NCRPC Innovation Index Data

Analysis supporting regional competitiveness in a knowledge-based economy.
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Innovation Trail: Select Your Region > Innovation Index
About the Index Innovation Index

The Innovation Index
consists of five components.
1. Human Capital: 30%

2. Economic Dynamics:
30%
3. Productivity and
View Component
Employment: 30% Graphics and Data
4. Economic Well-Being:
10%
5. State Context (for
reference only)
Why This What the Research Shows Using This in Your Region
Index Is Useful
The Based on statistical Economies do not recognize

Innovation analysis, several factors political boundaries used in
Index takes a appear to be especially governing, such as counties and
broad look at important for increasing states. Each region will have a
indicators economic growth: different mix of qualities that can
related to educational attainment; boost its overall innovation score,
innovation young-adult population and no 2 regions will be exactly
from both the growth; high-tech alike. The practitioner's guide can
input and employment growth; and help users get started using this
output the number of small tool.
perspectives. establishments.
Learn more about using this tool
Learn more Learn more about the research

about the results
methodology
This project is funded in part by the U.S. Commerce Department's Economic Development Administration.
Work was conducted by the Purdue Center for Regional Development, the Indiana Business Research Center
at Indiana University's Kelley School of Business, Strategic Development Group, Inc., the Rural Policy
Research Institute, and Economic Modeling Specialists, Inc. The project received additional support from the
State of Indiana through the Indiana Office of Community and Rural Affairs.
This website was produced and is maintained by the Indiana Business Research Center at Indiana University’s Kelley
School of Business. Questions and comments about the site may be emailed to ibrc@iupui.edu.

Innovation Trail: Select Your Region > Innovation Index > Measures
Measuring Innovation
Click on the chart to drill down to more graphics and the underlying data.
The index incorporates a mix of input measures that characterize the place and its people (accounting for 60 percent of the overall index score) and output measures that
characterize its economic success (40 percent of the overall score). The state context category is provided for reference, but is not part of the broader index. Learn more
about the index weighting and its components.
Inputs and Capacity State Context Outputs
The ability of the population and labor force to innovate is A measure of the resources available in a state to Direct outcomes and economic improvements of
captured in 2 component indexes that include inputs into entrepreneurs and businesses. innovative activities are displayed in the output indexes.
local economies.
This project is funded in part by the U.S. Commerce Department's Economic Development Administration. Work was conducted by the Purdue Center for Regional Development, the Indiana Business Research Center at
Indiana University's Kelley School of Business, Strategic Development Group, Inc., the Rural Policy Research Institute, and Economic Modeling Specialists, Inc. The project received additional support from the State of
Indiana through the Indiana Office of Community and Rural Affairs.
This website was produced and is maintained by the Indiana Business Research Center at Indiana University’s Kelley School of Business. Questions and comments about the site may be emailed to ibrc@iupui.edu.

Innovation Trail: Select Your Region > Innovation Index > Measures > Human Capital
Components Human Capital

Click on a chart to view the underlying data.
Human capital inputs are
those characteristics that
describe the ability of the
Educational Attainment
population and labor force
to innovate. Educational attainment is a measure of the population's capacity to contribute to
innovation with necessary skills and knowledge. 2 component indicators are presented for
Educational Attainment education to measure not only highly educated residents with a bachelor's degree or
Population Growth higher, but also residents with some college. Research shows that the some college/
Rates associate's degree indicator has significant effects on GDP per worker growth.
High-Tech Employment
Share
Technology-Based
Knowledge
Occupations
Population Growth Rates

High population growth rates for younger working age persons (ages 25 to 44) suggest
new residents are attracted to an area, growing the workforce, adding to the innovative
base and launching new businesses. Research shows this indicator has significant effects
on GDP per worker growth.
High-Tech Employment Share
Firms requiring a highly skilled and specialized workforce contribute to innovation in a
county by providing a resource for workers, other firms and other industries. (This metric
measures the point in time innovative capacity of the region as opposed to the growth of
innovative capacity in the productivity and employment index.)
Technology-Based Knowledge Occupations

These 6 occupation clusters are often thought to be closely associated with the production
of innovations. They include information technology; engineering; health care and medical
science practitioners and scientists; mathematics, statistics, data and accounting; natural
science and environmental management; and postsecondary education and knowledge
creation.

Innovation Trail: Select Your Region > Innovation Index > Measures > Human Capital > Table: Population with a Bachelor's Degree or Higher
Human Capital
Percent of Adult Population With a Bachelor's Degree or Higher, 2000
Region
Percent of Population Ages 25 to 64 with a Population Ages 25-64 with a Total Population
Bachelor's Degree or Higher Bachelor's Degree or Higher Ages 25-64
Custom Region 24.7% 34,684 140,599
KS 28.7% 385,924 1,345,526
NE 27% 230,857 854,882
U.S. 26.5% 39,078,598 147,232,667
Counties
Percent of Population Ages 25 to 64 with a Population Ages 25-64 with a Total Population
Region County Bachelor's Degree or Higher Bachelor's Degree or Higher Ages 25-64
Custom
Chase, KS 22.5% 341 1,513
Region
Custom
Clay, KS 19% 798 4,193
Region
Custom
Cloud, KS 19% 860 4,523
Region
Custom
Dickinson, KS 17.8% 1,700 9,559
Region
Custom
Ellsworth, KS 19.2% 642 3,342
Region
Custom
Geary, KS 18.6% 2,431 13,101
Region
Custom
Jewell, KS 16.3% 295 1,813
Region
Custom
Lincoln, KS 21.6% 369 1,709
Region
Custom
Lyon, KS 25% 4,100 16,410
Region
Custom
Marshall, KS 15.6% 784 5,039
Region
Custom
Mitchell, KS 20.2% 642 3,171
Region
Custom
Morris, KS 17.6% 517 2,945
Region
Custom
Ottawa, KS 19.2% 604 3,142
Region
Custom Pottawatomie,
26.2% 2,356 8,993
Region KS
Custom
Republic, KS 19.1% 522 2,726
Region
Custom
Riley, KS 43% 10,602 24,650
Region
Custom
Saline, KS 21.8% 5,948 27,272
Region
Custom Wabaunsee,
18.9% 671 3,547
Region KS
Custom Washington,
17% 502 2,951
Region KS
This project is funded in part by the U.S. Commerce Department's Economic Development Administration. Work was conducted by the Purdue Center for
Regional Development, the Indiana Business Research Center at Indiana University's Kelley School of Business, Strategic Development Group, Inc., the
Rural Policy Research Institute, and Economic Modeling Specialists, Inc. The project received additional support from the State of Indiana through the
Indiana Office of Community and Rural Affairs.
This website was produced and is maintained by the Indiana Business Research Center at Indiana University’s Kelley School of Business. Questions and comments
about the site may be emailed to ibrc@iupui.edu.

Innovation Trail: Select Your Region > Innovation Index > Measures > Human Capital > Table: Percent Change in Mid-Aged Population
Human Capital
Percent Change in Mid-Aged Population, 1997-2006
Region
Average Annual Change in Mid-Aged Population Mid-Aged Population

Mid-Aged Population 2006 1997
Custom Region -2.8% 66,283 84,938
KS -1.2% 711,162 791,239
NE -1.1% 450,045 498,804
U.S. -0.3% 83,223,135 85,573,378
Counties
Average Annual Change in Mid-Aged Population Mid-Aged Population

Region County Mid-Aged Population 2006 1997
Custom Region Chase, KS -2.7% 634 806
Custom Region Clay, KS -3% 1,745 2,279
Custom Region Cloud, KS -2.4% 1,947 2,423
Custom Region Dickinson, KS -2.6% 4,194 5,286
Custom Region Ellsworth, KS -2.6% 1,448 1,827
Custom Region Geary, KS -3.2% 6,529 8,676
Custom Region Jewell, KS -6.9% 494 917
Custom Region Lincoln, KS -4.1% 595 859
Custom Region Lyon, KS -3.1% 7,660 10,152
Custom Region Marshall, KS -3.8% 1,956 2,764
Custom Region Mitchell, KS -4.1% 1,166 1,687
Custom Region Morris, KS -3.5% 1,132 1,558

