2018 US Innovation Scorecard

INNOVATION Scorecard 1
Contents
WELCOME LETTERS 3
EXECUTIVE SUMMARY 8
Overview 9
Rankings by Category 12
Best & Brightest 14
Fast Internet 15
Grants Advanced Degrees 16
Tech Workforce 17
Tax Friendly 18
Attracts Investment 19
Entrepreneurial Activity 20
Ridesharing 21
Short-Term Rentals 22
Innovation-Friendly Sustainable Policies 23
Self-Driving Vehicles 24
Drones 25
STATE PROFILES 27
METHODOLOGY 128
ACKNOWLEDGMENTS 133

Letters
WELCOME

4
Four years ago, we launched our Innovation Scorecard to identify states that
are promoting technological progress, creating good jobs for talented men and
women and improving the quality of life for people across the United States.
Since then, we’ve seen time and again that people benefit when policy-
makers adopt forward-thinking attitudes, take a light-handed approach to
rulemaking, and collaborate with businesses in crafting regulation to
govern the emerging technologies that will change our lives.
This year, 12 states have earned our highest honor, being named Innovation
Champions. The list includes one newcomer, Pennsylvania, which enjoyed
significantly increased job growth. After sliding in the rankings in 2017,
Arizona and Kansas once again earned Innovation Champion status this
year, with improvements in internet speed, job growth and the shares of
their populations with advanced degrees.
Across the country, policymakers continue to grapple with new technolo-
gies that herald revolutionary changes in how we move and interact with
the world around us. In the past year, several states set new guidelines for
self-driving vehicles. Some states have opened their roads to testing and
developing systems that will bring about a new wave of mobility, providing
safe and unprecedented transportation options for the elderly and disabled,
while others have simply slammed on the brakes.
Other legislators set their sights on the sky, passing new laws that allow
people to use drones for commercial operations. And once again, legislators
in other states have saddled the technology with burdensome rules that
keep it stuck on the ground.
welcome.

Our rankings encompass a state’s scores
in each of 12 quantitative and qualitative
categories, including whether or not a
state has a law prohibiting discrimina-
tion on the basis of sexual orientation
and gender identity, the percentage of
the population with an advanced
degree, the amount of venture capital
and R&D money spent there and the
number of households with high-speed
internet connections.
This year we upped the ante for socially
transformative technologies, dividing
the sharing economy into distinct Short-
Term Rentals and Ridesharing categories.
Similarly, Self-Driving Vehicles and Drones became their own independent
categories.
But in 2018, as in years past, the Innovation Scorecard evaluates all 50 states,
identifying those with policies that impede progress, and those with policies
that allow innovators to thrive. Read this year’s report to see how well your
state is welcoming the developments that will make all our lives better.
Gary Shapiro
President and CEO,
Consumer Technology Association (CTA)™

6
Michigan’s status as the national Comeback State has a lot to do with the
way we have leveraged our assets, particularly those in the technology field.
With the advancements happening in technology across our nation today,
we have a lot to be proud of. But as technology rapidly evolves, states need
to be proactive to stay ahead.
There are a number of states that are or were in the same place Michigan
was when I took office in 2011. During that time, Michigan’s economy was at
an all-time low. The Lost Decade took a toll on our state, but with Relentless
Positive Action and a renewed focus on making our government work for
our residents, we have officially come back.
Since I took office, we have created more than 540,000 new private-sector
jobs. While just over a quarter of these have been in the manufacturing
sector, Michigan has seen great growth in the tech sector, particularly in
Detroit, as well as in West Michigan.
With the boost in our jobs market came a new set of problems — a talent
shortage across multiple industries that threatens our state’s economic re-
covery. That is why I recently proposed the Marshall Plan for Talent.
Through this initiative, Michigan is reinventing the way we develop, attract and
invest in talent within Science, Technology, Engineering and Math (STEM)
fields. We’re working to help Michiganders fill high-tech, high-salary and
in-demand jobs as the IT and computer science fields continue rapid growth
through our state. This plan will invest $100 million over five years in innovative
programs to revolutionize our talent and education systems.
dear reader,

Michigan has earned the top-tier title of
Innovation Champion four years run-
ning. We have used the CTA Innovation
Scorecard to help us evaluate ourselves
on what we excel at and where we still
need improvements. From 2017 to 2018,
we improved our grades in Entrepre-
neurial Activity and Tax Friendliness by
a half letter grade.
I invite you to take a close look at your
own state’s Innovation Scorecard. The
information within can help you trans-
form your state and help your residents
reach their fullest potential.
Rick Snyder
Governor,
Michigan

Overview
Innovation starts with a seed of an idea. It takes an entrepreneur with vision and cour-
age to make that seed blossom into a business that enriches our lives or even provides
for our livelihood.
But ideas can only take root in welcoming environments. States where leaders rec-
ognize the transformative power of innovation, and allow entrepreneurs to test new
technologies and new business models, create more robust economic growth, more
high-quality jobs and more livable cities. These states are fostering new technologies
such as drones and self-driving vehicles, welcoming new business models including
ridesharing and short-term rental platforms, and empowering their citizens with the
right skills to work in a range of emerging fields.
The annual CTA Innovation Scorecard grades every state
on a combination of 12 qualitative and quantitative crite-
ria and ranks them into four tiers: Innovation Champions,
Innovation Leaders, Innovation Adopters and Modest
Innovators.
Innovation Champions
Modest Innovators
Innovation Adopters
Innovation Leaders

10
The 2018 Innovation Champions are the
top-ranked states in the nation, earning
high marks for their openness to emerging
technologies, their diverse and well-educated
workforces, their fast internet connections
and their business-friendly environments that
encourage investment and job creation. Three
states improved their ranking to Innovation Champion this
year: Arizona, Kansas and Pennsylvania.
Arizona
Colorado
Delaware
Kansas
Maryland
Massachusetts
Michigan
New Hampshire
Pennsylvania
Utah
Virginia
Washington
Connecticut
Florida
Georgia
Indiana
Iowa
Maine
Minnesota
Missouri
Nebraska
New Jersey
New York
North Carolina
North Dakota
Ohio
Oregon
Rhode Island
South Carolina
South Dakota
Texas
Vermont
1. INNOVATION CHAMPIONS
2. INNOVATION LEADERS
The largest group in the Innovation Scorecard,
Innovation Leaders scored high grades in
several of the 12 categories. These states share
relatively business-friendly policies, a general
acceptance of transformative technologies,
well-educated workforces and considerable
entrepreneurial activity.

The third tier is the Innovation Adopters,
which show some friendliness to innovation,
but fall short in more than one area. Some of
these states have Right-to-Work laws and laws
protecting employees from discrimination
on the basis of sexual orientation and gender
identity, but they may lack the tech talent or
tax structures to encourage innovators to start businesses
and stay there.
Alaska
California
Idaho
Illinois
Montana
Nevada
New Mexico
Oklahoma
Wisconsin
Alabama
Arkansas
Hawaii
Kentucky
Louisiana
Mississippi
Tennessee
West Virginia
Wyoming
3. INNOVATION ADOPTERS
4. MODEST INNOVATORS
Nine states landed in the lowest tier on
the Innovation Scorecard this year. Modest
Innovators lack the policies needed to propel
innovation, with many of them enacting
burdensome regulations on new technologies,
imposing high taxes on entrepreneurs and
failing to develop diverse and well-educated
tech workforces. This year, all nine Modest Innovators also
had below-average access to fast internet connections.

12
Rankings By Category
Best & Brightest
The states with the best protections
for their workers are
Iowa, Nevada and Utah
Fast Internet
The states with the greatest proportions of
households with high-speed internet access are
Delaware,NewJersey,Massachusetts,RhodeIsland,Maryland,
Hawaii,NewHampshire,NewYork,FloridaandConnecticut
Grants Advanced Degrees
The states with the greatest proportions of
people holding advanced degrees are
Massachusetts, Maryland, Connecticut, Virginia,
New York, Vermont, New Jersey and Colorado
Tech Workforce
The states with the greatest
numbers of tech jobs per capita are
Massachusetts, Virginia, Minnesota, Maryland,
Colorado and Washington
Tax Friendly
The states with the most
business-friendly tax policies are
Wyoming, South Dakota, Alaska,
Florida, Nevada and Montana
Attracts Investment
The states with the highest combined scores
for per capita venture capital and R&D are
Massachusetts, Delaware and California

Rankings By Category
Entrepreneurial Activity
The states where small businesses are creating
the greatest numbers of jobs per capita are
Utah, Nevada, Massachusetts, Oregon,
North Dakota, Pennsylvania and Washington
Ridesharing
The states that allow ridesharing
services to operate statewide are
AK, AZ, AR, CA, CO, CT, DE, FL, GA, IN, IA, KS, KY, ME, MD,
MA, MI, MS, MO, MT, NE, NV, NH, NJ, NM, NC, ND, OH,
OK, PA, RI, SC, SD, TN, TX, UT, VA, WI, WV and WY
Short-Term Rentals
The states with the best policy frameworks
for short-term rentals are
Arizona, Idaho, New Hampshire
and Rhode Island
Sustainable Policies
The state with the most innovation-friendly
environmental policies is
Nebraska
Self-Driving Vehicles
The states that have opened their roads to
self-driving vehicle testing are
AK, AZ, AR, DE, FL, HI, ID, IL, IN, IA, KS, KY, LA, MA,
MD, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY,
NC, OH, OK, OR, PA, RI, SC, SD, TX, VT, VA, WA, WV,
WI and WY
Drones
The states with policies that best
facilitate drone innovation are
AL, AK, AZ, AR, CA, CO, HI, IA, KS, ME, MD, MA, MI,
MN, MS, MO, MT, NE, NH, NJ, NM, NY, ND, OH, OK,
PA, SC, VT, VA, WA and WV

14
The Best & Brightest grade draws on two components: Right-to-
Work laws and LGBTQ protections. Right-to-Work laws allow work-
ers to choose whether to join and pay dues to an established labor
union rather than compelling them to do so.
For decades, Right-to-Work states have enjoyed faster economic
growth than those without these protections, along with greater
job growth and higher personal incomes. In 2017, Kentucky and
Missouri passed Right-to-Work legislation, bringing the total number of states with
Right-to-Work protections to 28.
As with Right-to-Work regulations, legislation that protects workers from discrimination
on the basis of sexual orientation and gender identity helps foster innovation by creating
a more welcoming work environment. States that have laws explicitly protecting workers
from these types of discrimination received high grades, while those that rely solely on
federal rules or have laws preventing municipalities from passing non-discrimination leg-
islation received low grades.
Iowa
Nevada
Utah
Alabama
Arizona
Florida
Georgia
Idaho
Indiana
Kansas
Kentucky
Louisiana
Michigan
Mississippi
Missouri
Nebraska
North Dakota
Oklahoma
South Carolina
South Dakota
Texas
Virginia
West Virginia
Wisconsin
Wyoming
Arkansas
California
Colorado
Connecticut
Delaware
Hawaii
Illinois
Maine
Maryland
Massachusetts
Minnesota
New Jersey
New Mexico
New York
North Carolina
Oregon
Rhode Island
Tennessee
Vermont
Washington
New Hampshire
Alaska
Montana
Ohio
Pennsylvania
A
A
A
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
D+
D
D
D
D
State Grade State Grade State Grade
Source: CTA
Best & Brightest

