INNOVATION

2016 

INNOVATION 

Scorecard

Contents 

WELCOME LETTER 3 

EXECUTIVE SUMMARY 6 

Overview 7 

Right to Work 10 

Welcomes New Business Models 11 

Tax-Friendliness 12 

Entrepreneurial Activity 13 

Fast Internet 14 

Tech Workforce 15 

Attracts Investment 16 

Grants STEM Degrees 17 

Innovation-Friendly Sustainable Policies 18 

Supports Drones 19 

STATE PROFILES 20 

FAQ 123 

METHODOLOGY 126 

ACKNOWLEDGEMENTS 129 

COPYRIGHT 130 

APPENDIX 131 

INNOVATION Scorecard 2

WELCOME 

Letter

hello. 

In 2015, the Consumer Technology Association 

(CTA) TM , formerly the Consumer Electronics 

Association (CEA)®, created our first-ever Innovation 

Scorecard — ranking 50 states and the 

District of Columbia across 10 categories related 

to creating quality jobs, fostering startups 

and encouraging innovation of every kind. 

Relative to other states, our Scorecard measures 

each state’s openness to innovation using 

a combination of quantifiable criteria, such 

as new jobs and new companies created in a 

state, the number of science and engineering 

degrees granted, and the speed of its Internet 

connections. Internet speeds rose in many parts of the country, helping 

several states improve their overall rankings. 

Our Scorecard also uses broader criteria to measure how states are welcoming 

new business models and technologies, from app-based ridesharing 

to web-based homesharing. In 2014, only a handful of states such as 

Colorado and Illinois took steps to legalize or authorize ridesharing, and 

most states took no action at all. In 2015, many states welcomed these 

and other disruptive technologies, including Georgia, Virginia, Delaware, 

Nebraska and Nevada. This year, more states changed their environmental 

and e-waste recycling requirements — often to the detriment of job 

creators and consumers. But a few states, such as Hawaii and Nebraska, 

have followed the model of reigning Innovation Champions by creating 

common-sense policies that prolong sustainability through voluntary 

efforts of businesses. 


With several state legislatures trying to restrict drone usage and ban 

drone technologies in 2015, we added scoring of drone legislation. Of the 

13 states that addressed the issue, nearly all took measures that, on balance, 

limited drones — with the notable exceptions of Arkansas, California, 

Maryland, Mississippi, Nevada and Oregon. In 2016, the rest of the 

country should follow in their footsteps, and welcome drones with open 

arms and open skies. 

Gary Shapiro 

President and CEO, 

Consumer Technology Association (CTA) TM 

5

EXECUTIVE 

Summary

Overview 

The United States leads the world in technological innovation, thanks to Americans who 

create new solutions to old problems or start new companies every year. 

For these inventors and entrepreneurs, a positive business climate can make all the 

difference. Whether — and where — America’s innovators can bring their ideas to fruition 

often comes down to state and local policies. 

Sensible tax structures, regulators who allow cutting-edge technologies to flourish, and 

legislators who welcome new kinds of businesses are crucial to sustaining innovation. The 

states that enable innovators to do their work draw entrepreneurs from across the country, 

creating high-quality jobs and investing in a state’s healthy economy for the future. 

The CTA Innovation Scorecard grades every state and 

the District of Columbia on 10 criteria, ranging from 

quantitative to qualitative, and ranks them across four 

categories — Innovation Champions, Innovation Leaders, 

Innovation Adopters and Modest Innovators. 

Innovation Champions 

Innovation Leaders 

Innovation Adopters 

Modest Innovators 

7

1. Innovation Champions 

The 2016 Innovation Champions are the top-scoring states in the 

nation, earning high marks for maintaining strong right-to-work 

legislation, fast Internet access, a robust entrepreneurial climate, 

and an open posture to new business models and technologies. 

Five new states were crowned Innovation Champions in 2016, 

including Nebraska, which is pursuing a pilot project to collaborate 

with tech companies to increase recycling of used electronics; and 

Wisconsin, which became the 25th state in the country with rightto-work 

legislation. 

Arizona 

Delaware 

District of Columbia 

Indiana 

Kansas 

Massachusetts 

Michigan 

Nebraska 

North Dakota 

Texas 

Utah 

Virginia 

Wisconsin 

2. Innovation Leaders 

Scoring high grades on a combination of the 10 innovation 

criteria, Innovation Leaders were again the largest group in the 

2016 Innovation Scorecard. These states typically reported high 

levels of entrepreneurial activity, relatively favorable attitudes 

towards new business models, and strong per capita numbers of 

tech jobs and STEM degrees granted to young people. 

Twelve states graduated to Innovation Leaders this year, nearly 

all of which passed legislation legalizing ridesharing. Two 

Innovation Leaders, Maryland and Oregon, were among only 

four states to earn an ‘A’ grade in the category of Supports 

Drones. 

Colorado 

Florida 

Georgia 

Idaho 

Iowa 

Maryland 

Minnesota 

Missouri 

Nevada 

New Hampshire 

North Carolina 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Vermont 

Washington 

Wyoming 


3. Innovation Adopters 

Innovation Adopters show strong pro-innovation policies and 

trends in some categories, but not most. 

Alabama, Arkansas, and Louisiana all have strong right-to-work 

laws, but lack key elements of the infrastructure needed for 

new businesses to flourish: fast Internet connections, large tech 

workforces, and significant numbers of college graduates with 

science and engineering degrees. Conversely, states such as New 

York and New Jersey boast high numbers of STEM graduates and 

high-tech employees, but have unfriendly tax structures and no 

right-to-work laws. 

Alabama 

Arkansas 

California 

Connecticut 

Illinois 

Louisiana 

Maine 

Montana 

New Jersey 

New York 

Ohio 

Tennessee 

Six states graduated from Adopter to Leader in the 2016 

Innovation Scorecard such as Minnesota, Missouri, Nevada, 

Oklahoma, Pennsylvania and Rhode Island. 

4. Modest Innovators 

With only six states, the lowest tier on the 2016 Innovation Scorecard 

has the fewest members. 

Alaska 

Hawaii 

Kentucky 

Mississippi 

New Mexico 

West Virginia 

Still, these six states can improve across most of the Scorecard 

categories, with slow Internet connections, small tech workforces, 

low numbers of graduates with STEM degrees, and — in a shift from 

last year — declining entrepreneurial activity. 

One bright spot among the Modest Innovators was tax structures, 

with four out of six states earning at least a ‘B-’ in Tax Friendliness. In 

fact, Alaska was one of only four states to earn the highest possible 

marks on its tax structure, thanks to its zero individual income tax 

and zero state sales tax. 

9

Right to Work 

Right to Work 

Right-to-work laws allow workers to choose whether or not 

to join labor unions. In 2015, we saw Wisconsin join the 

ranks of right-to-work states, bringing the total count to 25 

— an important halfway mark on the path toward greater 

economic freedom and innovation. 

Right-to-work states report both higher personal incomes 

and more job growth, indicating that the jobs being created 

are higher-quality positions. Data as far back as the 1960s shows that right-to-work 

states economies grow more quickly than those of their counterparts — and often 

experience faster rates of population growth, as well. 

States with 

Right-to-Work Laws 

States without 

Right-to-Work Laws 

Alabama 

Arizona 

Arkansas 

Florida 

Georgia 

Idaho 

Indiana 

Iowa 

Kansas 

Louisiana 

Michigan 

Mississippi 

Nebraska 

Nevada 


North Dakota 

Oklahoma 


South Dakota 

Tennessee 

Texas 

Utah 

Virginia 

Wisconsin 

Wyoming 

Alaska 

California 

Colorado 

Connecticut 

Delaware 


Hawaii 

Illinois 

Kentucky 

Maine 

Maryland 

Massachusetts 

Minnesota 

Missouri 

Montana 

New Hampshire 

New Jersey 

New Mexico 

New York 

Ohio 

Oregon 

Pennsylvania 

Rhode Island 

Vermont 

Washington 

West Virginia 

Source: National Conference of State Legislatures 


Welcomes New Business Models 

If 2014 was the sharing economy’s breakout year, 2015 produced 

even stronger momentum. Twenty-five states, plus District 

of Columbia have legalized ridesharing statewide: Arizona, 

Arkansas, California, Colorado, Georgia, Idaho, Illinois, 

Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, 

Montana, Nevada, North Carolina, North Dakota, 


Ohio, Oklahoma, South Carolina, Tennessee, Virginia, Washington 

and Wisconsin. In 2015, the Welcomes New Business 

Models category took an additional type of policy into account: state and local actions 

affecting homesharing companies such as Airbnb. 

Many states have embraced one of these business models, but enacted policies that hampered 

disruptive companies in the other. While every state in the nation apart from Wyoming 

has state or local policies affecting ridesharing, only 12 states have state or local policies affecting 

homesharing. 

State Grade State Grade State Grade 

Arizona 

Arkansas 

District 

of Columbia 

Idaho 

Indiana 

Kentucky 

Montana 


North Dakota 

Ohio 

Oklahoma 


Virginia 

Wisconsin 

Delaware 

Georgia 

Illinois 

A 

A 

A 

A 

A 

A 

A 

A 

A 

A 

A 

A 

A 

A 

A- 

A- 

A- 

Kansas 

Maine 

Maryland 

Nebraska 

Nevada 

Colorado 

Tennessee 

Connecticut 

Iowa 

Michigan 

Minnesota 

Rhode Island 

Utah 

Vermont 

Washington 

Massachusetts 

New Jersey 

Oregon 

A- 

A- 

A- 

A- 

A- 

B+ 

B+ 

B 

B 

B 

B 

B 

B 

B 

B 

B- 

B- 

B- 

California 

Florida 

Pennsylvania 

Alabama 

Louisiana 

Missouri 

South Dakota 

Texas 

Hawaii 

New Hampshire 

Mississippi 

New York 

Alaska 

New Mexico 

West Virginia 

Wyoming 

C+ 

C+ 

C+ 

C 

C 

C 

C 

C 

D+ 

D 

D- 

D- 

F 

F 

F 

N/A 

Source: CTA 

11

Tax Friendliness 


The Scorecard rewards simple, lean tax structures that offer 

attractive rates to new businesses and encourage job creation 

and investment. Of the 27 states that received a ‘B+’ or higher 

on tax friendliness, 21 earned either Champion or Leader 

titles, and most show strong or improving numbers in the 

area of Entrepreneurial Activity. 

State Score Grade 


Wyoming 

South Dakota 

Alaska 

Florida 

Nevada 

Montana 

New Hampshire 

Indiana 

Utah 

Texas 

Oregon 

Washington 

Michigan 

Delaware 


Tennessee 

Missouri 

Colorado 

Idaho 

Mississippi 

West Virginia 

Kansas 

Arizona 

Illinois 

Massachusetts 

Nebraska 

7.540 

7.420 

7.340 

6.920 

6.660 

6.190 

6.070 

5.950 

5.910 

5.820 

5.800 

5.780 

5.630 

5.580 

5.570 

5.460 

5.390 

5.330 

5.270 

5.240 

5.240 

5.220 

5.180 

5.180 

5.110 

5.080 

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 

B 

North Dakota 

Kentucky 

Alabama 

Virginia 

Hawaii 

Pennsylvania 

Oklahoma 

Maine 

New Mexico 


Louisiana 

Arkansas 

Georgia 

Iowa 

Maryland 

District 

of Columbia 

Ohio 

Wisconsin 

Connecticut 

Rhode Island 

Vermont 

Minnesota 

California 

New York 

New Jersey 

5.080 

5.020 

5.000 

4.990 

4.970 

4.910 

4.860 

4.850 

4.750 

4.740 

4.700 

4.610 

4.580 

4.470 

4.460 

4.430 

4.430 

4.430 

4.330 

4.260 

4.100 

4.030 

3.750 

3.610 

3.360 

B 

B- 

B- 

B- 

B- 

B- 

C+ 

C+ 

C+ 

C+ 

C+ 

C 

C 

C 

C 

C- 

C- 

C- 

C- 

C- 

D+ 

D+ 

D- 

D- 

F 

Source: Tax Foundation’s 2016 State Business Tax Climate Index 


Entrepreneurial Activity 


Measured on the basis of net job creation by small and young firms 

and the average number of small firms created per capita, Entrepreneurial 

Activity remained an uneven category this year, with 31 (61 

percent) of states earning an ‘A’ or ‘B’, and 21 (39 percent) of states 

earning a ‘C+’ or lower. Not surprisingly, most of the states that attracted 

large amounts of venture capital and R&D investment also 

won favorable ratings with respect to entrepreneurial activity. 



North Dakota 

District 

of Columbia 

Wyoming 

Montana 

South Dakota 

New York 

Colorado 

Vermont 

Nebraska 

Florida 

Oregon 

Utah 

New Jersey 

Delaware 

Alaska 

New Hampshire 

Massachusetts 

Minnesota 

Texas 

Maine 

Rhode Island 

Oklahoma 

California 

Washington 

Louisiana 

0.928 

0.902 

0.569 

0.518 

0.497 

0.448 

0.440 

0.405 

0.363 

0.351 

0.328 

0.322 

0.320 

0.309 

0.303 

0.298 

0.298 

0.296 

0.286 

0.286 

0.270 

0.270 

0.267 

0.253 

0.238 

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 

Virginia 

Kansas 

Idaho 

Connecticut 

Nevada 

Maryland 

Iowa 

Illinois 

Missouri 

Pennsylvania 

Hawaii 

Wisconsin 


New Mexico 

Arkansas 

Michigan 

Georgia 

Indiana 


Ohio 

Tennessee 

Kentucky 

Arizona 

Alabama 

Mississippi 

West Virginia 

0.229 

0.223 

0.209 

0.208 

0.208 

0.203 

0.199 

0.190 

0.176 

0.175 

0.172 

0.170 

0.134 

0.123 

0.123 

0.119 

0.117 

0.111 

0.098 

0.096 

0.063 

0.057 

0.052 

0.032 

0.020 

0.013 

B 

B- 

B- 

B- 

B- 

B- 

C+ 

C+ 

C+ 

C+ 

C 

C 

C- 

C- 

C- 

C- 

C- 

D+ 

D+ 

D+ 

D 

D- 

D- 

F 

F 

F 

Source: U.S. Census Bureau 

13

Fast Internet 

Starting and building a business doesn’t just require investors with deep 

pockets or workers with tech pedigrees. Before companies can thrive, they 

must have the technical infrastructure to get off the ground, and for most 

innovative companies today, that means high-speed Internet connections. 

Fast Internet In 2015, most states (over 70 percent) have either maintained or improved 

the average speed of their Internet connections (measured in average 

kbps), a welcome sign. The four states that increased their speeds most significantly 

in 2015 are Missouri, Arizona, Georgia and Utah, as well as Washington, D.C. Only Virginia, 

Connecticut and Ohio, had slower average speeds than they did in 2014. The Buckeye state was 

the worst performer, with a 47 percent decrease in Internet speed. 