Custom Region Ottawa, KS -2.2% 1,347 1,647
Custom Region Pottawatomie, KS -1.3% 4,618 5,170
Custom Region Republic, KS -6.9% 758 1,412
Custom Region Riley, KS -3% 13,755 18,035

Custom Region Saline, KS -1.6% 13,759 15,951
Custom Region Wabaunsee, KS -3% 1,468 1,926
Custom Region Washington, KS -4.1% 1,078 1,563

Innovation Trail: Select Your Region > Innovation Index > Measures > Human Capital > Table: Population with Some College or Associate's Degree
Human Capital
Percent of Adult Population With Some College or an Associate's Degree, 2000
Region
Percent of Population Ages 25 to 64 with Some Population Ages 25-64 with Some Total Population
College or an Associate's Degree College or Associate's Degree Ages 25-64
Custom Region 34.6% 48,641 140,599
KS 32.8% 440,763 1,345,526
NE 34.8% 297,083 854,882
U.S. 29.6% 43,521,981 147,232,667
Counties
Percent of Population Ages 25 to 64 with Some Population Ages 25-64 with Some Total Population
Region County College or an Associate's Degree College or Associate's Degree Ages 25-64
Custom
Chase, KS 30.4% 460 1,513
Region
Custom
Clay, KS 37.7% 1,579 4,193
Region
Custom
Cloud, KS 36.7% 1,659 4,523
Region
Custom
Dickinson, KS 36.5% 3,490 9,559
Region
Custom
Ellsworth, KS 38.9% 1,300 3,342
Region
Custom
Geary, KS 43.2% 5,654 13,101
Region
Custom
Jewell, KS 41.5% 752 1,813
Region
Custom
Lincoln, KS 35.9% 613 1,709
Region
Custom
Lyon, KS 28.6% 4,701 16,410
Region
Custom
Marshall, KS 30.4% 1,533 5,039
Region
Custom
Mitchell, KS 41.2% 1,305 3,171
Region
Custom
Morris, KS 32% 943 2,945
Region
Custom
Ottawa, KS 37.5% 1,179 3,142
Region
32.8% 2,951 8,993
Region KS
Custom
Republic, KS 39.2% 1,069 2,726
Region
Custom
Riley, KS 32.4% 7,988 24,650
Region
Custom
Saline, KS 34.3% 9,347 27,272
Region
Custom Wabaunsee,
31.5% 1,116 3,547
Region KS
Custom Washington,
34% 1,002 2,951
Region KS

Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Dynamics
Components Economic Dynamics

This component measures
local resources available to
county entrepreneurs and
Average Venture Capital
businesses that encourage
innovation close to home. Venture capital provides a source of funds to launch new ideas or expand innovative
companies.
Average Venture
Capital
Average Private R&D
Broadband Density and
Penetration
Establishment Churn
Establishment Sizes
Average Private R&D

Research and development funds provides the resources for companies to launch new
ideas or expand innovative companies.
Broadband Density and Penetration

Innovation and knowledge are linked to widespread Internet usage for individuals and
businesses. This indicator is defined as the number of broadband providers available to
residents in a given county, which serves as a proxy for actual broadband penetration into
rural markets. This indicator is presented as the population-weighted mean of broadband
service providers available per county translated from population-weighted ZIP code data.
Establishment Churn
Innovative and efficient companies replace outdated establishments, or those firms
unable to modernize techniques and processes. Average churn is a measure of total
establishment births and deaths, and expansions and contractions, relative to the total
number of firms in a county for all years available.
Establishment Sizes
The sizes of establishments provide an indication of a regional economy's structural
composition. Small establishments with fewer than 20 employees are flexible and not
overburdened by a bureaucratic organizational structure enabling rapid changes to
implement new ideas and evolve with technology. On the other end of the spectrum, large
establishments with more than 500 employees have both the capital and labor resources
to fund research and other innovative activities.Research shows that the average share of
small establishments has significant effects on GDP per worker growth.

Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Dynamics > Table: Average Venture Capital Investment per $10,000 GDP
Economic Dynamics
Average Venture Capital Investment per $10,000 GDP, 2000-2006
Region
Average Venture Capital Investment per $10,000 GDP
Custom Region $0.00
KS $11.75
NE $4.45
U.S. $34.01
Counties
Region County Average Venture Capital Investment per $10,000 GDP
Custom Region Chase, KS $0.00
Custom Region Clay, KS $0.00
Custom Region Cloud, KS $0.00
Custom Region Dickinson, KS $0.00
Custom Region Ellsworth, KS $0.00
Custom Region Geary, KS $0.00
Custom Region Jewell, KS $0.00
Custom Region Lincoln, KS $0.00
Custom Region Lyon, KS $0.00
Custom Region Marshall, KS $0.00
Custom Region Mitchell, KS $0.00
Custom Region Morris, KS $0.00
Custom Region Ottawa, KS $0.00
Custom Region Pottawatomie, KS $0.00
Custom Region Republic, KS $0.00
Custom Region Riley, KS $0.00
Custom Region Saline, KS $0.00
Custom Region Wabaunsee, KS $0.00

Custom Region Washington, KS $0.00

Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Dynamics > Table: Percent Change in Broadband Density, 2000 to 2007
Economic Dynamics
Percent Change in Broadband Holding Companies, 2000-2007
Region
Average Annual Change in Broadband Density Broadband Density

Broadband Density, 2000-2007 2000 2007
Custom Region 25.7% 1.6 9.9
KS 24% 1.8 9.9
NE 20% 2.1 8.6
U.S. 16% 3.5 10.6
Counties
Average Annual Change in Broadband Density Broadband Density

Region County Broadband Density, 2000-2007 2000 2007
Custom Region Chase, KS N/A N/A 5.6
Custom Region Clay, KS 20.7% 2.0 8.5
Custom Region Cloud, KS 22.8% 1.7 8.2
Custom Region Dickinson, KS 32.6% 1.0 9.8
Custom Region Ellsworth, KS 23.4% 1.1 5.8
Custom Region Geary, KS 26.3% 2.0 12.6
Custom Region Jewell, KS 62.6% 0.1 6.0
Custom Region Lincoln, KS 21% 1.2 5.2
Custom Region Lyon, KS 28.2% 1.8 12.7
Custom Region Marshall, KS 25.9% 1.1 6.7
Custom Region Mitchell, KS 25.2% 1.4 8.1
Custom Region Morris, KS 19.5% 1.4 5.3
Custom Region Ottawa, KS 24% 1.3 6.9
Custom Region Pottawatomie, KS 17.5% 1.9 6.4
Custom Region Republic, KS 22.6% 1.3 6.1
Custom Region Riley, KS 25.8% 1.9 11.8

Custom Region Saline, KS 24.6% 1.9 10.7
Custom Region Wabaunsee, KS 23.3% 1.4 7.0
Custom Region Washington, KS 42.8% 0.3 5.5

Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Dynamics > Table: Average Establishment Churn
Economic Dynamics
Average Establishment Churn, 1999-2005
Region
Average Establishment Churn
Custom Region 71%
KS 74.7%
NE 72.2%
U.S. 77.4%
Counties
Region County Average Establishment Churn
Custom Region Chase, KS 69.6%
Custom Region Clay, KS 70.6%
Custom Region Cloud, KS 66.2%
Custom Region Dickinson, KS 67.7%
Custom Region Ellsworth, KS 66.4%
Custom Region Geary, KS 74.7%
Custom Region Jewell, KS 53.4%
Custom Region Lincoln, KS 67.6%
Custom Region Lyon, KS 72%
Custom Region Marshall, KS 64.5%
Custom Region Mitchell, KS 66.1%
Custom Region Morris, KS 63.5%
Custom Region Ottawa, KS 69.7%
Custom Region Pottawatomie, KS 75.1%
Custom Region Republic, KS 57%
Custom Region Riley, KS 76.7%
Custom Region Saline, KS 73.6%
Custom Region Wabaunsee, KS 68.6%

