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Draper Hero Institute Announces Best & Worst States To Start a BusinessSAN MATEO, Calif., May 27, 2021 /PRNewswire/ -- Following March's launch of the Draper Innovation Index (DII) Global where new data identified the most promising environments for innovative businesses globally, today, the Draper Hero Institute announced their DII US that compares US states by a variety of metrics and indicators.
"People are mobile. There is a reason why so many startups are moving from California to Texas, Washington and Florida," said Tim Draper, Founder of the Draper Hero Institute. "Our new US innovation index aggregates a variety of metrics and indicators including: freedom vs regulations (5G, banking, insurance, historical); venture capital investment and trends; capital gains top tax rate; strength of the tech workforce; strength of education; demographics trends; and high tech employment, in order to assess each state's ability to support startup creation and success. The DII US will provide a vital resource for businesses, VC's and state governments to assess their economic vitality." The economic recovery from COVID-19 offers a once-in-a-lifetime opportunity for states to attract entrepreneurs and investors, especially in the context of a dramatically changing workplace. Remote work's now mainstream status, for instance, opens up the competition for tech workers and startups to every single state, not just traditional tech powerhouses. "The ability to drill-down and understand the Draper Innovation Index at a more granular sub-national level is essential to understanding which states could be a good environment for innovation and economic investment," said Salim Sawaya, Lead for location intelligence technology provider Esri's Nonprofit & Global Organizations Team. "Esri and our partner Blue Raster continue to support the Draper Hero Institute find and use authoritative datasets for their US sates index so that investors and innovators can leverage the power of location intelligence through GIS to identify the states that hold the most potential or promise." The DII US includes three major scenarios: Balanced, Tech Innovation Environment and Regulatory and Tax Environment. These scenarios weight six sub-indices, providing a look at state performance in a variety of categories. For example, California, the long-time leader in US innovation and entrepreneurship is still a major force, but others are catching up in this category and have surpassed the state on the other important DII ranking components. Silicon Valley has long driven high-tech employment, innovation and entrepreneurship, giving the state a significant foothold in our Tech Innovation Environment scenario. Massachusetts can thank its world-renown academic and research institutions such as Massachusetts Institute of Technology (MIT) for its second place ranking while Washington's continued tech employment growth – 34 percent over the past 10 years – and history as the birthplace for major tech organizations including Microsoft and Amazon helped edge it into third place. "One key takeaway is just how much the innovation and entrepreneurship climate varies from state to state. In order to remain relevant in an increasingly competitive market for talent, employers and capital investment, states need to know just how they stack up against their neighbors and rivals ," said Dr. Wallace Walrod DHI's Chief Economic Advisor. "The DII US allows for these comparisons in multiple areas, such as small business policy and tax environment." About Draper Hero Institute About ESRI
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