Washington Leads in New Company Creation, Index Finds

Washington State still ranks first nationally in the creation of new companies, according to the third annual Index of Innovation and Technology released by the Washington Technology Center (WTC), a state-funded organization that fosters technology employment growth. The Index also shows the number of patents earned by Washington inventors increased by 11 percent from 2000 to 2001.

WTC's Innovation Index considers more than 40 key indicators to characterize the health of the state's innovation economy. Growth, financial capacity, human potential, competitiveness, quality of life, and innovation capacity in Washington all are assessed.

Venture investment in Washington companies declined almost 60 percent during the years covered by the Index. However, the Pacific Northwest state remains among the top regions of the country for venture investment, ranking ninth overall. Silicon Valley, however, attracts 15 to 20 times more venture capital than Washington State, the findings show.

The steady growth of the state's non-aircraft technology sectors has helped offset the loss of its Internet companies and curb any decline in technology employment, the Index reports. Many of the refugees from defunct dot-com companies have found new full-time jobs in other parts of the innovation economy. Washington also leads in average technology job wage at $118,252 per year.

The Index does raise some reasons for concern, including investors' tentativeness. It also points out the slow rate of increase in elementary and secondary students passing math proficiency — a key element for sustained growth in an innovation economy.

The WTC Index is available at http://www.watechcenter.org/techindex/.