The Innovation Frontier No Longer Ends at Silicon Valley: Forbes 500 Inc. Companies Come from all over the United States

Forbes is famous for its annual publications ranking the private sector by a variety of means- revenue, innovation, and growth among them. The lists themselves are fascinating, but even more interesting is looking into the details that explain why some companies manage to top the list and others do not make the final cut. An equally interesting question is that of where these companies come from; what is their geographic location and how does that factor into their ranking? Are the most successful companies grouped together in clusters like Silicon Valley, thriving in big cities Boston, or incorporating in business-friendly Delaware? Do the same geographic areas claim a significant portion of the list each year?

The Ewing Marion Kauffman Foundation has conducted research to answer these questions in a work entitled “The Ascent of America’s High-Growth Companies”. This study demonstrates significant geographical diversity in Forbes’ fastest-growing privately-held companies in terms of revenue between 1982 and 2010. The research “reveals that high numbers of fast-growing firms are concentrated in unexpected regions and industrial sectors”. Conclusively, this interactive data map  allows the viewer to visually compare company density by location and witness the overall the geographic diversity.

Kauffman Foundation researchers Yasuyuki Motoyama and Jared Konczal have discussed some of their surprising findings from the study. First is that of all the large metropolitan areas, Washington, D.C. has the “highest concentration of Inc. firms, both in absolute number and per capita (normalized by population)” demonstrating the growth of a strong government services cluster in the last few decades. Second, typical innovation hotspots are usurped by clusters of companies in areas such as Salt Lake City, Utah, Indianapolis, Indiana, Buffalo, New York, and Louisville, Kentucky. Lastly, the researchers found that though many variables such as patents per capita, access to venture capital investments, and ivy league-level universities significantly influence the placement of innovation centers in the United States, only one relationship matters for the largest-growing firms— having a highly-skilled labor force nearby.

The Kauffman Foundation’s research ends at 2010, but the 2012 Forbes list is out. In an ever-changing economy like the United States companies are always adapting to stay efficient and relevant for the consumer, so the geographical densities are likely different but following the same trend of the last thirty years. It appears that Americans have crossed another frontier; entrepreneurs no longer have to grow their businesses in Silicon Valley, but have the resources to create revenue from anywhere. In a world increasingly without borders, innovation and business seem to be able to grow everywhere.

Posted by: Sophia Higgins

Sources: Forbes, The Ewing Marion Kauffman Foundation, Huffington Post

Fortune Brainstorm TECH 2011 @ Fortune Live Media courtesy of Flickr user Fortune Live Media

TOMORROW- You are Invited and Live Webcast-The Start-up Act: Building America’s Entrepreneurial Future

The Program on America and the Global Economy Presents:

 The Start-up Act: Building America’s Entrepreneurial Future

 Tuesday, April 24, 2012

Joseph and Claire Flom Auditorium, 6th Floor, Woodrow Wilson Center

________________________________________________________________________        

 8:30 a.m.

Registration and Continental Breakfast

 9:00-9:45 a.m.

Keynote Address:

Senator Jerry Moran, Kansas

Senator Mark Warner, Virginia

 9:45 a.m.-12:00 p.m.

 Panel Discussion:

Paula Collins, Vice President, Government Relations, Texas Instruments Incorporated

Toby Smith, Vice President for Policy, Association of American Universities

Audrey Singer, Senior Fellow, The Brookings Institution

 Moderated by: Kent Hughes, Director, Program on America and the Global Economy

 ________________________________________________________________________

Senators Warner and Moran will discuss key components of their Start-up Act, which they authored and introduced.  A panel discussion will follow with an examination of the prospects of accelerating the commercialization of university research, increasing opportunities for immigrants with advanced STEM (science, technology, engineering, and Mathematics) degrees and adding a STEM category for immigrant investors seeking permanent residence.

 ________________________________________________________________________

Please RSVP acceptances only to page@wilsoncenter.org

Watch the live webcast here.

Directions to the Wilson Center: www.wilsoncenter.org/directions

Live Webcast April 24–The Start-up Act: Building America’s Entrepreneurial Future

 The Program on America and the Global Economy Presents:

 The Start-up Act: Building America’s Entrepreneurial Future

 Tuesday, April 24, 2012

Joseph and Claire Flom Auditorium, 6th Floor, Woodrow Wilson Center

________________________________________________________________________        

 8:30 a.m.

Registration and Continental Breakfast

9:00-9:45 a.m.

Keynote Address:

Senator Jerry Moran, Kansas

Senator Mark Warner, Virginia

 9:45 a.m.-12:00 p.m.