State 

2016 

Grade 

Avg. 

kbps 

Avg. 

change 

State 

2016 

Grade 

Avg. 

kbps 

Avg. 

change 

District 

of Columbia 

Delaware 

Massachusetts 

Utah 

Rhode Island 

Maryland 

Washington 

New Jersey 

Virginia 

New York 

California 

North Dakota 

Michigan 

Pennsylvania 

Connecticut 

New Hampshire 

Wisconsin 

Indiana 

Minnesota 

Nevada 

Oregon 

Florida 

South Dakota 

Georgia 

Arizona 

A+ 

A 

A- 

A- 

A- 

B+ 

B+ 

B+ 

B+ 

B+ 

B+ 

B+ 

B+ 

B 

B 

B 

B 

B 

B 

B 

B 

B 

B 

B 

B 

18954 

16867 

15329 

15202 

15158 

14535 

14486 

14142 

14101 

13959 

13688 

13630 

13557 

13362 

13059 

13055 

12880 

12544 

12406 

12372 

12352 

12252 

12205 

12191 

12186 

5062 

667 

1492 

2412 

2261 

2363 

334 

1781 

-471 

1779 

2098 

1209 

1034 

1416 

-622 

212 

687 

1198 

853 

2248 

-412 

1657 

773 

2569 

2763 

Texas 

Tennessee 

Illinois 

Missouri 

Nebraska 

Colorado 


Vermont 


Oklahoma 

Kansas 

Wyoming 

Alabama 

Montana 

Hawaii 

Louisiana 

Iowa 

West Virginia 

Maine 

New Mexico 

Mississippi 

Idaho 

Arkansas 

Kentucky 

Alaska 

Ohio 

B 

B- 

B- 

B- 

B- 

B- 

C+ 

C+ 

C+ 

C+ 

C+ 

C+ 

C+ 

C+ 

C 

C 

C 

C 

C- 

C- 

C- 

C- 

C- 

D+ 

D+ 

F 

12138 

12091 

12028 

11816 

11699 

11505 

11172 

11156 

10874 

10864 

10521 

10469 

10466 

10324 

10141 

10086 

9832 

9447 

9374 

9231 

9154 

8860 

8806 

8454 

7868 

4831 

2060 

1507 

2079 

2824 

2074 

1260 

792 

420 

570 

1599 

1666 

1288 

929 

1893 

1028 

1985 

606 

1270 

519 

1033 

1122 

689 

1346 

613 

224 

-4288 

Source: Akamai’s State of the Internet Report, Q2 2015 


Tech Workforce 

New businesses rise and fall in part according to the caliber of their employees. 

The states that can attract and nurture vibrant tech workforces have an 

advantage in creating a culture of innovation. 


The District of Columbia, with an ‘A+’, was the only jurisdiction scoring higher 

than a ‘B’ in this field, with a tech workforce of more than 100,000 out of a population 

of only 658,000. In other words, more than 15 percent of the District works 

in tech — a figure in part attributable to the large influx of daily commuters. 

State Tech Jobs Per Capita Grade 

State Tech Jobs Per Capita Grade 

District 

of Columbia 

Virginia 

Massachusetts 

Maryland 

Minnesota 

Colorado 

Washington 

New Hampshire 

Utah 

Connecticut 

California 

Wisconsin 

North Dakota 

New Jersey 

Nebraska 

Texas 

Michigan 

Rhode Island 

Oregon 

Illinois 

Ohio 

Delaware 

Arizona 

Pennsylvania 

Georgia 

101410 

448820 

363980 

289770 

261860 

246310 

326520 

57050 

117940 

150470 

1515290 

227980 

26660 

337890 

69490 

954820 

372290 

39440 

143550 

478770 

428760 

33120 

233460 

460430 

351010 

0.1685327 

0.0560953 

0.0555896 

0.0501892 

0.0493710 

0.0489760 

0.0485565 

0.0433356 

0.0426718 

0.0421001 

0.0406746 

0.0400880 

0.0396378 

0.0384320 

0.0380488 

0.0379717 

0.0376673 

0.0374703 

0.0374699 

0.0373146 

0.0371655 

0.0368847 

0.0365237 

0.0362475 

0.0362327 

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 

Kansas 

New York 

Missouri 

Vermont 

Iowa 


Indiana 

South Dakota 

Tennessee 

Alaska 


Florida 

Oklahoma 

Alabama 

Maine 

Wyoming 

New Mexico 

Montana 

Kentucky 

Idaho 

Hawaii 

Nevada 

Arkansas 

Louisiana 

West Virginia 

Mississippi 

103270 

701360 

215450 

22450 

108590 

329960 

218320 

26650 

193030 

21600 

138130 

558590 

110010 

138330 

38240 

15700 

56280 

27010 

114360 

40640 

35260 

68940 

72450 

104830 

40670 

58660 

0.0361955 

0.0361934 

0.0359747 

0.0358775 

0.0356459 

0.0346034 

0.0336716 

0.0327323 

0.0304171 

0.0304126 

0.0298636 

0.0297102 

0.0293254 

0.0289409 

0.0287874 

0.0278554 

0.0273313 

0.0272990 

0.0263541 

0.0259253 

0.0259207 

0.0255281 

0.0248464 

0.0231241 

0.0219483 

0.0197688 

B 

B- 

B- 

B- 

B- 

B- 

C+ 

C+ 

C 

C 

C- 

C- 

C- 

C- 

C- 

D+ 

D+ 

D+ 

D 

D 

D 

D 

D 

D- 

F 

F 

Source: U.S. Bureau of Labor Statistics 

15

Attracts Investment 

Measured by venture capital (VC) and research and development (R&D) dollars 

per capita, the Attracts Investment category tracks closely with overall 

success on the 2016 Scorecard. Of the 27 states, plus District of Columbia, that 

earned a ‘B’ grade or higher, all but six were Innovation Leaders or Champions. 

California remained the dominant national leader in total VC investment, 

drawing more funding than every other state combined. But on a per capita 

basis, several small states are on par with the Golden State, including 

northeastern tech hotspots Delaware and Massachusetts. Meanwhile, states with smaller 

pools of tech workers and poor Internet infrastructure, such as West Virginia, Mississippi, 

and Arkansas, had a hard time drawing VC and R&D dollars. 


State 

Grade 

VC 

investment $ 

per capita 

R&D 

investment $ 

per capita 

State 

Grade 

VC 

investment $ 

per capita 

R&D 

investment $ 

per capita 

Massachusetts 

California 

Delaware 

Washington 

Connecticut 

New Jersey 

Utah 

New Hampshire 

Michigan 

District 

of Columbia 

New York 

Oregon 

Colorado 

Minnesota 

Illinois 

Missouri 

Indiana 

Maryland 

Pennsylvania 

Arizona 

Vermont 

Kansas 


Virginia 

Idaho 

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 

810.83 

877.35 

55.35 

199.31 

99.15 

138.38 

57.17 

359.34 

39.93 

191.38 

370.38 

30.62 

74.27 

12.71 

28.67 

82.46 

20.78 

52.38 

21.82 

305.57 

50.82 

40.44 

59.61 

57.78 

27.57 

2671.35 

2192.76 

2689.51 

2155.39 

2054.50 

1410.59 

1798.25 

772.10 

776.28 

816.23 

432.09 

688.32 

1013.28 

932.17 

726.22 

697.66 

1508.76 

1171.96 

1165.82 

605.43 

655.87 

1345.84 

733.56 

603.01 

744.72 

Texas 

Wisconsin 

Ohio 

Rhode Island 

Iowa 

Georgia 

Nebraska 

Florida 


North Dakota 

New Mexico 

Tennessee 

Alabama 

Kentucky 

Nevada 

Maine 

West Virginia 

South Dakota 

Oklahoma 

Hawaii 

Arkansas 

Louisiana 

Montana 

Mississippi 

Alaska 

Wyoming 

Source: The MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association 

B 

B- 

B- 

C+ 

C+ 

C+ 

C 

C- 

D+ 

D+ 

D+ 

D 

D 

D 

D 

D 

D- 

D- 

D- 

D- 

D- 

F 

F 

F 

F 

F 

62.04 

25.17 

15.23 

65.45 

8.33 

72.94 

60.10 

45.59 

32.44 

10.48 

10.38 

2.28 

8.01 

14.92 

10.74 

24.75 

7.44 

1.05 

8.21 

8.67 

0 

0 

10.63 

0 

0 

0 

594.42 

672.21 

727.10 

399.99 

578.72 

427.53 

316.48 

277.16 

216.11 

330.07 

349.16 

268.63 

247.50 

207.02 

234.77 

226.44 

104.60 

138.20 

123.42 

137.56 

164.60 

54.91 

80.07 

92.00 

106.12 

53.23 


Grants STEM Degrees 


State 

States awarding a large number of undergraduate degrees in science, 

technology, engineering and mathematics (STEM) are educating 

and training the entrepreneurs of the future, as well as the employees 

who will serve the companies those students create. High performers, 

including Iowa and Utah, benefit from strong public universities, 

while cities such as Boston and the District of Columbia pack a number 

of world-class universities into small urban areas. 

STEM Degrees 

STEM Degrees 

conferred per 1,000 

conferred per 1,000 

people 18-24 Grade State people 18-24 Grade 

District 

of Columbia 

Vermont 

Iowa 

Massachusetts 

Rhode Island 

New Hampshire 

Maine 

Utah 

Colorado 

Pennsylvania 

Maryland 

Minnesota 

Connecticut 

Virginia 

Arizona 

New York 

Wisconsin 

West Virginia 

Delaware 

South Dakota 

Oregon 

Montana 

Indiana 

Nebraska 

Michigan 

46.9 

39.4 

37.8 

29.2 

27.6 

26.3 

24.5 

24.1 

22.4 

22.3 

21.8 

21.8 

21.6 

21.6 

21.5 

21.5 

20.9 

20.8 

20.7 

20.2 

20.0 

19.5 

18.6 

18.6 

17.8 

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 

Missouri 

Washington 


California 

North Dakota 

Illinois 

New Jersey 

Ohio 

Idaho 

Kansas 

Alabama 

Hawaii 


Florida 

Tennessee 

Georgia 

Wyoming 

Kentucky 

Louisiana 

Oklahoma 

New Mexico 

Texas 

Arkansas 

Mississippi 

Nevada 

Alaska 

17.7 

17.5 

17.3 

17.2 

16.9 

16.5 

16.5 

16.2 

15.7 

15.5 

15.4 

15.0 

14.6 

14.2 

13.6 

13.4 

12.8 

12.6 

12.5 

12.5 

11.9 

11.6 

11.1 

10.3 

9.1 

9.0 

B 

B 

B- 

B- 

B- 

C+ 

C+ 

C+ 

C+ 

C 

C 

C 

C 

C- 

C- 

C- 

D+ 

D+ 

D+ 

D+ 

D 

D 

D- 

D- 

F 

F 

Source: National Science Foundation’s National Science Board 

17

Innovation-Friendly Sustainable Policies 


When states adopt policies that promote sustainability without inhibiting 

the growth of new technologies and the companies that produce 

them, both the economy and the environment win. Well-intended 

policies on electronics recycling, energy efficiency, packaging, 

and materials can either encourage or discourage innovation. 

In the 2016 Innovation Scorecard, most states earned neutral grades 

for enacting or maintaining sustainability policies that encourage 

innovation. In 2015, a few states took positive steps on their electronics recycling policies, earning 

high marks on their first Scorecard appearances, including Hawaii, Michigan, Minnesota and Nebraska. 

These states have joined Texas and Utah, which have model electronics recycling laws that 

build on existing recycling efforts of the industry. Meanwhile, most states either remain neutral, or 

have more work to do. 

State 

Grade 

State Grade State Grade 

Hawaii 

Nebraska 

Texas 

Utah 

Michigan 

Minnesota 

Arkansas 


Vermont 

Maryland 

New York 


Oregon 

Pennsylvania 

Maine 

Washington 

Illinois 

California 

A- 

A- 

A- 

A- 

B+ 

B+ 

B 

B 

B 

B- 

C 

C 

C 

C 

C- 

C- 

D+ 

D 

Connecticut 

Alabama 

Alaska 

Arizona 

Colorado 

Delaware 

District 

of Columbia 

Florida 

Georgia 

Idaho 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Massachusetts 

Mississippi 

D 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

Missouri 

Montana 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

North Dakota 

Ohio 

Oklahoma 

Rhode Island 

South Dakota 

Tennessee 

Virginia 

West Virginia 

Wisconsin 

Wyoming 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

Source: CTA 


Supports Drones 

In 2015, we watched closely as states and cities introduced legislation 

concerning drones, leading to this new category in the 2016 Scorecard. 


Unfortunately, six of the 13 states graded in this category have adopted 

policies detrimental to drone use and innovation — and only seven states 

earned a grade of ‘C’ or higher. Hot spots for favorable policy outcomes 

in specific areas include Arkansas, California, Maryland, Mississippi, Nevada, 

Oregon and Texas which have responded favorably to drones. 

The common denominator among the states that performed poorly was laws that could hinder the 

consumer or commercial markets for drones. In these states, legislation was overly restrictive and 

vague, often criminalizing drone operations that are authorized by the Federal Aviation Administration 

(FAA). Some of these states also created new drone-specific crimes, rather than contemplating 

drones under existing laws or codes that govern other technology. 

The FAA maintains exclusive jurisdiction over drone safety, including flight altitudes, flight paths 

and no-fly zones. Local and state officials should support national rules that provide an organized 

and consistent policy framework for the growing number of consumers and commercial operators 

using drones, and for new companies developing drones and drone-related services. 

State 

Arkansas 

Maryland 

Mississippi 

Oregon 

California 

Nevada 

Texas 

Florida 

Idaho 

Illinois 

Louisiana 


Tennessee 

Alabama 

Alaska 

Arizona 

Colorado 

Source: CTA 

Grade 

A 

A 

A 

A 

B 

B- 

C+ 

D 

D 

D 

D 

D 

D 

N/A 

N/A 

N/A 

N/A 

State Grade State Grade 

Connecticut 

Delaware 


Georgia 

Hawaii 

Indiana 

Iowa 

Kansas 

Kentucky 

Maine 

Massachusetts 

Michigan 

Minnesota 

Missouri 

Montana 

Nebraska 

New Hampshire 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

New Jersey 

New Mexico 

New York 

North Dakota 

Ohio 

Oklahoma 

Pennsylvania 

Rhode Island 


South Dakota 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

19

STATE 

Profiles

Innovation Adopter 

"Alabama banner" by sunsurfr is licensed under CC BY-SA 3.0 

Alabama 

Cities on the right track, but state scores could improve 

Without statewide approval (yet) for ridesharing to operate 

legally alongside traditional taxi companies, Alabama’s major 

cities are taking a piecemeal approach. Mobile and Huntsville 

legalized ridesharing in 2015, and Mobile Mayor Sandy Stimson 

personally took the state’s first Uber ride in June 2015. 

Now, ridesharing might soon be legalized in Tuscaloosa and Birmingham, 

where legislators are eager to reach an agreement on 

licensing, passenger safety, and insurance regulations as soon as 

possible. “If Birmingham goes, the rest of this region goes,” said 

Birmingham Councilman Jay Roberson in August 2015. 

Montgomery 

21

Right to Work 




Fast Internet 






A+ 

C 

B- 

F 

C+ 

C- 

D 

C 

N/A 

N/A 

Right to Work 

Decades-old 

right-to-work 

protections have 

likely helped Alabama 

become a national 

manufacturing hub. 

A former 

Innovation 

Leader, Alabama 

was one of six 

states to drop 

to a lower tier 

this year 

A second act for Alabama 

Alabama remains one of the slowest states in the 

country to add new jobs and create new firms, 

and has some of the lowest rates of small-business 

employment in the country. But Alabama 

Launchpad is trying to turn this around. It has 

worked collaboratively with the EDPA Foundation 

to help startups start, stay and grow in Alabama. 

In 2014, Alabama Launchpad supported 

startups “created 305 knowledge-based jobs and 

raised $20.4 million in follow-on funding,” according 

to the organization’s annual report. 

The program helped launch Vastly, a software 

program that delivers personalized, ageappropriate 

online reading materials to students 

and teachers. Vastly allows students to search 

the Internet for results in their age range and 

monitors students’ reading progress over time. 


Modest Innovator 

Alaska 

Alaska startup gives new meaning to “email” 

23 

Despite facing an uphill battle in the race for bringing new companies to the state, 

thanks to its distance from almost all U.S. markets and a harsh climate, Alaska created 

a healthy number of new jobs and businesses. Part of that is thanks to a friendly tax 

code, which lacks an individual income tax and a state-level sales tax. 

In fact, Alaska’s isolated and rural character has given rise to 

some unusually creative businesses. 