Custo eg o abau see, S 68 6%
Custom Region Washington, KS 61%

Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Dynamics > Table: Average Large Establishments per 100,000 Workers, 1997 to
2006
Economic Dynamics
Average Large Establishments per 10,000 Workers, 1997-2006
Region
Average Large Establishments per Worker
Custom Region 0.60
KS 0.84
NE 1.15
U.S. 1.11
Counties
Region County Average Large Establishments per Worker
Custom Region Chase, KS 0.00
Custom Region Clay, KS 0.00
Custom Region Cloud, KS 0.00
Custom Region Dickinson, KS 1.01
Custom Region Ellsworth, KS 0.00
Custom Region Geary, KS 0.23
Custom Region Jewell, KS 0.00
Custom Region Lincoln, KS 0.00
Custom Region Lyon, KS 1.20
Custom Region Marshall, KS 0.40
Custom Region Mitchell, KS 0.00
Custom Region Morris, KS 0.00
Custom Region Ottawa, KS 0.00
Custom Region Pottawatomie, KS 0.00
Custom Region Republic, KS 0.26
Custom Region Riley, KS 0.52
Custom Region Saline, KS 1.29

Custom Region Wabaunsee, KS 0.72
Custom Region Washington, KS 0.00

Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Dynamics > Table: Average Research & Development Investment per $1,000
Compensation
Economic Dynamics
Average Research & Development Investment per $1,000 Compensation, 1998-

2006
Region
Average Research & Development Investment per $1,000 Compensation
Custom Region $0.00
KS $0.40
NE $1.65
U.S. $25.44
Counties
Region County Average Research & Development Investment per $1,000 Compensation
Custom Region Chase, KS $0.00
Custom Region Clay, KS $0.00
Custom Region Cloud, KS $0.00
Custom Region Dickinson, KS $0.00
Custom Region Ellsworth, KS $0.00
Custom Region Geary, KS $0.00
Custom Region Jewell, KS $0.00
Custom Region Lincoln, KS $0.00
Custom Region Lyon, KS $0.00
Custom Region Marshall, KS $0.00
Custom Region Mitchell, KS $0.00
Custom Region Morris, KS $0.00

Custom Region Ottawa, KS $0.00
Custom Region Pottawatomie, KS $0.00
Custom Region Republic, KS $0.00
Custom Region Riley, KS $0.00

Custom Region Saline, KS $0.00
Custom Region Wabaunsee, KS $0.00
Custom Region Washington, KS $0.00

Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Dynamics > Table: Average Small Establishments per 1,000 Workers, 1997 to
2006
Economic Dynamics
Average Small Establishments per 10,000 Workers, 1997-2006
Region
Average Small Establishments per Worker
Custom Region 377.1
KS 371.1
NE 372.2
U.S. 374.5
Counties
Region County Average Small Establishments per Worker


Innovation Trail: Select Your Region > Innovation Index > Measures > Productivity & Employment
Components Productivity and Employment

This component measures
economic improvement,
regional desirability, or are
Change in High-Tech Employment
the direct outcomes of
innovation. Firms requiring a highly skilled and specialized workforce are drawn to innovative areas.
Growth in this sector suggests the increasing presence of innovation. High-tech
Change in High Tech employment, derived from a NAICS-based definition by Moody’s, measures an
Employment aggregation of employment in key sectors (e.g., telecommunications, Internet providers,
Job Growth scientific laboratories) as an average annual rate of change in the share of high-tech
Gross Domestic employment. Research shows this indicator has significant effects on GDP per worker
Product per Worker growth.
Average Patents per
1,000 Workers
Job Growth
High employment growth relative to population growth suggests jobs are being created
faster than people are moving to a region. A high ratio between these 2 variables
indicates strong economic growth.
Gross Domestic Product per Worker
GDP serves as a measure of county-level economic output, while increases in GDP per
worker measures increases in worker productivity.
Average Patents per 1,000 Workers

New patented technologies provide an indicator of individuals’ and firms’ abilities to
develop new technologies and remain competitive in the economy. Patents are presented
as total number per 1,000 workers.

Innovation Trail: Select Your Region > Innovation Index > Measures > Productivity and Employment > Table: GDP per Worker Growth
Productivity and Employment
Percent Change in GDP per Worker, 1997-2006
Region
Average Annual Change in GDP per Worker GDP per Worker, 1997 GDP per Worker, 2006
Custom Region 3.8% 37,988 53,656
KS 3.9% 42,981 61,250
NE 3.4% 45,477 61,782
U.S. 3.8% 53,917 76,076
Counties
Region County Average Annual Change in GDP per Worker GDP per Worker, 1997 GDP per Worker, 2006
Custom Region Chase, KS -3% 28,571 21,851
Custom Region Clay, KS 1.6% 32,539 37,481
Custom Region Cloud, KS 3.8% 35,335 49,729
Custom Region Dickinson, KS 3.7% 41,393 57,496
Custom Region Ellsworth, KS 4% 35,070 50,243
Custom Region Geary, KS 4.4% 31,257 46,495
Custom Region Jewell, KS 2.1% 33,197 40,278
Custom Region Lincoln, KS 2.1% 33,262 40,283
Custom Region Lyon, KS 4.4% 41,372 61,488
Custom Region Marshall, KS 4.3% 37,868 55,753
Custom Region Mitchell, KS 4% 38,037 54,388
Custom Region Morris, KS 4.9% 37,412 58,276
Custom Region Ottawa, KS 4.9% 29,989 46,576
Custom Region Pottawatomie, KS 2.2% 39,270 48,072
Custom Region Republic, KS 3.3% 37,306 50,079
Custom Region Riley, KS 4.8% 38,357 59,067
Custom Region Saline, KS 3.4% 42,891 58,473
Custom Region Wabaunsee, KS 5.4% 29,173 47,277

Custom Region Washington, KS 5.8% 35,167 59,025

Innovation Trail: Select Your Region > Innovation Index > Measures > Productivity and Employment > Table: GDP per Worker
Gross Domestic Product (GDP) per Worker, 2006
Region
GDP per Worker
Custom Region $53,656
KS $61,250
NE $61,782
U.S. $76,076
Counties
Region County GDP per Worker
Custom Region Chase, KS $21,851
Custom Region Clay, KS $37,481
Custom Region Cloud, KS $49,729
Custom Region Dickinson, KS $57,496
Custom Region Ellsworth, KS $50,243
Custom Region Geary, KS $46,495
Custom Region Jewell, KS $40,278
Custom Region Lincoln, KS $40,283
Custom Region Lyon, KS $61,488
Custom Region Marshall, KS $55,753
Custom Region Mitchell, KS $54,388
Custom Region Morris, KS $58,276
Custom Region Ottawa, KS $46,576
Custom Region Pottawatomie, KS $48,072
Custom Region Republic, KS $50,079
Custom Region Riley, KS $59,067
Custom Region Saline, KS $58,473
Custom Region Wabaunsee, KS $47,277

Custo eg o abau see, S $ ,
Custom Region Washington, KS $59,025

Innovation Trail: Select Your Region > Innovation Index > Measures > Productivity and Employment > Table: Job Growth to Population Growth Ratio
Job Growth-to-Population Growth Ratio, 1997-2006
Region
Job Growth to Total Total Total Total

Population Growth Employment Employment Population Population
Ratio (1997) (2006) (1997) (2006)
Custom Region 6.45 190,732 197,313 304,138 305,158
KS 0.98 1,676,806 1,794,329 2,635,292 2,755,700
NE 1.38 1,111,371 1,213,146 1,686,418 1,760,435
U.S. 0.84 154,541,200 176,124,600 272,646,925 298,362,973
Counties
Job Growth to Total Total Total Total

