses proximity beacons to help real estate agents connect with prospective buyers and tell the story about a home for sale. Users can re-ceive digital flyers about the property just by walking by the house — a modern twist on the classic yard sign outside a home for sale. Once they tour a home, prospective buyers will receive detailed information about the property directly to their mobile phones, helping them make a more educated buying decision.

“There’s a list of questions that every buyer wants to know about,” says Bry-an Barringer, president and CEO, Proxbox. With Proxbox, he says, agents are “giving the home a voice,” and teaching prospective buyers about ev-erything from the stainless steel appliances to local school districts.

Barringer has been developing software for 20 years, but when he started building a new company Tennessee’s local startup scene gave him a leg up. “We were the typical entrepreneurs banging our heads against the wall, looking for every rung up the ladder,” he says. “Once we were inducted into a formal startup accelerator program, the light switch went on.”

Barringer says that despite Memphis’ reputation as a traditional, southern city, it is embracing entrepreneurship and welcoming a new wave of investment and innovation, in spaces like agriculture, medical devices and bio-sciences.

Tax Friendliness

Tennessee is ranked 13th for its tax friendly policies, earning a grade of ‘B.’

Fast InternetTennessee’s average internet connection increased to 15,094 kbps in 2016, among the top 20 in the nation, earning it a grade of ‘B’.

Sustainable PoliciesTennessee has no exceptionally onerous e-cycling policies on the books, earning a grade of ‘B’.

Entrepreneurial ActivityFrom 2010 to 2014, Tennessee saw 122,496 new jobs and 65,472 new startups (firms of under 50 employees) created, earning it a grade of ‘C-’.

106

WHAT DID WE DO RIGHT?Texas received a ‘B’ in Tech Workforce, with the state boasting almost 992,000 tech jobs, 2nd in the nation, behind only California.

WHERE HAVE WE MOST IMPROVED?Texas earned a ‘B’ in Open Roads & Skies. Though the state has several technology-specific restrictions on drones, it has no laws restricting self-driving cars.

WHAT CAN WE DO BETTER NEXT YEAR?Texas earned a ‘C’ in Welcomes New Business Models. The state should pass laws that allow sharing economy platforms to operate without undue red tape.

Bay Area tech companies keep coming to AustinWhile Texas is traditionally known for oil and gas, the Lone Star State has become an attractive alternative for Silicon Valley companies looking to expand — so much so that the nickname “Silicon Hills” has come to define the cluster of high-tech businesses around Austin.

As Bay Area tech companies have expanded their pres-ence in Texas, the state has undergone staggering pop-ulation growth, and witnessed the rise of a large tech workforce. According to the U.S. Census Bureau, three of the top five fastest-growing cities are in Texas — Houston, Austin and San Antonio.

Texas has affordable housing, cultural riches, and no state income tax. Unfortunately, the state lags others in the sharing economy, earning a ‘C’ in Welcomes New Business Models this year. Texas received a ‘C’ in ride-sharing, which operates in some cities but is banned in Austin and Corpus Christi; and a ‘C+’ in homesharing, which operates in the absence of a state law and faces a few onerous municipal regulations. Worse, the city of Marshall, east of Dallas-Fort Worth, is home to the U.S. District Court for the Eastern District of Texas, which remains a magnet for patent trolls, who victimize start-ups and small businesses from around the nation with threats and fraudulent lawsuits.

Nonetheless, Austin’s annual SXSW conference draws tech talent from across the nation and the world. Goo-gle, Apple, Dropbox, and Oracle have all expanded their operations in the area, and in the last few years, as many as two dozen Bay Area tech companies have relocated to Texas or opened additional offices there.

Sources: (Digital Trends) (SF Chronicle) (The Daily MBA) (Austin Cham-ber of Commerce)

Texas

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

B

B

D

B

B

B

B

C

B

B

Innovation Leader

http://www.digitaltrends.com/cool-tech/texas-tech-scene-makes-it-the-fastest-growing-state/

http://www.sfchronicle.com/business/article/Tech-pipeline-to-Texas-Tax-money-employees-flow-6791524.php

http://www.thedailymba.com/2016/02/02/4-reasons-why-austin-is-americas-new-silicon-valley/

https://www.austinchamber.com/blog/05-10-2016high-tech-industry

https://www.austinchamber.com/blog/05-10-2016high-tech-industry


HERE IS WHAT THEY HAD TO SAY3D printing allows companies to produce customized objects with a degree of precision and complexity nev-er before known. Essentium Materials helps fuel that revolution by creating the very stuff with which many 3D-printed goods are made, and now, by enabling manufacturers to make stronger parts with it.

3D printing processes often work by depositing thousands of layers of “ink” on top of each other. The printing material — 3D filament — is typically some kind of plastic. Austin-based Essentium produces some of the stron-gest filament in the industry, and its forthcoming FuseBox system will use plasma to treat plastic with high tem-peratures and an electrical charge to ensure that the layers bond more strongly than ever before.