Just as new businesses rely heavily on early investors and hard-working
employees, high-speed internet connections have become indispens-
able. Without them, they run the risk of falling behind their better-con-
nected competitors. This category measures the percentage of house-
holds with internet speeds of at least 10 megabits per second (mbps) and
the percentage with speeds of at least 25 mbps. The top-ranked states in
this category were Delaware, New Jersey, Massachusetts, Rhode Island,
Maryland, Hawaii, New Hampshire, New York, Florida and Connecticut.
Source: Federal Communications Commission, “Internet Services: Status as of December 31, 2016” (Figure 32)
Fast Internet
Delaware
New Jersey
Massachusetts
Rhode Island
Maryland
Hawaii
New Hampshire
New York
Florida
Connecticut
Washington
Virginia
California
Colorado
Oregon
Nevada
Pennsylvania
Utah
Vermont
Arizona
Illinois
Michigan
North Dakota
North Carolina
South Dakota
A+
A+
A+
A
A
A
A
A-
A-
A-
B+
B+
B+
B+
B+
B+
B+
B
B
B
B
B
B
B
B
State Grade
0.83
0.83
0.79
0.72
0.74
0.61
0.69
0.66
0.63
0.62
0.64
0.62
0.56
0.6
0.58
0.53
0.58
0.55
0.51
0.51
0.48
0.48
0.48
0.49
0.47
0.86
0.86
0.83
0.81
0.79
0.89
0.77
0.79
0.81
0.77
0.7
0.7
0.73
0.66
0.66
0.7
0.65
0.63
0.64
0.63
0.65
0.64
0.64
0.63
0.64
Georgia
Minnesota
Texas
Tennessee
South Carolina
Wyoming
Alaska
Indiana
Wisconsin
Ohio
Kansas
Montana
Nebraska
Missouri
Maine
Louisiana
West Virginia
Alabama
Iowa
Kentucky
Oklahoma
Idaho
New Mexico
Arkansas
Mississippi
B-
B-
B-
C+
C+
C+
C+
C+
C+
C
C
C
C
C
C-
C-
C-
C-
D+
D
D
D
D-
D-
F
State Grade
0.46
0.51
0.41
0.44
0.34
0.45
0.4
0.4
0.35
0.3
0.36
0.44
0.38
0.37
0.28
0.36
0.39
0.35
0.38
0.27
0.3
0.32
0.35
0.24
0.22
0.63
0.58
0.63
0.59
0.63
0.54
0.58
0.58
0.62
0.65
0.59
0.51
0.55
0.55
0.62
0.55
0.49
0.52
0.47
0.52
0.49
0.43
0.4
0.44
0.41
Percentage of households with
internet speeds of at least:
10 mpbs 25 mpbs
Percentage of households with
internet speeds of at least:
10 mpbs 25 mpbs

16
States with a well-educated workforce are better positioned to
attract the kind of innovative businesses that bring high-paying,
skilled jobs with them and foster economic growth. This category
ranks states based on the percentages of their residents over the
age of 24 with graduate or professional degrees. The top perform-
ers in this category were Massachusetts, Maryland, Connecticut,
Virginia, New York, Vermont, New Jersey and Colorado.
Advanced Degrees
(percentage of people
aged ≥25) Grade State Grade
Massachusetts
Maryland
Connecticut
Virginia
New York
Vermont
New Jersey
Colorado
New Hampshire
Rhode Island
Illinois
Delaware
Washington
California
Oregon
New Mexico
Minnesota
Pennsylvania
Kansas
Georgia
Michigan
Utah
Hawaii
Maine
Alaska
A+
A+
A+
A
A
A-
A-
A-
B+
B+
B+
B+
B+
B
B
B
B
B
B
B
B
B
B
B
B
Arizona
Missouri
North Carolina
Florida
Ohio
Nebraska
Montana
South Carolina
Texas
Wisconsin
Kentucky
Tennessee
Alabama
Indiana
Wyoming
Iowa
Idaho
Oklahoma
South Dakota
Louisiana
Mississippi
Nevada
North Dakota
West Virginia
Arkansas
B
B
B-
C+
C+
C+
C+
C
C
C
C-
C-
D+
D+
D+
D+
D
D-
D-
F
F
F
F
F
F
18.2
17.7
16.8
15.7
15.1
14.5
14.4
14.3
13.4
13.1
12.7
12.4
12.3
11.9
11.9
11.6
11.5
11.5
11.4
11.1
10.7
10.7
10.6
10.5
10.4
10.4
10.4
10.2
10.0
10.0
9.9
9.8
9.6
9.6
9.6
9.3
9.3
8.9
8.9
8.8
8.7
8.4
8.1
8.1
7.9
7.9
7.9
7.7
7.7
7.6
Source: Census Bureau, Educational Attainment, 2012-2016 American Community Survey 5-Year Estimates
State
Advanced Degrees
(percentage of people
aged ≥25)

As more and more work depends on solid technological knowledge,
the states with the largest tech workforces have a leg up in attracting
the kind of innovative businesses that can spur economic growth. This
category measures the number of technology-related jobs per capita
in each state. Six states rose above the rest: Massachusetts, Virginia,
Minnesota, Maryland, Colorado and Washington.
Tech Workforce
Massachusetts
Virginia
Minnesota
Maryland
Colorado
Washington
Utah
New Hampshire
Connecticut
Wisconsin
California
Illinois
Nebraska
Vermont
Michigan
New Jersey
Ohio
Rhode Island
Pennsylvania
North Dakota
New York
Georgia
Kansas
Oregon
Missouri
A+
A+
A
A
A
A-
B+
B+
B+
B+
B+
B
B
B
B
B
B
B
B
B
B
B
B
B
B
State Tech Jobs Grade
0.0560279
0.0536234
0.0498138
0.0493314
0.0486775
0.0475768
0.0443200
0.0438344
0.0433810
0.0431048
0.0426278
0.0406311
0.0396987
0.0395937
0.0392132
0.0389760
0.0386745
0.0381854
0.0380641
0.0379180
0.0377852
0.0373692
0.0372581
0.0372276
0.0372099
Per Capita
381,650
451,070
274,970
296,800
269,700
346,740
135,230
58,510
155,150
249,090
1673,140
520,140
75,710
24,730
389,320
348,620
449,180
40,340
486,620
28,740
746,080
385,290
108,320
152,390
226,720
Delaware
Arizona
Iowa
Texas
North Carolina
Indiana
South Dakota
Maine
Tennessee
Florida
Oklahoma
Alabama
Idaho
South Carolina
New Mexico
Alaska
Kentucky
Hawaii
Arkansas
Montana
Wyoming
Nevada
West Virginia
Louisiana
Mississippi
B-
B-
B-
B-
B-
C+
C
C-
C-
C-
C-
D+
D+
D+
D+
D+
D
D
D
D
D-
D-
F
F
F
State Tech Jobs Grade
0.0366362
0.0363393
0.0358568
0.0356044
0.0351412
0.0334718
0.0327112
0.0310557
0.0306125
0.0299237
0.0293330
0.0287932
0.0285478
0.0281912
0.0278806
0.0273624
0.0269778
0.0266073
0.0259885
0.0256590
0.0251921
0.0250029
0.0222598
0.0217636
0.0204335
Per Capita
34,880
251,870
112,400
992,030
356,570
222,020
28,310
41,350
203,610
616,800
115,090
140,030
48,050
139,860
58,020
20,300
119,700
38,010
77,660
26,750
14,750
73,510
40,760
101,890
61,070
Source: U.S. Bureau of Labor Statistics

18
States with simple, lean tax structures and attractive rates for
new businesses create a business-friendly environment and fer-
tile ground for innovation. This category draws on information
about each state’s corporate and individual income taxes, sales
and unemployment insurance taxes and property tax rates to
award each state a numerical grade. Just six states earned an ‘A-’
or better in this category: Wyoming, South Dakota, Alaska, Flori-
da, Nevada and Montana.
Source: Tax Foundation “2018 State Business Tax Climate Index”, October 2017 (p. 5)
Tax Friendly
Wyoming
South Dakota
Alaska
Florida
Nevada
Montana
New Hampshire
Indiana
Utah
Oregon
North Carolina
Michigan
Texas
Tennessee
Delaware
Missouri
Washington
Colorado
West Virginia
Idaho
Arizona
Massachusetts
Kansas
Mississippi
Nebraska
A+
A+
A
A
A-
A-
B+
B+
B+
B+
B+
B+
B
B
B
B
B
B
B
B
B
B
B
B
B
State Score Grade
7.820
7.470
7.210
6.860
6.460
6.280
6.160
5.980
5.980
5.800
5.760
5.640
5.610
5.580
5.510
5.440
5.420
5.410
5.330
5.220
5.210
5.200
5.150
5.130
5.100
Hawaii
Pennsylvania
Maine
Illinois
North Dakota
Virginia
Kentucky
Oklahoma
New Mexico
Alabama
Georgia
South Carolina
Wisconsin
Arkansas
Iowa
Rhode Island
Louisiana
Maryland
Connecticut
Ohio
Minnesota
Vermont
California
New York
New Jersey
B-
B-
B-
B-
B-
B-
B-
B-
C+
C+
C+
C+
C
C
C
C
C-
C-
C-
C-
D+
D+
D-
D-
F
State Score Grade
5.080
5.080
5.000
4.990
4.970
4.920
4.910
4.910
4.860
4.790
4.690
4.670
4.630
4.590
4.530
4.480
4.370
4.360
4.320
4.240
4.210
4.160
3.710
3.600
3.350

The Attracts Investment category is a combined measure of venture
capital and research and development spending per capita, a key el-
ement in fostering innovation. More than half of all states earned a
‘B’ grade or better, the majority of which were also either Innovation
Champions or Innovation Leaders. Only three earned an ‘A-’ or high-
er in this category, including perennial VC powerhouse California
and East Coast tech hub Massachusetts.
Attracts Investment
Massachusetts
California
Delaware
Washington
Connecticut
New York
Utah
Michigan
New Jersey
Oregon
New Hampshire
Minnesota
Colorado
Illinois
Maryland
Rhode Island
Idaho
North Carolina
Missouri
Indiana
Pennsylvania
Georgia
Virginia
Arizona
Ohio
State
VC
investment $
per capitaGrade
A+
A+
A-
B+
B+
B+
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
Wisconsin
Iowa
Texas
Kansas
Maine
Florida
South Carolina
Vermont
Nebraska
Montana
Alabama
Kentucky
New Mexico
Wyoming
North Dakota
Tennessee
Nevada
Oklahoma
South Dakota
Hawaii
Louisiana
Arkansas
West Virginia
Alaska
Mississippi
State Grade
B-
B-
B-
B-
B-
C
D+
D+
D+
D+
D
D
D
D
D
D
D-
D-
D-
F
F
F
F
F
F
$986.11
$891.41
$79.69
$215.45
$66.22
$564.07
$268.19
$24.45
$59.12
$65.84
$38.75
$89.69
$211.45
$143.18
$147.80
$178.10
$77.24
$84.97
$24.13
$18.46
$57.74
$163.19
$120.71
$24.49
$24.41
R&D
investment $
per capita
$3,153.95
$2,751.13
$2,815.98
$2,324.37
$2,385.88
$776.34
$1,073.01
$1,725.98
$1,577.85
$1,552.96
$1,447.41
$1,235.52
$787.29
$992.85
$853.66
$710.89
$923.27
$844.80
$997.54
$942.55
$809.90
$447.51
$533.30
$795.69
$778.69
VC
investment $
per capita
$12.09
$9.38
$57.45
$13.58
$168.06
$103.79
$56.83
$12.81
$42.19
$43.16
$8.48
$16.47
$27.11
$1.04
$4.88
$14.59
$23.39
$0.15
$0.97
$3.85
$14.03
$4.52
$0.69
$0.00
$0.00
R&D
investment $
per capita
$809.18
$809.97
$622.70
$731.27
$223.81
$282.16
$259.82
$395.46
$303.08
$215.82
$320.98
$291.19
$241.23
$302.31
$278.38
$236.05
$129.59
$168.47
$160.61
$130.20
$85.44
$101.06
$109.77
$88.96
$72.27
Source: VC Investment Source: PwC/NVCA MoneyTree Data, Q1’17 through Q4'17
R&D Investment Source: NSF Business Research and Development and Innovation: 2015 (Released August 2017) (Table 4)

