Innovation Index remains above recession levels in UM-Dearborn study
November 28, 2011
DEARBORN / Nov. 28, 2011---The University of Michigan-Dearborn’s Center for Innovation Research – iLabs – today released its Innovation Index for the second quarter 2011. The Index, which quarterly measures economic innovation activity in the state of Michigan, fell slightly from 90.9 to 90.8. The index remains above the levels near 80, which it hit during the recession.
“The slight drop, is largely due to a rebound in Small Business Administration loans, which offset a drop in the number of workers reported in science and engineering,” according to Lee Redding, associate professor of business economics and director of the Innovation Index at the College of Business.
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 second quarter, three indicators dropped, while three advanced which let to the slight overall decrease.
Positive indicators in the second quarter 2011 Innovation Index were Small Business Administration loans, which were higher than in the second quarter of 2010, providing hope that some of the advance is sustainable, trademark applications, which continued an increase that began in 2006 and venture capital funding in Michigan. Negative indicators included innovation workers, as the percentage of workers employed in science and engineering was down for the second consecutive quarter; gross job creation which fell slightly below gross job losses for the quarter and incorporations and LLC filings, which are traditionally high in the first quarter and fall as the year goes on.
The next UM-Dearborn Innovation Index report, due in late February, will contain a detailed report of third quarter activity with preliminary indications for the forth quarter of 2011. Redding collaborates on the project with economist Anne-Louise Statt.
Founded in 1959 with a gift of just over 200 acres of land and $6.5 million from the Ford Motor Company, University of Michigan-Dearborn is a metropolitan university serving southeastern Michigan, committed to excellence rooted in strong academics, innovative research and programming and civic engagement. The University has nearly 8,900 students pursuing more than 90 bachelor's, master’s, doctoral and professional degrees in liberal arts and sciences, engineering, business and education. A top-ranked university with a faculty devoted to teaching, and students committed to achievement, UM-Dearborn has been shaped by its history of partnering with local leaders and communities, and is committed to finding solutions for the challenges that face the region.
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