iLabs study measures economic innovation in the state
August 29, 2012
DEARBORN / August 29, 2012--- The University of Michigan-Dearborn’s Center for Innovation Research – iLabs – today released its Innovation Index for first quarter 2012. The Index, which quarterly measures economic innovation activity in the state of Michigan, rose from 90.5 to 95.2. The index is above the 2011 first quarter reading of 90.9.
“The significant rise in the first quarter is due to strong results for trademark applications and incorporations,” said Lee Redding, interim dean, associate professor of business economics and director of the Innovation Index at the College of Business. “Looking ahead to the second quarter, seasonal factors may produce a lower level of incorporations, which could result in a modest decline.”
The Innovation Index tracks economic innovation in Michigan based on calculations of employment of “innovation workers,” trends in venture capital, trademark applications, incorporation activity, small business loans and gross job creation. For the first quarter four of the indicators advanced, while two declined.
Positive indicators in the first quarter 2012 Innovation Index were trademark applications, which had a very strong first quarter after a decline in previous quarters, venture capital funding, which posted at the highest levels since second quarter 2010, incorporations and LLC filings, which are traditionally high in the first quarter, and Small Business Administration Loans, which rose modestly in the quarter. Negative indicators include gross job creation, which fell and were only slightly ahead of gross job losses and innovation workers, which measures workers employed in science and engineering and saw little change.
The next UM-Dearborn Innovation Index report, due in late November, will contain a detailed report of second quarter 2012 activity with preliminary indications for the third quarter of 2012. Redding collaborates on the project with economist Anne-Louise Statt.