PostalZen, founded by a veteran and native Alaskan, brings the 

process of mailing physical letters and cards online, to serve 

people in remote areas lacking easy access to postal services. 

Users can send letters, photos, postcards and greeting cards 

through the mail without leaving their computers, and can even 

use tablets and smartphones to handwrite the notes personally. 

It’s a classic example of an entrepreneur who has 

actually lived the problem he’s trying to solve, providing 

a simple solution to a centuries-old way of 

Juneau 

doing business.

Right to Work 




Fast Internet 






F 

F 

A+ 

B 

D+ 

C 

F 

F 

N/A 

N/A 


Alaska’s Permanent 

Fund, alongside its 

zero income tax and 

state sales tax, gives the 

state a competitive edge 

over others. The only other 

thing Alaska could do is improve 

its corporate tax rate. 

WELCOMES 

NEW BUSINESS 

MODELS 

In March 2015, 

Anchorage refused 

to authorize Uber, 

driving it out of the 

city. As of January 

2016, ridesharing 

services no longer 

operate anywhere in 

Alaska, which is the 

only western state to 

fail in this category. 


21.89 17 

JOBS FIRMS 

Net jobs created per 1,000 people, 

2009-2013 

Average number of new firms created per 

1,000 people, 2009-2013 


Innovation Champion 

Arizona 

Desert roads open for business 

“Arizona Highway” by Linnaea Mallette is licensed under CC0 1.0 

After months of bipartisan legislative efforts, in April 2015, Arizona Governor Doug 

Ducey signed into law a measure to legalize ridesharing across the entire state. Ducey 

has championed the ridesharing business model since taking office in January 

2015, when he suspended enforcement of onerous ride-for-hire 

requirements, and now it’s official. 

Former Governor Jan Brewer vetoed a ridesharing bill in 

2014. But ridesharing companies continued to operate, and 

kept up efforts to encourage compromise. Like similar measures 

around the country, the new Arizona law requires that 

drivers get background checks and vehicle inspections, 

and that they carry $250,000 in liability insurance. 

Phoenix 

25

Right to Work 




Fast Internet 






A+ 

A 

B 

D- 

B 

B 

B 

B 

N/A 

N/A 

Right to Work 


Arizona is 

among the 

handful of 

states to earn a 

‘B’ or higher in 

at least seven 

categories 


Venture Capital 

Research & Development 

2015 

$39.93 

2014 

$29.03 

60 1000 

40 

500 

20 

2015 

2014 

$776 $771 

VC investment per capita 

R&D investment per capita 

Adding to a growing pack of innovative multi-purpose home devices, 

Arizona-based Eggcyte has created the Egg, combining storage, 

web and computer services to create a new kind of cloud device. As 

storage technology continues to shrink, storage devices will continue 

to get more mobile, more capable, and more connected. 



Arkansas 

Legislative wins across the board 

Arkansas was one of only two states nationwide to receive good marks 

in Welcoming New Business Models, Supports Drones, and Innovation- 

Friendly Sustainable Policies. 

In passing Act 1050, the state legislature formally 

authorized and regulating ridesharing companies 

such as Uber, which had already been legally 

operating in parts of the state for some time. 

Another law sensibly addressed privacy concerns, 

by contemplating drones as video-related technologies, 

which are already covered under existing 

state law. 

Little Rock 

27

Right to Work 




Fast Internet 






A+ 

A 

C 

C- 

C- 

D 

D- 

D- 

A 

B 

Right to Work 


Making electronics recycling sustainable 

In 2015, Arkansas enacted a law to make permanent the 

disposal fees for computer and electronics equipment, 

providing financial stability and a shared responsibility 

approach for collecting and recycling e-waste. A permanent 

funding source complements private sector recycling 

initiatives, such as Dell’s Reconnect program with 

Goodwill Industries of Arkansas, HP’s program with 

Staples and the Best Buy recycling program. 


One of only two states nationwide to receive 

good marks in welcoming new business 

models, creating innovation-friendly 

sustainable policies and supporting drones 



California 

Two steps forward, and one step back 

In a win for drones, in September 2015, Governor Jerry Brown vetoed a bill that would 

have required a property owner’s permission to fly a drone in the public airspace above 

the property, warning that it would “expose the occasional hobbyist and the FAA-approved 

commercial user alike to burdensome litigation.” In the absence of federal 

regulations, the Los Angeles City Council took a proactive approach, enacting an 

ordinance that mirrors FAA regulations: fly drones below 500 feet, don’t fly within 

five miles of an airport without prior permission, and don’t fly near people. The 

ordinance will take effect when Mayor Eric Garcetti signs it into law. 

Sacramento 

Meanwhile, the drone industry continues to work on new products and 

solutions, including two promising California companies, 3D Robotics 

and Airmap. 3D Robotics is building the next generation of drones, 

which can fly on autopilot, record professional quality photos 

and videos, and may soon even be able to transport people. 

AirMap is helping manufacturers such as these, along with 

governments, developers, and ordinary users, make sense of 

low-altitude airspace data, to help drones take flight. 

29

Right to Work 




Fast Internet 






F 

C+ 

D- 

B 

B+ 

B 

A+ 

B- 

B 

D 


With over $32 

billion in total 

funding, California 

saw more venture 

capital than every 

other state put 

together. 

Far and away the national leader 

in attracting high-tech investment, 

California once again drew an astonishing 

amount of venture capital 

and research and development 

funding. Sacramento could keep 

the momentum going by enacting 

broad, statewide frameworks to 

regulate and allow internet-based 

business models to flourish across 

California. Ridesharing is legal 

statewide, but Uber has faced 

threats of suspension. Homesharing 

companies face no statewide 

regulatory framework and a mix 

of municipal laws in cities across 

the state, including a restrictive 

law in Santa Monica and a positive 

homesharing law in San Jose. 


National leader in attracting high-tech investment 


2015 

$877 

2014 

$590 

1000 

500 


2000 

1000 

2015 

$2,192 

2014 

$2,014 




Innovation Leader 

“Elkmts” by Hogs555 is licensed by CC BY-SA 3.0 

Colorado 

Lukewarm reception for sharing economy businesses 

In 2014, Colorado became the first state to authorize ridesharing companies. 

With Uber celebrating its five millionth Colorado ride on September 

30, 2015, ridesharing companies have continued to operate smoothly 

throughout the model rulemaking process. 

Meanwhile, voters in Boulder passed a 

favorable law that makes homesharing fully 

legal, does not require home inspections 

by platforms such as Airbnb, and allows for 

simple, online registration. On the whole, 

Coloradans have embraced the sharing 

economy with open arms, and in 2016, they 

should continue in that tradition. 

Denver 

31

Right to Work 




Fast Internet 






F 

B+ 

B 

B+ 

B- 

B 

B 

B 

N/A 

N/A 

Tech 

Workforce 

48.9 

Tech Jobs per 1,000 people 

In 2015, the personal financial 

site NerdWallet ranked 

three Colorado cities — Boulder, 

Denver, and Colorado Springs — 

in the nation’s top 15 for tech jobs. 

A member 

of the highscoring 

Mountain 

states, which 

include six 

Leaders and 

one Champion 


25.56 20 

JOBS FIRMS 


2009-2013 


1,000 people, 2009-2013 



Barndoor Hills” by Sphilbrick is licensed by CC BY-SA 3.0 

Connecticut 

Full legal status should follow a victory for ridesharing 

After a year with no movement either way on ridesharing in Connecticut, 

in August 2015, Uber won a case against taxi and limousine 

companies that sought to stop transportation network companies 

in their tracks, U.S. District Judge Alvin Thompson ruled that 

the taxi companies had failed to show unfair practices on the part 

of Uber, or that ridesharing companies need 

necessarily follow typical taxi regulations. 

But the industry still isn’t safe from ill-conceived 

bills influenced by special interests. 

Before traditional taxi companies succeed, 

lawmakers should work proactively toward a 

legal framework that explicitly allows ridesharing 

companies to operate freely. 

Hartford 

33

Right to Work 




Fast Internet 






F 

B 

C- 

B- 

B 

B 

B+ 

B 

N/A 

D 

INNOVATION- 

FRIENDLY 

SUSTAINABLE 

POLICIES 

Connecticut’s staterun 

electronics 

recycling system 

overcharges residents 

and manufacturers 

of consumer tech 

products, who pay for 

recycling at twice the 

market rate. 



42.1 

Tech jobs per 1,000 people 


2014 

2015 $129 

$99.15 

200 

100 


2000 

2015 2014 

$2,054 $2,099 

50 

1000 

The global ESPN empire is still 

run from its original Bristol, Connecticut 

headquarters — started there in 1979 

because, unlike the nearby hometown of 

founder Bill Rasmussen, Bristol did not 

have an ordinance banning the use of 

microwave signals for the newly-developed 

satellite television dish. 



Over $100 million of venture capital left Connecticut 

in 2015, causing the state to lose ground after earning an 

‘A-’ in the category in the inaugural 2015 Scorecard. Connecticut 

should improve its tax code, which is among the least 

growth-friendly in the country, and reform regulations that 

stifle innovation. 



“Wilmington Delaware skyline” by Tim Kiser is licensed under CC BY-SA 2.5 

Delaware 

Bringing home security online 

Delaware earned an ‘A-’ for Welcomes New Business Models 

in 2016, when the state’s Department of Transportation 

signed a memorandum of understanding that allowed companies 

such as Uber and Lyft to operate legally — enabling 

Governor Jack Markell to make good on his public support 

for ridesharing. 

In November 2014, before most states had any formal policy 

at all on ridesharing services, Governor Markell promised to 

welcome the sharing economy with open arms. 

Dover 

Also befitting Delaware’s rising stature as a magnet for innovation, 

Delaware is home to a growing number of tech startups, 

including two that use the Internet of Things to build 

better homes. Okidokeys replaces traditional front door keys 

35

Right to Work 




Fast Internet 






F 

A- 

B+ 

B 

A 

B 

A- 

B 

N/A 

N/A 


Fast Internet 

with mobile devices and wearables, allowing residents 

to control who can get into their homes, and when. Users 

can manage time-sensitive keys for babysitters or housekeepers, 

get notified when their children are home from 

school, and receive intruder alarms on their smartphones, 

wherever they are. 

Another product making homes safer and more user-friendly 

is Branto, a hub for security, entertainment, 

and communication. With 360-degree video, two-way audio 

and motion detection, Branto lets users keep in touch 

with their homes, and their loved ones, when they’re away. 

For a second straight year, Delaware is an 

Innovation Champion due to its fast Internet 

speed, ability to attract investment and 

welcoming of ridesharing companies 

FAST 

INTERNET 

16,867 

avg. kbps. 

667 


avg. kbps. change 

from 2014 



District of 

37 

Columbia 

Nation’s capital leads 

Covering a mere 68 square miles, the District of Columbia earned top grades in 

six of the ten Scorecard categories, for the second straight year — an unparalleled 

achievement. Despite its size, Washington, D.C. has become a 

national leader in tech job growth, STEM education and new business 

creation. It was also among the first places in the country to legalize 

ridesharing, through an October 2014 law approved by the 

D.C. Council. 

The D.C.-based incubator 1776 is one of many organizations 

that have helped spur the city’s explosion of entrepreneurial 

talent. Founded in 2013 with initial support 

from Microsoft and Comcast, 1776 provides investment and 

mentorship for entrepreneurs working to solve difficult problems 

in areas typically dominated by government, from education 

and healthcare to energy and the environment.

Right to Work 




Fast Internet 






F 

A 

C- 

A+ 

A+ 

A+ 

B 

A+ 

N/A 

N/A 




44.19 

JOBS 

21 

FIRMS 

Fast Internet 



2009-2013 

Average number of new firms created 

per 1,000 people, 2009-2013 




Florida 

Needs to accommodate disruptive innovation 

Tallahassee 

A range of policies has made Florida an uncertain environment 

for innovations such as drones, ridesharing and homesharing. 

Under one law enacted in 2015, the state takes a broad 

approach to new privacy and surveillance acts specific to 

drones with itemized exemptions. More, Florida’s largest 

city, Miami, adopted a vague regulation that could prohibit 

drone operations authorized by the FAA. 

On the ground, innovative transportation services 

such as Uber are legal in many cities, but not at major 

airports, leaving considerable room for improvement 

in the Sunshine State. Some cities, including 

39

Right to Work 




Fast Internet 






A+ 

C+ 

A 

B 

B 

C- 

C- 

C- 

D 

N/A 

Right to Work 


Florida is 

a national 

leader in 

innovationfriendly 

tax 

policies, and 

a returning 

Innovation 

Leader 

Miami and Ft. Lauderdale, have passed restrictive homesharing 

laws, although a good statewide law exists. 

The Idea Center at Miami Dade College brings students 

and the local community together to develop new companies 

and products. Offering an A.S. degree in Business 

Entrepreneurship that can be transferred to any Florida 

college or university, the Idea Center equips graduates 

with the skills to bring their ideas to fruition, employ new 

technologies, and build successful businesses. Two other 

programs offer accelerated courses in marketing analytics 

and coding, including a live version of Harvard University’s 

CS50x Computer Science course that combines online lectures 

from Harvard with in-person workshops and mentorship. 

And by partnering with nearby companies and organizations, 

students at the Idea Center get to apply these skills 

in the real world. 



Georgia 

The right direction on new businesses 

In a matter of a year, Georgia lawmakers have done a 180-degree 

turn, favoring the use of ridesharing services. In 2015, the General 

Assembly drafted legislation limiting ridesharing 

options. However, ridesharing companies Uber and 

Lyft got formal approval this past May, when the 

state House passed two bills legalizing the transportation 

network companies. 

The laws come after ridesharing companies faced lawsuits 

from traditional taxi and limousine companies in 

Atlanta and other parts of the state. As in states across 

the country, Georgia’s new law imposes licensing requirements 

and mandates insurance coverage — though at $1 

million, the minimum liability coverage is significantly 

higher than that of many other states. 

Atlanta 

41

Right to Work 




Fast Internet 



A+ 

A- 

C 

C- 

B 

B 

C+ 

Right to Work 



N/A 


Innovation-Friendly Sustainable Policies N/A 

Increasing Internet speeds 


and rising tech investments 

helped keep Georgia afloat as an 

Innovation Leader, despite room 

36.2 

for improvement in nearly every 

category 


FAST INTERNET 

12,191 

avg. 

kbps. 

Fortune 500 tech companies such 

as the telecom manufacturer ARRIS help 

2,569 avg. kbps. change from 2014 make Georgia the leading employer of 

technology workers in the Southeast. 

C- 



Hawaii 

New businesses in the Aloha State 

In our last Scorecard, we withheld a grade from Hawaii in the Welcomes 

New Business Models category after its state legislature took no 

action on ridesharing. In 2015, the state took positive steps, when the 

legislature declined to pass a bill that could have put companies such 

as Lyft and Uber out of business by saddling them with onerous 

insurance requirements — on top of the $1,000,000 in 

coverage that their drivers already carry. The state 

Honolulu 

could improve its ratings still further if it enacted 

proactive legislation to protect ridesharing 

companies. 

In 2015, the legislature passed a law 

adding new requirements for home- 

43

Right to Work 




Fast Internet 






F 

D+ 

B- 

C 

C 

D 

D- 

C 

N/A 

A- 


This year, the Hawaii 

legislature addressed 

concerns voiced during previous 

sessions about the over-reliance 

on certain e-waste collection 

strategies — ones that looked 

good on paper, but were not widely 

used by consumers. Hawaii 

addressed this concern, but also 

acknowledged and accounted for 

the existing market demand for 

used mobile devices. 

sharing platforms regarding data sharing, licenses, and 

liability. Each island also acts as its own county, handling 

homesharing policies separately, and enabling jurisdictions 

such as Honolulu to make it nearly impossible for 

residents to obtain licenses to rent out their homes. 

