Data

1. HOW MASSACHUSETTS CAN BECOME
MORE INNOVATIVE
Lance Galletti

2. METHODOLOGY
 Prediction vs Explanation (for future policies)
 Aiming for Interpretability and Simplicity so as to
guide (rather than dictate) policies
 Proxy for Innovation is change in Real GDP change
 Linear model of Innovation?

3. BIAS
 Assume similarity between states
 Innovation → GDP change, but converse may be
false
 Reliability and Precision (i.e. Startups)

4. VARIABLE SELECTION
 Meaningless Variables:
Region
Non-Innovative Industries (Agriculture, Arts …etc.)
 Potential Significant Variables:
Taxes
Innovative Industries
Startup Jobs
Urban Population

5. VARIABLE SELECTION
EXAMPLE: INNOVATIVE INDUSTRIES
 Innovative Industries in yellow region

6. VARIABLE SELECTION

7. MODEL DIAGNOSTICS

8. MODEL DIAGNOSTICS

9. THE MODEL

10. POLICIES
 Encouraging Investment in:
Retail Trade
Mining Sector
Management of Enterprise
Non-Durable Goods Industries

11. SOURCES