Florida,
Texas, Utah and Colorado Take Top Spots in DII US
Rankings - California Declines
Russia Dives to Near Bottom of DII rankings;
China slides as well Belarus, Cuba, Kazakhstan, Sri
Lanka, and Western Sahara Fall Dramatically - U.S. remains
#1 by a Significant Margin
SAN
MATEO, Calif., Sept. 28,
2022 /PRNewswire/ -- The Draper Hero Institute (DHI)
is proud to announce its 3rd Quarter 2022 Update of the
United States Draper Innovation Index (DII US) and the Global
Draper Innovation Index (DII Global). In this quarterly Executive
Summary, DII US and Global datasets have been updated to the most
recent data available, some have been replaced with more up-to-date
metrics, and the DII US and Global algorithm has been refined to
provide the most accurate snapshot of not only innovation and
entrepreneurship but for economic opportunity as well, with
increased emphasis on weighting the importance of small business
policy and regulatory environment.
Florida,
Texas, Utah and Colorado Take Top Spots in DII US
Rankings - California Declines
With a number of global trends including inflationary pressures,
rising political tension, wars, and supply-chain disruptions the
global economic landscape is filled with uncertainty and challenges
as never before, but also great opportunities in emerging sectors
such as Crypto/Bitcoin and Blockchain.
"Today's entrepreneurs, investors, and business leaders are
overwhelmed with information," said Tim
Draper, founder of the Draper Hero Institute. "Big data is
growing bigger every day and the problem isn't finding information,
it's sifting through it and making it actionable. In this context,
the Draper Innovation Index provides a vital service: an
up-to-date, curated picture of each state and countries' business
climate which is comprehensive without being overwhelming."
DII US Q3 2022 Key Takeaways
1. States with beneficial regulatory environments and
business friendly policies see impressive gains
Florida
(1st), Texas
(2nd) and Utah
(3rd) take the top spots in the Q3 2022 Draper
Innovation Index US (DII US) update. Business-friendly tax-rates,
supportive small business and investor policies, and strong
entrepreneurial and innovation support environments all helped push
these states to the top of the rankings. Other states benefitting
from emphasizing improving business climates include
Colorado, North Carolina, Arizona, Delaware, and Georgia.
2. States need more than tech and innovation to be
successful and attractive to entrepreneurs
California fell from
11th to 14thin the overall rankings despite
finishing 1st in IT Infrastructure. Similarly, Massachusetts dropped from 5th
to 16th despite finishing 1st in Tech Workforce.
California was dragged lower in
the overall rankings due to finishing last in Small Business
Environment and 48th in Tax Environment; Massachusetts ranked 44th in Small
Business, 40th in Entrepreneurship and 34th
in Tax Environment.
3. As exemplified by changes in the DII US Top 10
rankings, post-COVID competition between states is volatile and
intensifying
The competition between states for entrepreneurs, talent,
emerging industries, and venture capital investors is exhibiting
increased competition. The pandemic served to shift traditional
labor trends and has resulted in dramatic migration shifts in the
U.S. as entrepreneurs are no longer geographically tethered to
either their place of work or traditional entrepreneurial
"hotspots". As such, states have had to rethink traditional
economic policy operational practices and reinvent products and
services to better appeal to shifting social, economic, regulatory,
and technological preferences. These trends will continue to
transform start-up markets across the nation, as evidenced by the
ascent of Utah,
Colorado, North Carolina, Arizona, and Georgia in the latest rankings.
4. Entrepreneurs, Investors, and Tech Talent in a
Post-COVID economy – A Whole New Ballgame
The world of work's ongoing transformation, as exemplified by
the increasing prevalence of remote work, requires quick adaptation
and flexibility from employers and employees. The approximately 40%
of the workforce who can work remotely is now less tethered to high
cost areas – creating potential opportunity in states which may not
have been considered innovation hubs in the past. With the ability
to work from anywhere in the nation, state leaders and policymakers
will also need to adapt. This starts with better understand how
best to attract and retain residents and workers in this emerging
world. This is especially important in the context of inflation and
an overall skyrocketing cost of living – remote workers are now
less tethered to traditional – but increasingly expensive --
innovation and entrepreneurial hotspots such as Silicon
Valley.
5. The DII-US helps to highlight states' competitive
advantages and pitfalls
In a corollary to Key Takeaway #4, Governors, state elected
officials, and other state leaders should note that business
leaders analyze a broad variety of metrics when studying different
markets; the DII-US provides a quick snapshot of how states perform
across a number of categories, enabling entrepreneurs and investors
to quickly gain an understanding of the current business, social,
entrepreneurial, regulatory, and tax environments they may have to
contend with and take action in terms of their location-based
strategies.