Population Growth Employment Employment Population Population
Region County Ratio (1997) (2006) (1997) (2006)
Custom
Chase, KS -17.67 1,826 2,957 3,024 2,960
Region
Custom
Clay, KS -2.85 5,292 6,499 9,005 8,581
Region
Custom
Cloud, KS 0.27 6,140 5,834 10,494 9,376
Region
Custom
Dickinson, KS 0.75 10,257 9,797 19,532 18,922
Region
Custom
Ellsworth, KS -0.61 3,822 3,980 6,538 6,281
Region
Custom
Geary, KS 2.95 24,359 28,172 27,700 28,994
Region
Custom
Jewell, KS 0.15 2,248 2,137 3,990 3,248
Region
Custom
Lincoln, KS -0.04 2,069 2,079 3,555 3,272
Region
Custom
Lyon, KS -29.65 22,947 21,109 35,513 35,575
Region
Custom Marshall, KS -0.27 7,176 7,441 11,166 10,166
Region
Custom
Mitchell, KS 0.63 5,027 4,575 7,027 6,314
Region
Custom
Morris, KS 2.85 3,121 2,398 6,184 5,930
Region
Custom
Ottawa, KS 277.00 2,940 2,663 5,991 5,990
Region
3.33 10,370 14,693 17,626 18,925
Region KS
Custom
Republic, KS 0.64 4,160 3,470 6,059 4,974
Region
Custom
Riley, KS 0.02 34,194 34,304 64,018 69,164
Region
Custom
Saline, KS 1.82 37,790 39,150 53,168 53,914
Region
Custom
Wabaunsee, KS 0.53 2,891 2,780 6,897 6,688
Region
Custom
Washington, KS 1.08 4,103 3,275 6,651 5,884
Region

Innovation Trail: Select Your Region > Innovation Index > Measures > Productivity and Employment > Table: Percent Change in High Tech Employment
Percent Change in High-Tech Employment Share, 1997-2006
Region
Rate of Change in High-Tech High-Tech Employment High-Tech Employment

Employment Share, 1997-2006 Share, 1997 Share, 2006
Custom Region 1.2% 2.6% 2.9%
KS 2.1% 3.9% 4.7%
NE -1% 4.8% 4.4%
U.S. -0.7% 4.9% 4.6%
Counties
Rate of Change in High-Tech High-Tech Employment High-Tech Employment

Region County Employment Share, 1997-2006 Share, 1997 Share, 2006
Custom Region Chase, KS 5.6% 1.1% 1.8%
Custom Region Clay, KS -0.2% 1.5% 1.5%
Custom Region Cloud, KS 5.1% 1.7% 2.7%
Custom Region Dickinson, KS 14.9% 0.4% 1.7%
Custom Region Ellsworth, KS 1.8% 1.2% 1.4%
Custom Region Geary, KS -4.9% 2.9% 1.8%
Custom Region Jewell, KS 1.6% 0.6% 0.7%
Custom Region Lincoln, KS 5.8% 1.2% 2%
Custom Region Lyon, KS 4.3% 1.7% 2.5%
Custom Region Marshall, KS 1.3% 2.4% 2.7%
Custom Region Mitchell, KS 0.7% 2.2% 2.4%
Custom Region Morris, KS 5.4% 2% 3.3%
Custom Region Ottawa, KS 8.7% 0.5% 1.1%
Custom Region Pottawatomie, KS 2.6% 2.4% 3.1%
Custom Region Republic, KS -4.7% 1.8% 1.2%
Custom Region Riley, KS -1.9% 2.1% 1.8%

Custom Region Saline, KS 1.6% 4.8% 5.5%
Custom Region Wabaunsee, KS 3.4% 0.9% 1.2%
Custom Region Washington, KS 8.1% 1.5% 3.2%

Innovation Trail: Select Your Region > Innovation Index > Measures > Productivity and Employment > Table: Average Patents per Worker
Average Patents per 1,000 Workers, 1997-2006
Region
Average Patents per 1,000 Workers
Custom Region 0.22
KS 0.36
NE 0.23
U.S. 0.95
Counties
Region County Average Patents per 1,000 Workers

Custo eg o abau see, S 0 33

Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Well-Being
Components Economic Well-Being

Innovative economies
improve economic well-
being for residents because
Average Poverty Rate
they earn more and have in
increasing standard of Innovative economies are thought to be less poverty stricken as a result of elevated
living. employment opportunities and a more highly educated workforce with diverse skills that
open the doors to an increased number of employers. As poverty rates decrease,
Average Poverty Rate presumably innovation has increased.
Average
Unemployment Rates
Average Net Migration
Average PCPI Growth
Compensation
Average Unemployment Rates

Innovative economies have greater employment opportunities and lower unemployment
rates.
Average Net Migration

Total migration of all persons into a county serves as an indicator of whether a region is
attractive to job seekers and families.
Average Growth in Per Capita Personal Income

Personal Income is the broadest measure of a person's income because it includes rental
income, dividends and interest payments, in addition to salary, wages and benefits. As a
result, it is probably the best measure of well-being.
Compensation
Improvements in earnings per worker, or compensation, signify a postive trend in
economic growth being passed on to workers. 2 specific categories of workers are
considered: wage and salary employees and nonfarm proprietors.

Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Well-Being > Table: Percent Change in Wage and Salary Earnings per Worker
Economic Well-Being
Percent Change in Average Wage and Salary Earnings, 1997-2006
Region
Average Annual Change in Wage and Wage and

Wage and Salary Salary Wage and Salary Wage and Salary
Salary Earnings per Employment, Employment, Disbursements, Disbursements,
Worker 1997 2006 1997 (000s) 2006 (000s)
Custom Region 4.3% 150,482 158,051 $3,082,379 $4,749,984
KS 3.9% 1,349,967 1,434,849 $34,582,641 $52,140,628
NE 3.8% 897,691 975,386 $22,520,992 $34,358,517
U.S. 3.9% 128,681,000 141,916,000 $3,872,441,000 $6,060,261,000
Counties
Average Annual Change in Wage and Wage and

Wage and Salary Salary Wage and Salary Wage and Salary
Salary Earnings per Employment, Employment, Disbursements, Disbursements,
Region County Worker 1997 2006 1997 (000s) 2006 (000s)
Custom
Chase, KS 5.4% 991 954 $14,509 $22,646
Region
Custom
Clay, KS 3% 3,497 3,645 $59,534 $81,106
Region
Custom
Cloud, KS 3.1% 4,395 4,318 $77,487 $100,934
Region
Custom
Dickinson, KS 3.5% 7,692 7,755 $145,487 $200,954
Region
Custom
Ellsworth, KS 3.4% 2,634 2,573 $50,938 $67,692
Region
Custom
Geary, KS 5.8% 22,483 25,938 $531,452 $1,032,455
Region
Custom
Jewell, KS 3.3% 1,126 1,030 $17,857 $21,975
Region
Custom
Region Lincoln, KS 4.2% 1,162 1,055 $16,476 $21,839
Custom Lyon, KS 3.2% 19,107 18,939 $393,484 $519,960
Region
Custom
Marshall, KS 3.7% 5,002 5,235 $105,321 $154,158
Region
Custom
Mitchell, KS 3.4% 3,739 3,557 $74,718 $96,150
Region
Custom
Morris, KS 4.5% 1,911 1,774 $33,940 $47,200
Region
Custom
Ottawa, KS 4.2% 1,615 1,530 $26,438 $36,712
Region
3.8% 7,635 8,956 $162,689 $269,008
Region KS
Custom
Republic, KS 3% 2,679 2,267 $44,345 $49,150
Region
Custom
Riley, KS 4.8% 29,000 31,469 $541,361 $906,329
Region
Custom
Saline, KS 3.5% 31,869 33,008 $727,756 $1,030,943
Region
Custom Wabaunsee,
4.2% 1,370 1,644 $22,157 $38,955
Region KS
Custom Washington,
4.7% 2,575 2,404 $36,430 $51,818
Region KS

Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Well-Being > Table: Average Annual Growth in PCPI
Economic Well-Being
Percent Change in Per Capita Personal Income, 1997-2006
Region
Average Annual Growth in

Per Capita Personal Income (PCPI) PCPI , 1997 PCPI, 2006
Custom Region 4.3% $21,316 $31,371
KS 4.2% $24,504 $35,764
NE 4.3% $24,359 $35,713
U.S. 4.3% $25,654 $37,698
Counties
Average Annual Growth in

