The State Technology and Science Index provides a benchmark for states to assess their science and technology capabilities as well as the broader ecosystem that contributes to job and wealth creation. The index computes and measures 79 individual indicators relative to population, gross state product (GSP), number of establishments, number of businesses, and other factors. Data sources include government agencies, foundations, and private sources. The states are ranked in descending order with the top state being assigned a score of 100, the runner-up a score of 98, and the 50th state a score of 2. The indicators are then combined to create these five composite rankings:
Research and development inputs: We examine a state's R&D capacity to see if it has facilities that can attract funding and create innovations that can be commercialized. The category includes measures such as industrial, academic, and federal R&D; Small Business Innovation Research awards; and the Small Business Technology Transfer program, among others.
Risk capital and entrepreneurial infrastructure: The entrepreneurial capacity and risk capital infrastructure of states are the ingredients that determine the success rate of converting research into commercially viable technology services and products. We include several measures of venture capital activity as well as entrepreneurial pursuits, including patenting activity, business formations, and initial public offerings.
Human capital investment: Human capital is the most important intangible asset of a regional or state economy. We look at indicators that suggest the skill levels of the current and future workforce. Examples include the number of bachelor's, master's and doctorate degrees relative to a state's population, and measures specific to science, engineering and technology degrees.
Technology and science workforce: The intensity of the technology and science workforce indicates whether states have sufficient depth of high-end technical talent. Intensity is derived from the share of employment in a particular field relative to total state employment. We look at 47 occupation categories in three main areas of employment: computer and information sciences, life and physical sciences, and engineering.
Technology concentration and dynamism: By measuring technology growth, we are able to assess how effective policymakers and other stakeholders have been at transforming regional assets into regional prosperity. This includes measures such as the percent of establishments, employment and payrolls that are in high-tech categories. It also measures growth in a number of technology categories.