News Release
Utah ranks #1 among U.S. states for innovation capacity and outcomes
December 16, 2024 (Salt Lake City) – Utah’s broad innovation ecosystem ranks high among U.S. states across various measures. A new report from the Kem C. Gardner Policy Institute, co-led by the Economic Development Corporation of Utah (EDCUtah), shows the characteristics contributing to Utah’s success include the state’s higher education institutions, a well-trained workforce, social infrastructure, collaboration among innovation ecosystem actors, and a culture of innovation.
“As we researched Utah’s broad umbrella innovation ecosystem, we learned that Utah ranks at or near the top among U.S. states across various innovation attributes,” said Nate Lloyd, director of economic research at the Gardner Institute and lead author of the report. “And with specific industry-aligned innovation ecosystems in Utah now identified, this initial evaluation highlights opportunities for their continued maturity and success.”
Key findings from the report include the following:
Innovative state – Utah ranks first among U.S. states for innovation capacity and outcomes. The Innovation Intelligence Index (II3), produced by the Indiana Business Research Center, measures core attributes of innovation using five “core indices” or components: human capital and knowledge creation, business dynamics, business profile, employment and productivity, and economic well-being. Utah ranks 6th or better in each of these attributes.
Industry-aligned innovation ecosystems – Besides Utah’s broad innovation ecosystem, five industry-aligned innovation ecosystems exist in Utah at various levels of maturity: 1) Aeronautics, 2) Space Exploration, and Defense, 3) Energy Production; Finance, Fintech, and Headquarters, 4) Health Care and Life Sciences; and 5) Technology and Information Systems.
Potential innovation strengths – Potential strengths common across many of Utah’s industry-aligned innovation ecosystems include human capital development (especially through higher education institutions); social “infrastructure” such as social capital and networks, industry associations, and collaborative ecosystem actors; and Utah’s culture of innovation and entrepreneurial mindset.
Potential innovation gaps – Potential gaps offer innovation ecosystem actors opportunities to develop the ecosystems further. Potential gaps common across a few industry-aligned innovation ecosystems include a lack of physical infrastructure (incubation space/labs, mature innovation hubs/districts, research facilities, etc.) and a lack of venture and other capital. In particular, attracting venture capital for the aeronautics/space exploration/defense, energy production, and health care/life sciences ecosystems has been challenging over the years.
“EDCUtah’s research team was pleased to collaborate with the Gardner Institute on this study — a project that demonstrates what can be accomplished when we work together as Team Utah,” said Scott Cuthbertson, president of EDCUtah. “The report showcases the dynamic business ecosystems in our state and will be a valuable resource for entrepreneurs, investors, policymakers, and corporations looking to understand Utah’s diverse economy and innovation landscape.”