Stories of Technology, Innovation, & Entrepreneurship in the Southeast

Tennessee is not so highly rated as a state in terms of innovation, according to the latest report from personal financial website WalletHub.

The firm’s analysis ranked the Volunteer State in the bottom third of its peers in terms of the WalletHub Innovation Index. Overall, Tennessee placed #37. It was much higher in the Innovation Environment Rank at #26, but slightly lower in the Human Capital Ranking at #42.

In order to determine the most and least innovative states, WalletHub compared the 50 states and the District of Columbia across the two equally evaluated dimensions of Human Capital and Innovation Environment, giving 50 points to each category. The firm evaluated those dimensions using 25 relevant metrics, which are listed here (WalletHub Innovation Criteria) with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for innovation.

Finally, WalletHub determined each state’s weighted average across all metrics to calculate its State Innovation Index and used the resulting scores to rank-order the sample.

How did other states do?

1. When it comes to innovation, the District of Columbia really outperforms all 50 states, in large part due to the fields its population works in. DC has the highest share of people employed in STEM (science, technology, engineering, and math), as well as the highest share of people with STEM degrees. In fact, more than 54 percent of District residents ages 25 and over who have college degrees majored in some form of STEM.
2. Virginia was the highest-ranked state that borders Tennessee, placing #7 in the listing.
3. Others ranked above the Volunteer State included Texas (#13), North Carolina (#15), Florida (#18), Georgia (#23), South Carolina (#27), and Alabama (#32).
4. Those ranked below Tennessee included Missouri (#39), Ohio (#42), Kentucky (#45), Arkansas (#47), Louisiana (#50), and Mississippi (#51).

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