New Report Highlights Education’s Role in Driving North Carolina’s Economic Innovation

The recently published Tracking Innovation report was unveiled on July 29 by the Office of Science, Technology, and Innovation within the North Carolina Department of Commerce. The report highlights that the state is making strides in enhancing its innovation capabilities compared to the national average.

Notable comments from Machelle Baker Sanders, Secretary of Commerce for North Carolina, in a press statement emphasize the necessity to elevate the “level of prosperity” across the state as indicated by the report findings.

Emphasizing the importance of proactively shaping a dynamic economy, Sanders stressed the significance of ongoing innovation to introduce new products, services, and business models that enhance economic welfare, rather than merely adapting to market demands.

The report assesses North Carolina’s performance across 42 different innovation metrics, comparing them to the national averages as well as those of six other key states (California, Massachusetts, Georgia, Virginia, Colorado, and Washington). These metrics offer valuable insights into the correlation between innovation, resources, and economic outcomes within the state.

Analysis of the research outcomes reveals that North Carolina either meets or exceeds national benchmarks in approximately half of the evaluated categories.

While North Carolina’s overall innovation ecosystem is robust and has demonstrated improvement since the early 2000s, the report notes that the state’s poverty rates surpass the national standard. Despite having a rapidly expanding population, residents in North Carolina still lag in terms of income and wages.

Stressing the pivotal role of technology and innovation in fostering economic growth, Janet Cowell, Chair of the North Carolina Board of Science, Technology & Innovation, underscored the need for more inclusive participation and translation of innovations into practical applications, emphasizing the state’s untapped potential.

Delving Deeper into the Report’s Discoveries

Over the past two decades, both academic and industrial research and development in North Carolina have exceeded national growth rates, laying a strong foundation for future economic progress. The state’s research and development efforts notably outperform national averages, with academic institutions being significant contributors to intellectual property generation.

In terms of workforce composition, North Carolina ranks 16th in the nation for the proportion of individuals engaged in science and engineering occupations, encompassing various disciplines such as engineering, computer science, and life and physical sciences. The report excludes STEM educators from this metric.

Between 2003 and 2020, North Carolina witnessed a 50% surge in its science and engineering workforce, outpacing the national average by 25 percentage points. However, the report highlights a lower graduation rate of science and engineering students compared to other states within the same timeframe.

When examining the ratio of science and engineering bachelor’s degrees to the population aged 18–24, North Carolina ranks 28th nationally, reflecting the state’s preparedness to train future technology-oriented professionals crucial for a knowledge-driven economy. The report emphasizes the need for enhanced educational efforts to bridge this shortfall.

The report’s scope extends to individuals holding degrees in various scientific fields, highlighting the importance of a well-rounded workforce in driving innovation and economic growth.

Addressing the lower concentration of trained engineers in North Carolina’s workforce, the report raises concerns regarding the state’s innovation potential, as regions with a higher density of engineers often lead in innovation and industry development.

Recognizing the critical role of a well-educated workforce in fostering innovation, the report underscores the correlation between educational attainment and economic success.

North Carolina ranks 21st nationally in terms of educational attainment, reflecting the state’s progress in enhancing educational standards among residents aged 25 and above.

Approximately 10% of North Carolinians aged over 25 did not complete high school, highlighting the need for targeted educational programs to uplift this demographic. With a quarter possessing high school diplomas and almost 20% having some college experience post high school, investments in educational initiatives remain vital for future economic growth.

Analysts found that the majority of counties in North Carolina exhibit lower education levels, with 83 out of 100 counties scoring below the national average, emphasizing the need for tailored interventions to bolster educational outcomes statewide.

With a statewide ambition of equipping 2 million North Carolinians aged 25–44 with degrees or certifications by 2030, North Carolina aims to enhance its workforce readiness and economic competitiveness.

Assessing the workforce landscape, the 2011 State of the North Carolina Workforce study revealed that individuals without high school diplomas face higher unemployment rates, highlighting the critical role of postsecondary education in securing sustainable employment opportunities.

Emphasizing the imperative of improving educational attainments to fuel innovation and economic prosperity, the report calls for strategic investments in public education as a cornerstone for future growth.

Delineating the state’s declining investment in higher education from 2001 to 2022, the report indicates a reduction in governmental funding for both postsecondary and elementary/secondary education.

Comparing North Carolina’s elementary and secondary public education expenditures as a percentage of state GDP to the national average, the report finds a notable decline in money allocated to education, signaling a challenge that needs to be addressed urgently.

Image Courtesy of North Carolina Board of Science, Technology & Innovation.

Recognizing the pivotal role of public investment in education, the report emphasizes the need to prioritize funding across educational levels to cultivate a skilled workforce capable of driving innovation and economic progress.