Region County Per Capita Personal Income (PCPI) PCPI , 1997 PCPI, 2006
Custom Region Chase, KS 4.1% $25,223 $36,501
Custom Region Clay, KS 4.7% $22,875 $34,945
Custom Region Cloud, KS 3.3% $20,543 $27,589
Custom Region Dickinson, KS 3.9% $21,397 $30,531
Custom Region Ellsworth, KS 4.1% $19,604 $28,405
Custom Region Geary, KS 6.1% $20,052 $34,602
Custom Region Jewell, KS 3.5% $21,553 $29,523
Custom Region Lincoln, KS 3.3% $19,794 $26,574
Custom Region Lyon, KS 2.9% $19,515 $25,383
Custom Region Marshall, KS 4.8% $22,750 $35,049
Custom Region Mitchell, KS 2.4% $24,767 $30,781
Custom Region Morris, KS 3.7% $19,941 $27,703

Custom Region Ottawa, KS 2.8% $21,496 $27,707
Custom Region Pottawatomie, KS 4.8% $20,658 $31,823
Custom Region Republic, KS 3.1% $20,437 $26,907
Custom Region Riley, KS 5.5% $19,005 $31,091

Custom Region Saline, KS 3.8% $25,658 $36,133
Custom Region Wabaunsee, KS 3.8% $21,453 $30,127
Custom Region Washington, KS 1.9% $20,635 $24,529

Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Well-Being > Table: Average Poverty Rate
Economic Well-Being
Average Net Internal Migration Rate, 2000-2007
Region
Average Net Internal Migration

Rate per 10,000 Residents
Custom Region -62.6
KS -31.1
NE -26.7
U.S. 0.0
Counties
Average Net Internal Migration

Region County Rate per 10,000 Residents
Custom Region Chase, KS -97.6
Custom Region Clay, KS -3.6
Custom Region Cloud, KS -76.0
Custom Region Dickinson, KS -18.2
Custom Region Geary, KS -230.2
Custom Region Jewell, KS -135.2
Custom Region Lincoln, KS -60.0
Custom Region Lyon, KS -101.8
Custom Region Marshall, KS -70.6
Custom Region Mitchell, KS -68.0
Custom Region Morris, KS -4.0
Custom Region Ottawa, KS -19.2
Custom Region Republic, KS -137.2
Custom Region Riley, KS -38.4
Custom Region Saline KS -40 1

Custom Region Wabaunsee, KS -24.2
Custom Region Washington, KS -83.5

Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Well-Being > Table: Average Poverty Rate
Economic Well-Being
Poverty Rate, 3-Year Average from 2003-2005
Region
Average Poverty Number in Poverty, Number in Poverty, Number in Poverty,

Rate 2003 2004 2005
Custom Region 12.2% 32,130 33,691 37,303
KS 11.1% 278,163 297,733 310,666
NE 10.3% 170,042 172,162 186,436
U.S. 12.8% 35,861,170 37,039,804 38,231,474
Counties
Average Poverty Number in Poverty, Number in Poverty, Number in Poverty,

Region County Rate 2003 2004 2005
Custom
Chase, KS 10.7% 308 317 324
Region
Custom
Clay, KS 10.5% 874 896 905
Region
Custom
Cloud, KS 12% 1,052 1,109 1,144
Region
Custom
Dickinson, KS 9.1% 1,731 1,769 1,656
Region
Custom
Ellsworth, KS 9.4% 517 528 514
Region
Custom
Geary, KS 13.1% 3,156 3,125 3,199
Region
Custom
Jewell, KS 12.3% 395 407 435
Region
Custom
Lincoln, KS 11% 356 350 396
Region
Custom
Lyon, KS 14.5% 4,454 4,817 5,608
Region
Custom
Marshall, KS 10.1% 1,011 1,016 1,048
Region
Custom
Mitchell, KS 10.4% 624 617 667
Region
Custom
Morris, KS 10.1% 564 599 641
Region
Custom
Ottawa, KS 8.2% 480 489 494
Region
9.3% 1,693 1,763 1,806
Region KS
Custom
Republic, KS 10.7% 549 553 523
Region
Custom
Riley, KS 16.7% 7,747 8,436 10,745
Region
Custom
Saline, KS 10.9% 5,488 5,798 6,006
Region
Custom
Wabaunsee, KS 7.7% 513 517 540
Region
Custom
Washington, KS 10.5% 618 585 652
Region

Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Well-Being > Table: Percent Change in Proprieters Income per Proprietor
Economic Well-Being
Percent Change in Average Proprietors Income, 1997-2006
Region
Average Annual Change in Proprietors' Proprietors' Proprietors' Proprietors'

Proprietors' Employment, Employment, Income Income
Income per Proprietor 1997 2006 1997 (000s) 2006 (000s)
Custom Region 1.8% 28,326 29,686 $596,648 $736,889
KS 5.2% 261,499 305,366 $5,053,681 $9,445,306
NE 3.1% 160,239 198,595 $3,242,079 $5,327,018
U.S. 3.4% 23,648,200 32,381,600 $595,645,000 $1,103,626,000
Counties
Average Annual Change in Proprietors' Proprietors' Proprietors' Proprietors'

Proprietors' Employment, Employment, Income Income
Region County Income per Proprietor 1997 2006 1997 (000s) 2006 (000s)
Custom
Chase, KS -1.7% 539 1,796 $8,550 $24,497
Region
Custom
Clay, KS 4.2% 1,211 2,375 $18,015 $51,463
Region
Custom
Cloud, KS 1.6% 1,171 1,121 $17,024 $18,792
Region
Custom
Dickinson, KS 1.4% 1,611 1,171 $25,526 $21,045
Region
Custom
Ellsworth, KS 1.4% 729 1,068 $9,897 $16,489
Region
Custom
Geary, KS 2.7% 1,645 2,041 $26,267 $41,457
Region
Custom
Jewell, KS 3.7% 511 661 $7,415 $13,390
Region
Custom
Region Lincoln, KS 0.1% 423 638 $5,404 $8,207
Custom
Lyon, KS 4.7% 2,936 1,388 $45,895 $33,088
Region
Custom
Marshall, KS 5.8% 1,184 1,424 $17,288 $35,051
Region
Custom
Mitchell, KS 2.7% 779 689 $12,739 $14,316
Region
Custom
Morris, KS 10.6% 681 219 $10,903 $9,074
Region
Custom
Ottawa, KS 6.1% 799 691 $8,670 $13,028
Region
0.8% 1,883 5,035 $24,177 $69,614
Region KS
Custom
Republic, KS 4.6% 770 658 $11,222 $14,560
Region
Custom
Riley, KS 6.3% 4,707 2,403 $70,833 $63,845
Region
Custom
Saline, KS -0.1% 5,187 5,515 $255,927 $270,695
Region
Custom Wabaunsee,
6% 874 587 $12,548 $14,409
Region KS
Custom Washington,
4.8% 686 206 $8,348 $3,869
Region KS