The FuseBox will enable manufacturers to produce parts more easily for demanding applications, including aerospace. Essentium’s materials have already been a shot in the arm for manufacturers of custom prosthetics and other medical devices, which need to be reliable under stress. “When I tell somebody that I can 3D print you a prosthetic leg, and it’s gonna be cheap, and get you on your feet in a matter of days in-stead of weeks,” says Blake Teipel, president and CTO, Essentium, “it can turn your life around.”

In addition to producing more conventional plastic materials, Essen-tium is also researching ways to use cellulose — plant fiber — to create lightweight structural composites to replace glass fiber composites, help automakers lower the weight of cars and contribute to sustain-able development. For every 10 percent lighter a car is, it burns 7 percent less fuel — delivering environmental benefits to everyone.

Tech Workforce

Texas saw the number of tech jobs increase by more than 37,000 to 991,940 in 2016, 2nd highest in the nation, resulting in a ‘B’.

Tax Friendliness:Texas is ranked 14th in the nation for tax friendly policies, earning a grade of ‘B.’

Entrepreneurial ActivityFrom 2010 to 2014, Texas saw 703,568 new jobs and 332,455 new startups (firms of under 50 employees) created, earning it a grade of ‘B’.

Attracts InvestmentIn 2016, Texas was 18th in the nation for VC per capita and 27th for R&D per capita, earning it a combined rank of 24th, and a grade of ‘B’.

B

108

WHAT DID WE DO RIGHT? Utah earned an ‘A-’ for its Tech Workforce, with almost 125,000 technology-related jobs — over 6,000 more than last year. The state has also implemented a vol-untary computer recycling program, earning it a ‘B+’ in Innovation-Friendly Sustainable Policies.

WHERE HAVE WE MOST IMPROVED?Utah earned an ‘A+’ in Fast Internet. The speed of an av-erage connection there increased to 18,868 kbps, mak-ing the state 4th-fastest in the nation.

WHAT CAN WE DO BETTER NEXT YEAR?If Utah wishes to foster innovation and avoid a patch-work legislative landscape, it should amend HB 126 to prohibit local governments from creating any drone or-dinances, not only those that concern wildfires.

Tech talent on the Silicon SlopesUtah is a reigning Innovation Champion with a long history of software innovation. In the 1970s, developers at Brigham Young University wrote WordPerfect, and in the 1990s, Ancestry.com and Vivint Smart Home emerged. But in the last decade, Utah’s tech scene has exploded, and the state has witnessed the rise of a range of startups, the expansion of billion-dollar tech compa-nies, and the construction of major internet data cen-ters. Most recently, giants Adobe and eBay have made homes in the Beehive State, providing substantial num-bers of high-skilled job opportunities.

Low taxes, affordable real estate and a business-friend-ly environment have all made Utah a high-tech mec-ca. And the state can also rely on a steady pipeline of young talent from its universities: Utah State, Brigham Young and the University of Utah. The BYU Informa-tion Technology program was the first in the nation to become an accredited IT program in 2008 and has con-sistently been recognized as a leader in the field.

On the legislative and regulatory fronts, although Utah received a ‘B’ in Welcomes New Business Models for having a statewide legal framework for ridesharing, it lacks a comparable arrangement for homesharing, and has multiple onerous municipal regulations, earning it a ‘C’ for homesharing services. Utah should consid-er passing a law that legalizes homesharing across the state.

Nonetheless, Utah legislators have made technological progress a priority in other areas, funding new research to propel innovation, and in the past several years, ven-ture capital investment in the state has skyrocketed.

Sources: (CNBC) (Utah Business) (BYU - The Daily Universe)

Utah

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

B

A+

B+

A-

B+

B+

B+

B

B+

C+

Innovation Champion

http://www.cnbc.com/2016/07/13/a-high-tech-mecca-rises-to-rival-silicon-valley.html

http://www.utahbusiness.com/diversified-approach-spreading-economic-success-utah-communities/

http://universe.byu.edu/2017/02/22/utah-the-new-breeding-ground-for-technology-entrepreneurship/


Utah ranked 4th in the nation in 2016, as the speed of an average connection in-creased to 18,868 kbps, earning the state a final grade of ‘A+’.

Tech WorkforceUtah saw the number of tech jobs increase to 124,410 in 2016 from 117,940 in 2015, a gain sufficient to earn it a higher final grade of ‘A-’.

Entrepreneurial ActivityFrom 2010 to 2014, Utah saw 81,212 new jobs and 36,549 new startups (firms of under 50 employees) created, earning it a grade of ‘B+’.

Tax FriendlinessUtah is ranked 9th in the nation for its tax friendly policies, earning a grade of a ‘B+’.

FAST INTERNET18,868

avg. kbps.

In 1969, the University of Utah became the fourth node on the ARPANET, the U.S. Department of Defense-fund-ed project that laid the groundwork for the modern internet. Perhaps foreshadowing the future, the node was the only one outside California, from which Utah continues to siphon tech business to this day.

110

WHAT DID WE DO RIGHT?Vermont earned an ‘A+’ in Grants STEM Degrees, pro-ducing an average of 42.3 graduates per 1,000 in the field, more than twice the national average of 20.8.

