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Economic Development Quarterly
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Developing Historical 50-State Indices of Innovation Capacity and Commercialization Capacity

Jeremy L. Hall

University of Alabama at Birmingham

Recent attention to innovation as the core of a knowledge-based economy has resulted in an array of studies and reports that seek to measure states' relative ranks as they advance their economic agendas. This study improves on state performance measurement by distinguishing innovation capacity from innovation outcomes by examining change over a 20-year period with consistent measures and by empirically grouping measures into core resource categories using factor analysis. Factor analysis is used to generate new measures of innovation capacity, and the efficacy of these new measures is tested using pooled cross-sectional time-series analysis to examine their effects on state patent generation. The findings indicate moderate to strong impacts of the innovation capacity variables on patent generation; the results provide a new grounded metric for examining state capacity for innovation and state financial capacity for commercialization over time.

Key Words: innovation capacity • commercialization capacity • measurement • state performance • index

Economic Development Quarterly, Vol. 21, No. 2, 107-123 (2007)
DOI: 10.1177/0891242406298128


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J. L. Hall
Adding Meaning to Measurement: Evaluating Trends and Differences in Innovation Capacity Among the States
Economic Development Quarterly, February 1, 2009; 23(1): 3 - 12.
[Abstract] [PDF]