Innovation Capacity

In the old economy, economic growth stemmed from increases in the supply of capital, labor, or natural resources. Growth in the New Economy stems from increases in knowledge and innovation and its widespread adoption.23 Technological innovation is responsible for over two-thirds of per capita economic growth.24

High-tech is growing faster than the overall economy. Moreover, because this trend is expected to continue, high-tech will be an important influence on overall metropolitan economic growth going forward. Not withstanding the current slowdown, high-tech has become a driver because high-tech output has grown four times faster in the 1990s than the economy as a whole, and because high-tech jobs pay an average of 78 percent more than the median wage. Information technology industries now represent 8.2 percent of GDP - up from 4.9 percent in 1985 - and are expected to account for approximately 15 percent of GDP in 2020.

The innovation capacity indicators in this section measure five things: 1) jobs in high-tech industries; 2) degrees granted in science and engineering; 3) the number of patents; 4) academic research and development funding; and 5) venture capital invested.

		100th-76th Percentile
		75th-51st Percentile
		50th-26th Percentile
		25th-1st Percentile

METRO AREAS BY RANK
Rank	Metro Area	Score
1	Raleigh-Durham	20.9
2	San Francisco	18.5
3	Austin	18.1
4	Boston	15.5
5	Rochester	14.6
6	San Diego	11.7
7	Denver	11.5
8	Washington	11.3
9	Seattle	11.0
10	Minneapolis	10.6
11	Salt Lake City	10.1
12	Sacramento	10.0
13	Pittsburgh	9.9
14	Buffalo	9.9
15	Hartford	9.7
16	Philadelphia	9.7
17	St. Louis	9.7
18	New York	9.6
19	Columbus	9.6
20	Portland	9.5
21	Dayton	9.5
22	Atlanta	9.4
23	Detroit	9.3
24	Chicago	9.2
25	Dallas	9.1
26	Cincinnati	8.9
27	Phoenix	8.8
28	Los Angeles	8.7
29	Oklahoma City	8.3
30	Tampa	8.3
31	Cleveland	8.3
32	West Palm Beach	8.0
33	Greensboro	8.0
34	Houston	8.0
35	Richmond	8.0
36	Milwaukee	7.9
37	Miami	7.7
38	Indianapolis	7.7
39	San Antonio	7.6
40	Orlando	7.6
41	Kansas City	7.5
42	Nashville	7.4
43	Norfolk	7.3
44	Grand Rapids	7.3
45	New Orleans	7.2
46	Charlotte	7.0
47	Louisville	6.7
48	Memphis	6.7
49	Jacksonville	6.1
50	Las Vegas	5.5
	Top 50 Metro Average	9.6

ALPHABETICALLY
Metro Area	Rank	Score
Atlanta	22	9.4
Austin	3	18.1
Boston	4	15.5
Buffalo	14	9.9
Charlotte	46	7.0
Chicago	24	9.2
Cincinnati	26	8.9
Cleveland	31	8.3
Columbus	19	9.6
Dallas	25	9.1
Dayton	21	9.5
Denver	7	11.5
Detroit	23	9.3
Grand Rapids	44	7.3
Greensboro	33	8.0
Hartford	15	9.7
Houston	34	8.0
Indianapolis	38	7.7
Jacksonville	49	6.1
Kansas City	41	7.5
Las Vegas	50	5.5
Los Angeles	28	8.7
Louisville	47	6.7
Memphis	48	6.7
Miami	37	7.7
Milwaukee	36	7.9
Minneapolis	10	10.6
Nashville	42	7.4
New Orleans	45	7.2
New York	18	9.6
Norfolk	43	7.3
Oklahoma City	29	8.3
Orlando	40	7.6
Philadelphia	16	9.7
Phoenix	27	8.8
Pittsburgh	13	9.9
Portland	20	9.5
Raleigh-Durham	1	20.9
Richmond	35	8.0
Rochester	5	14.6
Sacramento	12	10.0
Salt Lake City	11	10.1
San Antonio	39	7.6
San Diego	6	11.7
San Francisco	2	18.5
Seattle	9	11.0
St. Louis	17	9.7
Tampa	30	8.3
Washington	8	11.3
West Palm Beach	32	8.0

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The Progressive Policy Institute (PPI)
Technology, Innovation, and New Economy Project
600 Pennsylvania Ave., S.E., Suite 400, Washington DC 20003
Phone: (202) 547-0001
www.ppionline.org

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