WHERE HAVE WE MOST IMPROVED?A standout among rural states, where it can be challeng-ing to make broadband connectivity widely available, Vermont earned a ‘B’ in Fast Internet in 2016 and saw the speed of its average internet connection increase to 15,177 kbps.

WHAT CAN WE DO BETTER NEXT YEAR? Vermont earned a ‘D+’ in Tax Friendliness. At 47th over-all, the state is one of the lowest-ranked in the country and performs especially poorly in corporate and indi-vidual income taxes.

Leading the nation in STEM educationVermont is the second-least populous state in the coun-try, but what it lacks in size, it more than makes up for in its commitment to education.

In fact, Vermont graduates more STEM degrees per capita than any other state in the country — 42.3 per 1,000, more than twice the national average of 20.8 — preparing its residents to work in a range of advanced industries.

Gov. Phil Scott recognizes that technical skills are a key contributor to the economy.

“Engineers are problem solvers, and crucial to strength-ening the economy, making Vermont more affordable, and protecting our most vulnerable,” Gov. Scott tells Vermont Business Magazine. “Supporting education and training in traditional technical trades and the in-dustries of the future is vital to growing our economy, and I believe focusing on [STEM] is a critical part of building a strong workforce and creating greater op-portunities for Vermonters.”

Last year, Vermont Technical College received a $4 mil-lion grant from the U.S. Department of Labor to support training and education efforts for low-to-middle-skilled Vermonters. And in early 2016, the Vermont Depart-ment of Libraries received a three-year grant to fund the Vermont Early Literacy Initiative in STEM, an effort to educate residents in STEM fields. As a result, young Vermonters are better prepared to enter the high-tech workforce than the residents of most other states. The challenge, however, is keeping them there after they earn their degrees.

Sources: (Vermont Biz) (VT Digger) (Vermont Business Magazine) (Vermont Libraries)

Vermont

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

C

B

A+

B-

D+

B-

B+

B

C+

A

Innovation Leader

http://www.vermontbiz.com/news/february/scott-declares-engineering-week-vermont

https://vtdigger.org/2016/06/17/vermont-tech-receives-4-million-federal-grant-for-manufacturing-training/

http://www.vermontbiz.com/news/march/vermont-has-more-tech-jobs-lower-wages-us-average

http://libraries.vermont.gov/VELI-STEM


Grants STEM Degrees

In 2016, Vermont produced an average of 42.3 STEM graduates, way above the national average of 20.8 and the most in the nation.

Fast InternetVermont’s average internet connection rose to 15,177 kbps in 2016, an increase of more than the national average, earning it a grade of ‘B’.

Open Roads & SkiesVermont got an ‘A’ in self-driving cars and an ‘A’ in drones, earning a total grade of ‘A’.

Entrepreneurial ActivityFrom 2010 to 2014, Vermont saw 14,413 new jobs and 11,997 new startups (firms of under 50 employees) created, earning it a grade of ‘B+’.

42.3Science &

Engineering degrees


18-24

The quaint towns, natural beauty and lush forests of the Green Mountain State make possible the tourism, skiing, and maple syrup for which it is known, but Vermont is also home to GlobalFoundries’ Fab 9, a plant acquired from IBM Microelectronics in July 2015, which produces about 10 billion chips per year for cellphones, tablets and other devices.

112

WHAT DID WE DO RIGHT?Virginia received an ‘A+’ in Tech Workforce — ranking 7th in the country. The state also earned an ‘A’ in Open Roads & Skies, with no laws restricting consumer use of drones or self-driving cars. Gov. McAuliffe went even further, signing HB 412, prohibiting local drone regula-tions, and reinforcing FAA authority.

WHERE HAVE WE MOST IMPROVED?Virginia earned an ‘A’ in Fast Internet, as the speed of its average internet connection increased to 17,978 kbps, making it one of the Top 10 states in the nation.

WHAT CAN WE DO BETTER NEXT YEAR?Virginia’s worst grade on the Innovation Scorecard was a ‘C+’ in Tax Friendliness, where it ranked 33rd. Virginia is one of the worst states in unemployment insurance and has a relatively high individual income tax.

Three-time Innovation Champion boasts big tech workforceWith a favorable economic climate, low unemployment and relatively light regulation, Virginia — a three-time Innovation Champion — maintains a reputation as a tech powerhouse, and one of the best states for busi-ness.

In the summer of 2016, Gov. Terry McAuliffe launched a Workforce Innovation Datathon Challenge, a statewide competition to use cutting-edge technology to create real-world workforce solutions. Though the largest em-ployer in the Washington, DC metropolitan area is the federal government, tech companies also dominate the job market, making Virginia the 7th in the nation for number of tech jobs.

“Jobs today require adaptive technical skills, as cyber and communication innovations are developing at an ever-increasing rate,” Gov. McAuliffe remarked in a July 2016 press release. “We must cultivate a deeper un-derstanding of current and future job opportunities to strengthen the connection between the skill sets we are imparting on our workforce and the needs employers have to grow successful businesses in the 21st Century.”

