PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

New Index on Entrepreneurship and Innovation Puts U.S. at Number 1

By at 2 April, 2021, 9:10 am

by Raymond J. Keating-

A new index – the Draper Innovation Index – went live at the end of March from the Draper Hero Institute. It assesses and ranks ecosystems for entrepreneurship around the globe.

Ranking #1 was the United States, followed by Singapore, Hong Kong, Switzerland and the United Kingdom.

As explained on the index’s website:

“The DII will look at key success factors, metrics, and indicators that support the performance of local startups and facilitate the creation of new jobs and economic prosperity, such as employment creation, VC funding, startup culture, tax regulations, and IP creation. It will provide innovation data from an entrepreneurial/VC perspective as opposed to others that exist from an academic point of view.”

The index ties together as assortment of measures and indices that have been published by a variety of other organizations, along with select data, covering regulations, innovation environment, government quality, social or human development, corporate tax rates, venture capital momentum, a handful of measures related to the economy, and “crypto friendliness.”  By doing so, the index looks to be beneficial to entrepreneurs and investors.

And while there certainly are issues to debate about the make-up of the metrics, there is, in fact, valuable information here – and not just for private individuals and enterprises, but for policymakers as well. And of course, it is encouraging the U.S. ranked best.

Indeed, the central point of this index is critical, as stated by Dr. Wallace Walrod, DHI’s Chief Economic Advisor: “We know that innovation and entrepreneurship will be critical to national and global economy recovery. Nations and states that promote healthy, vibrant, and robust economic development ecosystems will be the places that increasingly attract entrepreneurs and investors.”

The only significant complaints that I have as this index has gone live are, first, the need for substantive analysis and discussion for each nation; and second, more intuitive, friendly website navigation. But perhaps those are coming. In the meantime, there is value in the Draper Innovation Index.

Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council.

 

News and Media Releases