 Panel Discussion:

Paula Collins, Vice President, Government Relations, Texas Instruments Incorporated

Toby Smith, Vice President for Policy, Association of American Universities

Audrey Singer, Senior Fellow, The Brookings Institution

 Moderated by: Kent Hughes, Director, Program on America and the Global Economy

 ________________________________________________________________________

Senators Warner and Moran will discuss key components of their Start-up Act, which they authored and introduced.  A panel discussion will follow with an examination of the prospects of accelerating the commercialization of university research, increasing opportunities for immigrants with advanced STEM (science, technology, engineering, and Mathematics) degrees and adding a STEM category for immigrant investors seeking permanent residence.

 ________________________________________________________________________

Please RSVP acceptances only to page@wilsoncenter.org

Watch the live webcast here.

Directions to the Wilson Center: www.wilsoncenter.org/directions

You are Invited–The Start-up Act: Building America’s Entrepreneurial Future

The Program on America and the Global Economy Presents:

 The Start-up Act: Building America’s

Entrepreneurial Future

 Tuesday, April 24, 2012

Joseph and Claire Flom Auditorium, 6th Floor, Woodrow Wilson Center

________________________________________________________________________        

 8:30 a.m.

Registration and Continental Breakfast

 9:00-9:45 a.m.

Keynote Address:

Senator Jerry Moran, Kansas

Senator Mark Warner, Virginia

  9:45 a.m.-12:00 p.m.

 Panel Discussion:

Paula Collins, Vice President, Government Relations, Texas Instruments Incorporated

Toby Smith, Vice President for Policy, Association of American Universities

Audrey Singer, Senior Fellow, The Brookings Institution (invited)

 Moderated by: Kent Hughes, Director, Program on America and the Global Economy

 ________________________________________________________________________

Senators Warner and Moran will discuss key components of their Start-up Act, which they authored and introduced.  A panel discussion will follow with an examination of the prospects of accelerating the commercialization of university research, increasing opportunities for immigrants with advanced STEM (science, technology, engineering, and Mathematics) degrees and adding a STEM category for immigrant investors seeking permanent residence.

________________________________________________________________________

Please RSVP acceptances only to page@wilsoncenter.org

For more information on this event click here.

Directions to the Wilson Center: www.wilsoncenter.org/directions

Save the Date: April 24– Start-Up Act Event with Senators Warner and Moran

Hold the Morning of April 24: As Senators Moran and Warner will discuss key aspects of their Start-Up Act.  Their presentation will be followed by a high-powered panel focused on key aspects of the Act.

This event will take place in the Joseph and Claire Flom Auditorium at the Woodrow Wilson Center.

Stayed tuned to the blog and the PAGE website for additional details.

2012 Global Innovation Policy Index

Earlier this month, The Information Technology & Innovation Foundation, in conjunction with the Ewing Marion Kauffman Foundation, published The Global Innovation Policy Index. The report emphasized the value of having an “innovative advantage” in an increasingly globalized world arena of fierce competition. The authors believe that in crafting a nation’s policies for maximizing innovative capacity, policymakers should embrace “thoughtful and constructive” strategies that boost competitiveness without disrupting the health of the globally-beneficial innovation environment.

To accomplish this, the index identified seven core policy areas that constitute their framework for determining fifty-five nations’ innovation capacity.

  • Trade, market access and FDI
  • Science and R&D
  • Domestic competition
  • Intellectual property rights
  • Governance over information and communications technology
  • Government procurement and transparency
  • High-skill immigration

The United States ranks in the “Upper Tier” category, alongside other developed nations – such as Australia, Canada, France, Germany, Singapore, and Sweden – on overall innovation policy capacity. Notable countries residing within the “Upper-Mid Tier” include Israel, South Korea, and Spain. The BRICS countries ranked in the “Lower-Mid Tier” and the “Lower Tier.”

While the U.S. sits comfortably in the realm of the “Upper Tier,” it falls short behind several others in the categories of science and R&D and of high-skill immigration. Countries such as Chinese Taipei, Denmark, and Singapore all rank above the U.S. in science and R&D, while Brazil, China, Hong Kong, and Russia were given the same “Upper-Mid” ranking. The index identified three areas within this category that the U.S. could improve upon: R&D tax incentives, government R&D expenditure, and higher education R&D performance. The U.S. falls behind Canada, Chinese Taipei, Hong Kong, Israel, and Singapore in high-skill immigration policies. The index suggests that an immigration policy combining both the points-based and the employer-led selection systems may be the most conducive to bringing in high-skill immigrants that contribute to sustainable innovation capacity.

 

Posted by: Pokyee Yu

Sources: The Information Technology & Innovation Foundation

Photo Credit: Information Technology & Innovation Foundation