Virginia supports its workforce with highly-skilled applicants, including holders of STEM-H Workforce Credentials, encompassing certifications and licenses, or registered apprenticeships and college degrees that align with skill sets sought by high-tech industries. Ac-cording to the Office of the Governor, Virginia granted 5,778 more STEM-Hs in 2016 than in 2015, after Gov. McAuliffe challenged them to produce 50,000 a year.

Sources: (Virginia.gov) (Virginia.gov) (Virginia.gov) (YesVirginia)

Virginia

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

B

A

B+

A+

C+

B

B-

B+

B

A

Innovation Champion

https://governor.virginia.gov/newsroom/newsarticle?articleId=16011

https://governor.virginia.gov/newsroom/newsarticle?articleId=16644

https://governor.virginia.gov/policy-priorities/

http://www.yesvirginia.org/AssetRich/Workforce


HERE IS WHAT THEY HAD TO SAYAs new social media platforms allow millions of people to share their political opinions and connect with others online, many voices are simply drowned out in all the noise. Arlington-based Phone2Action helps turn online grassroots activity into real-life advocacy, by connecting constituents with their legislators via mobile devices.

“Every day, thousands of bills and regulations are being debated in the U.S.,” says Ximena Hartsock, co-founder and president of Phone2Action. “Our technology helps our clients mobilize their supporters to gain the atten-tion of federal, state and local decision makers and influence public policy outcomes.”

Phone2Action is part of a growing tech presence in Northern Virginia, and its proximity to Washington, DC gives it access to a range of groups across the political spectrum. The company’s technology has helped connect users of innovative platforms including airbnb and Lyft – from across the country to advocate on behalf of the services they love to use.

“Traditionally, there has been a big dis-connect between people and their elected officials,” says Hartsock. “But technology is removing some of the barriers that ex-ist. Over time, these interactions will be-come second-nature, seamless and more dynamic from the mobile phone.”

Tech Workforce

Virginia ranked 7th in the nation in 2016 for num-ber of tech jobs, earning an ‘A+.’

Fast InternetVirginia’s average internet connection in-creased to 17,978 kbps in 2016, among the top ten in the nation, earning the state a grade of ‘A’.

Open Roads & SkiesVirginia got an ‘A’ in self-driving cars and an ‘A’ in drones, earning a total grade of ‘A’.

Grants STEM DegreesIn 2016, Virginia produced an average of 24.5 STEM graduates, above the national average of 20.8, earning it a grade increase to ‘B+’.

A+

114

WHAT DID WE DO RIGHT?Washington earned a ‘B’ in Entrepreneurial Activity, adding 31,850 jobs from 2010-2014 in spite of a nearly 25 percent drop in new firm creation. The state is one of 35 to legalize ridesharing statewide and also allows homesharing services, though no statewide framework exists for them.

WHERE HAVE WE MOST IMPROVED?Washington earned an ‘A-’ in Fast Internet. The speed of an average connection has increased to 17,237 kbps, making the state one of the Top 10 in the nation.

WHAT CAN WE DO BETTER NEXT YEAR? Recent efforts to make Washington a Right-to-Work state, in which workers could choose whether or not to join a union, were met with heavy opposition in the leg-islature, and the bill did not pass, resulting in a ‘C’ in Best & Brightest. The state should try again to pass the law.

Heads in the cloudFrom vinyl and the modern airliner in the first half of the 20th Century, to the kidney dialysis machine and holog-raphy in the 1960s, to massive cloud hosts such as Ama-zon Web Services today, Washington inventors have long contributed their share of innovations. This year, the Ev-ergreen State became a first-time Innovation Champion.

Washington state is home to some of the largest tech-nology companies in the world: Microsoft, Amazon, Ex-pedia, Zillow, Intel, Oracle and Accenture. Collectively, these companies create massive numbers of jobs for the state and have a powerful multiplier effect on the local economy.

On the regulatory side, Washington has an onerous state e-cycling law, with material restrictions that im-pede technological innovation without providing any environmental benefits, earning the state a ‘C’ in Inno-vation-Friendly Sustainable Policies. The state could improve its grade in the area by collaborating with the tech industry to establish a new program that brings greater benefits at lower costs.

Yet the state continues to attract new talent, year after year. Ben Jones, a tech worker who relocated to Seat-tle for a position with Tableau Software, tells the Puget Sounds Business Journal that the city sells itself. “The reason for considering coming here in the first place was the once-in-a-lifetime job opportunity, but when I start-ed looking at other factors like the quality of the school system, the beautiful hiking trails and the rare combi-nation of sports and the arts, I had a strong feeling that Seattle would have a lot to offer me and my family.”

