Startups

Report Outlines Where Innovation Is Happening

  • 3 min Read
  • December 16, 2019

Author

Escalon

Table of Contents

US-based entrepreneurs are known for innovating across industries, but a recent study aimed to review whether those innovations are far-flung enough across the country, and the answers may surprise you.

From 2005 to 2017, the 13 highest-growth industries as satellite telecom, computer equipment manufacturing and R&D services appear to have been concentrated in 20 main metro areas. Even more startling, five areas (San Diego, San Francisco, Seattle, San Jose and Boston) accounted for over 90 percent of the innovation-sector growth in the entire country, according to a December 2019 Brookings Institution report called “The Case for Growth Centers.”

About 30 percent of the US’ innovation industry positions are in just 16 counties, the report notes. This certainly propels those regions, but it may be curbing growth in others, leaving them behind from a technological standpoint.

And it’s not all positives in the five standout cities, the report reminds readers. The areas where innovation is booming face sky-high home prices and traffic issues, as college-educated workers flock to the growth cities and leave the non-innovative areas with fewer talented job candidates, the report said.

In addition to the five standout cities noted above, there are 15 more regions labeled “superstar metro areas,” as follows:

  • New York
  • Los Angeles
  • Dallas-Fort Worth
  • Washington, D.C.
  • Chicago
  • Philadelphia
  • Phoenix
  • Minneapolis-St. Paul
  • Houston
  • Portland, Ore.
  • Atlanta
  • Austin
  • St. Louis
  • Denver
  • Miami

Here Are the High Growth Industries

As noted above, there are 13 high-growth industries that are focused on innovation. Those categories generate a full six percent of the country’s GDP, two-thirds of R&D business expenditures and 25 percent of the US’ exports, the report notes. Those industries are:

  • Scientific R&D
  • Basic chemical manufacturing
  • Pesticide, fertilizer and agriculture chemical manufacturing
  • Computer/peripheral equipment manufacturing
  • Pharmaceutical/medicine manufacturing
  • Semiconductor/other electronic components manufacturing
  • Communications equipment manufacturing
  • Navigational, measuring, electromedical and control instrument manufacturing
  • Software publishers
  • Aerospace product/parts manufacturing
  • Satellite telecommunications
  • Data processing, hosting and related services
  • Other information services

These verticals “represent a cohort whose R&D expenditures exceed $20,000 per worker and have a STEM-worker share of 45 percent,” the report notes. As these categories are hiring swiftly in the 20 “superstar” metro areas, other US regions are actually losing jobs in innovative industries.

The study authors suggest that the government should bring more R&D activities to a handful of non-coastal cities that already have research universities in them, along with potential workers who have advanced degrees. This would allow those metro areas to also become hubs of innovation, they note.

Among the candidates as potential growth centers cited in the report are Madison, Wis.; Tucson, Ariz.; and Syracuse, N.Y. These “potential growth centers” appear to be eligible for swift innovation, according to Brookings.

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

Contact Us Today!

Tap into the latest insights from experts in your industry

Private Equity

The Key to Private Equity Success: Strong Financial Oversight and Compliance

Private equity deals are becoming larger and more complex, making financial preparation a critical part of the process. Take Novartis’s...

Read More
Accounting & Finance

Navigating Grant Management and Financial Reporting for Biotech Startups 

Biotech startups operate in a unique financial landscape, where securing grants, venture capital, and government funding is crucial for driving...

Read More
Accounting & Finance

Financial Compliance in the Decentralized Era: What Web3 Startups Need to Know 

As the world leans into the decentralized era, Web3 startups are at the forefront, exploring the possibilities of blockchain, cryptocurrencies,...

Read More
People Management & HR

Payroll Services: Streamlining Processes in High-Turnover Consumer Goods Settings 

  Managing payroll can be complicated in any industry, but it becomes especially challenging in the consumer goods sector, where...

Read More
Accounting & Finance

Navigating Payroll for Nonprofit Organizations: Staying Compliant with Grant Funding Rules 

Nonprofit organizations often rely on grant funding to carry out their missions, whether that involves community development, education, healthcare, or...

Read More
Media & Entertainment

Compliance in the Media World: Navigating Intellectual Property and Contracts 

In today’s hyper-connected media landscape, safeguarding intellectual property (IP) and expertly managing contracts are indispensable for success. Media companies—from traditional...

Read More
Accounting

Introducing C3: Your All-in-One Financial Management Platform

Managing your business’s finances can often feel like juggling too many tasks at once, especially when you’re trying to keep...

Read More
Startups

Sourcing Passive Candidates: Strategies for Expanding Your Talent Pool with Outsourcing 

  One of the most valuable sources of talent for startups is the pool of passive candidates—individuals who aren’t actively...

Read More
Startups

Managing Cash Flow in SaaS: Leveraging Outsourced Accounting to Scale Faster 

Cash flow is the lifeblood of any business, and this holds especially true for Software as a Service (SaaS) companies....

Read More