20
This category measures the number of jobs per capita created
over 20 quarters (Q2/2011 through Q4/2016) by businesses with
fewer than 50 employees. This was once again an uneven catego-
ry. Thirty two states earned a ‘B’ grade or better and the remain-
ing 18 earned a ‘C’ grade or worse.
Source: US Census Bureau, Quarterly Workforce Indicators
Utah
Nevada
Massachusetts
Oregon
North Dakota
Pennsylvania
Washington
Texas
South Carolina
Michigan
Tennessee
Virginia
New York
Montana
South Dakota
New Hampshire
North Carolina
Nebraska
Wisconsin
Rhode Island
New Jersey
Ohio
Maryland
Louisiana
Minnesota

A+
A
A
A-
A-
A-
A-
B+
B+
B+
B+
B+
B+
B+
B+
B+
B
B
B
B
B
B
B
B
B
State Score Grade
Mississippi
Vermont
Kentucky
Maine
Kansas
Colorado
New Mexico
Idaho
California
Alaska
Oklahoma
Florida
Missouri
Georgia
Iowa
Connecticut
Wyoming
Arizona
Delaware
Illinois
Indiana
Arkansas
Hawaii
Alabama
West Virginia
B-
B-
B-
B-
B-
B-
B-
C
C
C-
C-
C-
C-
D+
D+
D+
D+
D
D
D
D
D-
D-
D-
F
State Score Grade
1.000
0.877
0.798
0.777
0.725
0.700
0.700
0.677
0.669
0.655
0.648
0.644
0.636
0.605
0.595
0.577
0.563
0.531
0.519
0.508
0.503
0.489
0.484
0.482
0.468
0.466
0.430
0.427
0.424
0.419
0.419
0.417
0.340
0.322
0.287
0.285
0.280
0.259
0.192
0.181
0.178
0.171
0.168
0.167
0.140
0.127
0.091
0.081
0.066
0.000

The vast majority of states allow Ridesharing services like Uber and
Lyft to operate, but the operations face substantive hurdles or all-out
bans in some municipalities. That said, only three states — Louisiana,
Oregon and Washington — earned below a ‘B’ grade in this category
thanks either to serious local restrictions or failed efforts to legalize
the services statewide.
Source: CTA
Ridesharing
Alaska
Arizona
Arkansas
Connecticut
Delaware
Florida
Georgia
Idaho
Indiana
Iowa
Kansas
Kentucky
Maine
Michigan
Mississippi
Missouri
Montana
New Hampshire
New Jersey
New Mexico
North Carolina
North Dakota
Ohio
Oklahoma
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Virginia
West Virginia
Wisconsin
Wyoming
California
Colorado
Maryland
Massachusetts
Nebraska
Nevada
Alabama
Hawaii
Illinois
Minnesota
New York
Vermont
Louisiana
Oregon
Washington
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A-
A-
A-
A-
A-
A-
B
B
B
B
B
B
C
C
C
State Grade State Grade

22
Another element of the sharing economy, short-term rentals, as with
ridesharing services, have been widely adopted by many states, but
face onerous regulations in a handful of others. 11 states earned a ‘C’
grade or worse in the Short-Term Rentals category, most for munici-
pal rules that place onerous burdens on the services or outlaw them
altogether. The worst offenders were New York, which imposes re-
strictive rules on rental hosts, and Hawaii, which levies harsh fines
on operators.
Short-Term Rentals
Arizona
Idaho
New Hampshire
Rhode Island
Arkansas
Iowa
Louisiana
Michigan
Mississippi
New Jersey
North Carolina
Pennsylvania
South Dakota
Alabama
Alaska
Colorado
Connecticut
Delaware
Indiana
Kansas
Kentucky
Maine
Maryland
Massachusetts
Missouri
Nebraska
New Mexico
North Dakota
Ohio
Oklahoma
Oregon
South Carolina
Tennessee
Vermont
Washington
West Virginia
Illinois
Nevada
Wisconsin
Minnesota
Montana
Texas
Wyoming
California
Florida
Georgia
Utah
Virginia
Hawaii
New York
A
A
A-
A-
B+
B+
B+
B+
B+
B+
B+
B+
B+
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B-
B-
B-
C+
C+
C+
C+
C
C
C
C
C
D
D
Source: CTA

States with policies that promote sustainability without inhib-
iting innovation net the best of both worlds: environmental
protections and economic growth. Policies on electronics recycling, en-
ergy efficiency, packaging and materials make up the basis for the
grades in this category and can either encourage innovation or stamp
it out. Every state but four earned either a ‘B’ or ‘C’ grade in this category.
Nebraska earned an ‘A-’ for its electronic recycling pilot program. Maine and
New York each earned a ‘D+’, and New Jersey earned a ‘D-’ — all for a mix of
untenablepolicies.
Innovation-FriendlySustainablePolicies
Nebraska
Arkansas
Colorado
Delaware
Utah
Alabama
Alaska
Arizona
Florida
Georgia
Idaho
Iowa
Kansas
Kentucky
Louisiana
Massachusetts
Michigan
Mississippi
Missouri
Montana
Nevada
New Hampshire
New Mexico
North Dakota
Ohio
Oklahoma
South Carolina
South Dakota
Tennessee
Texas
Virginia
Wyoming
Hawaii
Indiana
Maryland
Minnesota
West Virginia
Wisconsin
North Carolina
Oregon
Vermont
California
Pennsylvania
Rhode Island
Washington
Connecticut
Illinois
Maine
New York
New Jersey
A-
B+
B+
B+
B+
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B-
B-
B-
B-
B-
B-
C+
C+
C+
C
C
C
C
C-
C-
D+
D+
D-
Source: CTA

24
As self-driving vehicles speed closer to a roadway reality, states
andcitiesaregrapplingwiththeideathatthisnewtechnologywill
all too soon become commonplace. In an effort not to fall behind
theircounterparts,moststateshavepassedregulationspermitting
self-driving vehicles, or at least taken no actions to block them.
Only three states earned below a ‘B’ in this category: California,
Connecticut and Massachusetts, although the Golden State re-
cently approved rules to allow testing without a driver present in
the vehicle, which will likely improve its grade in the future.
Source: CTA
Alaska
Arizona
Arkansas
Delaware
Florida
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Texas
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Alabama
Colorado
Georgia
North Dakota
Tennessee
Utah
California
Connecticut
Massachusetts
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
B
B
B
B
B
B
C
C
C

Drones present a horizon of potential innovative applications for com-
mercial and individual users. In a handful of states, however, that po-
tential is impeded by overly restrictive or vague laws that go beyond
the rules set by the Federal Aviation Administration. 12 states earned a
‘C’ grade or worse in this category, many for redundant rules that limit
where a drone can be used or who can operate it.
Source: CTA
Drones
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Hawaii
Iowa
Kansas
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
New Hampshire
New Jersey
New Mexico
New York
North Dakota
Ohio
Oklahoma
Pennsylvania
South Carolina
Vermont
Virginia
Washington
West Virginia
Connecticut
Delaware
Indiana
Louisiana
Florida
Georgia
Nevada
South Dakota
Kentucky
Utah
Idaho
North Carolina
Rhode Island
Texas
Wyoming
Illinois
Oregon
Tennessee
Wisconsin
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
B+
B+
B+
B+
B
B
B-
C
C-
C-
D
D
D
D
D
D-
D-
D-
D-

International INNOVATION Scorecard 27
Profiles
STATE

28
Using education to bring innovation
to life
This year, Alabama fell from an Innovation Adopter to
a Modest Innovator, but as it emerges from the shadow
of years of high unemployment, the state is promoting
education to spur innovation and economic growth.
Alabama earned low marks for its tech workforce (few-
er than 29 jobs per 1,000 people) and its share of res-
idents with advanced degrees (8.9 percent), but new
statewide initiatives could turn those grades around.
In her 2018 State of the State address, Governor Kay
Ivey announced a plan to establish a high school in
Huntsville that will enable students to pursue careers
in rapidly expanding industries. “This school will pre-
pare some of our state’s highest-achieving students to
enter the growing fields of cyber technology and engi-
neering,” said Ivey.
So far, the state has attracted more than $3 billion in
investment and created 7,000 new jobs. In Birming-
ham, local delivery service Shipt was acquired by
Target for $550 million, funneling investment into
the local economy.
Such moves have paid dividends for the state’s work-
force. Unemployment reached a record low of 3.5 percent
in December 2017, down nearly 3 percent from the previ-
ous year. That’s an especially significant improvement,-
given that the state had the third-worst unemployment
rate in the country in 2016 and seemed to be heading in
the wrong direction in early 2017, when unemployment
rose to 6.4 percent.
Sources: (WHNT) (Yellowhammer News) (WHNT) (Birmingham Business
Journal) (Advance Local) (Advance Local) (Alabama News Center)
WHAT DID WE DO RIGHT?
Alabama allows people to operate drones without
overly burdensome rules.
WHATCAN WE DO BETTER NEXT YEAR?
Alabama can increase the percentage of people over the
age of 24 earning advanced degrees, boost its tech work-
force and encourage small businesses to create new jobs
in the state.
WHERE HAVE WE MOSTIMPROVED?
Alabamaestablishedajointcommitteetostudyself-driv-
ing vehicles, a first step in opening roads to them.
Alabama
MODEST INNOVATOR
Best & Brightest
Fast Internet
Tech Workforce
Tax Friendly
Attracts Investment
Ridesharing
Short-Term Rentals
B
C-
D+
D+
C+
D
D-
B
B
B
Drones
B
A

Less than $9 per capita in venture capital
made its way into Alabama, but R&D invest-
ment topped $320 per capita.
Attracts InvestmentGrants Advanced Degrees
Fewer than nine percent of Alabamans over
the age of 24 have advanced degrees, a step
behind other Southern states but ahead of
neighboring Mississippi.
Tech Workforce
A total of more than 140,000 tech jobs puts
Alabama behind neighboring Tennessee
and Georgia.
Fast Internet
Just over half of the households in Alabama
have access to internet connections of at
least 10 mbps, and 35 percent have connec-
tions over 25 mbps.
Accelerating
Job Growth with
Expansions in
Automotive Tech
Alabama has long been a stomping
ground for the automotive industry,
and companies are ramping up hiring
to meet demands for skilled workers.
Hyundai is partnering with Trenholm
State Community College to offer in-
dustrial maintenance students intern-
ships at its manufacturing plant in
Montgomery. The temporary summer
opportunity can turn into a permanent job with pay up to $80,000 and only requires a two-year degree.
Mercedes-Benz recently broke ground in Bibb County on a new Global Logistics Center and after-sales hub.
Together, the facilities will house more than 400 new jobs when operations begin in 2019. Local leaders lauded
the expansion as a “game-changer” for the rural area, which previously was not fully integrated into Alabama’s
auto manufacturing industry.
Mercedes executives credited the local pool of skilled workers as one of the reasons the company chose Bibb
County for the new facility.
PHOTO CREDIT: Hyundai Motor Manufacturing Alabama | Sources: (Tuscaloosa News) (Tuscaloosa News)