Sources: (The Seattle Times) (ChooseWashington) (BizJournals) (Biz-Journals)

Washington

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

C

A-

B

A

B

A-

B

B+

C

A

Innovation Champion

http://www.seattletimes.com/seattle-news/education/tech-science-programs-at-3-washington-universities-win-grants/

http://choosewashingtonstate.com/media-center/interactive-timelines/washington-innovations/

http://www.bizjournals.com/seattle/morning_call/2015/03/washington-states-600-billion-it-industry-study.html

http://www.bizjournals.com/seattle/news/2017/02/23/ranked-the-largest-tech-employers-in-washington.html

http://www.bizjournals.com/seattle/news/2017/02/23/ranked-the-largest-tech-employers-in-washington.html


WashingtonTech Workforce

Washington saw the number of tech jobs increase by more than 18,000 to 344,590 in 2016, earning a grade of ‘A’.

Fast InternetWashington’s average internet connection increased to 17,237 kbps in 2016, among the top ten in the nation, earning a grade of ‘A-’.

Open Roads & SkiesWashington got an ‘A’ in self-driving cars and an ‘A’ in drones, earning a total grade of ‘A’.

Attracts InvestmentWashington was 5th in the nation for VC per capita and 5th in the nation for R&D per capita, earning a combined rank of 4th, and an ‘A-’.

A

Washington is a tech powerhouse, with household names like Amazon and Boeing employing some of the top engineers in the world there, and the om-nipresent Seattle-based Starbucks coffee franchise contributing indirectly to their productivity.

116

WHAT DID WE DO RIGHT?West Virginia earned a ‘B+’ in Grants STEM Degrees, graduating 25.8 students per 1,000 in one of the fields, above the national average of 20.8. The state also re-ceived an ‘A’ in Open Roads & Skies, with no laws re-stricting consumer use of drones or self-driving cars.

WHERE HAVE WE MOST IMPROVED?West Virginia earned a ‘B+’ in Welcomes New Business Models because it legalized ridesharing, and local law provides for the municipal-level collection and remit-tance of homesharing taxes, though the industry would prefer a statewide law that preempts municipal rules.

WHAT CAN WE DO BETTER NEXT YEAR?West Virginia earned an ‘F’ in Tech Workforce. With only 40,890 tech jobs, the state ranks among the lowest in the country in the category.

Moving mountains in STEM educationA rural, mountainous state with significant logging and coal mining industries, The Mountain State has struggled to keep pace with the nation’s newest technologies and man-ufacturing methods. West Virginia has experienced great difficulty creating jobs, and supporting wage growth — es-pecially for its poorest residents. With a workforce still heav-ily employed by natural resource industries, the Mountain State is in the midst of a long period of transition.

To accelerate that shift, TechConnectWV, a non-profit that supports the advancement of the state’s innovation economy, has launched an initiative called “Scale Up West Virginia.” The program gives entrepreneurs and businesses the tools necessary to create new jobs and capitalize on technological advancements.

West Virginia is making efforts to improve its already impressive record for Granting STEM Degrees. In 2016, the state passed the Innovation in Education Act, granting schools exemptions from state regulations and greater flexibility to incorporate STEM education into their curricula. The Act encourages and incentiv-izes public schools to implement creative policies to improve educational attaininment.

West Virginia University’s recent involvement in re-searching natural gas utilization, as part of a national effort led by the U.S. Department of Energy, could mean more high-tech opportunities in the oil and gas indus-tries for the state. Though these are challenging years for West Virginia businesses, new technologies afford new opportunities. As new tools and processes, such as 3D printing and biomanufacturing, become more wide-ly adopted, West Virginians hope the growth of new in-dustries will not be as difficult as it sounds.

Sources: (StateScoop) (TechConnect) (GovTech)

West Virginia

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

B

D-

B+

F

B

D-

D

B+

B-

A

Modest Innovator

http://statescoop.com/west-virginias-new-cto-pins-focus-on-consolidation-citizen-services-broadband

http://techconnectwv.org/manufacturing-industry-works-to-diversify-west-virginia-workforce/

http://www.govtech.com/education/West-Virginia-Innovation-in-Education-Act-Allows-Flexibility-to-Improve-STEM.html


Grants STEM Degrees

In 2016, West Virginia produced an average of 25.8 STEM graduates, among the top ten in the nation, earning a grade of ‘B+’.

Tax FriendlinessWest Virginia is ranked 19th in the nation for tax friendly policies, earning a grade of ‘B’.

Open Roads & SkiesWest Virginia got an ‘A’ in self-driving cars and an ‘A’ in drones, earning a total grade of ‘A’.

Welcomes New Business ModelsWest Virginia got an ‘A’ in ridesharing, which is legal statewide; and a ‘B’ in homesharing, which local law may pro-vide for the municipal-level collection and remittance of taxes, earning a total grade of ‘B+’.

25.8Science &

Engineering degrees


18-24

Charleston, West Virginia’s capital and largest city, was built on the backs of coal miners. Today, the Mountain State remains driven primarily by coal and natural gas, but in 2015, the FBI opened a massive new Biometric Technology Center in Clarksburg. (PHOTO CREDIT: Angelee Wiley, Times West Virginian)

118

WHAT DID WE DO RIGHT?Wisconsin received a ‘B+’ in Best & Brightest thanks to its Right-to-Work law and a state law against discrimi-nation on the basis of sexual orientation.