Innovation Trail: Select Your Region > Innovation Index > Measures > Economic Well-Being > Table: Average Unemployment Rate
Economic Well-Being
Unemployment Rate, 3-Year Average 2005-2007
Region
Unemployment
Rate
3-year
Average 2005- Unemployment Unemployment Unemployment Labor Force Labor Force Labor Force
2007 2005 2006 2007 2005 2006 2007
Custom Region 3.8% 6,977 6,086 5,765 161,608 163,822 168,827
KS 4.5% 74,806 64,274 60,556 1,465,098 1,470,192 1,480,242
NE 3.3% 37,725 29,611 28,943 973,172 971,954 981,400
U.S. 4.8% 7,591,000 7,001,000 7,078,000 149,320,000 151,428,000 153,124,000
Counties
Unemployment
Rate
3-year
Average 2005- Unemployment Unemployment Unemployment Labor Force Labor Force Labor Force
Region County 2007 2005 2006 2007 2005 2006 2007
Custom
Chase, KS 4% 71 68 61 1,692 1,700 1,586
Region
Custom
Clay, KS 3.6% 202 168 162 4,880 4,981 5,075
Region
Custom
Cloud, KS 3.5% 218 198 190 5,695 5,913 5,599
Region
Custom
Dickinson, KS 4.1% 479 420 393 10,559 10,617 10,625
Region
Custom
Ellsworth, KS 3.5% 135 120 118 3,404 3,677 3,695
Region
Custom
Geary, KS 5.1% 669 590 500 11,163 11,340 11,934
Region
Custom
Jewell, KS 3% 64 58 52 1,977 1,909 1,921
Region
Custom
Lincoln, KS 3.8% 78 65 68 1,808 1,858 1,831
Region
Custom
Lyon, KS 4.2% 901 808 772 19,538 19,527 19,722
Region
Region
Custom
Marshall, KS 3.4% 223 202 183 5,927 5,813 6,069
Region
Custom
Mitchell, KS 3.5% 131 118 113 3,445 3,436 3,342
Region
Custom
Morris, KS 4.7% 148 126 137 2,918 2,921 2,970
Region
Custom
Ottawa, KS 3.9% 155 117 118 3,373 3,390 3,262
Region
3.5% 447 371 359 10,829 11,241 11,572
Region KS
Custom
Republic, KS 3.6% 113 98 85 2,759 2,742 2,761
Region
Custom
Riley, KS 3.3% 1,288 1,163 1,180 34,043 35,127 39,543
Region
Custom
Saline, KS 3.9% 1,349 1,145 1,027 30,402 30,606 30,318
Region
Custom Wabaunsee,
4% 174 136 139 3,781 3,649 3,662
Region KS
Custom Washington,
3.5% 132 115 108 3,415 3,375 3,340
Region KS
This project is funded in part by the U.S. Commerce Department's Economic Development Administration. Work was conducted by the Purdue Center for Regional
Development, the Indiana Business Research Center at Indiana University's Kelley School of Business, Strategic Development Group, Inc., the Rural Policy
Research Institute, and Economic Modeling Specialists, Inc. The project received additional support from the State of Indiana through the Indiana Office of
Community and Rural Affairs.
This website was produced and is maintained by the Indiana Business Research Center at Indiana University’s Kelley School of Business. Questions and comments about the
site may be emailed to ibrc@iupui.edu.
Innovation Index Calculating the Innovation

The Index helps Index
you understand
your region's The Innovation Index compares regional performance to the United States and is calculated
innovation performance and from 4 sub-indices. The weights for each component are listed below. (An additional "State
potential Context" sub-index is displayed as part of the data output, but it is for reference only and not
View Innovation Index
included in the calculation of the overall index.)
Cluster Analysis Human Capital: 30% Economic Dynamics: 30%

Explore 15 knowledge-based
occupation clusters and 17
industry clusters to uncover
regional strengths
View Occupation Clusters
View Industry Clusters
Investment Analysis
Understand the regional

development process and
access tools to help guide
public investment decisions
View Guidelines for
Regional Investment
Productivity and Employment: Economic Well-Being: 10%

30%
Where Do the Data Come From?
Variables in the Innovation Index are derived from both official government statistical agencies
and several private, proprietary sources, including Moody’s economy.com, Decision Data
Resources, and Economic Modeling Specialists, Inc. These proprietary data were used in
specific index calculations and are reflected on the website only in terms of those resulting
calculations and are not available in their original (raw) form, but we encourage you to contact
the sources of those data for more information.
For detailed source information for each of the index components, see Section 4.6 in the
report.
Proprietary Sources Public Sources
Federal Communications Commission
National Science Foundation
U.S. Bureau of Economic Analysis
U.S. Bureau of Labor Statistics
U.S. Census Bureau
Time Period
The Innovation Index focuses on data within the 1997-2007 time span, and using the latest
year of available data at the time of index construction. However, the most recent data for
individual index components are available via the data browser except in cases where the data
are proprietary.
More Information
Innovation Index Methodology
What the Innovation Index Research Shows
How to Use the Innovation Index
More detailed information about the innovation index can be found in the report,
Crossing the Next Regional Frontier: Information and Analytics Linking Regional
Competitiveness to Investment in a Knowledge-Based Economy
The Innovation Index (Chapter 4)
Innovation Index Definitions, Calculations and Models (Appendix C)
This project is funded in part by the U.S. Commerce Department's Economic Development Administration. Work was
conducted by the Purdue Center for Regional Development, the Indiana Business Research Center at Indiana
University's Kelley School of Business, Strategic Development Group, Inc., the Rural Policy Research Institute, and
Economic Modeling Specialists, Inc. The project received additional support from the State of Indiana through the
This website was produced and is maintained by the Indiana Business Research Center at Indiana University’s Kelley School of
Business. Questions and comments about the site may be emailed to ibrc@iupui.edu.
which a professional’s geographic location would likely remain more stable. The 25-
to-44 age bracket is likely to be less risk averse and more entrepreneurial.
Moreover, population growth in this age bracket suggests the possibility that new
residents are likely to expand the innovative and entrepreneurial characteristics of
the base community.
Occupational Mix: Certain occupational mixes favor innovative behaviors. The

research team defined six technology-based knowledge occupation clusters that
are hypothesized to have a higher probability of developing new and innovative
ideas, products and processes that drive economic growth:
1. Information technology
2. Engineering
3. Health care and medical science practitioners and scientists
4. Mathematics, statistics, data and accounting
5. Natural sciences and environmental management
6. Postsecondary education and knowledge creation
High-Tech Employment: In addition to knowledge occupation clusters, there are

other occupations linked to high-technology firms and activities that either retain
opportunities for the home-grown, skilled and specialized labor force or attract
similar workers that are complementary to technology-based knowledge
occupations. High-tech firm employment and growth is overwhelmingly found in
urban centers, producing a rural-urban technology gap. The high-tech sector is
defined by Moody’s as comprised of such industries as telecommunications,
Internet providers, computer manufacturing, and scientific laboratories, to name a
few. Together, the high-tech industry employment and technology-based
knowledge occupational data provide a reasonable estimate of the extent to which
a county’s occupational and industry mix provide either the existing capacity to
generate innovative products and processes or the ability to augment local
innovative capacity by attracting new firms and new talent.
Economic Dynamics Sub-Index

The economic dynamics sub-index measures local business conditions and resources
available to entrepreneurs and businesses. Targeted resources such as research and
development funds are input flows that encourage innovation close to home, or that, if not
present, can limit innovative activity.
R&D Investment: Inputs to innovation can come in the form of fund or knowledge
transfers that may originate outside a region but benefit firms and individuals inside
a region. Investments targeted to a region provide capital to aid the economic
dynamics of a region. In particular, direct research and development (R&D)
investments in a given county are indicative of overall levels of research being
conducted. While research itself may not always result in a marketable innovation, it
is a vital precursor. R&D expenditures are thus an indicator of innovation—even if
the funds go toward unsuccessful products. It is generally understood, however,
that those spending more will have the greatest innovative results or outcomes.
R&D also has a well-documented spillover effect where R&D can provide crucial
knowledge and resources for third-party firms to further innovate.
Unfortunately, private R&D data is coded in a manner based on the location of

company headquarters and not the research sites. Thus, the data may not reveal
the true location of the R&D activity. Be that as it may, the R&D concept was
operationalized in this study for each county by dividing total R&D expenditures by
total worker compensation. In this way, the volume of R&D expenditures is adjusted
for the level of productive activity in the county (as opposed to high personal
income values that may be due to a large presence of retirees) and, to some
degree, the local cost of living or doing business.
Venture Capital Investment: Venture capital (VC) funds are used to launch new
ideas or expand innovative companies. In the United States, VC may be
responsible for up to 14 percent of all innovative output activity. VC investment firms
are highly selective with their investments to maximize the probability of high
returns. The return on VC, and possibly the importance of VC, is diminished
somewhat by the fact that the VC investments are typically management-intensive.
Looking for VC funding may consume a considerable level of effort by the seeking
firm’s management, just as VC firms exert considerable effort seeking suitable
projects to invest in.
Broadband Density: Broadband provides high-speed Internet connections to

businesses and consumers. Several state-level studies have attempted to capture
the effect of adding broadband capacity to a region’s infrastructure. These studies
suggest that broadband capacity has an overwhelmingly positive effect on
economic performance. High-speed Internet access ensures that businesses and
individuals can collaborate from virtually any location.
The Federal Communications Commission (FCC) collects data on the number of