30
Vast state, sizable challenges
Spanning two time zones and the largest geographical
area in the country, Alaska’s sheer size poses challeng-
es for residents and businesses looking to stay con-
nected.
The state — which improved from a Modest Innovator
to an Innovation Adopter this year — continues to fall
behind the Federal Communication Commission’s goal
of bringing 25 mbps broadband connections to every
American. Alaska’s internet connectivity lags most in
rural areas, where 65 percent of residents get speeds be-
low 25 mbps.
But groups are turning their attention to the problem:
Alaska’s largest telecommunications and technology
company, GCI, recently upgraded wireless services for
a handful of municipalities.
“To deliver service successfully across Alaska, you have
to be willing to use every tool in your toolkit — and you
need a pretty big toolkit,” said Heather Handyside, se-
nior director of corporate communications for the com-
pany. “Alaska’s tough terrain, vast distances and heavily
regulated land require our team to be creative when we
upgrade our networks.”
Rural residents will likely see improved connections as
well, thanks to an expansion by telephone and internet
service provider Alaska Communications. The compa-
ny recently announced plans to expand wireless connec-
tions on the Kenai Peninsula over the next eight years.
Sources: (FCC) (GCI) (Peninsula Clarion)
Alaska allows self-driving vehicles to operate without
excessive rules, and residents to use short-term rentals.
Alaska can pass bills that give employees the right to
work and protect them from discrimination based on
sexual orientation and gender identity.
Alaska legalized ridesharing, bringing its grade in the
category to an ‘A’ instead of an ‘F’.
Alaska
Best & Brightest
Fast Internet
Tech Workforce
Tax Friendly
Attracts Investment
Ridesharing
Short-Term Rentals
D
C+
B
D+
A
F
C-
A
B
B
Drones
A
A
INNOVATION ADOPTER

Alaska earned high marks for sales, in-
come and corporate tax rates that are
friendly to innovation.
Tax Friendly
Fast Internet
More than 50 percent of Alaskan house-
holds have internet connections of at least
10 mbps, but only 35 percent enjoy speeds
of 25 mbps or more.
More than 10 percent of residents over the
age of 24 have an advanced degree.
From Q2/2011 through Q4/2016, Alaska’s
small businesses added more than 40 jobs
per 1,000 people.
Creating Science
and Technology
Roles for Girls in
the Last Frontier
The Girl Scouts of Alaska is pre-
paring young women for careers in
STEM through their annual Women
of Science & Technology Day and
Introduce a Girl to Engineering Day.
The Engineering Day is a collabo-
ration with ExxonMobil — a major
employer in the state — and the An-
chorage School District. During the
event, professionals in a variety of STEM disciplines mentor more than 100 middle school students with
science and engineering projects.
The same hands-on approach is on display during the organization’s Women of Science and Technol-
ogy Days, during which professionals lead scouts through workshops designed to introduce them to a
range of STEM-related fields.
The events partner with women currently working in STEM fields to educate and excite girls about new
careers such as veterinary medicine and environmental engineering.
Sources: (Girl Scouts of Alaska) (KTUU) (Alaska Journal)

32
A haven for self-driving vehicles
Arizona, once again an Innovation Champion after a
brief hiatus last year, has opened its roads to self-driv-
ing vehicles. Waymo, Google’s self-driving vehicle
unit, was the first to begin testing, in the Phoenix sub-
urb of Chandler in November 2017.
Intel, which also tests self-driving vehicles in the state,
plans to expand there. In 2017, the company announced
Fab 42, a $7 billion semiconductor factory in Chandler
that will build processors for data centers and connect-
ed devices. The highly advanced factory is expected to
create 10,000 new jobs.
The growth of self-driving vehicles in Arizona is the
result of a concerted approach by state authorities. In
2015, Governor Doug Ducey signed an executive order
setting safety rules and other guidelines for self-driv-
ing vehicle testing. Since then, the Grand Canyon
State has welcomed more than 600 of the vehicles on
public roads.
Three years later, Ducey recommitted to keeping the
state on top as a nationwide hub for self-driving tech.
The governor signed another executive order in March
2018 clarifying that SDVs can operate without a driver
on public roads as long as they can adhere to all traffic
laws. The newest order is an effort, Ducey said, to keep
policies and state priorities on pace with technologi-
cal advancements.
Sources: (NYT) (NYT) (Arizona Republic) (Phoenix Business Journal)
(Safe Roads) (AZ DOT)
Arizona is largely open to the testing of self-driving ve-
hicles on public roads, and also allows drones to operate
without excessive rules.
Arizona’s low rate of job creation leaves it with room
for improvement in Entrepreneurial Activity.
More than 60 percent of Arizona households have in-
ternet connections of at least 10 mbps, and over half
meet the standard of 25 mbps.
Best & Brightest
Fast Internet
Tech Workforce
Tax Friendly
Attracts Investment
Ridesharing
Short-Term Rentals
B
B
B
B-
B
B
D
A
A
B
Drones
A
A
Arizona
INNOVATION CHAMPION

More than 10 percent of people over the age
of 24 have an advanced degree, a step above
most other states.
Tech Workforce
With more than 251,000 tech jobs, the tech
workforce in Arizona accounts for more
than 36 jobs per 1,000 people.
Attracts Investment
Venture capital investment reached $24.49
per capita and R&D spending topped out at
more than $795 per capita.
Morethan60percentofArizonahouse-
holds have access to internet connec-
tions of at least 10 mbps, and 51 percent
enjoy speeds of 25 mbps or more.
Fast Internet
Building a Big
Factory to Make a
Smaller Chip — and
Create Thousands
of New Jobs
The Phoenix metro area is welcom-
ing a rush of new tech jobs.
Amazon is revamping its 10-year-
old fulfillment center and opening a
new facility, adding 1,000 new jobs
in the process. The company already
counts 6,000 Arizona workers spread
throughout four fulfillment centers on its payroll.
In Chandler, Intel will boost jobs with the long-awaited completion of its semiconductor factory Fab 42.
The company plans to invest $7 billion on the facility and create 3,000 high-tech jobs over the next several
years. Once it opens, Fab 42 will add an estimated 10,000 long-term jobs.
Chandler will also welcome expansions by Liberty Mutual Insurance, which will add 750 jobs to a new
office in 2019, with expectations to add another 250 jobs to its workforce in the future.
The city will also welcome Wells Fargo, which will add over 1,000 new jobs with new office space in the city.
PHOTO CREDIT: Intel | Sources: (Arizona Central) (Phoenix Business Journal) (AZ Big Media)

34
Sowing the seeds for homegrown
startups
Arkansas is home to established Fortune 500 power-
houses, and it is also spawning startups to serve them.
In Fayetteville, in the northwest corner of the state,
Walmart and Tyson have invested in emerging tech-
nologies companies in retail, food and logistics.
In 2017, the state legislature passed a law green light-
ing driver-assisted truck platooning, which allows a
convoy of connected vehicles to operate with the lead
vehicle controlling the others. Arkansas is one of only
nine states that have approved commercial use of the
technology, which proponents say could make large
vehicles more fuel efficient and ease traffic congestion.
State leaders also maintained their focus on keeping
homegrown talent flowing into the state’s tech sec-
tor. A 2014 bill made the Natural State the first in the
nation to require all public and charter high schools
to teach computer science, after which the number of
students taking courses in the subject leapt 260 per-
cent in a year. In 2018, more than 6,100 students were
enrolled in the classes.
And in 2018 the state expanded its branch of the
Environmental and Spatial Technology Initiative, a
hands-on education program that gives students ex-
perience with high-end technology in a variety of
professions. The latest expansion adds cybersecurity
training to the options available to students, building
on course offerings that already include video and au-
dio editing and community mapping.
Sources: (Arkansas EDC) (GovTech) (Wired) (KSLA) (Time)
(East Initiative) (Arkansas Online)
Arkansas continued to split the costs of electronics re-
cycling between government and industry.
Arkansas can increase its internet speeds, and the per-
centage of residents with advanced degrees, in which
it currently ranks last.
Ridesharing services are now legal across Arkansas,
and Uber expanded its presence in the state in 2017.
Arkansas
Best & Brightest
Fast Internet
Tech Workforce
Tax Friendly
Attracts Investment
Ridesharing
Short-Term Rentals
C
D-
F
D
C
F
D-
A
B+
B+
Drones
A
A
MODEST INNOVATOR

Arkansas permits operators to fly drones
without overly restrictive regulations.
Drones
Tech Workforce
Arkansas has only 78,000 tech jobs, few-
er than every neighboring state except
Mississippi.
Ridesharing
Ridesharing is legal across Arkansas with-
out undue regulatory burdens.
Short-Term Rentals
Arkansas reached a tax agreement with
Airbnb that allows the platform to collect
taxes for hosts and remit them to the state.
Telecom Brings
Hundreds of New
Jobs to Little Rock
North Little Rock’s tech workforce is
growing thanks to telecommunica-
tions company First Orion’s decision
to locate its global headquarters in
the city.
First Orion, which produces call
transparency software to identify
scam and other unwanted phone
calls, will hire 200 people to staff its
60,000-square-foot center. “Central
Arkansas is an inspirng place for us to be,” said First Orion CEO Charles D. Morgan. “Not only is First
Orion building technology, but we are also building careers.”
The headquarters will anchor the as-yet-unfinished Argenta Plaza, a communal space city leaders hope
will revitalize the downtown area and attract a new wave of businesses.
“We believe the Argenta Plaza will be a community where big, brave ideas are given the chance to grow
unfettered. First Orion is a shining example of our state’s best and brightest creating technologies that
make the world a better place,” said North Little Rock Mayor Joe Smith.
Sources: (Area Development) (Area Development)

36
The south will rise again?
Silicon Valley has long been the global hub for up-and-
coming technologies, and a magnet for venture capital
— in which it comes in second only to Massachusetts.
Now, southern California is making a bid to attract the
talent that currently flocks to the Bay Area. The “Sili-
con Beach” region is home to outposts for tech giants
Facebook, Google and Snap Inc., the parent company
of Snapchat, but its lags its northern counterpart when
it comes to the pool of educated workers.
Southern California universities are looking to change
that. In 2017, the University of California Los Angeles
announced the creation of the Silicon Beach Innovation
Lab, designed to help its students find paths into high-
tech companies regardless of prior experience in tech.
“We have a huge number of students who are current-
ly employed in another industry and want to change
careers — people who might have been doing some-
thing else but want to learn coding or cybersecurity,”
said Bruce Huang, director of the digital technology
department for UCLA Extension.
Nearby, Loyola Marymount University focuses its ef-
forts on combining southern California’s traditional
industries with regional startups. LMU, which bills it-
self as “the University of Silicon Beach”, plans to open
a 50,000-square foot campus in the heart of the region
to foster collaboration between its film and television
students and tech firms seeking creative talent.
Sources: (LA Times) (UCLA) (LMU) (Daily Breeze)
California boasts $890 per capita in VC, and state
regulators eased restrictions to allow testing of self-
driving vehicles without a driver on public roads.
California can lower corporate taxes and lighten reg-
ulations on businesses.
As of 2017, California allows rideshare drivers to operate
anywhere in the state under a single business license.
California
Best & Brightest
Fast Internet
Tech Workforce
Tax Friendly
Attracts Investment
Ridesharing
Short-Term Rentals
C
B+
B
B+
D-
A+
C
A-
C
C
Drones
C
A
INNOVATION ADOPTER