Hawaii has some of the most 

innovation-friendly sustainability 

policies in the country 


15 Science 

& 

Engineering 

degrees 

conferred per 

1,000 people 

18-24 

The University 

of Hawaii-West Oahu has 

established a STEM Center for 

Excellence. It will support local K-12 

science education, and develop an 

interdisciplinary BS concentration 

bridging engineering, business, and 

sustainability courses. 



Idaho 

Some innovations welcome 

After months of tensions with ridesharing companies, in March 2015, the Idaho 

House passed a law legalizing the businesses for statewide operation. 

Under the final House bill, Idaho lifts its onerous regulations on ridesharing 

companies, resolving disputes over background checks and 

driver insurance. 

Boise 

Idaho continues to maintain a law enacted in 2013 that restricts 

the use of drones, prohibits surveillance and photography 

without written permission — and creates a new civil 

cause of action. 

45

Right to Work 




Fast Internet 






A+ 

A 

B 

B- 

C- 

D 

B 

C+ 

D 

N/A 

Right to Work 


Like its neighbors, 

Idaho is increasingly 

drawing entrepreneurs 

and investors to the 

Mountain West 


2015 

$30.62 

689 avg. kbps. change from 2014 

NOT SO FAST 

INTERNET 

8,860avg. 

kbps. 


2014 

$5.34 


40 

20 


800 

400 

2015 

$688 

2014 

$747 




Illinois 

Downgraded on drones and environmental policy 

“Link Bridge Pano” by David B. Gleason is licensed under CC BY-SA 2.0 

An Innovation Leader in the 2015 Scorecard, Illinois slid backward this year 

for enacting restrictive policies in several areas, including drone 

usage, sustainability and ridesharing. The largest city, Chicago, 

adopted an ordinance regulating the operation of drones in the 

national airspace, which conflicts with federal authorizations. 

The state approved onerous amendments to the state e-waste 

law, which passed over the objections of the very companies 

financing the system. Ridesharing services remain legal in 

Springfield the state, but Chicago taxes them heavily. 

Chicago VC investment slowing, but still strong 

In 2014, Chicago boasted over $1 billion in venture capital. But 

after a six-year boom, the rate of VC investment in the Second 

City is finally slowing, falling to $800 million in 2015. 

47

Right to Work 




Fast Internet 

F 

A- 

B 

C+ 

B- 









2015 

$74.27 


2014 

$60.76 

80 

40 


1000 

500 

2015 

$1,013 

B 

B 

C+ 

D 

D+ 

2014 

$938 


Still, the fact that $800 million can 

be called anything but a success is 

testament to how far Chicago has 

come since the dot-com boom and 

ensuing recession, during which 

it drew less than half that amount 

of investment. The future of the 

emerging tech hub continues to 

look bright, with (relatively) older 

Chicago-based powerhouses such 

as GrubHub and Groupon joined 

by newcomers such as Raise, an 

auction site for gift cards that 

raised a $56 million round of investment 

in early 2015. And Illinois 

drew greater venture capital and 

R&D investment than it did in 2014. 

Another startup, Mira, feeds on 

the explosion of interest in wearable 

healthcare technologies. 

Mira combines stylish design 

with cutting-edge wearable tech 

to create smart jewelry that tracks 

steps, elevation, distance, and 

calories burned. Fitness wearables 

are only as effective as people are 

willing to use them, so Mira makes 

healthcare tech fashionable, and a 

better fit for how consumers want 

to dress and accessorize. 



Indiana 

Not resting on its laurels 

Already an Innovation Champion, Indiana made 

further gains in 2015 by finally taking action to legalize 

ridesharing statewide. 

In May, Governor Mike Pence signed a law with rules 

on insurance requirements, letting companies such as 

Uber to fully operate throughout the state. 

Indianapolis 

Sending another attractive signal to entrepreneurs 

seeking a place to call home, Indiana increased average 

internet speeds by over 1,000 kbps since our last Scorecard. 

The state also uses a range of novel tax incentives 

to spur job creation and draw new businesses 

into the state. One initiative encourages business to 

49

Right to Work 




Fast Internet 






A+ 

A 

B+ 

D+ 

B 

C+ 

B 

B 

N/A 

N/A 

Right to Work 


Indiana leads a strong 

Midwest with high grades 

in nearly every category 

FAST 

INTERNET 

12,544 

avg. kbps. 

1,198 

avg. kbps. 

change from 2014 

grow inside “technology parks,” rewarding 

them with local and state tax revenue 

reinvestment for taking part in the creation 

of two dozen tech hubs. 

The technology parks will help diversify 

small-town economies such as North 

Vernon, Odon and Warsaw, bringing new 

growth to cities such as Indianapolis and 

Fort Wayne, and creating jobs to attract 

recent college graduates in academic 

communities such as South Bend and 

West Lafayette. 

Indiana drew triple the amount amount 

of venture capital investment per capita 

in 2015, and also increased average internet 

speeds by over 1,00 kbps. 



Iowa 

A legacy of STEM success 

Iowa grants more science and engineering bachelor’s degrees per capita than almost any 

other state, thanks in large part to one of the great public universities in the country. Iowa 

State University has a long history of fostering innovation, dating back to the invention of 

the first electronic digital computer in the 1940s. Home to the renowned Ames Laboratory, 

ISU is still the only university to house a Department of Energy research lab. 

Now, with the world’s highest-resolution, fully-immersive virtual reality lab, ISU is poised 

to lead development efforts in one of today’s hottest tech 

fields, and is living up to its legacy as the first landgrant 

university in the nation — empowering the state’s 

finest students and researchers to create and innovate. 

To help signal Iowa’s commitment to attracting the best 

possible tech jobs for its tech graduates, the state legislature 

should once again try to legalize ridesharing statewide, 

after a 2015 effort that failed in the Senate. 

Des Moines 

51

Right to Work 




Fast Internet 






A+ 

B 

C 

C+ 

C 

B- 

C+ 

A 

N/A 

N/A 

Right to Work 


Grants STEM 

Degrees 




12 

800 

2014 

37.8 

2015 

$8.33 

9 

2015 

$578 

$760 

Science & 

Engineering 

degrees 

conferred per 

1,000 people 

18-24 

Iowa is one 

of three states 

nationwide with top 

marks in granting science 

and engineering degreess. 

2014 


6 

3 

400 




Kansas 

From Leader to Champion 

After pulling out of the state in May 2015 following the passage of a law 

that imposed onerous requirements, Uber and other ridesharing services 

returned to Kansas weeks later, when Governor Sam Brownback 

orchestrated a compromise between legislators and the industry to 

legalize the service. 

While the previous rules would have submitted drivers to unduly 

burdensome background checks conducted by the Kansas Bureau of 

Investigation, the new compromise will 

allow Uber to screen its own drivers, as it 

does safely in many jurisdictions across 

the country. Governor Brownback became 

one of the first Kansas passengers of a fully 

authorized ride, leaving the Capitol in an 

Uber car shortly after the bill signing. 

Topeka 

53

Right to Work 




Fast Internet 






A+ 

A- 

B 

B- 

C+ 

B 

B 

C 

N/A 

N/A 

Right to Work 


Formerly an 

Innovation 

Leader, 

Kansas joins 

three other 

Innovation 

Champions in 

the Midwest 




2015 

$28.67 

2014 

$14.51 

40 

400 

20 

2015 

$726 

2014 

$529 



Kansas nearly doubled its venture capital funding 

since our last Scorecard, and made healthy gains in R&D 

investment. 



Kentucky 

Tax code a bright spot 

Helping to earn its second highest grade a ‘B’, in Tax Friendliness, 

Kentucky collects some of the lowest property taxes per capita, at 

$716, and restricts any local sales taxes in excess of the statewide rate 

of six percent. 

Another tax credit is proving more useful for newer kinds of 

businesses in Kentucky. Passed in 2014, the Kentucky Angel 

Investment Act encourages individual investments in 

local startups and small businesses, by providing 

tax credits. Extra incentives are given 

for investments made in underdeveloped 

areas of the state, and the target 

industries include information 

technology and communications. 

Frankfort 

55

Right to Work 




Fast Internet 






F 

A 

B- 

D- 

D+ 

D 

D 

D+ 

N/A 

N/A 


With a 2015 law, 

Kentucky set insurance 

rules for ridesharing 

companies, 

effectively legalizing 

the service statewide. 

A returning Modest 

Innovator, Kentucky is 

making progress, attracting 

more than three times as 

much venture capital in 2015 


2015 

$8.00 

NOT SO FAST 

INTERNET 

8,454 

2014 

avg. 

$2.79 

kbps. 




8 

4 


300 

200 

100 

2015 

$248 

2014 

$295 




“Bayou Corne” by jc.winkler is licensed by CC BY-SA 2.0 

Louisiana 

Tighter limits on drones and homesharing 

One of 14 states that moved up a tier this year, Louisiana became a 2016 Innovation 

Adopter thanks in part to improving its Internet infrastructure. Louisiana 

also shows some of the highest rates of new startups and jobs in the Deep 

South, a region that includes only one Innovation Leader. 

Baton Rouge 

However, Louisiana lawmakers continue to impose unnecessary 

burdens on new kinds of businesses. A 2015 law requires 

special registration and licensing for the use of drones 

in commercial agriculture, and a restrictive homesharing rule 

prevents New Orleans residents from legally renting 

out their homes. Ridesharing services are legal in 

Louisiana, but they operate under unusually high 

insurance requirements, and municipalities such as 

Jefferson Parish block them entirely. 

57

Right to Work 




Fast Internet 






A+ 

C 

C+ 

B 

C 

D- 

F 

D+ 

D 

N/A 

Right to Work 

Louisiana’s 1976 

right-to-work 

measure was the first 

such state law, allowing 

workers to decide whether 

or not to join a union, 

that had been passed in 

more a decade. 


21.58 15 

JOBS FIRMS 


2009-2013 

Average number of new firms 

created per 1,000 people, 2009-2013 

IMPROVING 

INTERNET 

10,086 

avg. kbps. 

Moving up over a full 

grade from ‘D-’ to ‘C’, 

Louisiana boosted Internet 

speeds by an 

average of nearly 

2,000 kbps. 

1,985 

avg. kbps. 




Maine 

Supply-side education 

“A beach in maine on a clear day” by Someone35 is licensed by CC BY-SA 3.0 

Improving Internet speeds and new pro-ridesharing policies helped Maine rise to 

Innovation Adopter status this year. But the state has long been a leader in STEM 

education, granting more than 24 science and education degrees per 1,000 young 

people, and providing a direct pipeline of talent for innovative businesses and 

future entrepreneurs. 

The University of Maine does its part through two programs that 

focus on STEM education at the K-12 level — no matter where young 

students live in the heavily rural state. The Maine Physical Sciences 

Partnership and Elementary Sciences Partnership connect 45 

rural schools to the University of Maine. 

The programs help schools hire and retain better science 

teachers, improve curricula, and bring university-level faculty 

to collaborate with middle school students. Realizing that all 

education starts from the bottom up, the university intervenes 

early to help raise the next generation of innovators. 

Augusta 

59

Right to Work 




Fast Internet 






F 

A- 

C+ 

B 

C- 

C- 

D 

B+ 

N/A 

C- 


In 2015, a bill to legalize 

ridesharing passed the 

Maine legislature, but Governor 

Paul LePage vetoed it, leaving 

the services in limbo. Thankfully, 

not for long: legislators overrode 

the veto, and ridesharing is 

now legal statewide. 

Grants STEM 

Degrees 

24.5 


18.94 20 

JOBS FIRMS 

Maine 

ranks 

seventh in 

Science & 

Engineering 

degrees 

conferred per 

1,000 people 

18-24 

the nation in graduating 

science and engineering 

students, ready for careers 

in innovation. 


2009-2013 





“Annapolis, Maryland” by high limitzz is licensed by CC BY-SA 2.0 

Maryland 

Electronics recycling is a partnership — not a conflict 

In 2015, overzealous officials blindsided several companies with enforcement actions the 

day after the annual manufacturer registration deadline. Several manufacturers had to 

wait in limbo for weeks before the state verified that they were in compliance. Nonetheless, 

Maryland’s electronics recycling program allows manufacturers to take more innovative 

approaches in recycling e-waste. 

Annapolis 

On a brighter note, Maryland adopted a wise new policy that 

prohibits counties and municipalities from enacting laws on 

drones, giving the state and federal governments exclusive jurisdiction 

over the devices. It also legalized ridesharing companies 

statewide, putting them under the jurisdiction of the Public 

Service Commission. In order to maintain a high grade 

for welcoming new business models, the Public Service 

Commission should ensure that ridesharing companies 

are not held back by burdensome rules. 

61

Right to Work 




Fast Internet 






F 

A- 

C 

B- 

B+ 

B 

B 

B 

A 

B- 



Maryland boasts a rich 

environment of investors, 

entrepreneurs and 

tech workers 

FAST 

INTERNET 

14,535 

avg. kbps. 

2,363 

avg. kbps. 



21.8 

Science 

& 

Engineering 

degrees 

conferred per 

1,000 people 

18-24 

Maryland’s STEMnet program connects 

professionals and educators with K-12 students, to 

help them prepare for college degrees and pursue 

careers in the sciences. 



“Old State House, Boston” by Chensiyuan is licensed by CC BY-SA 4.0 

Massachusetts 

Incubating success 

With access to a healthy pool of graduates from top universities, Massachusetts 

also offers one of the largest and most successful startup 

incubators in the world: the five-year-old MassChallenge. Every year, 

more than 100 early-stage startups spend four months at the accelerator, 

where they have access to advisors, resources, and the opportunity 

to compete for a small number of $1 million grants. MassChallenge 

draws funding from private companies, such as Verizon and Microsoft, 

as well as public support from the state of Massachusetts. 

2015 winners included the makers of a biosensor for diabetics, a 

company that provides toilets that convert waste into energy in 

rural India. 

On the legislative front, ridesharing is legal 

in Massachusetts thanks to a rule enacted 

in January 2015, but it still faces setbacks, 

including the threat of fines in Boston and 

new scrutiny in the state legislature. 

Boston 

63

Right to Work 




Fast Internet 






F 

B- 

B 

B 

A- 

B 

A+ 

B+ 

N/A 

N/A 

Fast Internet 


A returning Innovation 

Champion for its to fast 

internet speeds, large tech 

workforce and job creation 

FAST 

INTERNET 

15,329 

avg. kbps. 

1,492 

avg. kbps. 





2015 

2015 

800 

$811 

2014 

$2,671 

2014 $2,401 

$578 

400 

400 





“Skyline of Detroit, Michigan” by Crisco 1492 is licensed by CC BY-SA 4.0 

Michigan 

Motor City Champions 

Just a few years after declaring bankruptcy, Detroit is leading an entrepreneurial 

revolution in Michigan, with dozens of promising tech startups and hundreds of 

millions of dollars in investment. 

With high grades across nearly all categories, Michigan could 

cement its status as one of six returning Innovation Champions 

by formally authorizing ridesharing across the state, 

which the legislature began considering in 2015, when HB 

4673 passed the House. 

Lansing 

In 2015, the Michigan Department of Environmental 

Quality (DEQ) also organized a stakeholder process to 

review possible changes in the state’s electronics recycling 

law. The Department did its job professionally, 

remaining open to innovative approaches as it balanced 

different stakeholder needs. 

65

Right to Work 




Fast Internet 






A+ 

B 

B+ 

C- 

B+ 

B 

B 

B 

N/A 

B+ 

Right to Work 

In 2012, Governor 

Rick Snyder 

signed legislation 

that made Michigan 

the 24th rightto-work 

state. 

One of six Midwestern 

champions, with high marks 

in 8 of 10 categories 


FAST INTERNET 

17.8 

Science & 

Engineering 

degrees 

conferred per 

1,000 people 

18-24 

13,557avg. 

kbps. 