broadband providers, not users or broadband lines, at a ZIP code level. To create a
measure—that is, a broadband density proxy at the county level—broadband
penetration was estimated by using population densities of ZIP codes to transform
the FCC ZIP code data into county-level data. This measure of broadband
penetration does not state how many individuals in a region have access to
broadband. Given the limitations of the data, but acknowledging the theoretical
importance of the concept, the index uses two broadband indicators. The first is a
measure of current density and the second is the rate of density change.
Churn: Competition is crucial to innovation. Market structures can influence the

degree to which innovation is even possible. Specifically, markets with high rates of
firm entry have been linked to increased levels of innovation. Conversely, the rate
at which businesses shut their doors or reduce their workforce indicates a decrease
in economic deadwood. Together the growth and contractions along with births and
deaths produce the notion of economic churn, which serves as an indicator of the
extent to which innovative and efficient companies replace outdated firms unable to
modernize techniques and processes. Churn has been linked to positive
employment growth and is not subject to agglomeration effects that often
distinguish urban and rural economic structures.
Business Sizes: Small firms, it is thought, are highly adaptable and can easily
change their processes to incorporate new ideas. In recent years, high merger
rates between small and large firms have coincided with increased technological
influence of small firms. Some evidence, however, suggests these acquisitions may
not be significant sources of innovation for large firms. Theoretically, a higher
proportion of large businesses would positively contribute to innovation through the
increased availability of funds for research and development, as well as the
resources to directly employ scientists rather than hire out research services.
Available data, however, do not identify whether, or the degree to which, an
establishment is engaged in innovation activities. Moreover, using data on large
establishments, defined as establishments with 500 or more employees, may be of
limited utility for explaining innovative capacities in rural counties with small
economies. Just the same, because the variable has some theoretical merit, the
number of large establishments per 10,000 workers remains in the index.
Productivity and Employment Sub-Index

The productivity and employment sub-index describes economic growth, regional
desirability, or direct outcomes of innovative activity. Variables in this index suggest the
extent to which local and regional economies are moving up the value chain and attracting
workers seeking particular jobs.
High-Tech Employment Share Growth: Just as the share of high-tech

employment in a county was an important input, the extent to which that share is
increasing relative to total employment is an important performance measure.
Firms requiring a highly skilled and specialized workforce are drawn to innovative
areas. In a similar way, this measure also registers the degree to which home-
grown, high-tech firms have expanded their presence. Growth in the share of high-
tech employment suggests the increasing presence of innovative activity and
signifies that high-tech firms are growing in the county or region both in relative as
well as absolute terms.
Job Growth-to-Population Growth Ratio: High employment growth relative to

population growth suggests jobs are being created faster than people are moving to
a region. Even though the ratio measures the change in level between jobs and
population and, therefore, can’t be used to compare rates of growth, it can rank
order counties or regions in terms of employment performance. A high ratio
between these two variables indicates strong employment growth. A negative value
signifies that population is growing while employment is declining or vice versa. In
cases for which population is declining while employment is increasing, the absolute
value of the ratio is used as that would be considered favorable employment
performance.
Patent Activity: Newly patented technologies provide an indicator of individuals’

and firms’ abilities to develop new technologies and remain competitive. The
number of patents produced is a commonly used output measure for innovative
activities, but the data can mislead. Patent data are coded to distinguish between
the residence of the filer and the recorded location of the employer (if the applicant
is not a private inventor), but the recorded location of the employer may or may not
correspond to the location of the work that produced the patent, especially if the
employer is a large, diversified company with many locations. In addition, the
available patent data cover only utility patents and not all patent types. Patent data
are recoded from the raw data provided by the U.S. Patent Office and awards
patents to any county from which one of the filers reported as their location. This
means that for any single patent with more than one filer, a patent may be counted
multiple times if filers are located in different counties. Patents can also be an
inaccurate indicator of innovation outcomes, particularly in areas where a single
firm overwhelms the total patent count, such as Eli Lilly in Indianapolis.
Gross Domestic Product: The final component of the productivity and
employment sub-index is the single most important measure of productivity
available—gross domestic product (GDP). The index incorporates both the level of
a county’s current-dollar GDP per worker today, and also growth in the value over
the past decade.
Economic Well-Being Sub-Index

Innovative economies improve economic well-being because residents earn more and
have a higher standard of living. Decreasing poverty rates, increasing employment, in-
migration of new residents and improvements in personal income signal a more desirable
location to live and point to an increase in economic well-being.
Average Poverty Rate: Innovative economies have greater employment

opportunities with higher compensation, thus lowering rates of poverty. Reduced
rates of poverty will tend to lag growth in employment opportunities. As a result, the
last three years of the most recent data are used. Since a high poverty rate is a
negative outcome, the index uses the inverse of the average poverty rate.
Average Unemployment Rate: Innovative economies have greater employment

opportunities and lower unemployment rates. Since a high unemployment rate is a
negative outcome, the index uses the inverse of average unemployment rate.
Net Migration: Migration measures the extent to which a county or region is

broadly appealing and excludes other elements of population dynamics such as
fertility rates. While people may migrate into a region for a host of reasons, from
employment opportunities to environmental amenities, migration out of a region
almost certainly signals declining economic conditions and the inability to keep the
innovative talent that will spawn economic growth in the future.
Compensation: Compensation data convey how much workers make based on

their place of work. Likewise, proprietors’ income is also based on place of work.
Compensation and proprietor’s income, therefore, probably provide a strong
relationship between the activities of innovation and the rewards of innovation
based on the location of innovation.
Growth in Per Capita Personal Income: As an alternative to measuring

remuneration based on place of work, per capita personal income (PCPI) measure
incomes by place of residence. Because PCPI includes other forms of income in
addition to wages, salaries and fringe benefits, it is a more comprehensive measure
of well-being. That said, the linkage between where innovation occurs (county of
work) and the financial rewards of innovation (county of residence) is less direct.
State Context Sub-Index

A fifth category, state context, seeks to capture data that are theoretically important but
available only at the state level. It is composed of science and engineering graduates from
state institutions per 1,000 residents of the state and research and development spending
per capita. The state context category is not given as much attention because it is not
used for the index calculation and because the indicator becomes diluted if a region
crosses state boundaries.
More Information
Calculating the Innovation Index
What the Innovation Index Research Shows
Innovation Index Innovation Index

Use the index to Methodology
investigate your
region's innovation Developing the Innovation Index began by identifying possible indicators used in previous
capabilities analyses, as well as researching additional indicators that were theoretically important and
View Innovation Index available at the county level. This page overviews the rationale behind the selected index
components.
Cluster Analysis
Explore 15 knowledge-based Human Capital Sub-Index

occupation clusters and 17
industry clusters to uncover Variables included in the human capital sub-index suggest the extent to which a county’s
regional strengths population and labor force are able to engage in innovative activities. Counties with high
View Occupation Clusters levels of human capital are those with enhanced knowledge that can be measured by high
View Industry Clusters educational attainment, growth in younger age brackets of the workforce (signifying
attractiveness to younger generations of workers), and a sizeable number of innovation-
related occupations and jobs relative to the overall labor force.
Investment Analysis
Education: Educational attainment measures the skills and knowledge that

development process and contribute to a population’s capacity to innovate. The research team was
access tools to help guide particularly interested in individuals in the labor force with tertiary degrees. Thus,
educational attainment was divided into two categories:
View Guidelines for
Regional Investment 1. Some college or an associate’s degree
2. Bachelor’s degree or higher
The distinction is made to capture the relative importance of a knowledge

differential, together with regional distinctions in the types of degrees earned. In
many states, educational funding mechanisms favor 4-year universities. Elsewhere
state policy tends to favor 2-year community colleges and vocational schools. An
important educational differential is also present within states and counties where
higher concentrations of bachelor’s degrees tend to surround metropolitan areas,
whereas associate degree concentrations tend to be elevated in more rural
counties where fewer residents have the resources or ability to travel to distant
four-year institutions. Community colleges and vocational schools are more widely
dispersed and proximate to rural residents. They also tend to provide education at
a lower cost, with easier access, and tend to offer more flexible course schedules,
such as evening or weekend courses. Community colleges are also more likely to
cater to a region’s economic development needs than larger universities.
Population Growth Rate: A growing population is desirable. But growth in the

number of newborns or retirees does little to suggest whether those persons most
likely to engage in innovative activities are present. For this reason, population
growth rates are confined in this study to ages 25 to 44. The lower bound ensures
transient college students typically aged 18 to 21 become less of a factor in
influencing the overall rate of growth, whereas the upper bound signifies a point at
This project is funded in part by the U.S. Commerce Department's Economic
Development Administration. Work was conducted by the Purdue Center for
Regional Development, the Indiana Business Research Center at Indiana
University's Kelley School of Business, Strategic Development Group, Inc.,
the Rural Policy Research Institute, and Economic Modeling Specialists,
Inc. The project received additional support from the State of Indiana through the
This website was produced and is maintained by the Indiana Business Research Center
at Indiana University’s Kelley School of Business. Questions and comments about the
site may be emailed to ibrc@iupui.edu.
Innovation Index What the Innovation Index

