North Carolina Innovation Economy Strong, BST Index Finds

Despite a sluggish national economy, North Carolina held its own over the last three years, according to a measure of 25 broad indicators of innovation, technology and economic growth released earlier this week. In all, Tracking Innovation: North Carolina Innovation Index 2003 considers more than 50 performance measures across five general categories, highlighting the state’s strengths and weaknesses.

North Carolina’s performance on each measure is compared to that of the U.S. as a whole and that of six selected states — Georgia, Massachusetts, Michigan, Pennsylvania, Texas and Virginia. The 76-page index, sponsored biennially by the North Carolina Board of Science and Technology (BST), argues that the state’s technology-intensive economy, fueled by high and increasing levels of inputs, is strong at its core.

On a scale from 1-7, with 1 being best, North Carolina averages a 4.5 ranking across all measures. The state's highest average rank, 3.35, occurs in the area of economic structure, the index shows. Economic structure is defined as the intensity of the state's technology activity, the performance of its technology-related industry sectors, its role in the global economy, and key employment and wage trends. North Carolina places above average in six of the area's eight measures.

Where the state has weaknesses, the index indicates, is in its ability to convert its clustered core strengths in R&D and innovation into economic activity across the entire state. The index also underscores the need for North Carolina’s focus on building a well educated workforce with the ability to access increasing levels of technology. In the area of preparation, which addresses this need, North Carolina ranks below average in eight of 10 measures.

The 2003 Index is a comprehensive update of a similar index published by the BST in 2000 as part of the Vision 2030 Project. Indicators in Tracking Innovation 2003 were compiled from a wide range of secondary data sources. State policymakers are expected to use the updated index as a basis for developing recommendations over the coming year to support the state’s innovation economy.

Tracking Innovation 2003 is available at http://www.ncscienceandtechnology.com/Reports.htm.