Bloomberg Ranks MN As 10th-Most Innovative State
Minnesota ranked relatively highly on a recent Bloomberg list of the 20 “most innovative” U.S. states.
Bloomberg Rankings, a research component of the larger Bloomberg business news conglomerate, analyzed the 50 states based on six “innovation factors.” Those factors included each state’s number of science, technology, engineering, and mathematics (STEM) professionals; the percentage of the population that has a science and technology degree; the state’s number of utility patents granted; the amount of the state’s research and development spending, as a percentage of the U.S. total; the gross state product per employed individual and a three-year change in productivity measure; and the state’s percentage of public technology companies (in industries such as aerospace and defense, biotechnology, pharmaceuticals, and renewable energy).
States were granted a score of between zero and 100 for each factor; they were then ranked based on their average score across all six factors.
Minnesota ranked 10th on Bloomberg’s list, with STEM professionals representing approximately 2.7 percent of the state’s population. Meanwhile, nearly 8.2 percent of the population hold degrees in science and technology fields. Additionally, Minnesota accounted for 3.2 percent of the nation’s total utility patents and accounted for 0.8 percent of the country’s total research and development spending. Of all public companies based in the state, 19.2 percent are technology companies, according to Bloomberg. The gross state product per employed individual equates to $90,520, and the three-year change in productivity was 3.4 percent, Bloomberg found.
Washington ranked as the “most innovative” state in the nation, with STEM professionals representing approximately 2.8 percent of its population and science and technology degree-holders representing 9.5 percent of the population. Washington accounts for 1.75 percent of the nation’s total research and development spending. The gross state product per employed individual equates to $101,985, and 21.4 percent of Washington’s public companies are technology-based, Bloomberg said. California ranked as the second-most innovative state and Massachusetts ranked third.
Click here to read about all 20 states on Bloomberg’s list.
Minnesota as a hotbed for innovation and entrepreneurship is a topic that has recently been debated.
Psychologists from Germany’s Friedrich Schiller University Jena and the University of Texas released a study in October, which indicated that entrepreneurially-minded individuals tend to flock to western states (Minnesota ranked in the middle of what the researchers deemed as “entrepreneurially-minded” states).
Another study, conducted by the Kansas City, Missouri-based Ewing Marion Kauffman Foundation, ranked Minnesota last among the states in terms of its new business activity.
However, Minnesota business owners and analysts argue that business formation rates can be a misleading measure of entrepreneurial success.
In a recent Pollen editorial, Scott Litman of Minneapolis-based Magnet 360 and John Stavig of the Carlson School of Management’s Gary S. Holmes Center for Entrepreneurship, argue that researchers should instead measure entrepreneurial performance based on “businesses that through their success will create jobs, innovations that better the world around us, and ultimately ventures that reward their investors as well.”
Bloomberg’s new ranking seems to support the assertion that Minnesota is an innovation leader.
And in July, the Organization for Economic Co-Operation and Development named Minnesota as ninth-most “inventive” city in the world, based on its number of patent applications. Additionally, the state has been recognized as a leader in terms of its med-tech patents.