The 2023 Kansas Competitiveness Blue Book compares data-driven information on the state’s economic health to the rest of the country on how it performs in a number of key indicators.
A project of the Kansas Chamber Education Foundation, Kansans are encouraged to use the Blue Book as a resource as we work together to remove barriers to our state’s business and economic success to increase prosperity for all Kansans.
This spotlight on how Kansas competes on innovation and entrepreneurship is the first of a series of eight spotlights.
Blue Book data point: Kansas ranks 32nd in the country for total venture capital investment, with $283.9 million invested in 2021. However, on a per capita basis, this amount of venture capital drops us to 45th nationally.
Why it matters: Neighboring Colorado, Missouri, and Nebraska outperform Kansas in attracting venture capital investment. On a per capita basis, they rank 9th, 10th, and 24th respectively, compared to Kansas’ 45th position. Oklahoma comes in at 46th nationally for its per capita venture capital.
Greater R&D Spending Is Needed to Spur Innovation in Kansas
Blue Book data point: With $15.1 million in overall research and development expenditures in 2019, Kansas finds itself behind 32 other states that attract more R&D dollars. The top six states had more than $100 million each in R&D expenditures.
Why it matters: About $9.6 million of Kansas’ R&D is in the academic sector, compared to less than $3 million each in the private and public sectors. To benefit from the increased commercialization opportunities that emanate from R&D, Kansas has significant room to grow in each of these sectors if it is to break out of the middle of the pack.
It’s Time to Strengthen Kansas’ Innovation Ecosystem
Blue Book data point: Kansas ranks 38th in the nation for tech and innovation when considering the number of patents issued per capita; health, science, and agriculture research grants; and domestic semiconductor research, development, and manufacturing. When high tech employment and wages are considered as a stand-alone measure, Kansas ranks 26th for having 4.6% of total employment in tech.
Why it matters: According to the CNBC Top States for Business report, truly competitive states value innovation, nurture new ideas, and support them with tangible resources. An innovative environment often leads to job growth in the private sector as new ideas make their way to market.
Takeaway
To help innovation thrive, we must ensure financial barriers for business filings and start-up-related expenses are limited, allowing good ideas to get commercialized more quickly and easily. A culture of innovation also can be supported by expanding small business development loans for Kansas start-ups and by expanding the Angel Investor Tax Credit program.
Data Sources
National Venture Capital Association | National Science Foundation | CNBC Top States for Business