1,034 

avg. kbps. 

change 

from 2014 

For years, four Michigan public 

universities, including some of the 

country’s top research institutions, have been 

working with nine community colleges to 

increase the number of minority students 

earning STEM degrees. 



Minnesota 

A winning mix 

Making one of the biggest jumps in the Entrepreneurial 

Activity category, from a ‘D’ in 

last year’s Scorecard to its current grade of ‘B’, 

Minnesota topped a mid-year list of the fastest-growing 

states for tech jobs. The ranking, 

published by the tech site Dice, gave Minnesota 

the top spot, with an 8.36% growth rate in 

tech jobs — significantly outpacing even the 

next state on the list (Utah, at 5.75%), and far 

better than traditional tech hubs such as California 

and New York. 

St. Paul 

67

Right to Work 



B 



D+ FRIENDLY 

SUSTAINABLE 


B 

POLICIES 

Fast Internet 


B 

B 

State legislators 

passed a limited, consensus 

amendment to 


B 

the e-waste law that 




B 

N/A 

B+ 

will last for one year, 

as they develop a 

long-term approach. 

Minnesota joined six 

Between “Medical Alley” tech companies such 

as Medtronic and Boston Scientific, small 

other states this year in 

firms such as the data security company Code 

newly earning Innovation 

42 and the enterprise management software 

provider JAMF, and traditional heavyweights 

Leader status 

such as 3M — which operates dozens of U.S. 

plants from its Maplewood headquarters — 

Minnesota boasts a mix of innovative companies. 

The result: more than 26,000 technology 

FAST 

jobs statewide, fifth in the country on a per 

capita basis. 

INTERNET 

12,406avg. 

kbps. 

F 

Still, the state could bring even more diversity 

to its blossoming tech ecosystem. Minneapolis 

and other cities have legalized ridesharing, 

but ridesharing companies considered leaving 

Minnesota in March 2015, as the state legislature 

considered a bill that would have saddled 

ridesharing services with onerous and burdensome 

requirements in the country. 



“Wolf River swamp North Mississippi” by Gary Bridgman is licensed by CC BY-SA 3.0 

Mississippi 

Clamping down on free expression on the Internet 

In a misguided effort ostensibly intended to halt illegal online drug sales, Mississippi 

Attorney General Jim Hood picked a fight with Google that threatened the 

Internet’s fundamental role as a place of free expression. In October 

2014, claiming to seek information relating to drug sales on 

Google’s search engine, Hood made a wide-ranging discovery 

request of Google that, according to an Electronic Frontier 

Foundation amicus brief, would have violated federal protections 

for online speech. 

But in a bizarre twist, Hood appears to have ulterior motives, 

as revealed after the November 2014 cyberattack 

against Sony Pictures Entertainment, in which leaked 

emails allegedly show the Motion Picture Association of 

America leading a concerted attack against Google. 

Jackson 

69

Right to Work 




Fast Internet 






A+ 

D- 

B 

F 

C- 

F 

F 

D- 

A 

N/A 

Right to Work 


Mississippi is 

one of four states 

at the forefront 

of supporting 

drone technology, 

addressing privacy 

concerns by 

including drones 

among devices 

already covered 

under existing law 

Broadly-construed subpoenas threaten to chill Internet 

activity, by encouraging companies such as Google to 

clamp down on any speech that might open them to 

liability. Demanding that Internet companies censor 

results for all web users violates the law, and Hood’s 

efforts should end here. 

IMPROVING INTERNET 

9,154avg. 

kbps. 

1,122 avg. kbps. change from 2014 



Missouri 

Heading in the right direction for this former Innovation Adopter 

“St Louis Gateway Arch and riverfront” by Kbh3rd is licensed by CC BY-SA 3.0 

Ridesharing services are operating in Missouri, but they face significant local 

threats. In 2015, the House began considering 

legislation to legalize ridesharing. The legislature 

and Governor should make it a priority to enact a 

law legalizing ridesharing statewide. 

On a brighter note, Missouri made significant progress 

in two categories in the 2016 Scorecard, increasing 

average internet speeds by nearly 3,000 kbps, and 

drawing over 50% more research and development 

dollars per capita — the biggest such improvement by 

any state in the country. 

Jefferson City 

71

Right to Work 




Fast Internet 






F 

C 

B 

C+ 

B- 

B- 

B 

B 

N/A 

N/A 

IMPROVING 

INTERNET 

11,816 

avg. kbps. 

2,824 

avg. kbps. 






2015 

$21.82 

2014 

$20.77 

25 

15 

1200 

2015 

$1,166 

17.7 

Science & 

Engineering 

degrees 

conferred per 

1,000 people 

18-24 


600 

2014 

$471 


One of the first technological schools 

west of the Mississippi river, Missouri University 

of Science and Technology graduates more than 

90% of its students with STEM degrees — among 

the highest rates in the country. 



Montana 

Opening up a new market 

Montana is one of five states without a general sales tax, and levies some of the lowest 

property taxes in the country. 

Thanks to a new law that legalized ridesharing across the state, Montana also signaled 

a willingness to prevent established industry from muscling out new competitors. The 

bill, signed into law in May 2015 by Governor Steve Bullock, repealed an old competitor 

provision that prevented ridesharing companies from competing with existing taxi 

and limousine companies. 

Though ridesharing companies such as Uber and Lyft were not already operating 

in Montana, they are now free to begin offering rides, if they obtain the licenses 

provided by law. 

Helena 

State Representative Daniel Zolnikov — at 28, one of the 

youngest legislators in the state, with an undergraduate 

degree at the University of Montana — hopes that 

ridesharing models will help curb drunk driving, which 

can be all too common on college campuses. “Everyone 

knows you can’t get a cab,” Zolnikov says. 

73

Right to Work 




Fast Internet 






F 

A 

A- 

A- 

C+ 

D+ 

F 

B 

N/A 

N/A 




23.17 25 

JOBS FIRMS 



2009-2013 


1,000 people, 2009-2013 



Nebraska 

From the gray area to the open road 

After almost a year of operating ridesharing services without full approval 

— during which some drivers were fined for picking up riders outside the 

regulatory framework for taxis and limousines — new Nebraska policies now 

let Uber and Lyft drivers operate legally. 

The rule shift on ridesharing from the Public 

Service Commission addresses concerns 

from banks over the process of notifying 

lien holders of vehicles used for 

ridesharing, and mandates $1 million 

Lincoln in liability insurance. For drivers in the 

state who are eager to continue business 

without fear of penalties, the change is 

long overdue. 

75

Right to Work 




Fast Internet 






A+ 

A- 

B 

B 

B- 

B 

C 

B 

N/A 

A- 

Right to Work 






2015 

$60.1 

60 

30 

300 

2015 

$316.5 

2014 

$348 

IMPROVING 

INTERNET 

2014 

$5.60 


100 


11,699 

avg. 

kbps. 

2,074 

avg. kbps. 

change 

from 2014 



Nevada 

What happens in Vegas 

77 

Nevada has jumped from a ‘D’ to an ‘A-’ in Welcoming New Business Models, enacting 

ridesharing legislation that enabled residents to use popular ridesharing apps 

such as Uber and Lyft. 

In May 2015, Governor Brian Sandoval signed into law two bills that permit ridesharing 

companies to operate, and make the state responsible 

for regulating them. By December 2015, after a prolonged fight, 

Clark County had acknowledged the reach of these laws, allowing 

ridesharing with some restrictions on the Las Vegas strip 

and its nearby airport. 

Carson City 

Another 2015 Nevada law, less welcoming of new technologies, 

criminalized the flying of drones over private property at an 

altitude under 250 feet and within 500 feet of a “critical facility” 

without written consent, in conflict with existing federal rules. But in 

a promising step, the state moved forward with construction of a drone 

airport in Boulder City, which would allow businesses, hobbyists, rescue 

workers and governments to fly drones and experiment with new applications.

Right to Work 




Fast Internet 






A+ 

A- 

A 

B- 

B 

D 

D 

F 

B- 

N/A 

Right to Work 


New legislation welcoming 

ridesharing helped make 

Nevada a first-time Innovation 

Leader this year 

FAST INTERNET 

12,372 

avg. 

kbps. 



With no corporate 

or individual 

income taxes, 

Nevada maintains 

some of the most 

growth-friendly tax 

policies in the country. 



New Hampshire 

Public support for private growth 

New Hampshire has made a big jump in creating new jobs and companies 

since last year’s Scorecard, but one “increase” in employees was 

actually a step backward for the state — in November 2015, the Department 

of Labor declared that ridesharing drivers are employees. Preserving 

drivers’ independence is part of what allows ridesharing services to 

work so well for drivers and passengers across the country. 

One new venture in the state is beginning to deliver on its promise 

to help innovative businesses start and succeed. Founded in the 

summer of 2014, the Live Free and Start initiative is a government-backed 

startup ecosystem that pushes pro-innovation policies 

and advises entrepreneurs on attracting funding and building 

their businesses. 

The program, led by an advisory council of business leaders 

and entrepreneurs, has supported bills to improve access 

to an existing R&D tax credit, simplify the process to start a 

Concord 

79

Right to Work 




Fast Internet 






F 

D 

A- 

B 

B 

B 

B+ 

B+ 

N/A 

N/A 


The most innovationfriendly 

tax code 

in the Northeast helps 

New Hampshire startups 

live — and grow — free. 

new business, and modernize the state’s securities 

regulations. 

New Hampshire is also home to the SMARTwheel, 

a revolutionary new safety company 

product created by 19-year old inventor TJ 

Evarts. An intelligent steering wheel cover, 

the SMARTwheel prevents people from 

engaging in distracted driving, which kills 

thousands and injures hundreds of thousands 

each year. The device alerts drivers when they 

begin taking their hands off the wheel, and 

records the events on a smartphone so that 

parents and employers can review them later. 

The SMARTwheel has been featured on the reality 

show Shark Tank, tested at MIT and noted 

by President Barack Obama. 

Grants STEM 

Degrees 

26.3 

Leaders of the 

New Hampshire 

Science & 

Engineering 

degrees 

conferred per 

1,000 people 

18-24 

tech sector have joined forces 

with the Governor to form a STEM 

Education Task Force. 



“Rutgers Newark campus” by Arthur Paxton is licensed by CC BY-SA 3.0 

New Jersey 

Accelerating growth in Newark 

To boost a struggling economy and improve the state’s attractiveness for new business, 

a new accelerator launched in Newark in 2015, promising to turn the city into a regional 

high-tech center. 

The $50 million fund, founded by the former head of Amazon’s Audible.com, will 

accept between 10 and 50 early-stage startups every year. Audible.com, which is based 

in Newark and employs 700 workers, is a partner in the fund, along with the Newarkbased 

Prudential Financial. Prospective companies will benefit from the city’s Internet 

connections — some of the fastest in the country — and its proximity to the 

investors and tech talent in New York, without the high cost of living. The 

fund highlights the state’s increasing commitment to tech startups. 

With headquarters in Edgewater, New Jersey, just across the Hudson 

River from upper Manhattan, Stonecrysus has built an intelligent 

health and fitness app for smartphones, which pairs with a wearable 

activity tracker. The company, founded in 2010 by Matt Landers and his 

father, the cardiologist Dr. David Landers, applies machine learning 

algorithms to improve the health of ordinary people. 

Trenton 

In January 2015, Matt Landers, co-founder and CEO, 

announced the release of the Stone, the world’s first wearable 

health device that analyzes user-specific information. The 

81

Right to Work 




Fast Internet 






F 

B- 

F 

B 

B+ 

B 

B+ 

C+ 

N/A 

N/A 


38.4 


As in other Mid-Atlantic 

states, taxes and regulations are 

stifling innovators despite a strong 

base of tech talent. 

Stone learns how foods, activities, sleep, 

and metabolism affect each user’s unique 

physiology, and based on its findings, makes 

recommendations about how she can best 

achieve her health goals, including what, 

how much, and when she should eat; what 

and how much physical activity she should 

do; and how long she should sleep. 

BUSINESS MODELS 

Ridesharing is now 

operating throughout New 

Jersey, but faces hurdles 

in some cities, and the lack 

of statewide authorization 

has meant only piecemeal 

progress. The same applies 

to homesharing services 

where the state legislature 

should follow the positive 

model of Jersey City. 

WELCOMES NEW 

FAST INTERNET 

14,142 

avg. 

kbps. 




New Mexico 

Shunning disruptive innovation 

New Mexico’s public regulation commission drove ridesharing company 

Lyft out of the state in 2015, and Uber’s future there remains uncertain. 

Though it still operates in Albuquerque, Santa Fe and Las Cruces, Uber 

awaits a decision by the New Mexico Supreme Court on whether it can continue 

providing services, after taxi companies asked the court to weigh in. 

The state has also discouraged ridesharing in general, by 

declining to enact legislation that would have allowed 

ridesharing services to operate. 

New Mexico did show improvements in two other 

areas in the 2016 Scorecard. Though its absolute numbers 

are still low, New Mexico made large gains in the 

category of Attracts Investment by drawing more than 

500 percent more venture capital investment dollars, 

per capita. And with average New Mexico Internet 

speeds over 1,000 kbps faster since our last Scorecard, 

the state is heading in the right direction. 

Santa Fe 

83

Right to Work 




Fast Internet 






F 

F 

C+ 

C- 

C- 

D+ 

D+ 

D 

N/A 

N/A 

The lowestscoring 

state 

west of the 

Mississippi, 

but showing 

progress in 

attracting 

investment 

and improving 

Internet speeds 




2015 

$32.44 

2014 

$6.47 

30 

200 

20 

100 

10 

2014 

2015 

$229 

$216 



IMPROVING 

INTERNET 

9,231 

avg. 

kbps. 

While it still has far to 

go in building the infrastructure 

necessary to lure 

tech businesses and startups, 

New Mexico improved Internet 

speeds this year by an 

average of over 1,000 kbps. 

1,033 

avg. kbps. 




New York 

Tax breaks driving new ideas 

Never happy to play second fiddle, New York continued its push to rival the West Coast 

this year in drawing tech talent, new startups, and venture capital funding. 

After a rocky start for New York’s Start Up NY program, the initiative looks to have 

played a large role in new applications for venture capital funding in 2015, according 

to the New York-based funding platform Gust. Start Up NY, which offers 10-year tax 

breaks for new businesses that set up shop near New York universities, helped drive a 

continued surge in entrepreneurs seeking funding for new ideas. The number of entrepreneurs 

seeking funding in New York increased 26% in Q2 of 2015 — 4% more than it 

did in California — and by 15% in Q3. 

In 2015, the Warwick, New York-based company Apio Systems, Inc. launched Driversiti, a 

proprietary platform that enables smartphones and other smart devices to 

alert drivers to transportation hazards, ranging from a driver’s loss of situational 

awareness or sloppy steering to dangerous road conditions. 

Driversiti uses a Software Development Kit whose 

algorithms automatically employ smartphone sensor 

data to understand driving behavior, such as phone 

handling, aggressive braking, and vehicle crashes. 

As Driversiti’s creators describe it, the system transforms 

smartphones from drivers’ worst enemy to their best friend. 

Albany 

85

Right to Work 




Fast Internet 






F 

D- 

D- 

B+ 

B+ 

B- 

B 

B 

N/A 

C 

Big Apple faceoff 

While state insurance 

requirements effectively 

prevent ridesharing services 

from operating in most of 

the state, ridesharing companies 

defeated proposed 

rules this year that would 

have limited the service in 

New York City, as well, after 

a public outcry. With new 

regulatory frameworks to 

allow ridesharing services 

to flourish and allow residents 

to legally share their 

homes without burdensome 

obstacles. 


26.54 19 

JOBS FIRMS 


FRIENDLY 

SUSTAINABLE 

POLICIES 


2009-2013 



While New York made no 

statewide policy initiative, it 

passed several county-level 

chemical bills. Material 

restrictions on tech products 

only make sense at the federal 

level, and the entry of local 

governments into complex 

sustainability policy will stifle 

innovation. 




