The most successful economic regions are the ones that can innovate. New ideas, a steady flow of capital and technological accessibility is essential for economies to evolve and grow. This metric compares which regions are the most innovative.
To measure this, we use four metrics with three key themes. First, patent generation is probably the most commonly used metric to measure the innovation of a region. It’s by no means a perfect measure, mostly because it says nothing about the quality or impact of the patents. To strengthen our measure, we also look at the amount of venture capital a region receives as a percentage of their gross domestic product (GDP). This allows us to look at which regions attract the most dollars to their startup and expansion companies, while controlling for the relative sizes of the economies.
Finally, we look at technological accessibility of the overall population, focusing on two key metrics: percentage of homes with internet access and percentage of homes with a computer. While it is important for innovative companies to receive money and generate patents, it is important for the next generation of innovators to have access to the tools and information required to start a business or create a new product.