WHERE HAVE WE MOST IMPROVED?In 2016, the number of technology jobs in Wisconsin increased to 236,510, nearly 8,500 more than the previ-ous year, earning the state a improved grade of ‘B+’ in Tech Workforce.

WHAT CAN WE DO BETTER NEXT YEAR? Although Wisconsin does not restrict self-driving cars, it does restrict drones. The state received a ‘C’ in Open Roads & Skies for passing AB 670, authorizing locali-ties to enact ordinances regulating drones, creating the possibility of clashes with the FAA. The state should amend the law.

Budding tech workforce supports the innovation economy While the dairy industry may be the first thing that comes to mind when Americans think of Wisconsin, the state’s tech business has become a major driver of economic growth and career opportunities. The city of Madison, birthplace of the beloved parody newspaper The Onion, has increasingly made a name for itself as a place of technological innovation and spirited entre-preneurship.

Participants in an Atlantic Council Strategic Foresight Initiative roundtable on “The Future of American Tech-nological Leadership” characterized Wisconsin’s state capital as a very livable city, thanks to its unique situ-ation amid beautiful lakes, young population, cultural riches and low cost of living. Despite the city’s small size, the relatively high number of educated technical workers has also spurred innovation there.

Madison is also home to one of the country’s leading public universities, the University of Wisconsin-Madi-son, which gives rise to a substantial percentage of the state’s research, commercial opportunities and educat-ed employees.

Over the next decade, more than half of Wisconsin’s jobs will require a technical focus. The Wisconsin Tech-nical College System is poised to help fill those jobs and strengthen the state’s workforce. With 49 campus-es across 16 districts, the System offers academic pro-grams to students at varying stages in their careers, in industries including manufacturing, engineering, IT and business, preparing graduates to enter Wisconsin’s growing tech workforce.

Sources: (BizTimes) (Atlantic Council) (Madison.com)

Wisconsin

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

B+

C+

B

B+

C

B

C+

B

B-

C

Innovation Leader

https://www.biztimes.com/2016/general-news/tech-system-continues-to-strengthen-wisconsins-workforce/

http://www.atlanticcouncil.org/blogs/futuresource/madison-wisconsin-how-a-city-becomes-an-innovation-hub

http://host.madison.com/wsj/business/outlook-optimistic-for-tech-industry/article_72f5145e-3889-536d-b5a7-e2d847a5e742.html


HERE IS WHAT THEY HAD TO SAYIf you use a mobile app to check the weather, especially if you’re in a rural area, chances are you’re not getting the most accurate information. That’s because most weather reports rely on readings from airports, which could be miles away from your home or business.

The Chaney Instrument Company, based in Lake Geneva, Wisconsin, has been manufacturing personal weather systems that address this problem since 1943. Last summer, Chaney released My AcuRite, a customizable environmental monitoring sys-tem that connects sensors at your home or business to your laptop and smartphone, allowing you to plan smarter and protect your property and valuables.

The applications are endless: Consider the case of the baker who saved thousands of dollars in inventory when a $35 temperature and humidi-ty sensor from Chaney tipped him off to a climate control system gone haywire. Or the gardener, who, by tracking soil temperatures, picks just the right moment to plant vegetables.

Air temperature and humidity, water leak detection, lightning detec-tion, wind-speed, rainfall — if you can measure it, Chaney makes a sen-sor that can transmit the information to your smartphone in real time. The company’s most recent innovation, introduced at CES in January 2017, is a line of high-end weather stations that track UV index, inten-sity, and dose — critical data for minimizing sun-related health risks.

Tech Workforce

Wisconsin saw the number of tech jobs increase by more than 8,000 to 236,510 in 2016, among the top 20 highest in the nation, earning a ‘B+’.

B+Best & BrightestWisconsin got an ‘A+’ for its Right to Work law and a ‘B’ for its state law protecting against sexual orientation discrimination, earning a total grade of ‘B+’.

Entrepreneurial ActivityFrom 2010 to 2014, Wisconsin saw an av-erage of 110,212 jobs and 72,896 new firms created, top 25 in the nation in each, earning it a grade increase to ‘C+’.

Grants STEM DegreesIn 2016, Wisconsin produced an average of 23.2 STEM graduates, among the top 20 in the nation, earning a grade of ‘B’.

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WHAT DID WE DO RIGHT?Wyoming earned an ‘A+’ in Tax Friendliness, ranking 1st in the country. The state is one of the few that has nei-ther a corporate nor an individual income tax. Wyoming also received an ‘A’ in Open Roads & Skies, with no laws on the books restricting drones or self-driving cars.

WHERE HAVE WE MOST IMPROVED?Wyoming got an ‘A’ in ridesharing, which is not oper-ational but which no state law prohibits, and a ‘C’ in homesharing, which operates in the absence of a state law and faces multiple onerous municipal regulations. As a result, the state earned a total grade of ‘B’ in Wel-comes New Business Models.

WHAT CAN WE DO BETTER NEXT YEAR?Wyoming earned an ‘F’ in Attracts Investments. The state ranked last in the nation overall, tying for last with four other states in VC investment per capita, and dead last in R&D per capita.

