Innovation, Research & Development are Key Drivers of Connecticut Economy; Analysis Reveals Top 10 Status, Potential

Connecticut is among the 10 leading states for “innovation potential” according to a new analysis.  The state ranked #8, up one slot from #9 in last year’s analysis, reflecting what is described as a “commitment to innovation,” by the rankings analyst. 

The analysis, by the financial services website WalletHub,  included six components within the innovation potential category:  share of jobs in high-tech industries, share of jobs in STEM employment, independent inventor patents, industry R&D investment, non-industry R&D investment and entrepreneurial activity.

The top 10 states in the ranking were Massachusetts, Washington, California, Oregon, New Hampshire, Colorado, Maryland, Connecticut, Michigan and Utah.

"Connecticut's ranking as the 8th state for Innovation Potential sheds light on its capacity to foster technological advancement and entrepreneurial spirit. While the state may not lead in every metric, its significant strides in Independent Inventor Patents per 1,000 Working-Age Population (ranking 7th) and Industry R&D Investment Amount per Total Civilian Employed Population (ranking 8th) underscore its commitment to innovation,” WalletHub analyst Cassandra Happe pointed out.

“These indicators suggest a robust ecosystem for research and development, showing promise for nurturing new ideas and technologies. Despite some challenges in other economic indicators, Connecticut's strength in innovation is a positive sign for its future economic growth and competitiveness at a national level," she added.

Connecticut also ranks among the top 10 states for research and development spending,based on share of state GDP, according to a new U.S. Bureau of Economic Analysis (BEA) report.  The BEA’s findings, according to published reports, showed the state spent 2.7% of its GDP on R&D activities in 2021.  That reflects an increase of 22% over the previous year and a jump of 44% since 2017.

These statistics are part of a new Research and Development Satellite Account BEA is developing in partnership with the National Center for Science and Engineering Statistics of the National Science Foundation. The statistics are BEA’s first state-by-state numbers on R&D.

The nation’s leading R&D states, in addition to Connecticut, by percentage of state GDP,  include California, Washington, Massachusetts, New Mexico, Delaware, Michigan, New Hampshire, Delaware, New Jersey and Maryland.

CEO Chris DiPentima of the Connecticut Business & Industry Association (CBIA) noted that R&D activities were crucial to driving innovation in high-growth industries, particularly the aerospace and bioscience sectors.

Connecticut’s ranking in other aspects of the WalletHub rankings of state economies were at the other end of the spectrum, ranking 42nd in economic activity and 47th in economic health.  Overall in the ranking of states, Connecticut placed at #31.