More than 70 percent of households
have access to internet connections of
at least 10 mbps, and 56 percent enjoy
speeds of 25 mbps or more.
Fast Internet
Small businesses added more than 1.7 mil-
lion new jobs from Q2/2011 to the Q4/2016,
a rate of about 44 new jobs per 1,000 people.
Nearly 12 percent of residents over the age
of 24 have an advanced degree.
Tech Workforce
Driven by major hubs including Silicon Valley,
California boasts more than 1.6 million tech
jobs, or about 42.63 jobs per 1,000 people.
The Golden State
Aims to Stay on Top
in Tech with STEM
Education Push
California aims to continue its tech
workforce dominance with new pro-
grams that will give students a leg up
in STEM fields.
FabLab, a new education center and
workshop in San Joaquin County, is
equipped with laser cutters, 3D print-
ers, milling machines and circuitry,
and programming tools to help cen-
tral California students get the skills needed to enter the state’s high-tech workforce. The lab is designed
to give students of all grade levels hands-on experience in a variety of STEM disciplines.
The San Joaquin lab is one of several scattered throughout the state. Others serve students in Sacramento,
Los Angeles, San Diego and elsewhere.
After the success of Marvel’s Black Panther, which extensively featured advanced technology, Hollywood
is also adding its clout to support STEM training. Disney plans to donate $1 million to the Boys & Girls
Clubs of America to fund STEM innovation centers in a dozen cities including Los Angeles and Oakland.
PHOTO CREDIT: San Joaquin County Office of Education | Sources: (The Record) (New York Times)

38
Rolling out the welcome mat for
tech talent
Already a magnet for companies looking to escape the
high costs of California, Colorado has seen a spike in
investment. In 2017, Colorado companies took in more
than $1 billion in venture capital funding — their great-
est amount since 2001 — a continuation of an upward
trend over the past several years. The fourth quarter of
2017 alone saw nearly $200 million in VC investment.
The Denver area fared particularly well, netting 155
deals and more than $822 million — up from $554 mil-
lion in 2016.
Colorado’s tech sector also appears to have a bright
future ahead, thanks to a substantial science and engi-
neering workforce. The large pool of highly-educated
talent bodes well for state officials’ desire to encourage
rapid growth of tech startups.
As the startup sector thrives in the state, Colorado
Chief Technology Officer Erik Mitisek says it is also
luring established companies. “You’re starting to see
a lot more mature aspects of an innovation economy
that are not only allowing startups to grow, but are at-
tracting the energy of outsiders as well,” he said.
And Colorado leaders are pushing to put innova-
tive technologies to use in protecting citizens. A bill
passed in 2017 calls on the state Department of Public
Safety to examine how the state could use drones in
everything from firefighting to search and rescue and
emergency management.
Sources: (Denver Post) (Inc) (NSF) (KUNC)
Colorado passed a bill requiring the Department of
Public Safety to study employing drones in firefight-
ing, search and rescue and emergency management.
Colorado should create consistent, statewide frame-
works for short-term rentals and self-driving vehicles.
Over 65 percent of households enjoy internet connec-
tions of 10 mbps, and 60 percent enjoy 25 mbps or more.
Colorado
Best & Brightest
Fast Internet
Tech Workforce
Tax Friendly
Attracts Investment
Ridesharing
Short-Term Rentals
C
B+
A-
A
B
B
B-
A-
B
B+
Drones
B
A
INNOVATION CHAMPION

Colorado employs 269,700 tech work-
ers — 48.68 per 1,000 people.
Tech Workforce
Colorado ranks near the top in Grants Ad-
vanced Degrees, with over 14 percent of res-
idents over the age of 24 holding advanced
degrees.
Attracts Investment
Roughly $1.2 billion in VC investment trans-
lates to more than $211 per capita, placing
Colorado above most other states.
State law allows the use of self-driving vehi-
cles, as long as the systems conform to state
and federal transportation rules.
Transit System for
the Future Delivers
Jobs to the Rockies
A hyperloop test center will fast-track
$15 million and an estimated 200 jobs
into the Denver area by 2020.
California-based startup Arrivo has
plans to build the center and test track
as part of its vision to create a system
that transports passengers at speeds of
up to 200 miles per hour. The compa-
ny’s choice of the Denver metro area
for its test facility is a evidence of the
region’s innovative culture, said Colorado Governor John Hickenlooper.
Arrivo’s endeavor will be the second hyperloop project slated for the Centennial State. Virgin Hyperloop One
is also planning a feasibility study for a route between Pueblo, Colorado and Cheyenne, Wyoming.
Unlike Hyperloop One’s system, Arrivo’s proposal will focus on short-distrance travel. The Colorado Depart-
ment of Transportation contributed $200,000 to help make the project a reality. Arrivo plans to open a commer-
cial route within five years, to include a train that takes passengers from downtown Denver to the city’s airport
in about a quarter of the time it currently takes to make the trip by car.
Sources: (Ars Technica)

40
Building affordable alternatives for
fledgling businesses
Connecticut struggled in Entrepreneurial Activity this
year, but an increasing number of businesses are open-
ing their doors in the state.
Hartford has become a top city for tech jobs. ReSET, an
incubator based there, saw the number of applicants tri-
ple from 2016 to 2017, even after it raised its admission
requirements. To date, graduates of the program have
generated more than $4 million in revenue.
While Hartford is smaller than other tech hubs, some
ReSET participants see that as an advantage. “For a
company actually building a startup, to be in New York
or Boston is extremely expensive. And second, you are
one of too many other companies like you,” said Boaz Zil-
berman, CEO of ReSET-based startup Project Ray. “Here
there is a small enough community we can get an initial
impact quite rapidly.”
Residents of the Nutmeg State also enjoy better-than-
average internet access, with more than 60 percent of
households boasting connections of 25 mbps or more.
But even as Connecticut makes strides in attracting new
talent and improving its Entrepreneurial Activity grade,
its leaders have room to improve in a handful of other
areas as well. For starters, policymakers could streamline
their rules on self-driving vehicles to ease the way for
widespread testing of the new technology.
Sources: (Hartford Business) (Brookings) (Hartford Courant) (The Hour)
(Hartford Courant)
Connecticut ranks third in percentage of residents
with an advanced degree.
Connecticut should streamline its self-driving vehicle
rules and reform its electronics recycling program to
allow market forces to make it more cost-effective.
Connecticut passed comprehensive statewide ride-
sharing rules addressing insurance requirements and
hiring practices.
Connecticut
Best & Brightest
Fast Internet
Tech Workforce
Tax Friendly
Attracts Investment
Ridesharing
Short-Term Rentals
C
A-
A+
B+
C-
B+
D+
A
B
C-
Drones
C
B+
INNOVATION LEADER

Connecticut added more than 114,000
jobs between Q2/2011 and Q4/2016.
Entrepreneurial
Activity
At 16.8 percent, Connecticut ranks third —
behind only Massachusetts and Maryland
— for the percentage of residents over the
age of 24 with an advanced degree.
Fast Internet
77 percent of Connecticut households have
internet connections of at least 10 mbps,
and 62 percent enjoy speeds of 25 mbps or
more.
A state law on self-driving vehicles defined
several terms related to the industry and es-
tablished a task force to study SDVs.
Expansions Create
New jobs Across the
Constitution State
A handful of high-tech companies are
choosing to expand in the Constitution
State.
India-based IT consulting firm Infos-
ys plans to open a tech and innovation
hub in Hartford by 2022, one of four
hubs it will open in the U.S. The loca-
tion will add 1,000 new jobs in Con-
necticut focused primarily on insur-
ance, healthcare and manufacturing.
The Hartford hub will join others Infosys has planned for Indianapolis, Indiana, Providence, Rhode Island
and Raleigh, North Carolina.
To the southwest of the state capital, semiconductor manufacturer ASML is expected to create more than
500 new jobs in Wilton.
The company’s expansion of its manufacturing and engineering operations over the next eight years is a
potentially $100 million project. “ASML Wilton has a long local history. For the past 30 years, we continually
invested in our stateof-the-art manufacturing facility and highly educated workforce, which has been critical
to our ongoing success and growth,” said ASML Wilton General Manager Bill Amalfitano.
Sources: (Cision) (Area Development)

42
Maintaining friendly skies for
commercial drones
Once again an Innovation Champion, Delaware
punches above its weight in measures of education
and technology adoption.
A PwC report puts the value of commercial drone
use at more than $127 billion globally, with applica-
tions in agriculture, architecture and a range of other
industries. In the First State, husband and wife team
Theophilus and Suzanne Nix hope to capitalize on the
growing field by training a generation of drone pilots.
With a grant from the Delaware Department of
Labor, the Nixes established Drone Workforce
Solutions, a drone training school that doubles as an
employment and referral agency, matching gradu-
ates with employers looking for drone talent. The 10-
week program goes beyond piloting and into building
drones, and capturing and editing aerial images —
skills that better equip them to meet the demands of
commercial drone operations.
“We want them to understand what this machine does,
so when things happen they can troubleshoot,” said
Mr. Nix. “We think they make a better pilot when they
can do that.”
The Drone Workforce Solutions curriculum also cov-
ers the drone rules established by the Federal Aviation
Administration and prepares them for the FAA’s com-
mercial drone license exam.
Sources: (WHYY) (Drone Workforce Solutions) (Delaware Online) (PwC)
A 2017 executive order established an advisory council
to prepare Delaware for self-driving vehicles.
Delaware can create more jobs. Over the past five
years, the state added fewer than 30,000 jobs — a rate
well behind that of most other states.
Drone rules are overly restrictive, but statewide legisla-
tion preempts municipalities from regulating the devices.
Delaware
Best & Brightest
Fast Internet
Tech Workforce
Tax Friendly
Attracts Investment
Ridesharing
Short-Term Rentals
C
A+
B+
B-
B
A-
D
A
B
B+
Drones
A
B+
INNOVATION CHAMPION

More than 12 percent of Delaware res-
idents over age 24 have an advanced
degree, a cut above many other states.
Grants Advanced
Degrees
Attracts Investment
At $2,751.13 per capita, Delaware is second
only to Massachusetts in research and de-
velopment investment.
Fast Internet
Delaware tied New Jersey for the highest
percentage of households with internet
speeds of at least 10 mbps (86 percent) and
at least 25 mbps (83 percent).
Tech Workforce
Delaware is home to nearly 35,000 tech
jobs, about 37 jobs per 1,000 people.
A Booming Biotech
Sector Brings
Growth to New
Castle County
Biotech company QPS Holdings will
grow its presence in Delaware with
two lab expansions in New Castle
County.
The company, which operates a
12,000-square-foot lab at the Dela-
ware Technology Park , will double
its number of lab technicians, the
latest expansion for the company
that began in 1996 in one room of the Delaware Technology Park equipped with a single piece of equip-
ment. Now, QPS brings in approximately $130 million in revenue and employs 300 people in Delaware
and 1,200 worldwide.
The expansion comes shortly after the University of Delaware was chosen by federal officials to house
the National Institute for Innovation in Manufacturing Biopharmaceuticals, a national epicenter for
pharmeceuticals production. The president of the Delaware Technology Park, where QPS is headquar-
tered, said the company’s expansion and the university’s newfound anchor role in the national biophar-
maceuticals market will be a boon to the state.
Sources: (Delaware Online )

