Innovation, Research & Development Drive Connecticut Economy to Top 10 Status: Analysis Shows Growth Potential — Connecticut by the Numbers

Connecticut’s ranking as the 8th state for Innovation Potential highlights its ability to promote technological advancement and entrepreneurialism. Although the state may not be leading in every category, its progress in Independent Inventor Patents per 1,000 Working-Age Population and Industry R&D Investment Amount per Total Civilian Employed Population showcases its dedication to innovation. WalletHub analyst Cassandra Happe emphasized that these indicators suggest a strong environment for research and development, indicating potential for cultivating new ideas and technologies. Despite challenges in other economic areas, Connecticut’s innovation strength bodes well for its future economic growth and competitiveness on a national level.

In addition to its high innovation potential, Connecticut also ranks among the top 10 states for research and development spending as a percentage of state GDP. According to a new report from the U.S. Bureau of Economic Analysis, the state allocated 2.7% of its GDP to R&D activities in 2021, marking a significant increase from previous years. These findings are part of a new Research and Development Satellite Account being developed by the BEA in collaboration with the National Center for Science and Engineering Statistics of the National Science Foundation. The leading R&D states, alongside Connecticut, by percentage of state GDP include California, Washington, Massachusetts, New Mexico, Delaware, Michigan, New Hampshire, Delaware, New Jersey, and Maryland.

CEO Chris DiPentima of the Connecticut Business & Industry Association highlighted the importance of R&D in driving innovation, particularly in high-growth industries like aerospace and bioscience. While Connecticut excels in innovation and R&D spending, its rankings in other aspects of WalletHub’s state economy report were less favorable, with the state ranking 42nd in economic activity and 47th in economic health. Overall, Connecticut placed at #31 in the state rankings.