Joining the ridesharing trend 

A new law, signed by North Carolina Governor Pat McCrory in September 2015, 

fully regulates ridesharing services for the first time in the state, allowing companies 

such as Uber to operate legally. One of the bill’s sponsors, state Senator Floyd 

McKissick Jr., pointed to the possibility that traditional taxi drivers may switch 

over to the new model: “It’s a simpler model to give up the taxi,” he said. As ridesharing 

continues to sweep the country, it’s a fact that many entrepreneurial drivers 

have already realized. 

Raleigh 

Unfortunately, in another area of legislative 

activity watched closely by entrepreneurs, 

North Carolina continues to maintain a 

2014 law that restricts the use of drones, 

broadly prohibiting surveillance and photography 

in the absence of permission, as 

well as distribution of images, and creating new 

private rights of action. The state also has mandated 

local training and licensing requirements. 

87

Right to Work 




Fast Internet 






A+ 

A 

B 

C- 

C+ 

B- 

B 

B- 

D 

C 

Right to Work 



FRIENDLY 

SUSTAINABLE 

POLICIES 

State legislators passed a limited, 

consensus amendment 

to the e-waste law that will last 

for one year as they develop a 

long-term approach. Legislators 

also rushed through an amendment 

to the existing computer 

recycling law, without input, that 

raises fees on manufacturers of 

certain mobile tech devices. 




2015 

$50.8 

2014 

$24.7 

800 

60 

30 400 

2015 2014 

$656 $649 





“Western North Dakota” by Aaronyoung777 is licensed by CC BY-SA 4.0 

North Dakota 

A big step forward 

In making the leap from Innovation Leader to Innovation Champion, 

North Dakota legalized ridesharing statewide and made huge gains in the 

area of entrepreneurial activity. Its per capita job- and new firm-creation 

are matched only by fellow Champion Washington, D.C., thanks in part to 

a highly educated workforce and friendly tax policies. 

Already home to one of Microsoft’s biggest campuses, Fargo is among the 

state’s magnets for innovation. One Fargo-based business, which has been 

called the “Uber of the printing industry,” is typical of a wave of startups 

that target niche sectors in need of drastic modernization. 

The (aptly named) company, Marketing 

Ideas for Printers, helps small and mid-sized printers 

across the country sell more printing using social 

media, email marketing, and websites. In the 

Bismarck 

face of conventional wisdom that “print is dead,” 

these entrepreneurs are working to help printers 

avoid the same fate. 

89

Right to Work 




Fast Internet 






A+ 

A 

B 

A+ 

B+ 

B 

D+ 

B- 

N/A 

N/A 

Right to Work 



42.29 

JOBS 

24 

FIRMS 



2009-2013 


per 1,000 people, 2009-2013 



Ohio 

Cooking without gas 

“North Coast” by Rona Proudfoot is licensed by CC BY-SA 2.0 

As many as three billion people in the developing world cook their food with fuels that 

are either expensive, dangerous, or both. Cincinnati inventor Patrick Sherwin has developed 

a technology that could enable them to cook without fuel altogether. 

Using a parabolic reflector around a Pyrex vacuum tube, Sherwin’s company GoSun 

provides the world’s first solar cookers that can compete with conventional outdoor 

cooking systems. GoSun has partnered with the Global Alliance for Clean Cookstoves, 

a nonprofit that aims to supply the world’s poor with 100 million 

cookstoves by 2020, and every purchase subsidizes a GoSun Stove 

in a developing country. 

As the BBC wrote it up in 2014, the GoSun Sport Stove weighs only 

seven pounds, and takes only 20 minutes in full sun to make anything 

from omelettes to muffins or meats. GoSun has partnered with 

the Global Alliance for Clean Cookstoves, a nonprofit that aims to 

supply the world’s poor with 100 million cookstoves by 2020, and 

every purchase subsidizes a GoSun Stove in a developing country. 

Columbus 

91

Right to Work 




Fast Internet 






F 

A 

C- 

D+ 

F 

B 

B- 

C+ 

N/A 

N/A 


Ridesharing services 

can operate in Ohio, 

after a December 2015 law 

replaced a patchwork quilt 

of local regulations with a 

single framework, mandating 

that drivers seek permits and 

carry $1 million of liability 

insurance. 

Slowest Internet in the country 

Ohio has the slowest average Internet 

speeds in the nation, in large 

part thanks to the infrastructure in 

the state’s rural southeast. While 

Internet speeds have increased over 

the last several years in urban areas, 

southeast Ohio still lags behind the 

state, with some residents reporting 

maximum download speeds 

as low as 500 kbps. These central 

Appalachian counties border Kentucky 

and West Virginia, two other 

states that rank in the bottom 10 

nationally in Fast Internet. Improving 

Internet speeds for all Ohioans 

would go a long way in making the 

state more attractive for startups 

and high-tech businesses. 




2015 

2014 

$25.17 

$22.61 

30 

20 

2015 

600 $672 

2014 

$606 

400 

10 

200 





“Oklahoma State Capitol” © Caleb Long 

Oklahoma 

Oklahoma legalizes ridesharing 

In 2015, Oklahoma joined many other states in legalizing ridesharing services 

such as Uber and Lyft. In April, the Oklahoma Senate passed HB 1614, 

establishing a regulatory framework under which the services can operate. 

Sen. Jason Smalley, who sponsored the legislation in the state Senate, 

remarked that the new ridesharing services will be a boon for public safety, 

enabling people to request cars to drive them home at times other services 

might not be available. 

Though the state legislature has yet to 

weigh in on homesharing businesses 

such as Airbnb, Oklahoma City prevents citizens 

from operating them unless they purchase “bedand-breakfast 

permits” — for $2,700. 

Oklahoma City 

93

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Fast Internet 






A+ 

A 

C+ 

B 

C+ 

C- 

D- 

D+ 

N/A 

N/A 

Right to Work 


Passing model 

ridesharing 

policies helped 

Oklahoma 

become a new 

Innovation 

Leader — one of 

14 states to move 

up one or more 

tiers in the 2016 

Scorecard 


21.92 16 

JOBS FIRMS 


2009-2013 


per 1,000 people, 2009-2013 



“Portland panorama” by Eric Baetscher is licensed by CC BY-SA 2.5 

Oregon 

Building a network of science education 

To compete for entrepreneurs and tech talent with neighboring California and 

Washington, two of the most attractive destinations for innovators and investors, 

Oregon makes a priority of community-based education in math and science. 

In a model for the rest of the country, the STEM Oregon 

program connects nearly every county in the state 

with one of six regional STEM hubs, each of which 

brings together students, educators, local businesses 

and public officials to enhance education in science, 

engineering and technology. 

Salem 

On a less fortunate note, in 2015, Oregon passed SB 

478, which duplicates the role of federal chemical 

regulations by requiring state-level reporting, 

95

Right to Work 




Fast Internet 






F 

B- 

B+ 

B 

B 

B 

B 

B 

A 

C 


A new Oregon law 

preempts the authority 

of local governments to 

prohibit, restrict or regulate 

the ownership or operation 

of drones. 

costly alternatives assessments 

and potential bans on chemicals in 

some consumer tech products — all 

despite the fact that a reform to the 

federal chemical regulatory system 

was well underway. 

In a positive development, in April 

2015, Portland passed a temporary 

measure to allow ridesharing 

companies such as Uber and Lyft 

to operate in the city without the 

threat of legal action. Cities such 

as Eugene still ban ridesharing, 

so the Oregon legislature should 

authorize the services statewide, and 

permanently. An existing statewide 

law that allows Oregon residents to 

share their homes deserves praise, 

although Portland does add some 

requirements beyond state law. 


20 

Science 

& 

Engineering 

degrees 

conferred per 

1,000 people 

18-24 

Oregon STEM graduates have plenty 

of opportunities waiting for them, with the 

West Coast leading the nation in tech jobs 

and investment. 



“Penn campus” by Bryan Y.W. Shin is licensed by CC BY-SA 3.0 

Pennsylvania 

Fighting nausea, on the go 

A Jenkintown, Pennsylvania-based company called ReliefBand Technologies 

produces sophisticated wearable devices that treat nausea and vomiting 

non-invasively, without drugs or side effects. 

The result of years of clinical research, ReliefBand’s patented technology uses 

accurately programmed pulses with highly specific waveforms, frequencies, 

and intensities to stimulate the median nerve on the underside of the wrist. 

The method uses the body’s neural pathways to block the waves of unpleasant 

sensations produced by stomach, and have been proven 

effective in combating general nausea, motion sickness, 

and morning sickness — usually within minutes. 

Harrisburg 

In 2015, the Pennsylvania Department of Environmental 

Protection (DEP) came under new leadership with the 

inauguration of Governor Tom Wolf. Though the state’s 

implementation of recycling law has stabilized, DEP 

97

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Fast Internet 






F 

C+ 

B- 

C+ 

B 

B 

B 

B 

N/A 

C 


36.2 


Startup accelerators such as 

Dreamit Ventures and traditional 

heavyweights such as Comcast provide 

thousands of opportunities for techminded 

Philadelphians. 

The only state to have 

improved its innovationfriendly 

sustainable policy 

grade from D to C. 

FAST INTERNET 

13,362 

avg. 

kbps. 

avg. kbps. change from 2014 

1,416 

continues to interpret the rules in a 

way that creates unnecessary burdens 

on employers. Meanwhile, electronics 

manufacturers continue to provide 

hundreds of locations for Pennsylvanians 

to recycle their old devices. 

Judges for another Pennsylvania 

agency, the Public Utility Commission, 

has also discouraged ridesharing 

services, proposing a $50 million fine 

on Uber for operating in the state 

without pre-approval. In 2016, the state 

legislature should pass a proposed 

law to allow ridesharing services to 

operate without penalties, and expand 

Philadelphia’s pro-homesharing law to 

authorize companies such as Airbnb 

throughout Pennsylvania. 



“Claiborne Pell Newport Bridge” by Matt H. Wade is licensed by CC BY-SA 3.0 

Rhode Island 

Growing the old-fashioned way 

99 

Rhode Island made one of the largest leaps in the area of Entrepreneurial Activity, from a ‘D-’ in 

2015 to a ‘B’ in this year’s Scorecard. 

The incubator Beatspring has helped launch dozens of companies since 2009, but in 2015 it 

created a new venture that is among the first accelerators to partner with startups whose primary 

goal is growth through revenue. 

RevUp doesn’t take equity, but rather a return on revenue, so it doesn’t narrow its targets to 

companies that offer nothing but the promise of windfalls upon exit. RevUp’s 

companies receive $75,000 in cash and return a percentage of revenue over a threemonth 

period, giving the incubator’s team of advisors a built-in incentive to help 

Providence companies build their customer bases quickly. 

Rhode Island also enacted a statewide law that lets residents share their 

homes, strongly encouraging innovative businesses such as Airbnb. With 

cities such as Newport having gone so far as to threaten Uber drivers with 

arrest, legislation to authorize ridesharing services across Rhode Island 

would be a welcome development.

Right to Work 




Fast Internet 






F 

B 

C- 

B 

A- 

B 

C+ 

B+ 

N/A 

N/A 

Fast Internet 

Rhode Islanders enjoy 

some of the fastest 

Internet speeds in the 

country, enabling residents 

and tech entrepreneurs 

to remain connected, and 

allowing them to rely on 

high-bandwidth applications 

such as videoconferencing. 


27.6 


19.67 18 

JOBS FIRMS 

Science & 

Engineering 

degrees 

conferred per 

1,000 people 

18-24 

Schools such as 

Brown University, 

where over a fifth of 

students graduate in STEM subjects, 

help Rhode Island rank fifth 

nationally in granting science and 

engineering degrees. 


2009-2013 





“East Bay Street” by People.anything123 is licensed by CC BY-SA 


Victory for ridesharing 

Less than half a year after the state’s Public Service Commission issued 

a cease-and-desist order to the ridesharing company Uber, South Carolina 

Governor Nikki Haley signed into law a bill that created a framework 

for the industry to operate legally. When the PSC first issued the order, 

Governor Haley pushed back in a letter to the agency, and the Commission 

reversed course with an interim license. 

Now a law, the new framework governs 

liability insurance, background checks 

for drivers, and vehicle safety inspections. 

Coming less than a month after a 

similar bill was defeated in the House by a 

wide margin, the law is a welcome victory for 

innovation. 

Columbia 

101

Right to Work 




Fast Internet 






A+ 

A 

C+ 

D+ 

C+ 

C- 

D+ 

C 

N/A 

B 

Right to Work 



14.6 

Science 

& 

Engineering 

degrees 

conferred per 

1,000 people 

18-24 

Through the SC STEPs to STEM program, 

the University of South Carolina at Columbia offers scholarships, 

internships, and coursework for students from regional 

campuses and technical colleges who transfer there to study 

science and engineering subjects. 


FRIENDLY 

SUSTAINABLE 

POLICIES 

Implementation of 

the novel electronics 

recycling law enacted 

in 2014 did not go as 

smoothly as anticipated, 

but still marks a noteworthy 

experiment in 

extending electronics 

recycling responsibilities 

to manufacturers. 



“Mount Rushmore Monument” by Dean Franklin is licensed by CC BY-SA 2.0 

South Dakota 

Another year of leading job growth 

With no corporate or individual income taxes, South Dakota remains one of the 

highest-scoring states with respect to tax structures. Along with the state’s strong 

right-to-work law, that is one factor behind South Dakota’s remarkable job growth 

over the last decade and a half. 

Between 2000 and 2014, South Dakota has more than doubled the national rate of job 

growth, at 12.9% versus 5.2%. The state’s job rolls grew by 2.3% through the first half 

of 2015, enabling it to outperform many of its slower-growing, 

rural neighbors, and earning it a ranking 

of 15th in the nation. 

Although state law still does not recognize ridesharing, 

the city of Sioux Falls voted 7-1 on November 2015 to 

allow ridesharing companies to operate. 

Pierre 

103

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Fast Internet 






A+ 

C 

A+ 

B+ 

B 

C+ 

D- 

B 

N/A 

N/A 

Right to Work 


One of two 

states to lose 

Innovation 

Champion 

status, but 

claims some 

of the best tax 

policies in the 

country for new 

businesses 


25.02 

JOBS 

23 

FIRMS 


2009-2013 





Tennessee 

Another ridesharing success 

Nashville Downtown” by Sami Cetinkaya is licensed by CC BY-SA 3.0 

In September 2014, Nashville became the first airport in the country to allow ridesharing 

services to pick passengers up at the curb. 

Less than a year later, in April 2015, Tennessee passed one of the most businessfriendly 

ridesharing laws in the country. HB 0992 legalized app-based services such as 

Uber and Lyft across the state, exempting them from rules individual municipalities 

might enact to make it unusually onerous for them to operate, or ban them outright. 

The law also established that ridesharing services are not subject to the same rules as 

taxis or limousines, freeing them of unnecessary requirements that could raise costs 

for riders. 

Tennessee has been a logistical hub for decades, but in recent years, the state has also 

given rise to a number of transportation-related innovations. 

The U.S. is home to more than 1.8 million longhaul 

trucks, each of which breaks down on 

average two times per year, resulting in a 

loss of $5,000 each time. 

Nashville 

105

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Fast Internet 






A+ 

B+ 

B 

D 

B- 

C 

D 

C- 

D 

N/A 

Right to Work 

Another early 

right-to-work state, 

Tennessee enshrined 

the freedom to opt in 

or out of labor unions 

in 1947, after federal 

legislation paved the 

way for state action. 

Tennessee 

provides some 

of the fastest 

Internet speeds 

in the Southeast, 

where older 

infrastructure 

continues to 

impede the 

growth of tech 

startups 

The Memphis-based company Preteckt, Inc. builds a combined 

hardware and software system that adds more than 

6,000 distinct sensors on a truck, and uploads the data for 

analysis, enabling logistics managers to optimize their 

maintenance procedures, keep their trucks on the road and 

lower their operating costs. 

