RI Is Falling Behind in Innovation Says New Study—Can the State Reverse Course?
Monday, April 22, 2019
Rhode Island fell more in the latest national innovation ranking than every other state except Alabama.
According to Bloomberg’s U.S. State Innovation Index, California and Massachusetts are ranked first and second respectively, but Rhode Island was in steep decline over the past three years.
Rhode Island is ranked 23rd in the 2019 ranking — far behind Connecticut which is ranked fourth. Most concerning is that Rhode Island fell seven positions in the ranking from the 2016 Index — the last time Bloomberg released the Index for innovation.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTNow, Rhode Island is the second lowest ranked in New England — only Maine is ranked lower at #41.
Metrics Considered
The study is based on six equally-weighted metrics: research and development intensity, productivity, clusters of companies in technology, “STEM” jobs, populous with degrees in science and engineering disciplines, and patent activity.
“Massachusetts was just behind [California] at 93.8 and ranked highest in the metric measuring both the number of high-tech public companies headquartered there as well as the percentage of tech firms receiving venture-capital funding. The state was No. 1 in the 2016 innovation ranking,” according to Bloomberg.
In contrast, Rhode Island’s score is 55.9 in the Index. Rhode Island ranks best for tech company density — #9, but ranks a disappointing #33 for productivity.
Rhode Island fell from #16 in 2016 to #23 in 2019. Alabama fell eight slots from #38 to #46.
Rhode Island’s Efforts
State officials say Rhode Island is working to become a national innovation hub.
According to Rhode Island Commerce officials, Rhode Island has developed a number of critical programs to advance Rhode Island’s innovation economy and help transform the innovation culture.
“The Innovation Voucher program (which covers a portion of the R&D expenses for our state’s small businesses) has led to 70 awards to research new products, 40 new patents, and nearly $10 million in follow-on funding in approximately 3 years,” said Brian Hodge of Commerce RI.
“We are helping to build physical hubs for innovation in Providence (the Wexford Innovation Center) and in Newport (Innovate Newport, at the site of the former Sheffield School),” said Hodge.
Both new hubs are expected to open this year. Innovate Newport is scheduled to open in May and Wexford later this year.
Wexford will be home to Cambridge Innovation Center, Johnson & Johnson, and an existing Brown University program.
Rhode Island’s Computer Science for Rhode Island (CS4RI) initiative is the first of its kind in the country, providing computer science offerings in all public schools. The program, CS4RI is a state initiative to bring high-quality computer science (CS) learning experiences to all students in the state.
In addition, Hodge cites the success of the Wavemaker program. He says to date, 667 Wavemaker fellows are getting assistance re-paying their student loan debt.
The Wavemaker Fellowship awards graduates working in STEM and design jobs in Rhode Island with a refundable tax credit that can cover student loan payments up to $6,000 per year for up to four years.
"Preparing Rhode Islanders for the growing number of local jobs in STEM and design is key to sustaining our economic comeback,” said Governor Gina Raimondo. "We are taking steps to keep our talented people here and attract others to start their careers in Rhode Island. The Wavemaker Fellowship is a creative solution to helping professionals with their college debt, while giving companies an important recruiting tool."
In addition to student loan relief, the program also provides educational and networking opportunities, engendering increased connections and opportunities in Rhode Island. Past events include Homebuying 101, personal finance classes, and volunteer opportunities.
“The Wavemaker program is an innovative and important program that helps the state keep more than its fair share of high-demand STEM and design employees,” said R.I. Secretary of Commerce Stefan Pryor. “This is a valuable tool to help expand our state’s talented workforce. We thank Governor Raimondo and the General Assembly for providing this tool and supporting our Wavemaker fellows.”
Economic Incentives
Commerce also cites the impact of the economic incentive program at attracting and innovating technology-focused companies.
"Our economic development programs have directly led to innovative companies like Rubius Therapeutics, Infosys, Johnson & Johnson, and GE Digital moving to Rhode Island. It has also spurred expansion of Amgen, which is constructing its newest state-of-the-art biomedical manufacturing facility here, and has led to the construction of a new R&D center for Finlay’s, the global tea company," said Hodge.
Both General Electric and Johnson & Johnson's hiring are far behind the state's anticipated levels.
"Soon, the state will be home to three new Innovation Campuses, pairing the University of Rhode Island with renowned innovation entities like IBM and Arizona State University. And while this list ranks Rhode Island at 23, we seek to do more, including proposed legislation to enhance our state’s research and development tax credit. The strengthening of our R&D tax credit during this legislative session would make our program the best for early stage companies in the Northeast," Hodge added.
