U.S Chamber Ranks Texas Among Top 10 States for Innovation
Texas holds a strong rank and is expected to continue to capitalize on the growing STEM economy, reveals a report released on Monday from the U.S. Chamber of Commerce. The study, “Enterprising States: States Innovate,” ranks the top 10 states in the categories of economic performance; transportation and trade; innovation and entrepreneurship; business climate; talent pipeline; and high-tech performance.
According to the report, The Lone Star State has added more jobs than any other state in 2014 and for the fifth year in a row has led the nation in job growth. Texas received notably high rankings in long-term job growth, gross state product growth and STEM job growth. In addition, Texas ranked second in overall economic performance, third in transportation and trade, and eighth in high-tech performance.
Considering that Texas fosters and encourages research, small businesses, and entrepreneurship, it is no surprise that high-tech activity is no longer centered exclusively in Silicon Valley. Since 2009, Texas alone has increased its STEM workforce by 34,000, primarily in the computer and IT fields. Moreover, the state has more than 2.2 million small-businesses sufficing for more than half of its private sector jobs. The report also noted that Texas universities, research institutions, and companies are national and global leaders in research and development in many industries.
Without a doubt, being leaders in research and development is vital for spurring innovation and economic growth. Moreover, long-term economic growth is compelled by the increase of knowledge-based factors of production, such as R&D and human capital, which stop the marginal return to physical capital from dipping below profitable levels. Empirical analysis confirms that R&D increases multi-factor productivity (OECD, 2001). Furthermore, cross-country evaluations show that growths in private, public and foreign R&D all contribute to increases in multi-factor productivity. The President is committed to making investments in research and development (R&D) that will grow our economy, sustain our competitive advantage in the global economy, and enable America to remain a world competitor in innovation. As a result, companies can be granted R&D tax credits if they are conducting research. If you are performing research, or interested in learning more about the tax incentives, contact us today.