Another startup, based in Nashville, offers a portable crash 

detection, emergency service, and trip-monitoring device. 

When a driver suffers a crash, the Splitsecnd device calls 

emergency responders and directs them to his location. 

Though Tennessee has yet to pass a comprehensive law welcoming 

homesharing services, it has a strong role model in 

Nashville, which in February 2015 agreed to clear and simple 

rules governing services such as Airbnb. Unfortunately, 

other Tennessee regulations risk halting innovation in the 

area of drones. The state has enacted laws to prevent citizens 

from using drones for “surveillance” on private property 

and flying above open-air events with 100 or more people 

without permission, raising potential conflicts with the FAA. 



Texas 

The (next) hottest tech city? 

An April 2015 report called Austin the fastest-growing tech city in the country, 

thanks to a rapidly growing workforce in science and engineering. Texas offers 

a favorable tax structure, which includes no individual income tax, and a lower 

cost of living than other tech hubs such as San Francisco or New York. 

The Austin Technology Council is a driving force of the 

city’s tech community, with 280 companies and more 

than 60,000 employees collaborating to advance the 

interests of Texas’ most innovative companies. With an 

ATC forecast predicting another 11,000 tech 

jobs in Austin alone over the next five years, 

the future looks bright. 

Austin 

One of Austin’s recent successes is RideScout, 

LLC, founded by U.S. Army veteran and University 

of Texas Army ROTC instructor Joseph Kopser. 

Using its free mobile app, the company provides real-time 

107

Right to Work 




Fast Internet 






A+ 

C 

B+ 

B 

B 

B 

B 

D 

C+ 

A 

Right to Work 


information on available ride options — from multiple 

buses to trains, subways, bike shares, taxis, carsharing, 

and walking — and enables users to sort their options by 

time, cost, and location, and book their rides right at the 

curb. In September 2014, the Austin-based competitor 

Car2go, a Daimler AG subsidiary that provides its members 

with access to a fleet of small blue and white cars, 

acquired RideScout for an undisclosed sum. 

Austin could still do more to encourage innovative 

business models, as it joined Houston and San Antonio 

in 2015 in passing laws to over-regulate or drive out 

ridesharing. Ridesharing services still operate in parts 

of Texas, but companies such as Lyft and Uber await 

full legalization. Texas also declined to revise its drone 

laws substantially, having previously created novel, 

drone-specific crimes rather than contemplating the 

new technologies under existing laws. 

State lawmakers 

worked to implement 

an updated electronics recycling 

bill with more innovative 

compliance options, 

following long negotiations 

between stakeholders in 2015. 

One of two 

Innovation 

Champions in the 

Sun Belt, Texas once 

again earned high 

grades in nearly 

every category 



Utah 

Tech buzz in the Beehive State 

“Deseret Village” by C. Maylett is licensed by CC BY-SA 3.0 

Utah’s startup scene is nothing new, and the area has for years adapted 

a moniker from the traditional tech hubs to its west. As the ‘Silicon 

Slopes’ continues to mature into a national leader in entrepreneurship, 

several of the biggest successes have doubled their 

employee bases this year, adding hundreds of jobs in 

the state. 

Three Provo-based tech giants are each now valued 

at $1 billion or more, and their success is trickling 

down to new entrepreneurs on the West Coast, who 

are increasingly eyeing Utah as they seek welcome 

environments to build their companies. Utah has seen 

around $1 billion in funding over the past year and a half, 

as low taxes and strong universities have helped keep 

investments flowing. 

Salt Lake City 

109

Right to Work 




Fast Internet 






A+ 

B 

B+ 

B 

A- 

B 

B+ 

B+ 

N/A 

A- 

Right to Work 

Fast Internet 

KiLife Tech produces the KiBand, a smart child safety 

band that uses Bluetooth to connect with a family’s 

smartphone, and functions as a virtual leash. The band 

sends an alert when the child approaches a distance limit 

set by the parent, or becomes submerged in water. 

In a welcome embrace of new business models, Salt Lake 

City authorized Uber to operate within its limits and at 

Salt Lake City International Airport. Utah should follow 

suit, authorizing ridesharing services statewide. 

A returning Innovation Champion, 

and one of the fastest-growing tech 

hubs in the country 


Utah’s electronics 

recycling builds on 

the voluntary recycling 

efforts of the tech industry, 

and avoids arbitrary 

targets or burdensome 

reporting requirements. 



Vermont 

Making “local” a little bit bigger 

“Burlington, Vermont” by Jarod Benedict is licensed by CC BY-SA 2.0 

Vermont has a long history as a national leader on sustainability, and some entrepreneurs 

there are seeking to make environmentally-friendly practices friendlier 

to the bottom line. 

At a statewide level, Vermont had previously scored 

highly for passing targeted sustainability requirements 

without imposing unnecessary burdens on industry, and 

by avoiding redundant battery and electronics recycling 

rules. But this year, the state adopted rules for children’s 

products containing chemicals of high concern, with 

highly onerous reporting requirements, and failed to harmonize 

with an existing state program or recognize significant 

progress at reforming the chemical management 

program at the federal level. 

Montpelier 

111

Right to Work 




Fast Internet 






F 

B 

D+ 

B+ 

C+ 

B- 

B 

A 

N/A 

B 


Vermont is second in the 

nation in awarding science and 

engineering degrees. A new $104 

million STEM complex now under 

construction at the state’s flagship 

University of Vermont is part of 

the school’s plan to increase the 

number of STEM graduates by 

50% over the next five years. 

When it comes to welcoming 

new business models 

such as ridesharing services, 

Vermont has not yet 

caught up to model laws, 

which allow companies 

such as Uber to operate 

statewide. But Burlington, 

the state’s largest city, 

authorized Uber in July 

2015. Without Uber, Mayor 

Miro Weinberger said at 

the time, “We do not meet 

the supply for vehicles and 

drivers late at night when 

people need a ride to stay 

safe.” Legislators across 

the country are coming to 

the same realization. 


20 24 

JOBS FIRMS 

Net jobs created per 1,000 

people, 2009-2013 


per 1,000 people, 2009-2013 



“Arlington Country, Virginia” by WMATA CC BY-SA 2.0 

Virginia 

Joining the tide on ridesharing 

After months of negotiations between legislators, regulators and the 

industry, ridesharing is now fully legal in Virginia, thanks to a February 

2015 agreement. Only a year ago, ridesharing companies faced civil 

penalties for operating without state approval, before a temporary deal that 

allowed them to operate on an interim basis. 

With a compromise reached on licensing fees, liability 

insurance, and driver background checks, the 

service is now fully legal, helping make good on 

the signing statement by Virginia Governor 

Terry McAuliffe — that “Virginia is 

leading the way on attracting 

and supporting innovative 

companies in every sector 

of our economy.” 

Richmond 

113

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A 

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B 

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B 

B 

B 

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N/A 



Virginia leads a lagging 

20.78 

JOBS 

FAST 

INTERNET 

14,101 

avg. kbps. 

Net jobs created per 1,000 

-471 avg. kbps. change from 2014 people, 2009-2013 

Mid-Atlantic region along 

with its neighbor and fellow 

Champion, Washington D.C. 


15 

FIRMS 





Washington 

Expanding accessibility through innovation 

Washington joined a growing number of states in legalizing ridesharing services statewide. 

In May 2015, lawmakers passed SB 5550, which also requires drivers using these 

services to purchase insurance coverage. Ridesharing companies already serve several 

Washington cities, including Seattle, the third city in which Uber began operations — 

which has imposed unnecessary requirements that go beyond state rules. 

The state law’s passage also points to a crucial and often overlooked benefit of ridesharing: 

improving mobility for the visually impaired. 

The bill was sponsored by State Senator Cyrus Habib, 

a three-time cancer survivor who lost his eyesight 

to the disease at the age of eight. “As someone who 

is blind,” Habib said in a statement on the law’s signing, 

“I rely on ridesharing services to get around, as do 

many people who are disabled, don’t own cars, or need 

to avoid driving intoxicated.” 

Olympia 

115

Right to Work 




Fast Internet 






F 

B 

B+ 

B 

B+ 

B 

A- 

B- 

N/A 

C- 


Washington saw 

an increase of 

nearly 20% of VC 

investment per capita 

in 2015. 




As Habib’s efforts highlight, the sharing 

economy isn’t just good for business 

— it’s good for public safety and 

the well-being of entire communities. 

2015 

$199.31 

2014 

$169.21 

200 

100 

2015 2014 

2000 $2,155 $2,165 

1000 

Meanwhile, Washington still lacks an 

ideal law that authorizes homesharing 

companies such as Airbnb and 

VRBO to operate statewide. But in a 

positive step in October 2015, the state 

reached an agreement with Airbnb 

under which the company can collect 

and remit the relevant taxes for Washingtonians 

who share their homes and 

bedrooms on the site, so residents can 

use the service without additional tax 

and regulatory burdens. 





West Virginia 

New efforts gaining steam 

After several years of debate over ridesharing in 2015, the West Virginia 

legislature failed to legalize the service in the state, when it killed a House 

bill that would have eased burdensome driver rules. But 

with a new petition introduced in at the end of 2015, the 

legislature could reach a compromise in 2016. 

Legalizing ridesharing across West Virginia would 

be a welcome change in the heavily rural state, 

where maximizing access to transportation 

is especially crucial. Ridesharing services 

Charleston 

allow the disabled, those who don’t own 

cars, and intoxicated bar patrons to get 

home safely in places not well served by 

traditional taxicabs. 

117

Right to Work 




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F 

F 

B 

F 

C 

F 

D- 

B 

N/A 

N/A 

TAX 

FRIENDLINESS 

Recent cuts to property 

and corporate taxes 

over the past several 

years have continued 

to move West Virginia 

in the right direction, 

and its business franchise 

tax is now completely 

phasing out. 

With failing 

grades in 

four of 10 

categories, 

West Virginia 

needs 

improvement 

across the 

board 


28.8 

Science 

& 

Engineering 

degrees 

conferred per 

1,000 people 

18-24 

Higher education in the sciences and engineering 

is a bright spot for West Virginia, and one of its two grades 

higher than a ‘C.’ The state ranks 18th nationally in granting 

STEM degrees. 



“Chase Stone Barn – Green Grass” by KKNiteOwl 

Wisconsin 

The newest right-to-work state 

Wisconsin became one of the latest states to legalize ridesharing statewide, 

when Governor Scott Walker signed a May 2015 bill that created 

uniform standards for companies such as Uber and Lyft, and 

prohibited any local ridesharing ordinances that would 

prevent people from using the services. 

Madison 

Continuing a wave of Midwestern states adopting 

right-to-work legislation over the past several 

years, Governor Walker also signed a bill into law 

that restricts unions from requiring all workers to 

pay union dues or fees. The law comes four years 

after Governor Walker effectively ended collective 

bargaining for public-sector workers in the state, 

and makes Wisconsin the 25th right-to-work state in 

the country. 

119

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A 

C- 

C 

B 

B 

B- 

B 

N/A 

N/A 

Right to Work 


In one of 

the major 

achievements 

this year by any 

state, Wisconsin 

passed the 

country’s 25th 

right-to-work law 

Right-to-work states typically report higher population 

growth, faster job growth, and more creation and 

expansion of businesses. Governor Walker signed the 

Wisconsin right-to-work bill into law at Badger Meter, 

a water utilities company near Milwaukee, whose chief 

executive said that the company will move forward 

with a $2.5 million project in the state, creating dozens 

of new jobs. 

Badger applies new technologies such as cellular-enabled 

smart metering to age-old challenges such as reducing 

water waste. As Big Data becomes more prevalent, 

Badger helps utilities use web-based software and 

cloud computing. These technologies, which are quick 

to deploy and require no additional hardware, enable 

municipalities to make their critical metering data less 

susceptible to natural disasters, and both utilities and 

end customers to make better use of the vast amount 

of information their meters provide. 



Wyoming 

Bringing classrooms online 

With no corporate or individual income taxes, Wyoming ranks as the most tax-friendly 

state in the country. Its 4% state-level sales tax is on the low end, and combining state 

sales tax rates with the average local option sales taxes gives a rate of 5.43%, near the 

very bottom nationally. Wyoming doesn’t levy an inventory tax, an intangible property 

tax, or taxes on estates, inheritances, or gifts. And at 2 cents per gallon, Wyoming even 

has the lowest beer tax in the country. 

Though the state’s Internet speeds still have room to grow, Wyoming has seen the 

greatest increase in the country in average peak connection speeds — a 50% jump, to 

54.2 Mbps. Only a few years ago, some schools in the 

state had Internet connections as slow as 5 kbps per 

student, rates equivalent to the dial-up connections of 

the early 1990s, on which it could have taken students 

as much as a minute to load a simple website. Today, 

every Wyoming school offers an Internet connection 

of at least 200 kbps per student, well ahead of the 

new White House benchmark goals on school 

Cheyenne 

Internet access. 

121

Right to Work 




Fast Internet 



A+ 

N/A 

A+ 

A- 

C+ 

D+ 

F 

Right to Work 


D+ 


N/A 


IMPROVING INTERNET 

10,469avg. 

kbps. 


Wyoming is making these gains thanks in part to newly-installed 

large-capacity Internet lines, called the “unified 

network.” With faster connections encouraging companies 

such as Microsoft to increase their presence in the state, the 

cables are already paying off for Wyoming students, families, 

and employees. Passing action that welcomes ridesharing 

and other new business models — Wyoming is the only 

state without any ridesharing legislation at all — would be 

another boon for job growth. 



Wyoming leads 

a Mountain West 

region that continues 

to lure new startups 

and entrepreneurs 

away from the traditional 

coastal hubs. 


FAQs 

1. What is CTA? 

The Consumer Technology Association (CTA) TM , formerly the Consumer Electronics 

Association (CTA)®, is the trade association representing the $287 billion U.S. consumer 

technology industry. More than 2,200 companies — 80 percent of them small businesses 

and startups, and others among the world’s best-known brands — enjoy the benefits 

of CTA membership including policy advocacy, market research, technical education, 

industry promotion, standards development and the fostering of business and strategic 

relationships. CTA also owns and produces CES®, the world’s gathering place for all who 

thrive on the business of consumer technology. Profits from CES are reinvested into 

CTA’s industry services. 

2. How did CTA do this? 

A team of CTA employees considered scores of factors shaping a state’s innovation 

climate and, ultimately, settled on ten categories. The resulting product uses the most 

recent data available to assess states in the categories: Right to Work, Welcomes 

New Business Models, Tax Friendliness, Entrepreneurial Activity, Fast Internet, Tech 

Workforce, Attracts Investment, Grants STEM Degrees, Supports Drones, and Innovation-Friendly 

Sustainable Policies. Although the Innovation Scorecard was released in 

2016, the evaluation of states is based on available data from 2015. 

3. Which states are included? 

All 50 states and the District of Columbia are included. 

4. What has changed? 

Aside from new rankings and data in the second annual Innovation Scorecard, the 

Supports Drones category is new and the data for the Entrepreneurial Activity category 

uses a new methodology. 

5. What’s not included and what will change? 

The Innovation Scorecard takes into account many factors, both objective and subjective, 

to assess a state’s support for innovation. One item not included is the number of 

patents granted to residents in a state. First, with the emergence of a patent economy 

many, although by no means all, of the patents issued today are developed for a busi- 

123

ness reason other than innovation. At the extreme end “patent trolls” employ a business 

model that impedes innovation by threatening legitimate businesses with legal action 

unless rents are paid for vaguely worded or overly general patents. Moreover, many patents 

are applied for by entities other than the innovators themselves, who may be located 

in another state. CTA will review the criteria for future scorecards and welcome input 

on how patents could be used as a future measure of a state’s innovation. 

