State in 3rd tier for tech, policies

Score card ranks innovation work

Arkansas is rated as a third-tier state in regard to its policies, practices and infrastructure supporting innovation, according to a recent study conducted by the Consumer and Technology Association.

The trade group representing more than 2,200 companies recently ranked all 50 states and the District of Columbia on 10 innovation-centered categories, including entrepreneurial activity, Internet speed, tax friendliness, and degrees in science, technology, engineering and math. Chief Executive Officer Gary Shapiro said in a statement that the score card was a guide for states that "want to embrace those policies that best drive innovation, create good jobs and fuel economic growth."

Arkansas was one of 12 states the association classified as an "innovation adopter," placing it among the third of four levels on the score card. The study indicated that Arkansas has strong right-to-work laws but lacks fast Internet connections, a large technology workforce and a significant number of college graduates with STEM degrees.

Kathy Deck, director of the Center for Business and Economic Research at the University of Arkansas, said the state's place in the Consumer and Technology Association's report wasn't surprising.

"It adds to a long, long, long series of other kinds of reports that look at the state's ability to be a forward-looking economic engine," Deck said. "Like many of these reports, it comes back with the conclusion we're making concerted progress from a policy perspective on trying to be a place that is innovative, but we have some real structural challenges in terms of our workforce in particular."

The highest tier -- innovation champions -- consisted of 12 states and the District of Columbia. Twenty states were classified as innovation leaders. Six states were labeled modest innovators, the lowest category.

Arkansas was one of only two states to earn good grades in welcoming new business models (A), supporting drones (A) and adopting policies that promote sustainability without inhibiting the growth of new technologies (B).

Arkansas also received an A+ for being one of 25 right-to-work states, which the association said leads states to report higher personal incomes and more job growth.

But Arkansas also earned grades of C or lower for its tax friendliness, entrepreneurial activity, Internet speed, technology workforce, STEM degrees granted and ability to attract investments.

The size of the technology workforce (D) and STEM degrees (D-) were among the lowest grades the state received.

Deck said improvements in those categories will take time and pointed to Gov. Asa Hutchinson's computer science initiative as an example. She said the initiative is important for the state in growing the workforce needed to support innovation, but said it hasn't had time to "bear fruit."

"It's only been a year," Deck said. "So you can, and the state's leadership does, take a look at where we're not performing well and say, 'What are specific programs we can implement to improve these grades?' Yes, it takes time. But there are things we can do in the short run as well."

State Rep. Warwick Sabin, D-Little Rock, executive director of the Arkansas Regional Innovation Hub, agreed and said other states have been working for a long time to develop the resources, culture and community needed to support innovation.

He said the computer science initiative for Arkansas schools was a tremendous step forward for the state, but he also classified it as "truly just a first step."

"We're discovering there's much more to do," Sabin said. "Not just in terms of getting the students prepared, but making sure we have the teachers who can teach it at all of the schools around the state. So I think what is really positive about that development is it has increased recognition and awareness of the need to make that education available to our young people and to emphasize the skills that are going to be necessary for Arkansas to be competitive in this economy."

The Innovation Scorecard is a useful barometer because it shows where Arkansas stands compared to other states, according to Sabin.

He said efforts have been underway for more than a decade to create an environment where entrepreneurship can thrive in the state, but others are doing more through public initiatives to "create a more robust environment."

"There clearly are things we're doing right," Sabin said. "There are some categories where Arkansas is ranked where it ought to be, but we can always do better. I think these reports are critical in allowing us to assess our strengths and weaknesses and focus on what we need to do to be competitive and to truly realize our potential and help our citizens maximize the opportunities that can be available to them in this new economy."

Business on 02/13/2016

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