Transatlantic Subnational Innovation Competitiveness Index 2.0

Most of these countries exhibit growth in innovation, yet it is imperative to understand the subnational aspect of competitiveness as well as to recommend targeted policies for further development.

Competitiveness and innovation play a pivotal role in determining a nation’s—or state’s—ability to thrive in the fiercely competitive global marketplace. Competitiveness encompasses not only the capacity to produce high-quality goods and services at competitive costs but also the ability to create an environment that fosters productivity, attracts investments, and nurtures a skilled workforce. In an era marked by rapid globalization and digitalization, nations and states alike must consistently seek avenues to enhance their competitive edge to secure their position in the global economic hierarchy.

Innovation ecosystems encompass intricate networks of stakeholders, including research institutions, universities, startups, corporations, investors, and government bodies, collaborating to foster the creation, diffusion, and application of novel knowledge and technologies.4 Regional hubs such as Silicon Valley in the United States and Stockholm in Sweden stand as exemplars of this paradigm, showcasing remarkable success in cultivating vibrant innovation ecosystems. The availability of state-of-the-art infrastructure, coupled with a talent-rich environment, attracts and retains skilled individuals crucial to advance these ecosystems’ vitality. By offering fertile ground for multidisciplinary collaboration, resource sharing, and risk mitigation, these regional hubs epitomize the success of innovation ecosystems.

Understanding the components of innovation ecosystems at both national and subnational levels is vital for fostering a holistic and tailored approach to innovation-driven development. At the national level, such understanding allows governments to formulate comprehensive policies that leverage synergies among various actors such as research institutions, regulatory policies, funding mechanisms, and education systems. This facilitates the creation of an enabling environment conducive to research, entrepreneurship, and technology diffusion. On the subnational level, recognizing the unique strengths and assets of specific regions enables targeted interventions that capitalize on local expertise, resources, and industries. This localized approach fosters the emergence of vibrant innovation clusters, encourages collaboration among local stakeholders, and bolsters regional economic growth.