6. How did CTA pick these factors and why? 

CTA sought out important barometers for innovation in every state. Some of the criteria 

are important barometers of a business environment that supports innovation or can 

directly facilitate or discourage innovation (e.g., policy choices), while other criteria are 

measures of a state’s innovation potential (e.g., the number of STEM degrees issued per 

capita). CTA chose multiple categories because there is no single “silver bullet” for what 

constitutes an innovation-friendly state, and scoring each across a range of policy and statistical 

criteria provides a more complete evaluation that any single factor. CTA welcomes 

input on the criteria as well as activity relevant to criteria in any specific state. 

7. Why did CTA do this? 

CTA created the Innovation Scorecard as a tool to rank and compare state policy actions 

affecting the innovation economy, in the hope that states respond and take steps 

to improve their rankings. The Innovation Scorecard evaluates and celebrates the 

accomplishments of Innovation Champions and Innovation Leaders and identifies areas 

of improvement for Innovator Adopters and Modest Innovators. 

8. How does a state change its grade? 

If there are discrepancies in the data presented on the 2016 Innovation Scorecard or 

a state has factors its advocates believe should be considered relevant to these categories, 

please contact CTA at scorecard@CE.org. If a state wishes to improve its 

overall grade in time for the 2017 Innovation Scorecard, it should enact reforms with 

respect to the following 10 categories: Right to Work, Welcomes New Business Models, 

Tax-Friendliness, Entrepreneurial Activity, Fast Internet, Tech Workforce, Attracts 

Investment, Grants STEM Degrees, Innovation-Friendly Sustainable Policies and Supports 

Drones. 

9. Is CTA accepting feedback and comments? 

Yes. Please email comments to scorecard@CE.org. 


10. Why is my state not an Innovation Champion? 

All state scores on all ten criteria are shown in the state profiles. CTA is accepting feedback, 

and criteria for measuring innovation may evolve over time. Please email comments 

to scorecard@CE.org. 

11. How does CTA work with states? 

For more than two decades, CTA has worked with state legislators and regulators on 

matters of importance to the consumer technology industry and the innovators who 

drive it. CTA represents the industry before state legislatures and regulatory agencies, 

works with state legislative and policy organizations, and educates lawmakers on issues 

affecting its members. 

12. How are states recognized? 

The 2016 Innovation Scorecard was published in January 2016, and the 2016 Innovation 

Champions will be recognized at CTA’s annual Digital Patriots Dinner, a celebration of 

industry and policy achievements in consumer technology. 

125

Methodology 

CTA’s Innovation Scorecard is formulated using ten complementary factors that combined 

are indicative of a state’s level of innovation. Some of these factors relate to individuals in 

a state, while others address corporations doing business or employing people there, and 

others concern the legislative and regulatory environments. All third-party sources used 

provided scoring data for all 50 states and the District of Columbia. 

• Right to Work 

The Right to Work category is bimodal and assigns an ‘A+’ grade to those states that 

do not allow “union security agreements” between unions and employers that require 

workers to participate in established labor unions. A grade of ‘F’ is assigned to those 

states that do allow such union security agreements. Right to Work designations are 

sourced from the National Conference of State Legislatures. 

• Welcomes New Business Models 

One important innovation policy measure is the willingness of state and local officials to 

accept or even accommodate new ways of doing business that may threaten “business 

as usual” by more established firms. Grades in this category are assigned by CTA staff 

based upon state and municipal laws and regulations affecting two new types of business 

models: ridesharing and homesharing. Not all states have enacted policies relating to 

every one of these business models, but amid the rapid rise of the sharing economy every 

state now has laws or regulations that affect at least one of the evaluated industries. 

• Tax Friendliness 

The Tax Friendliness category uses numerical scoring data from the Tax Foundation’s 

2016 State Business Tax Climate Index (p.7), released in November 2015. The grades in 

this category reflect the relative complexity, financial burden and broad base of a state’s 

tax code (along with other attributes) on both individuals and corporations. States in 

this category are graded on a curve and assigned grades between ‘A+’ and ‘F’. 

• Entrepreneurial Activity 

The Entrepreneurial Activity category uses Business Dynamics Statistics data provided 

by the U.S. Census Bureau released in September 2015. The Entrepreneurial Activity 

grade is a composite score with two parts: First, each state’s per capita net job creation 

by firms of less than 50 employees (2009-2013) comprising 70 percent of the Entrepreneurial 

Activity grade and second, each state’s per capita average number of new 

firms under 50 employees that have been in business fewer than five years (2009-2013) 

comprising 30 percent of the Entrepreneurial Activity grade. States in this category are 

graded on a curve and assigned grades between ‘A+’ and ‘F’. 


• Fast Internet 

The Fast Internet category measures states’ average Internet connection speeds in 

kilobits per second (kbps). This category features unpublished state-by-state detail 

data that was provided to CTA by Akamai directly and that forms the basis for 

Akamai’s State of the Internet Report, Q2 2015. States in this category aregraded on 

a curve and assigned grades between ‘A+’ and ‘F’. 

• Tech Workforce 

The Tech Workforce category measures the number of technology-related jobs in 

a state, per capita. CTA staff selected a subset of American Community Survey 

occupational codes (ACS OCC) that represent technology-related occupations and 

calculated aggregate employment per state for all of these categories combined. 

Numerical data for this category is supplied by the U.S. Bureau of Labor Statistics 

as of May 2014. States in this category are graded on a curve and assigned grades 

between ‘A+’ and ‘F’. 

• Attracts Investment 

The Attracts Investment category is a two-part measure that seeks to capture both 

the level of venture capital investment in a state as well as government and corporate 

R&D dollars invested there. Each component of the state score is normalized 

to a scale from zero to one. Normalized category scores are then added together 

such that each score component is 50 percent of the Attracts Investment score. 

Venture capital investment data for this category was provided by The Money- 

Tree TM Report by PricewaterhouseCoopers and the National Venture Capital Association 

based on data from ThomsonReuters for the period Q3 2014 through Q2 

2015. R&D investment data for this category was provided by the National Science 

Foundation via its report Business Research and Development and Innovation: 

2012 (Table 14). The combined normalized scores are curved and states are assigned 

a letter grade between ‘A+’ and ‘F’. 

• Grants STEM Degrees 

The Grants STEM Degrees category measures the number of science- and engineering-related 

degrees conferred per 1,000 individuals 18-24 years old. Data for this category 

is provided by the National Science Foundation’s National Science Board via its 

Science and Engineering Indicators 2014 State Data Tool and as of 2011. 

• Supports Drones 

Grades in this category are assigned by CTA staff based on noteworthy laws or bills 

that were enacted in 2015. States that addressed privacy concerns by adding drones 

to the list of technology covered under existing privacy laws were rewarded. On 

the other hand, states that addressed privacy issues by creating new drone-specific 

crimes, some with private rights of action, received poor marks. States that attempted 

to regulate the operation of drones in a manner that conflicts with existing federal 

regulations were also marked down. Finally, high marks were given to states that 

127

enacted laws preempting the authority of counties and cities to prohibit, restrict or 

regulate the testing or operation of drones, an important and recent policy trend 

supporting an organized, consistent and beneficial U.S. policy framework. 

• Innovation-Friendly Sustainable Policies 

Sometimes policies enacted to address an environmental or sustainability issue 

are done in a way that innovation is stifled. For example, an electronics recycling 

law can inhibit, support or be neutral for innovation depending on the specifics 

of the law and how it is implemented. Grades in this category are assigned 

and explained by CTA staff based upon the unique legislative, regulatory and 

marketplace realities in each state. Note that not all states will receive a grade in 

this category. 

• Overall Innovation Grade 

The overall Innovation Scorecard grade captures a state’s overall level of 

innovation based upon the aforementioned criteria. Each criterion receives equal 

weight in the final scoring formula. States will be assigned up to 10 letter grades, 

although some states will have anywhere from eight to nine grades depending 

upon whether they were assigned grades for certain non-mandatory categories 

(Welcomes New Business Models, Supports Drones and Innovation-Friendly 

Sustainable Policies). For those states with ten letter grades, each grade comprises 

ten percent of the final composite score. For states with eight or nine grades, each 

grade category will comprise 12.5 percent or 11.1 percent of the final composite 

score, respectively. Final composite scores are then graded on a curve to determine 

which of the four Innovation Scorecard levels to which a state will belong. 


Acknowledgements 

Bronwyn Flores and Izzy Santa, the Scorecard’s project editors, have been vital to the 

success of this report. Their creativity, organization and dedication have enriched the 

information presented both in print and online. 

We are indebted to our government affairs team — Walter Alcorn, Michael Hayes, Doug 

Johnson and Allison Schumacher — for investing endless hours tracking and scoring 

hundreds of bills and proposed rules. 

Thanks to Jack Cutts for intense number crunching. 

Thanks also to our colleagues Jackie Black, Monica Price, Angela Titone and Nathan 

Trail for providing time, knowledge and valuable insight. 

Our special gratitude also goes to Iambic and our consultants there: Jonathan 

Wilkenfeld, who wrote the report, and Lindsey Burrows, who designed it. 

We thank the CTA volunteer leadership for embracing and funding this effort, our 

members of all types who allow and encourage the CTA staff to pursue and reward proinnovation 

policies and state officials interested in reading, encouraging, responding to 

and providing feedback on the report and methodology. 

Finally, we take full responsibility for any mistakes or shortcomings contained within the 

2016 Scorecard and welcome your feedback as we prepare for the 2017 edition. 

Gary Shapiro 

President and CEO, 

Consumer Technology Association (CTA) TM 

129

Copyright 

Copyright © 2016 Consumer Technology Association. 

While CTA reserves all rights of this publication, we encourage it to be 

reproduced, distributed and transmitted for non-commercial purposes by elected 

or appointed policymakers and those influencing tech public policy. For specific 

permission requests outside of the United States and for commercial purposes, 

write to the published, addressed “Attention: Innovation Scorecard Permissions,” 

at the address below. 

Printed in the United States of America. 

Consumer Technology Association 

1919 S. Eads St. 

Arlington, VA 22202 

www.cta.tech 

scorecard@ce.org 


131 

Appendix 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 


Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 


North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 


South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

Right to 

Work 

A+ 

F 

A+ 

A+ 

F 

F 

F 

F 

F 

A+ 

A+ 

F 

A+ 

F 

A+ 

A+ 

A+ 

F 

A+ 

F 

F 

F 

A+ 

F 

A+ 

F 

F 

A+ 

A+ 

F 

F 

F 

F 

A+ 

A+ 

F 

A+ 

F 

F 

F 

A+ 

A+ 

A+ 

A+ 

A+ 

F 

A+ 

F 

F 

A+ 

A+ 

Fast 

Internet 

C+ 

D+ 

B 

C- 

B+ 

B- 

B 

A 

A+ 

B 

B 

C 

C- 

B- 

B 

C 

C+ 

D+ 

C 

C- 

B+ 

A- 

B+ 

B 

C- 

B- 

C+ 

B- 

B 

B 

B+ 

C- 

B+ 

C+ 

B+ 

F 

C+ 

B 

B 

A- 

C+ 

B 

B- 

B 

A- 

C+ 

B+ 

B+ 

C 

B 

C+ 

Tax 

Friendliness 

B- 

A+ 

B 

C 

D- 

B 

C- 

B+ 

C- 

A 

C 

B- 

B 

B 

B+ 

C 

B 

B- 

C+ 

C+ 

C 

B 

B+ 

D+ 

B 

B 

A- 

B 

A 

A- 

F 

C+ 

D- 

B 

B 

C- 

C+ 

B+ 

B- 

C- 

C+ 

A+ 

B 

B+ 

B+ 

D+ 

B- 

B+ 

B 

C- 

A+ 

Entrepreneurial 

Activity 

F 

B 

D- 

C- 

B 

B+ 

B- 

B 

A+ 

B 

C- 

C 

B- 

C+ 

D+ 

C+ 

B- 

D- 

B 

B 

B- 

B 

C- 

B 

F 

C+ 

A- 

B 

B- 

B 

B 

C- 

B+ 

C- 

A+ 

D+ 

B 

B 

C+ 

B 

D+ 

B+ 

D 

B 

B 

B+ 

B 

B 

F 

C 

A- 

Ridesharing 

C 

F 

A 

A 

B 

A- 

B 

A- 

A 

C 

A- 

B 

A 

A- 

A 

B 

A- 

A 

B 

A- 

A- 

B- 

B 

B 

D- 

C 

A 

A- 

A- 

D 

B- 

F 

C- 

A 

A 

B 

A 

C- 

C- 

C 

A 

C 

A 

C 

B 

B 

A- 

B 

F 

A 

Homesharing 

C 

B 

B 

F 

A 

F 

B 

F 

A- 

B 

A 

B 

B 

Overall 

C 

F 

A 

A 

C+ 

B+ 

B 

A- 

A 

C+ 

A- 

D+ 

A 

A- 

A 

B 

A- 

A 

C 

A- 

A- 

B- 

B 

B 

D- 

C 

A 

A- 

A- 

D 

B- 

F 

D- 

A 

A 

A 

A 

B- 

C+ 

B 

A 

C 

B+ 

C 

B 

B 

A 

B 

F 

A 

Welcomes New Business Models

Appendix 

State 

Tech 

Workforce 

Attracts 

Investment 

Grants STEM 

Degrees 

Supports 

Drones 

Innovation- 

Friendly 

Sustainable 

Policies 

Composite 

Score 

Composite 

Grade 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 


Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 


North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 


South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

C- 

C 

B 

D 

B 

B 

B 

B 

A+ 

C- 

B 

D 

D 

B 

C+ 

B- 

B 

D 

D- 

C- 

B 

B 

B 

B 

F 

B- 

D+ 

B 

D 

B 

B 

D+ 

B- 

B- 

B 

B 

C- 

B 

B 

B 

C- 

C+ 

C 

B 

B 

B- 

B 

B 

F 

B 

D+ 

D 

F 

B 

D- 

A+ 

B 

B+ 

A- 

B 

C- 

C+ 

D- 

B 

B 

B 

C+ 

B 

D 

F 

D 

B 

A+ 

B 

B 

F 

B 

F 

C 

D 

B+ 

B+ 

D+ 

B 

B 

D+ 

B- 

D- 

B 

B 

C+ 

D+ 

D- 

D 

B 

B+ 

B 

B 

A- 

D- 

B- 

F 

C 

F 

B 

D- 

B- 

B 

B 

B 

A+ 

C- 

C- 

C 

C+ 

C+ 

B 

A 

C 

D+ 

D+ 

B+ 

B 

B+ 

B 

B 

D- 

B 

B 

B 

F 

B+ 

C+ 

D 

B 

B- 

B- 

C+ 

D+ 

B 

B 

B+ 

C 

B 

C- 

D 

B+ 

A 

B 

B 

B 

B 

D+ 

D 

C+ 

B 

D 

D 

D 

D 

D 

D 

D 

A 

B 

C- 

D 

D 

D 

A 

D 

D 

D 

D 

B 

D 

D 

A- 

D+ 

C- 

B- 

B+ 

B+ 

A- 

C 

C 

C 

C 

B 

A 

A- 

B 

C- 

1.875 

1.333 

2.645 

2.000 

2.383 

2.500 

2.109 

2.590 

3.249 

2.516 

2.368 

1.722 

2.405 

2.199 

2.956 

2.624 

2.553 

1.229 

1.830 

1.887 

2.600 

2.750 

2.922 

2.404 

1.388 

2.334 

2.000 

2.997 

2.369 

2.479 

2.083 

1.229 

2.035 

2.467 

2.774 

1.480 

2.436 

2.733 

2.167 

2.500 

2.256 

2.665 

2.147 

2.833 

3.292 

2.515 

3.000 

2.367 

1.063 

2.709 

2.165

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