44
Senior citizens get first crack at
new tech
The Villages, a sprawling retirement community that
houses 125,000 residents over more than 30 square
miles, will soon feature a handful of self-driving cars.
Voyage, a California-based startup, plans to roll out
self-driving taxis to serve passengers along more than
750 miles of community roadway.
Oliver Cameron, CEO of Voyage, credits Florida’s wel-
coming attitude towards self-driving vehicles for the
company’s decision to come east.
Florida leaders are removing barriers to the deploy-
ment of self-driving vehicles. In 2012, the state legisla-
ture passed a law allowing anyone with a valid driver’s
license to operate one of the vehicles. Then, in 2016,
state leaders increased their commitment to the tech-
nology by easing a handful of other requirements.
Voyage is not alone in choosing the Sunshine State
to launch new technology, as Florida boasts a boom-
ing startup sector. Miami has become a magnet for
international startups, thanks to its strong entre-
preneurial spirit and its role as a gateway to Latin
American markets. In 2017, the Miami-Dade Bea-
con Council, the economic development organiza-
tion for the county, reported an uptick in the num-
ber of foreign companies exploring the possibility
of investing in or establishing businesses in Miami.
Sources: (The Verge) (Voyage) (Politifact) (Kauffman) (Miami Herald)
(Miami Herald)
Florida welcomes self-driving vehicles, and a law that
went into effect in 2017 allows commercial drone use.
Florida can create consistent statewide rules on short-
term rentals and preempt municipalities from regulat-
ing the properties.
Gov. Rick Scott signed a bill setting statewide rules for
ridesharing companies and preempting local rules.
Florida
Best & Brightest
Fast Internet
Tech Workforce
Tax Friendly
Attracts Investment
Ridesharing
Short-Term Rentals
B
A-
C+
C-
A
C
C-
A
C
B
Drones
A
B
INNOVATION LEADER

Florida is a Right-to-Work state, but
lacks a state law protecting workers
from discrimination on the basis of
sexual orientation or gender identity.
Best & Brightest
10 percent of Florida residents over the age
of 24 have advanced degrees, a rate on par
with that of most other states.
Fast Internet
More than 80 percent of Floridian house-
holds have internet connections of at least
10 mbps, and 63 percent enjoy speeds of 25
mbps or more.
Tech Workforce
Florida’s tech workforce accounts for fewer
than 30 jobs per 1,000 people, placing it a
step behind many other states.
College to Offer Free
Hands-on Courses
in Technology Skills
A partnership between nonprofit
Generation and Miami Dade College
will give Floridians free 16-week IT
course. Students can earn up to two
IT certificates and 12 college credits.
The program, which is geared toward
the unemployed and underemployed,
grew out of a federal grant program
announced by the White House in
2015 to train young people in tech
professions.
Students take classes that cover technical and practical lessons, and incorporate hands-on learning from
IT professionals. In addition to the technical skills needed for their new professions, the program teaches
soft skills to help them land jobs and succeed in the workplace. As soon as they finish the program, grad-
uates are ready to take on jobs as IT help desk staff or network administartors.
So far, the program has an 88 percent graduation rate and has sent about 75 percent, or 115 graduates, into
the workforce, at companies including Apple, GE and Mastercard.
PHOTO CREDIT: Miami Dade College | Sources: (WLRN) (The Idea Center)

46
Atlanta attracts tech expansions
Tech talent finds a welcome home in the Peach State.
Commercial real estate company CBRE ranks Atlanta
ninth on its list of best markets for tech talent, citing the
city’s 46.7 percent growth in tech jobs since 2010.
PSA, parent company of French automotive brands
Peugeot and Citroën, plans to open its North American
operations base in Atlanta.
PSA North America President Larry Dominique said
the company chose Atlanta for the expansion because
the city bridges the gap between technology develop-
ment and a humming car culture. The expansion will
further add to Georgia’s sizeable tech workforce — al-
ready more than 385,000 jobs — beginning with tech
hires to push the company’s Free2Move app in the U.S.
PSA is hardly alone in looking to Atlanta. Las
Vegas-based data center company Switch is opening
its own million-square foot center in Atlanta — a multi-
billion-dollar investment in the area — and Google in-
vested $300 million to expand its own data center in
2015.
But while Georgia as a whole earned respectable scores
for welcoming new technologies, it still has room for im-
provement in the Short-Term Rentals category. While
short-term rentals are operational across the state, mu-
nicipal regulations in Savannah present significant hur-
dles to rental services like Airbnb and VRBO.
Sources: (Hypeotamus) (Atlanta Journal-Constitution)
(Atlanta Journal-Constitution) (Atlanta Journal-Constitution)
(Atlanta Journal-Constitution)
In 2017, Georgia passed a law to test driver-assistive
truck platooning, but testing faces some restrictions.
Georgia can create more new jobs and make short-
term rentals legal statewide.
Georgia took in more than $160 per capita in venture
capital funding in 2017, a 151 percent increase over
2016 that brings the state’s total haul above $1 billion.
Georgia
Best & Brightest
Fast Internet
Tech Workforce
Tax Friendly
Attracts Investment
Ridesharing
Short-Term Rentals
B
B-
B
B
C+
B
D+
A
C
B
Drones
B
B
INNOVATION LEADER

More than 60 percent of Georgia
households have internet connections
of at least 10 mbps, and 46 percent en-
joy speeds of 25 mbps or more.
Fast Internet
Attracts Investment
Georgia attracted more than $163 per capita
in venture capital in 2017, and $447 in R&D
investment.
Tech Workforce
Georgia has roughly 37 tech jobs per 1,000
people, more than several of its neighbors.
11 percent of Georgia residents over the age
of 24 have an advanced degree, a greater
share than many other states.
Atlanta, a Rising
Tech Hub, Lures Big
Expansions
Recent hiring by Atlanta companies is
helping cement the city’s role as a re-
gional tech hub.
IT management consulting firm
CapTechplanstoadd100jobstoitsnew
office located in the city’s tallest build-
ing. “CapTech is excited to contribute
to Atlanta’s boom in tech job creation,”
said Boyd Christain, CapTech’s Atlanta
office lead.
Privacy software company OneTrust will create 500 jobs in Atlanta in an expansion that brings along a $5 million
investment. “Having previously built two successful technology companies in this city, I believe Atlanta has the
top technology talent pool for building a leading, successful software company to serve our global customer base”
said OneTrust Co-chairman Alan Dabbiere.
The expansions are part of a larger statewide trend. Georgia has added more than 6,000 tech jobs since 2016 and
attracted more than $600 million as the result of tech companies expanding or relocating to the southern state.
PHOTO CREDIT: Connor.Carey, Wikimedia Commons | Sources: (Business Facilities) (Business Facilities)

48
Launching conservation efforts with
aerial help
Nearly nine million people visited Hawaii in 2016, drawn
by the island state’s tropical waters and splendid vistas. To
help mitigate the environmental pressures of tourism and
development, and to ensure that future visitors continue
to enjoy the state’s diverse flora and fauna, researchers are
turning to drones.
Conservationists with the National Tropical Botanical
Garden used a drone to find a critically endangered plant
species in a 1,000-acre preserve. The Laukahi plant, an
important medicinal herb in traditional Hawaiian culture,
was grazed nearly to extinction by goats imported to the
island. With the help of a drone, researchers found 10 addi-
tional Laukahi plants. “It’s amazing how much of a game
changer this is for field botanists. Discovering a popula-
tion like this would usually take days of searching under
life-threatening conditions, but this happened in 20 min-
utes,” said Merlin Edmonds, an NTBG conservationist.
Researchers at the University of Hawaii’s Applied Re-
search Lab are in the midst of a study to expand the use of
drones even further. Thanks in part to a grant from NASA,
the university is working to improve drone reliability and
discover new applications for the technology. Staff at the
institution have already set their sights on drones for envi-
ronmental and invasive species studies.
In other areas, alas, Hawaii earns poorer marks. The state
receivedan‘F’inAttractsInvestmentthisyear,withamea-
ger $3.85 in venture capital funding per capita and $130.20
per capita in R&D investment.
Sources: (Hawaii News Now) (The Verge) (KHON2) (NTBG)
In 2017, the Governor signed an executive order wel-
coming self-driving vehicles on public roads.
Hawaii needs to attract more venture capital, and regu-
lators should also remove requirements that short-term
rental services share data with the state.
At89percent,Hawaiihasthehighestproportionofhouse-
holds with access to internet speeds of at least 10 mbps.
Hawaii
Best & Brightest
Fast Internet
Tech Workforce
Tax Friendly
Attracts Investment
Ridesharing
Short-Term Rentals
C
A
B
D
B-
F
D-
B
D
B-
Drones
A
A
MODEST INNOVATOR

Hawaii’s tech workforce accounts for
only 27 jobs per 1,000 people, fewer
than most states.
Tech Workforce
Nearly 11 percent of Hawaiians over the age
of 24 have an advanced degree.
Tax Friendly
Hawaii ranks in the middle of the pack in
measures of tax friendliness.
Hawaii improved its electronics recycling
law in 2015, but mandates for television
manufacturers fail to factor in the decreas-
ing weights of the devices.
New Solar Deal Will
Power As Many As
1,000 Green Jobs
A trans-pacific deal between two solar
power companies will bring a surge of
new jobs to Hawaii.
Haleakala Solar, the third-largest solar
services provider in the state, was ac-
quired by California-based Petersen-
Dean Roofing & Solar.
The move will bring an estimated
1,000 new jobs to the Aloha State in
the next two years. Hawaii already boasts some of the highest rates of adoption for renewable energy and has
a mandate for 100 percent renewable energy by 2045.
“Solar is a critical part of the state’s energy portfolio. The islands are a virtual incubator for all new technol-
ogy,” said Gary Liardon, the PetersenDean executive leading the transition.
Before the March 2018 deal, Haleakala Solar employed 125 people and operated on three islands. The move
will substantially boost its workforce, grow its business on the Mainland and begin work on a fourth island
by the end of the year.
Sources: (Pacific Business News) (Maui News)

