Each month, EDCUtah’s Research Minute highlights compelling economic development data and timely research insights. This month, we highlight the recently published Utah Innovation Ecosystem Report.
Utah’s broad innovation ecosystem ranks high among U.S. states across various measures, according to a new study produced jointly by EDCUtah and the Kem C. Gardner Policy Institute. The study, titled Utah Innovation Ecosystems, highlights the state’s top-ranking performance in innovation capacity and outcomes, driven by a combination of strategic strengths and industry-aligned ecosystems.
The report was commissioned by Utah Governor's Office of Economic Opportunity and the Utah Policy Innovation Lab to examine the characteristics that contribute to the Utah’s success in innovation and identify gaps or opportunities for improvement. The results of the study offer insights that can help inform Utah’s entrepreneurs, investors, educators, and policymakers.
Here are a few takeaways from the report.
The report found that Utah ranks first in the nation on the Innovation Intelligence Index developed by the Indiana Business Research Center. This index evaluates critical attributes of innovation, including human capital and knowledge creation, business dynamics, business profile, employment and productivity, and economic well-being. Utah's consistent performance across all these categories, ranking sixth or better in each, cements its status as a hub for innovation and economic growth.
An innovation ecosystem is the dynamic set of actors, activities, artifacts, institutions, and relationships that influence and are essential for the innovative performance of an individual or group. This includes not only direct relationships, but also complementary and substitute relationships, forming a complex and evolving environment for innovation.
Utah’s success is driven by five distinct, industry-aligned ecosystems:
These ecosystems represent varying levels of maturity but collectively contribute to the state’s competitive innovation landscape.
Utah’s potential innovation strengths and opportunities for growth were identified by conducting in-depth interviews with industry experts throughout the state as well as other qualitative analyses. Utah’s core strengths include the role of higher education in cultivating a skilled workforce, a strong culture of entrepreneurship, and the existence of social infrastructure that encourages collaboration among key stakeholders.
The report also outlines areas where Utah could further enhance its innovation ecosystems. Opportunities for growth include the further development of physical infrastructure, particularly research facilities, incubation spaces, and innovation hubs. Additionally, continuing to attract venture capital and other funding sources remains critical, especially in sectors like aeronautics, energy production, and health care.
By addressing these potential gaps, Utah has the opportunity to not only sustain but also accelerate its trajectory as a leader in innovation. The state’s strategic focus on infrastructure, funding, and collaboration will be crucial in ensuring long-term economic growth and continued success in fostering innovation and maintaining Utah’s status as one of the best states in the nation for innovation and economic growth.
For a deeper dive into the findings, access the full Utah Innovation Ecosystems report here.
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