The United States Of Innovation
We crunched the numbers, beginning by assessing the Bureau of Labor Statistics’ launch rate of all private-sector businesses, as well as the Kauffman Index of Entrepreneurial Activity’s percentage of people who are starting new businesses and how that percentage changed over time. Then, to see the health of young firms in particular, we tallied the percentage of jobs contributed by those less than three years old and how that percentage changed over the past five years. To analyze the self-described startup community, we incorporated the health and growth rate of Startup America members and a tally of AngelList and Fundable members.
The result is a list with California near the top, as expected, but with new arrivals above it. Some developing startup cultures, like Iowa’s, weren’t yet reflected in the numbers, and some longtime hot spots like Massachusetts dropped down. “It used to be that there was only a small number of places like this, of which Boston and Silicon Valley have a long history of being leaders,” says Scott Stern, professor at MIT’s Sloan School of Management. But as they multiply, “that’s a real bright spot if you want to have confidence in the economy.”
Read on to see how innovation is happening all over, and how your own community can learn from the winners.
Which states that are lesser known for their start up communities do think made the top ten?