50
Building out STEM education to
keep pace with booming growth
Idaho was the nation’s fastest-growing state in 2016 — the
Census Bureau shows its population increased by 2.2 per-
cent — and the state’s tech workforce is growing, too.
Though its Tech Workforce grade does not yet reflect the
state’s progress, Idaho scored a major increase in tech-
nology jobs. The Gem State nonetheless faces the chal-
lenge of keeping up with demand for workers to fill tech
positions: In 2017, according to the director of the Idaho
STEM Action Center, 7,000 STEM jobs in the state went
unfilled — twice as many as in the year before. By 2024,
the deficit could reach 36,000.
State officials hope more funding for STEM programs
willfixthat.GovernorButchOtter’s2019budgetincluded
$1 million to expand post-secondary training programs
at six technical colleges around the state to prepare stu-
dents to enter seven high-demand fields.
The 2019 budget also set aside $2 million for a STEM Ac-
tion Center initiative, which will funnel financial support
into regional STEM fairs, grants for computer science ac-
tivities at public schools and professional development
for STEM teachers.
And the K-12 STEM branch of the Idaho National Labora-
tory is lending a hand. The INL offers funding to schools
to train teachers in STEM subjects, promotes computer
science education for students and awards grants for
STEM-centered projects to give students around the
state easy access to hands-on programs.
Sources: (Census) (Idaho Statesman) (Department of Energy)
Idaho invested more than $920 per capita in research
and development, well ahead of most other states.
Idaho can lift overly burdensome and duplicative laws
on drone operation.
Idaho is now home to more than 48,000 technology jobs,
a step ahead of neighboring Montana and Wyoming.
Idaho
Best & Brightest
Fast Internet
Tech Workforce
Tax Friendly
Attracts Investment
Ridesharing
Short-Term Rentals
B
D
D
D+
B
B
C
A
A
B
Drones
A
D
INNOVATION ADOPTER

In 2016, Idaho passed a bill legaliz-
ing short-term rentals and permitting
companies to collect and remit taxes
for them.
Short-Term Rentals
Tax Friendly
With moderate property taxes and a corpo-
rate tax rate of 7.4 percent, Idaho scores bet-
ter than most states.
Best & Brightest
Though a Right-to-Work state, Idaho lacks a
statelawtoprotectworkersfromdiscrimination
basedonsexualorientationorgenderidentity.
Only 9 percent of Idahoans over age 24
have an advanced degree, a smaller share
than most other states.
New Kind of Power
Plant for Safer,
More Affordable
Nuclear Energy
Idaho Falls will be the first city to
host a power plant using new mod-
ular technology developed by NuS-
cale Power.
The plant at Idaho National Lab will
fuel more than 1,200 construction
jobs and add 400 permanent jobs to
the local workforce after it opens in
2026. “Of course we have the world’s
expertise in nuclear energy right here in our backyard,” said Jackie Flowers, general manager of Idaho
Falls Power. “And so for us it’s an opportunity to maintain that leadership role in advancing nuclear
generation, tap into that intellectual talent that we already have.”
The Oregon-based company hopes to turn the lagging tide of the nuclear power industry with its mod-
ular reactors, which are safer, nimbler and more affordable than traditional models.
Modular reactors can be built piece by piece in a factory and assembled onsite, and allow the reactors
to go online incrementally rather than waiting until an entire power plant is completed.
PHOTO CREDIT: Idaho National Laboratory | Sources: (Local News 8) (Washington Post)

52
The tech industry breathes life into
the Windy City
Illinois fell from an Innovation Leader to an Innova-
tion Adopter this year, but Chicago’s tech boom con-
tinues. Pharmacy giant Walgreens announced plans
to double the number of employees in its tech office,
which oversees the systems responsible for store oper-
ation nationwide.
Chicago’s well-educated workforce is a bright spot in
the Land of Lincoln, and shows no signs of slowing
down after two decades of growth. From 1990 to 2010,
the share of 24-year-old Chicagoans with bachelor’s
degrees jumped from 19 to 33 percent, and those num-
bers continue to climb.
In the city’s South Loop, the University of Illinois, the
University of Chicago and Northwestern University
will team up on the Discovery Partners Institute, a
center dedicated to training and retaining tech talent.
“It’s an attempt to really take advantage of the assets
that the state and the city have to accelerate econom-
ic development,” says University of Illinois President
Timothy Killeen, an accomplished scientist, “and to
provide opportunities for our students to stay in the
state and for innovations to flow into our economy.”
The 62-acre center will link researchers, students and
private companies in specialized research projects on
areas including Big Data, agriculture and health.
Sources: (Manhattan Institute) (Chicago Magazine) (Chicago Tribune)
(Chicago Tribune) (University of Illinois)
Illinois boasts a higher percentage of residents with ad-
vanced degrees than most other states.
Illinois should overturn state laws that allow local au-
thorities to restrict drones — regulations better left to
the FAA, which has jurisdiction to govern airspace.
Illinois passed a bill to prevent local governments
from prohibiting the use of self-driving vehicles.
Illinois
Best & Brightest
Fast Internet
Tech Workforce
Tax Friendly
Attracts Investment
Ridesharing
Short-Term Rentals
C
B
B+
B
B-
B
D
B
B-
C-
Drones
A
D-
INNOVATION ADOPTER

With more than 520,000 tech jobs —
about 41 per 1,000 people — Illinois
outpaces many other states.
Tech Workforce
Fast Internet
65 percent of Illinois households have in-
ternet connections of at least 10 mbps, and
nearly half enjoy speeds of at least 25 mbps.
Short-Term Rentals
Short-term rentals are banned in some ar-
eas of Chicago, a major market.
From Q2/2011 to Q4/2016, Illinois small
businesses added nearly 29 net jobs per
1,000 residents.
Chicago Connects
Students to Startups,
and Teaches Them
to Design and Code
New Apps
In Chicago, a handful of new initia-
tives will give students a chance to
get ahead in tech fields.
The University of Illinois plans to
build the Discovery Partners Insti-
tute, a research center serving 2,000
students and faculty members, in
partnership with the University of Chicago, Northwestern University and the Israeli government. The $1.2
billion center will enable students to conduct research while working for local startups.
Apple has also announced a citywide rollout of its “Everyone Can Code” program to teach Swift, its
programming language, to high school students. The effort is a partnership with the Mayor’s office,
Chicago Public Schools, City Colleges of Chicago and a handful of nonprofits and private businesses.
The program also includes after-school coding clubs for students, which will provide instruction in de-
signing and prototyping new apps.
PHOTO CREDIT: Apple | Sources: (Daily Illini) (Apple)

54
A Midwestern manufacturing hub
sets its sights on technology
Indiana continues to transform itself from a manufactur-
ing powerhouse into a new tech economy. Agribusiness
companies contribute more than $31 billion in annual
revenue to the state, accounting for more than 100,000
jobs, and they are increasingly turning to tech workers to
support modern farming practices.
One ag-tech startup, The Bee Corp., is riding that wave,
with a $225,000 National Science Foundation grant. The
buzzworthy company produces a beehive monitoring
system that enables beekeepers to study hive health
amid a dramatic decline in bee numbers.
The state is also keeping pace with new tech growth by
opening a 25,000-square foot Internet of Things lab. The
facility in Fisher, a suburb of Indianapolis, is designed to
attract IoT businesses to the state, where leaders hope
to put students, startups and companies under the same
roof to develop sensors and other IoT devices.
Indianapolis as a whole is hitting its stride. Between 2013
and 2015, the area saw a 13.9 percent increase in tech jobs
— outpacing even San Francisco and Silicon Valley. In
2017, the California-based cloud computing company
Salesforce announced plans to add another 800 employ-
ees to its office in the city, where it already employs 1,600.
The Hoosier State has room to improve, however, in how
it handles short-term rentals. In 2017, a statewide bill pro-
tectingtheservicesfailed,allowingtheplatformstooper-
ate but leaving them subject to varying municipal rules.
Sources: (Indy Star) (TechCrunch) (NYT) (U.S. News & World Report)
(Chief Executive) (IU) (Bee Corp.) (Indiana IOT)
Indiana allows ridesharing statewide and does not
place specific restrictions on self-driving vehicles.
Indiana should lift its burdensome and duplicative
drone laws, and pass a bill that narrowly failed this year
to protect short-term rentals from municipal rules.
The Hoosier State saw generous inflows of venture
capital funding, amounting to about $18.50 per capita.
Indiana
Best & Brightest
Fast Internet
Tech Workforce
Tax Friendly
Attracts Investment
Ridesharing
Short-Term Rentals
B
C+
D+
C+
B+
B
D
A
B
B-
Drones
A
B+
INNOVATION LEADER

Indiana allows self-driving vehi-
cles, imposing no rules other than
those set by the National Highway
Transportation Safety Administration.
Tech Workforce
Indiana’s growing tech workforce account-
ed for more than 222,000 jobs — roughly 33
jobs per 1,000 people.
Fast Internet
Nearly 60 percent of Indiana households
have internet connections of at least 10
mbps,and40percentenjoy25mbpsormore.
Best & Brightest
IndianaisaRight-to-Workstatebutlacksalaw
protectingworkersfromdiscriminationonthe
basisofsexualorientationorgenderidentity.
Creating New Tech
Jobs and New Tech
Training in the
Hoosier State
An Indian tech company has given
Indianapolis a shot in the arm with
the promise of up to 2,000 new high-
skilled jobs.
In May 2017, India-based technology
consulting firm Infosys Ltd. leased a
35,000-square foot space at the down-
town OneAmerica Tower to open its
first U.S. hub in Indianapolis. The
company plans to open other hubs in cities around the country, including Raleigh, North Carolina and
Providence, Rhode Island.
Infosys said it plans to open a total of four locations in the U.S., and that its Indianapolis office will focus on
sectors including artificial intelligence, machine learning and emerging digital tech. To meet that goal, the
company will hire up to 2,000 experienced professionals and newly-graduated tech talent to fill positions
ranging from developers and analysts to digital architects and domain consultants.
Infosys plans to hire 500 Indiana workers by the end of 2018, and will partner with Indiana universities to
give students the training necessary to create a healthy pipeline of tech talent in the Hoosier State.
Sources: (Indianapolis Business Journal) (Indianapolis Star)

56
An agricultural powerhouse adopts
sky-high tech to improve crop yields
Agriculture has long been a staple of Iowa’s economy,
but high-flying technologies are giving farmers there a
new competitive edge.
Iowa farmers are increasingly making use of drones to
manage their land and improve crop yields.
With bird’s-eye views of their fields, farmers can track
flooding and crop development, identifying trouble-
some patterns before they become problematic. Ad-
vanced drones equipped with sensors can also identify
crops under duress by monitoring the plants’ colors.
Farmers can then combine the data they gather by
drone with harvest maps and information on soil types
to stitch together comprehensive pictures of their farm-
lands and, if necessary, make adjustments for specific
conditions.
In 2017, the Iowa state legislature examined a bill that
would revise some drones rules to balance potential
business applications with privacy concerns. The state
earned an ‘A’ in the Drones category this year.
Meanwhile, thanks to regulatory progress that gave the
sharing economy a shot in the arm in the state’s more
densely populated areas, Iowa improved its Short-Term
Rentals grade to a ‘B+’. The state Department of Reve-
nue reached an agreement with short-term rental plat-
forms that made the tech companies — rather than the
rental hosts themselves — responsible for collecting
and remitting hotel taxes to the state.
Sources: (Des Moines Register) (Auvsi) (The Gazette) (AG Web)
Iowa has a Right-to-Work law and it also protects workers
from discrimination on the basis of sexual orientation
and gender identity.
Iowa can increase the percentage of households with
internet connections of at least 25 mbps.
An agreement between the state and short-term rental
platforms frees Iowan hosts from collecting hotel taxes.
Iowa
Best & Brightest
Fast Internet
Tech Workforce
Tax Friendly
Attracts Investment
Ridesharing
Short-Term Rentals
A
D+
D+
B-
C
B-
D+
A
B+
B
Drones
A
A
INNOVATION LEADER

