Room to improve

See where Texas falls among most innovative states in the U.S.

Texas has some room to improve when it comes to being innovative. Getty Images

Texas isn't among the top 10 innovative states in the United States, according to a new study, but it isn't too far off. The Lone Star state ranked as the country's No. 15 most innovative state, as reported by WalletHub.

All 50 states and the District of Columbia were evaluated across 24 metrics two dimensions: human capital and innovation environment. Texas ranked No. 18 for its human capital and No. 14 for its innovation environment.

Texas' star shined bright across a few categories and made it in the top 10 in:

  • Business churn
  • Jobs in new companies
  • Entrepreneurial activity
  • Industry-cluster strength (refers to the level of high employment specialization of a cluster, which is defined by the U.S. Cluster Mapping Project as a "regional concentration of related industries in a particular location")
  • Average internet speed

The state performed the worst in the following categories:

  • Scientific-knowledge output (measures the number of peer-reviewed articles published per $1 Million of Academic S&E research and development)
  • Open roads and skies friendly laws
  • Average annual federal small-business funding per GDP
  • Share of households with internet access
  • Research and development spending per capita
  • Research and development intensity

The U.S. is expected to spend a reported $581 billion on research and development, according to WalletHub, which is more than any other country in the world. Some states, the study found, are better at pulling their weight. Massachusetts, Washington, D.C., Maryland, and Colorado make up the top five, in that order, while Tennessee, Iowa, West Virginia, Louisiana, and Mississippi round up the bottom of the list.

While there's much to learn from other innovative ecosystems, copying them is not the best plan, says expert on the study Joseph Tranquillo, Bucknell University professor and author.

"Trying to replicate an innovative ecosystem that has worked somewhere else never seems to turn out well," he says. "Like biological ecosystems, they must be homegrown from the strengths that already lie within."

The Woodlands is booming. Photo by Derrick Bryant Photography

The Houston metro area's population is poised to continue booming over the next decade, so it should be no surprise that U-Haul calculated one Houston suburb as one of the top U.S. cities for growth.

In its annual report, released January 7, the company details migration trends across the U.S. Analyzing data from 2019, the moving and rental company placed Spring-The Woodlands at No. 14 among the 2019 U-Haul Growth Cities.

To determine the country's top 25 growth cities, U-Haul analyzed more than 2 million rental transactions over the calendar year. It then calculated the net gain of one-way U-Haul trucks entering an area versus those leaving an area.

Unlike U.S. Census Bureau or real estate data, the company says its U-Haul Growth Cities offers a snapshot of an area's retention rates versus strictly growth.

"While U-Haul migration trends do not correlate directly to population or economic growth, the company's growth data is an effective gauge of how well cities and states are attracting and maintaining residents," it explains in a release.

Three other Texas cities were perched on the list: the Austin suburb of Round Rock-Pflugerville (No. 5), the San Antonio suburb of New Braunfels (No. 11), and the Dallas suburb of McKinney (No. 17).

The top spot this year went to Raleigh-Durham, where arrivals accounted for nearly 51.4 percent of all one-way U-Haul traffic. In its explanation as to why the North Carolina hub is growing, the company points to the region's booming tech sector, which is says rivals that of Austin.

"We have tons of businesses coming here, bringing new residents in U-Haul trucks," said Kris Smith, U-Haul Company of Raleigh president, in a release. "Raleigh-Durham is rivaling Austin for attracting tech businesses and young professionals. We're seeing Silicon Valley talent and companies flock to the area. With a competitive cost of living, good wages, and job growth, Raleigh-Durham is experiencing a boom in population."

But when it came to the top growth state, neither Texas nor North Carolina got the No. 1 spot. That honor went to Florida, which took the crown from Texas, the winner in 2018. The Sunshine State claimed seven cities among the top 25, including five in the top 10.

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This article originally ran on CultureMap.