The Index helps Research Shows
you understand
your region's Interpreting the Innovation Index (also known as the portfolio index) can get complex
innovation performance and given its broad, multi-metric nature with both innovation inputs and outputs. In order to
potential identify those specific factors with the greatest influence on economic growth, while
View Innovation Index
controlling for some non-innovation factors, the research team statistically analyzed the
innovation input data. Interpreting the results is simpler than the portfolio approach
Cluster Analysis because there is only one output measureeconomic growth (i.e., GDP-per-worker
growth).
Explore 15 knowledge-based
occupation clusters and 17 In updated research using a descriptive cross-sectional regression model, the research
team found that the following indicators have a positive and significant relationship to
regional strengths
View Occupation Clusters increases in GDP per worker:
View Industry Clusters
1. Change in high-tech employment share
2. Average small establishments per 10,000 workers
Investment Analysis 3. Percent of population, ages 25-64, with some college or an associate’s degree
4. Population growth rate for ages 25-44
development process and In addition, change in broadband density also proves to be significant when the model
access tools to help guide
focuses on a smaller time span (2002-2007).
View Guidelines for
An “empirical index” based on statistical analysis would include only these factors that
Regional Investment
positively influence growth. That said, additional analysis currently underway will point to
which factors may be more important given a region or county’s characteristics. For
example, there may be a rural/urban divide in terms of which factors have more influence
on growth. In addition to spatial characteristics, population density or resource
endowments may also affect growth. As longer time series become available, longitudinal
analysis will also help to establish which factors tend to drive economic growth at a
regional level.
More Information
Innovation Index Methodology
Calculating the Innovation Index
This project is funded in part by the U.S. Commerce Department's Economic Development Administration. Work was
conducted by the Purdue Center for Regional Development, the Indiana Business Research Center at Indiana University's
Kelley School of Business, Strategic Development Group, Inc., the Rural Policy Research Institute, and Economic Modeling
Specialists, Inc. The project received additional support from the State of Indiana through the Indiana Office
of Community and Rural Affairs.
This website was produced and is maintained by the Indiana Business Research Center at Indiana University’s
Kelley School of Business. Questions and comments about the site may be emailed to ibrc@iupui.edu.
Innovation Index Why to Use the Innovation Benefits to Practitioners
The Index helps Index The Innovation Index helps to:

you understand
your region's The Innovation Index provides leaders and practitioners with the Understand how a
innovation performance and first tool for comparing a region's innovation performance with
region compares to the
potential that of the United States, a state, or other regions. Users can
View Innovation Index nation, other regions
design their own region and easily make comparisons across
and states in terms of
regions.
innovation capacity and
Cluster Analysis innovation results.
Innovation is a multifaceted concept, so this tool allows the
Explore 15 knowledge-based exploration of the different dimensions of innovation. The Reveal what individual
occupation clusters and 17 Innovation Index comprises two broad categories: inputs to indicators are driving
innovation, which measure innovation capacity, and outputs of innovation in a region.
regional strengths
View Occupation Clusters innovation, which measure the results.
Communicate the need
View Industry Clusters for new development
Within each broad category, the index provides additional detail
and individual measures that collectively comprise the category. using the economic
Investment Analysis well-being sub-index.

The Innovation Index is designed to highlight factors that
Test regional scenarios
Understand the regional indicate a region is more or less ready to participate in the
development process and with different sets of
knowledge economy. The index is not by itself intended to
access tools to help guide county partners.
public investment decisions directly guide decisions about investments in the region. More
View Guidelines for information about such decisions is found in the Guidelines for
Regional Investment Regional Investment.
Example
The index lets the practitioner explore innovation by guiding
questions and conversations about the region’s performance.
Economic dynamics play an important “input” role in innovation.
The term “economic dynamics” captures a variety of indicators:
venture capital, broadband penetration, investments in R&D, and
business formation. The index enables one to explore each of
these variables in depth and download detailed data by simply
clicking the drill-down feature.
Human capital is also a vital input to innovation. Therefore, the

index provides different perspectives to evaluate a region’s
human capital.
This tool also includes state-level indicators—total R&D spending

and science and technology graduates—that can help evaluate
the strength of a state’s investments to support innovation.
Innovation is not only about inputs, however. A region’s

economy must translate these inputs into productive outcomes:
employment in high-technology firms, greater output per worker,
the creation of patents, to name a few. By examining the output
indicators, one can explore how well your economy converts
innovation inputs into performance.

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Analysis supporting regional competitiveness in a knowledge-based economy.

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About the Index Innovation Index

1. Human Capital: 30%

The Based on statistical Economies do not recognize

Learn more Learn more about the research

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Inputs and Capacity State Context Outputs

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Components Human Capital

Population Growth Rates

Technology-Based Knowledge Occupations

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Percent of Adult Population With a Bachelor's Degree or Higher, 2000

Custom Region 24.7% 34,684 140,599

KS 28.7% 385,924 1,345,526

NE 27% 230,857 854,882

U.S. 26.5% 39,078,598 147,232,667

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Percent Change in Mid-Aged Population, 1997-2006

Average Annual Change in Mid-Aged Population Mid-Aged Population

Custom Region -2.8% 66,283 84,938

KS -1.2% 711,162 791,239

NE -1.1% 450,045 498,804

U.S. -0.3% 83,223,135 85,573,378

Average Annual Change in Mid-Aged Population Mid-Aged Population

Custom Region Chase, KS -2.7% 634 806

Custom Region Clay, KS -3% 1,745 2,279

Custom Region Cloud, KS -2.4% 1,947 2,423

Custom Region Dickinson, KS -2.6% 4,194 5,286

Custom Region Ellsworth, KS -2.6% 1,448 1,827

Custom Region Geary, KS -3.2% 6,529 8,676

Custom Region Jewell, KS -6.9% 494 917

Custom Region Lincoln, KS -4.1% 595 859

Custom Region Lyon, KS -3.1% 7,660 10,152

Custom Region Marshall, KS -3.8% 1,956 2,764

Custom Region Mitchell, KS -4.1% 1,166 1,687

Custom Region Morris, KS -3.5% 1,132 1,558

Custom Region Pottawatomie, KS -1.3% 4,618 5,170

Custom Region Republic, KS -6.9% 758 1,412

Custom Region Riley, KS -3% 13,755 18,035

Custom Region Wabaunsee, KS -3% 1,468 1,926

Custom Region Washington, KS -4.1% 1,078 1,563

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Percent of Adult Population With Some College or an Associate's Degree, 2000

Custom Region 34.6% 48,641 140,599

KS 32.8% 440,763 1,345,526

NE 34.8% 297,083 854,882

U.S. 29.6% 43,521,981 147,232,667

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Components Economic Dynamics

Average Private R&D

Broadband Density and Penetration

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Average Venture Capital Investment per $10,000 GDP, 2000-2006

Average Venture Capital Investment per $10,000 GDP

Custom Region $0.00

Region County Average Venture Capital Investment per $10,000 GDP

Custom Region Chase, KS $0.00

Custom Region Clay, KS $0.00

Custom Region Cloud, KS $0.00

Custom Region Dickinson, KS $0.00

Custom Region Ellsworth, KS $0.00