Tax free as can beWyoming, home to Yellowstone National Park, has more than natural beauty going for it. With a popula-tion of just over 580,000, the state is the least populous in the country, and faces overwhelming odds in spur-ring economic development and technological prog-ress. Nevertheless, educators, policymakers, and busi-nesses have helped Wyoming make a name for itself as a haven for innovation.

Gov. Matt Mead has placed great emphasis on diversi-fying Wyoming’s economy, articulating a vision for how technology will transform the rural state. One of Gov. Mead’s first priorities is improving the state’s internet infrastructure to support businesses and entrepreneur-ship. “We are working to develop companies that could use high-speed internet,” says Shawn Reese, CEO of the Wyoming Business Council. “Basically, we want to find those industries that would bridge our energy economy and our growing technology economy. We are focused on a number of advanced industries that will comple-ment our energy economy.”

The state has implemented several initiatives in sup-port of Gov. Mead’s mission. Wyoming Grown, for one, is an effort to educate former residents, including uni-versity graduates, on opportunities in the state and at its businesses to encourage them to move back.

Wyoming also provides considerable support for STEM education. The Wyoming Governors Cup (WGC) pro-vides public recognition of 9th through 12th graders who use “creative thinking, innovative technology, and principles of Science, Technology, Engineering and Mathematics (STEM) to provide improved solutions to problems facing Wyoming and its citizens.”

Sources: (Business Xpansion Journal) (Wyoming Education)

Wyoming

Best & Brightest

Fast Internet

Grants STEM Degrees

Tech Workforce

Tax Friendliness

Attracts Investment




Open Roads & Skies

B

C+

D+

D+

A+

F

A-

B

B

A

Innovation Leader

http://bxjmag.com/wyoming-grows-technology-and-innovation-assets/

https://edu.wyoming.gov/downloads/cte/2015/STEM/WGC_2016_Guidelines.pdf


HERE IS WHAT THEY HAD TO SAYClovitek means “cool tech” in founder Vitaliy Mahidov’s native Ukrainian — and his company delivers on the name. Mahidov’s invention, the CloviFi, makes it possible to stream audio from a TV set to any mobile device. Once the TV is connected, anyone with a mobile device can connect to it over Wi-Fi and stream real-time audio directly from the TV to their smartphone or tablet.

At home, that might mean a husband can watch the game without bothering his wife, or parents can watch a movie together without waking up their newborn. And in public spaces such as gyms and airports, businesses can deliver private listening experiences to customers. CloviFi can even help the hearing-impaired watch their favorite shows at the optimal volumes.

Mahidov founded Clovitek in 2016 after more than a year of technical, engineering, legal and marketing re-search. With degrees in computer science and engineering, and an MBA, Mahidov runs every aspect of the business — from product concep-tion to market. And when the time finally came to launch the company, Mahidov chose to incorpo-rate in Wyoming for the state’s business-friendly environment, tax exemptions and other benefits.

Tax Friendliness

Wyoming is ranked 1st in the nation for its tax friendly policies, with no corporate or individual income taxes, earning a grade of ‘A+.’

Entrepreneurial ActivityFrom 2010 to 2014, Wyoming saw 17,287 new jobs and 11,474 new startups (firms of under 50 employees) created, earning it a grade of ‘A-’.

Open Roads & SkiesWyoming got an ‘A’ in self-driving cars and an ‘A’ in drones, earning a total grade of ‘A’.

Sustainable PoliciesWyoming has no exceptional-ly onerous e-cycling policies on the books, earning a grade of ‘B’.

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Methodology

CTA’s Innovation Scorecard is formulated using ten complementary factors that, in combination, indicate how strongly a state supports innovation. Some of these factors relate to individuals in a state, while others address corporations doing business or employing people there, and others concern the legislative and regulatory environments. All third-party sources and state policy inputs reflect the newest information available as of December 31, 2016. Please email comments and feedback to [email protected].

BEST & BRIGHTESTGrades in the Best & Brightest category reflect state Right-to-Work (RTW) and LGBTQ non-discrimination laws. The RTW component, using data sourced from the National Conference of State Legislatures, is bimodal and assigns an ‘A+’ grade to states that do not allow “union security agreements” between unions and employers that require workers to participate in established labor unions and an ‘F’ grade to those states that do allow such union security agreements. CTA staff assign grades for LGBTQ non-discrimination laws using data from the Movement Advancement Project. The combined normalized scores are assigned letter grades between ‘A+’ and ‘F’.

WELCOMES NEW BUSINESS MODELSCTA staff assign grades in the Welcomes New Business Models category based upon state and municipal laws and regulations affecting two new types of business models in the sharing economy: homesharing and ridesharing. Not all states have enacted policies relating to each of these business models, but every state has laws or regulations that affect at least one of the evaluated industries. The combined normalized scores are assigned letter grades between ‘A+’ and ‘F’.

