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A look at the new Innovation 2.0
The Indiana Business Research Center recently launched Innovation 2.0. It is a rich compilation of a broad array of measures of innovation at the county, metropolitan statistical area (MSA) and economic development district levels nationwide. What follows is something of a case study for how a researcher might use the Innovation 2.0 data.
Inside Innovation 2.0
Innovation 2.0 provides a robust set of relevant measures of innovation and regional competitiveness that are constructed based on research pertaining to the forces and prerequisites of competitiveness and performance. he importance of clusters to regional economic growth has been well-documented elsewhere. he regional competitive model that is advocated here focuses on the regional character of internally generated (i.e., internal to the region) growth through innovation and entrepreneurship. Put differently, fresh ideas and a propensity to take chances provide a fertile seedbed for innovation and a foundation to create new economic opportunities.
Innovation 2.0 is a web-based tool, available at www.statsamerica.org/ii2, for regional economic development practitioners to identify the innovation-based strengths and weaknesses of a regional economy. Many of the measures used gauge the foundational elements that are currently in place in the region for future, innovation-driven economic growth. Some of the measures gauge the degree to which the region is attractive to new talent and firms that may also enhance the regional economy, but those same measures of attractiveness are also measures for retaining current talent and firms.
Certain regional characteristics, in other words, work like gravity, keeping objects on the ground and pulling objects to the ground. It is hoped, therefore, that Innovation 2.0 is not primarily used to try to attract outside firms, resources and talent, but is used to identify indigenous sources of innovation and ways to fortify those sources. Encouraging homegrown entrepreneurs with personal commitments to the region, for example, is preferred over attracting talent with minimal personal investment in the region.
The index measure that is a key component of Innovation 2.0 is admittedly not perfect. Researchers have noted the pitfalls with creating indexes. For example, using indexes can result in a loss of variability and explanatory power through the grouping of data. his is something we will attempt to address later in the article as...