DII Global Q3 2022 Key Takeaways
1. Economic, civic, and social freedoms continue to drive
top ranked nations
The United States,
United Kingdom,
Canada, Australia, and Norway hold the top five ranks on the
Draper Innovation Index Global's (DII Global) overall rankings
while nations with more authoritarian governments held some of the
lowest rankings, including North
Korea and Western
Sahara. Russia
fell 40 more spots and now ranks 220th overall out of
228 countries tracked by DII Global. Additionally, China continues to fall, dropping from
15th to 29th in the last 3 months. Simply
put, individual rights and freedoms correlate strongly with
innovation and business growth; how nations treat their citizens
has significant ramifications for future economic success and
prosperity.
2. Cryptocurrency/Blockchain sectors continue to
evolve
The prices of cryptocurrencies have been extremely volatile in a
post-pandemic economy as uncertain economic and demographic trends
served to impact both stock and digital coin prices. Yet, despite
moderation on non-fungible tokens (NFTs), shift in digital real
estate, and price volatility impacts on countries such as
El Salvador, this sector
continues to grow and expand. For example, the Central African Republic adopted Bitcoin
as its official currency in April
2022.
3. Crypto/Blockchain remains a significant opportunity for
both small and large economies
Some of the top nations on the DII Global's Crypto Friendliness
sub-index include Vietnam,
Ukraine, Liechtenstein, and India as well as the United States and United Kingdom, leading to significant
improvements in their respective rankings as shown above.
4. DII Global rankings reflect how quickly countries can
rise and fall in the rankings in the competition for entrepreneurs
and investors due to rapidly changing global
circumstances
Due to updated data and new data sources emphasizing economic
freedom, the DII core scenario saw a number of significant country
movements. At the top, the United Kingdom, Canada, Australia, and Norway all improved their positions, while
China, Singapore, Iceland, and Poland all dropped. Peru, Angola, Brazil, and Puerto Rico all rose significantly, while
Western Sahara,
Belarus, Cuba, Kazakhstan, and Sri Lanka fell precipitously down the
rankings. In this light, countries need to monitor and continually
rethink their value proposition to better appeal to shifting
entrepreneurship and investor preferences.
5. The Increasing Importance of Robust, Accurate,
Impartial Real-Time Data in Monitoring and Assessing Global
Entrepreneurship and Innovation Trends
In a corollary to Key Takeaway #4, updated DII Global data and
new data sources continue to track evolving global entrepreneurship
trends. The primary driver of our new data model results from the
significant issues regarding World Bank data, which caused World
Bank Group management to come to the difficult decision of
discontinuing their Doing Business data series following an
independent audit that uncovered significant data irregularities.
The audit documented that World Bank leadership pressured
researchers to manipulate the 2018 and 2020 Doing Business results,
specifically favoring China
and Saudi Arabia.
DII Global's expert and varied approach of using a broad,
diverse set of credible data sources is designed to circumvent any
of the potential issues and biases of any one index.
6. Global economic, political, and social uncertainty
weigh heavily on many nations
Despite making it through the COVID-19 pandemic, the world has
also recently had to contend with the Russia-Ukraine war, major supply chain
disruptions, global inflation concerns, and increased tensions
between Taiwan and
China. These global
concerns may have disparate impacts on different regions and are
thus likely to result in dramatic shifts in DII Global rankings in
the future. Russia's steep
decline to nearly the bottom of the global rankings should be taken
as a cautionary tale. Small countries, such as Sri Lanka risk financial insolvency in the
face of skyrocketing food and fuel prices as the Russia-Ukraine war rages on, while major
affordability concerns more established countries.
The DII US and Global will continue to be
updated each month and can be accessed here.
About Draper Hero Institute
Founded by legendary
Silicon Valley venture capitalist and entrepreneur Timothy C. Draper, Draper Hero Institute (DHI)
provides applicable and modern resources for future entrepreneurs
globally and ensures inclusiveness and opportunities for all. As an
action-based research institution, DHI focuses its efforts on
non-traditional pathways to guide future entrepreneurs in the new
economy. Through programs that ignite innovative research; united
through connectivity and networking; and mentoring efforts through
applied education, DHI provides a portal for creative thinking and
ultimately driving change to better prepare future entrepreneurs to
take on heroic endeavors.
https://www.draperhero.org/
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SOURCE Draper Hero Institute