The Draper Hero Institute created an index with rankings among global markets with pathways to innovation and found Washington, Florida, and Texas to lead the list in the U.S. According to the index, Texas takes one of the top spots as a hub for the vitality of national and global technology startups.
The Draper Innovation Index acquires its data to grade U.S. states and countries based on a global range of local factors that index developers' grades in support of providing a healthy startup ecosystem, including regulatory, economic, investment and workforce trends.
Grades are given according to factors including trust and transparency in local governments, the potential for development opportunities, and a state is assigned a rank based on the balance of all combined factors. Additionally, the data is compiled from a range of sources including the World Bank, the United Nations, the Nasdaq Stock Market, and several other private and public-sector outfits.
Having ranked third overall among U.S. states, behind Washington and Florida, Texas gained $1.3 billion in venture capital in the first three months of 2021 —more than what was raised in the previous three quarters based on data from analytics firm PitchBook Data Inc. The findings come on the heels of December announcements from Silicon Valley companies Oracle and Hewlett Packard Enterprises touting plans to relocate their respective corporate headquarters to Texas.
According to the Draper Hero Institute, corporate tech leaders and their chief information officers from Texas-based firms could leverage the rankings to identify key areas in the U.S. where startups are rapidly emerging to develop innovative technology. This information would prove beneficial in making business decisions surrounding future investing and acquisition opportunities. “CIOs investing in the future must track innovation to avoid investing in yesterday’s technologies,” said Max Azaham, a senior research director at information-technology research and consulting firm Gartner Inc.