Iowa allows drones to operate state-
wide without overly restrictive rules.
Drones
Short-Term Rentals
In 2017, short-term rental site Airbnb
reached an agreement with the Iowa De-
partment of Revenue to collect and remit
hotel taxes on behalf of their hosts.
Attracts Investment
Though low venture capital spending kept
its grade in the category at a ‘B-’, Iowa spent
nearly $810 per capita on R&D, a 20 percent
year-over-year increase from 2017.
Tech Workforce
Iowa has about 36 tech jobs per capita, plac-
ing it in the top half of states in the Tech
Workforce category.
Iowa STEM
Program Pairs
Teachers and
Businesses for Real-
World Learning
A program in Iowa is giving STEM
school teachers real-world applica-
tions to reinforce their classroom
lessons.
The summer externship — an out-
growth of the Governor’s STEM
Advisory Council — started with 10
teachers in 2009, and has since ballooned to more than six times that. In 2011, the program received a
$1.2 million grant from the National Science Foundation to help expand its reach.
The program enables teachers to offer concrete experience to students who struggle with abstract
STEM concepts, and provides them with the kinds of real-world skills tech companies look for in their
new hires.
It could scarcely come at a better time: Between 2014 and 2015, Iowa saw almost 9,000 STEM jobs
left vacant. That shortage has affected a wide range of industries, including advanced manufacturing,
healthcare, IT and skilled trades.
PHOTO CREDIT: Iowa STEM | Sources: (Des Moines Register)

58
Jumping to the top
Kansas was one of the only states on the Scorecard to
improve its ranking from Innovation Leader to Inno-
vation Champion this year.
Still, wide swaths of the state lack high-speed internet
connections. “The digital divide is holding back small,
rural communities in states like Kansas,” said Janae
Tallbot, director of Russell County Economic Develop-
ment. “Our businesses and our people don’t have the
same connectivity and access to the Internet as urban
population centers, so we can’t compete.”
Connect Americans Now, a nationwide initiative sup-
ported by Microsoft, aims to bring broadband internet
access to rural areas by 2022 using TV “white spaces”
— unused portions of wireless spectrum. The expan-
sion would have wide-reaching implications for rural
residents, including improving access to healthcare.
More than 60 percent of Kansas hospitals are in rural
areas, and the application of telemedicine could save
residents hours-long trips to see specialists.
That reality is already playing out elsewhere in the
state. In late 2017, the Wichita County Health Center
partnered with Avera eCare to launch a telemedicine
service that enables healthcare providers to consult
with emergency room physicians and trauma nurses
at Avera’s South Dakota headquarters. “It gives us the
opportunity to give the most appropriate treatment
as quickly as possible,” says Teresa Clark, CEO of the
Wichita center, “with a specialist right there.”
Sources: (GovTech) (Avera eCare) (KRSL)
Kansas City officials postponed a vote that could have
imposed zoning rules on short-term rental owners.
The platforms are otherwise operational statewide.
Kansas should increase its internet speeds. Relatively
few households have connections of at least 25 mbps.
Kansas is now home to more than 100,000 tech jobs,
roughly 22 per 1,000 people.
Kansas
Best & Brightest
Fast Internet
Tech Workforce
Tax Friendly
Attracts Investment
Ridesharing
Short-Term Rentals
B
C
B
B
B
B-
B-
A
B
B
Drones
A
A
INNOVATION CHAMPION

Ridesharing operates freely through-
out Kansas without restrictive rules.
Ridesharing
With 11.4 percent of Kansans holding ad-
vanced degrees, the state tops many others
in the category.
Tax Friendly
At 7 percent, Kansas’ top corporate tax rate
is moderate, and its other taxes allow busi-
nesses to operate without major difficulties.
Attracts Investment
In 2017, Kansas attracted $13.58 per capita in
VC investment — a 210-percent year-over-
year increase — and more than $730 per capi-
ta in research and development funding.
Kansas Pairs
Education with
Business Growth to
Foster Local Talent
An expansion by Wichita’s largest em-
ployer will bring new investment and
new jobs to the city.
Spirit AeroSystems plans to hire 1,000
workers over the next two years and in-
vest $1 billion over the next five.
Most of the positions will require tech-
nical training, and to fill them, the com-
pany is casting a wide net, considering applicants ranging all the way from high school students to retirees.
Wichita State University Campus of Applied Sciences and Technology, a local technical college, has revamped
its programs to offer students training to help fill the new jobs.
High school students in the city can also earn credit for sheet metal training courses and, upon graduation, be-
come eligible to go straight into jobs at Spirit.
“We are expanding and accelerating non-traditional opportunities to create a pipeline to meet that need both
today and in the future,” said Sheree Utash, president of WSU Tech.
PHOTO CREDIT: WSU Tech | Sources: (Wichita Eagle) (Wichita Business Journal) (Wichita Eagle)

60
Preparing the next generation of
tech talent in the Bluegrass State
Louisville leaders hoping to beef up the city’s tech tal-
ent are starting a number of new initiatives.
One program will train youth in computer coding in an
effort to prepare high school students for entry-level
programming positions. Software development com-
pany InterApt launched the effort with the local non-
profit Transform Education Kentucky with the aim of
providing students with free training. Graduates will
be qualified to fill the 10,000 technology job openings
Louisville expects to have available by 2020.
InterApt is also supporting another state program
— a joint initiative of the Kentucky Department of
Education and the Kentucky Labor Cabinet called
Tech Ready Apprentices for Careers in Kentucky
(TRACK) — to train students and enlarge the pool of
skilled workers. Employers who participate in the pro-
gram can accept students who complete the course
into Registered Apprentice positions.
Farther south in the state, the Paducah Public School
District plans a 75,000-square foot innovation hub to
give its students access to training in STEM fields
such as engineering and information technology as
well as skilled crafts including welding and carpentry.
The $16.3 million hub will house classes including en-
gineering, IT, automotive technology and health sci-
ence. And, after the students have left for the day, the
center will offer night classes for adult learners.
Sources: (WDRB) (WAVE3) (TechRepublic) (WKMS)
Kentucky saw more than 50 net jobs created per 1,000
residents from the middle of 2011 to the end of 2016.
A state law limits drone operation in areas where it is
already restricted by the FAA, a redundant rule that
lowers the state’s ‘A’ grade in Drones to a ‘C-’ this year.
Short-term rentals operate in major markets, and
Airbnb began collecting and remitting taxes in Louisville.
Kentucky
Best & Brightest
Fast Internet
Tech Workforce
Tax Friendly
Attracts Investment
Ridesharing
Short-Term Rentals
B
D
C-
D
B-
D
B-
A
B
B
Drones
A
C-
MODEST INNOVATOR

Kentucky saw more than 236,000
net jobs created between Q2/2011
and Q4/2016, about 53 jobs per
1,000 residents.
Entrepreneurial
Activity
Kentuckyimposesnorestrictionsonself-driv-
ingvehiclesotherthantheNationalHighway
Transportation Safety Administration’s rules.
Best & Brightest
Though a Right-to-Work state, Kentucky lacks a
law protecting workers from discrimination on
thebasisofsexualorientationorgenderidentity.
Tech Workforce
Kentucky has about 27 tech jobs per 1,000
people, placing it a step behind other states
in the region.
Training Workers
to Jump from Coal
to Coding in the
Bluegrass State
In a refurbished Coca-Cola bottling
plant, some Kentucky workers are
making an improbable transition
from coal mining to coding.
Software development startup Bit
Source was founded in Pikeville — a
community strained by the eroding
coal industry — to take the same
problem-solving and abstract think-
ing skills needed to run a mine and apply them to coding. “We found out that coal miners are really just
engineers that get dirty,” said Bit Source President Justin Hall.
When Bit Source first advertised, it received 950 applications for only 10 available spots, and the pro-
gram has only continued to grow.
Farther west, the Danish manufacturing company LINAK will add more than 400 jobs to the Kentucky
workforce with a $33 million facility in Jefferson County. The expansion will double LINAK’s presence
in the state, creating jobs for engineers, assemblers and salespeople.
PHOTO CREDIT: U.S. Department of Labor | Sources: (Fast Company) (Courier-Journal)

62
TechfirmssetstheirsightsontheBayou
Louisiana maintained its status as a Modest Innovator
this year. Though the state fell short in areas such as
Tech Workforce, its rating in the category could soon
improve, as companies seeking lower costs of opera-
tion look to expand in new jurisdictions.
The Pelican State’s burgeoning software industry al-
ready contributed $1.5 billion in business to its econ-
omy in 2016. And in 2017 IT company DXC Technol-
ogy announced plans to open a new center in New
Orleans, bringing 2,000 new tech jobs in the area. The
DXC expansion comes four years after IBM opened its
doors in the state.
To meet the demand of companies eyeing expansions,
Louisiana universities are also receiving funding for
improvements to their computer science programs.
The deal to bring DXC to New Orleans, for example,
includes $25 million to help universities, including
Louisiana State University (LSU), to boost the number
of graduate students in their tech programs.
The challenge for Louisiana will be retaining gradu-
ates who receive offers to relocate to better-paying ar-
eas. State officials are optimistic, however, that large
companies equipped to offer higher pay and benefits
could stem the state’s brain drain. “You have a home
court advantage,” said LSU Executive Vice President
and Provost Richard Koubek. “If the pay is fair, and
you’re respecting them and they can live in Louisiana
and it’s a good career growth opportunity, you will
usually win.”
Sources: (Software) (The Advocate) (Business Report)
In 2016, New Orleans established a short-term rental
registry. Now, the platforms can operate statewide.
In 2017, a bill to legalize ridesharing statewide was
blocked, lowering the state’s grade from a ‘B-’ to a ‘C’.
The Louisiana legislature passed a bill codifying the
state’s exclusive authority to regulate drones, supersed-
ing local rules, improving its grade from a ‘D’ to a ‘B+’.
Louisiana
Best & Brightest
Fast Internet
Tech Workforce
Tax Friendly
Attracts Investment
Ridesharing
Short-Term Rentals
B
C-
F
F
C-
F
B
C
B+
B
Drones
A
B+
MODEST INNOVATOR

More than half of Louisiana households
have internet connections of at least 10
mbps, and 36 percent enjoy speeds of 25
mbps or more — a step ahead of neighbor-
ing Mississippi and Arkansas.
Fast Internet
Louisiana businesses created 271,209 net
jobs between Q2/2011 and Q4/2016.
Tech Workforce
Tech positions account for more than
100,000 jobs in Louisiana — about 22 per
1,000 people.
Best & Brightest
Though a Right-to-Work state, Louisiana
lacks a law that protects workers from dis-
crimination on the basis of sexual orienta-
tion or gender identity.
A Longstanding
Louisiana Business
Expands its Bayou
Footprint with
a Billion-dollar
Investment
Dow Chemical Company is breath-
ing new life into the Louisiana work-
force with a $2 billion investment
and expansion that will create thou-
sands of construction jobs, more
than 70 new full-time positions with
the company and 470 additional jobs in the surrounding area thanks to the multiplier effect.
Dow has had a presence in Louisiana for over 60 years and the new funds will enable it to grow even
further, opening two new plants and a one million-square foot warehouse.
Virginia-based IT company DXC also plans to create new tech jobs in the Pelican State with plans to set
up shop in New Orleans, in a move that will eventually create 2,000 high-tech jobs.
As part of its plan to expands its Louisiana footprint, DXC will offer $25 million to help Louisiana State
University enlarge and improve its computer science programs.
PHOTO CREDIT: Dow Chemical Company | Sources: (Post South) (Business Report) (Business Report) (The Advocate)

2018 US Innovation Scorecard

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