TAX FRIENDLINESSThe Tax Friendliness category uses data from the Tax Foundation’s 2017 State Business Tax Climate Index to reward simple, lean tax structures that offer attractive rates to new businesses, encouraging investment and job creation. A state’s Tax Friendliness grade is derived from numerical scoring data including corporate and individual income tax, sales tax,

mailto:[email protected]

https://taxfoundation.org/2017-state-business-tax-climate-index-released-today/

https://taxfoundation.org/2017-state-business-tax-climate-index-released-today/


Methodology

unemployment insurance tax, and property tax rates. States in this category are graded on a curve and assigned grades between ‘A+’ and ‘F’.

ENTREPRENEURIAL ACTIVITYThe Entrepreneurial Activity category uses Business Dynamics Statistics data provided by the U.S. Census Bureau released in September 2016. Grades in this category reflect a composite score between two parts: first, each state’s per capita net job creation by firms of fewer than 50 employees (2010-2014), which comprises 70 percent of the grade; and second, each state’s per capita average number of new firms under 50 employees that have been in business fewer than five years (2010-2014), which comprises 30 percent of the grade. States in this category are graded on a curve and assigned grades between ‘A+’ and ‘F’.

FAST INTERNETThe Fast Internet category measures states’ average internet connection speeds in kilobits per second (kbps). This category features unpublished, state-by-state detail — provided to CTA by Akamai directly — that forms the basis for Akamai’s State of the Internet Report, Q2 2016. States in this category are graded on a curve and assigned grades between ‘A+’ and ‘F’.

TECH WORKFORCEThe Tech Workforce category measures the per capita number of technology-related jobs in a state. CTA staff select a subset of American Community Survey occupational codes (ACS OCC) that represent technology-related occupations and calculate aggregate employment per state for all of these categories combined. Numerical data for this category is supplied by the U.S. Bureau of Labor Statistics as of May 2015. States in this category are graded on a curve and assigned grades between ‘A+’ and ‘F’.

ATTRACTS INVESTMENTThe Attracts Investment category is a two-part measure encompassing both the level of venture capital investment in a state and government and corporate R&D. Each component of the state score is normalized to a scale from zero to one. Normalized category scores are then added together such that each score component comprises 50 percent of the Attracts Investment

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Methodology

score. Venture capital investment data for this category was provided by the PwC/CB Insights MoneyTree™ Report for the periods Q4 2015, Q2 2016 and Q3 2016. R&D investment data for this category was provided by the National Science Foundation’s Business Research and Development and Innovation: 2013 (Table 22). The combined normalized scores are curved and grades are assigned a letter grade between ‘A+’ and ‘F’.

GRANTS STEM DEGREESThe Grants STEM Degrees category measures the number of science and engineering-related degrees conferred per 1,000 individuals 18 - 24 years old. Data for this category is provided by the National Science Foundation’s National Center for Education Statistics, Integrated Postsecondary Education Data System (2013).

OPEN ROADS & SKIESCTA staff assign grades in the Open Roads & Skies category on the basis of state laws and regulations affecting consumer use of drone technology and self-driving vehicles. Not all states have enacted policies relating to each of these emerging technologies, but every state has laws or regulations that affect at least one of the components. The combined normalized scores are assigned letter grades between ‘A+’ and ‘F’.

INNOVATION-FRIENDLY SUSTAINABLE POLICIESCTA staff assign grades in the Innovation-Friendly Sustainable Policies category on the basis of the unique legislative, regulatory and marketplace realities in each state. For example, an electronics recycling law can inhibit, support, or be neutral with respect to innovation in protecting the environment, depending on the specifics of the law and how it is implemented.

OVERALL GRADEThe overall Innovation Scorecard grade captures a state’s overall support for innovation based on the criteria above. Each criterion receives equal weight — 10 percent — in the final scoring formula. Final composite scores are then graded on a curve to determine which of the four tiers a state will be ranked in — Modest Innovator, Innovation Adopter, Innovation Leader or Innovation Champion.


Acknowledgments

Now in its third year, I can truly say “it takes a village” to create and market CTA’s annual Innovation Scorecard. I would like to thank Bronwyn Flores and Izzy Santa, the project leaders, for bringing this ever-evolving task to a successful conclusion once again.

This latest edition you are now reading incorporates more policy data than ever, for which I would like to thank Walter Alcorn, Jamie Boone, Michael Hayes, Dan Moyer, Maya Sharma and Nathan Trail from our government affairs team.

Thank you to Jack Cutts and Angela Titone on our research team for working around the clock to seek out the latest data sets and crunch the numbers.

Thank you to Monica Price on our membership team for helping us identify exemplary member companies across the country to highlight in the pages of this report.

Our special gratitude also goes to our consultants at Iambic for writing the report and designing the visuals, both in print and online.

Finally, we thank the CTA volunteer leadership for embracing and funding this effort and our members who encourage CTA staff to pursue and reward pro-innovation policies at the state level.

We take full responsibility for any mistakes in the 2017 Scorecard and welcome your feedback as we prepare for the 2018 edition.

Gary Shapiro

President and CEO,Consumer Technology Association (CTA)TM

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