US-India Subnational Innovation Competitiveness Index

Investment Rating - The report does not provide a specific investment rating for the industry but highlights the comparative innovation competitiveness between U.S. and Indian regions. Core Insights - The United States dominates the top rankings with 51 regions, while the top Indian states rank below all U.S. states, indicating a significant gap in innovation capacity [2][12] - Indian regions excel in globalization indicators, particularly in inward foreign direct investment (FDI) and high-tech exports, but these activities are concentrated in only five states [2][4] - The report emphasizes the need for Indian policymakers to attract private R&D investment to enhance innovation [5] Summary by Sections Key Takeaways - The U.S. leads in innovation competitiveness with California, Massachusetts, and Washington as the top three regions [2] - Indian regions, while strong in globalization, lag in R&D investment and personnel, which are crucial for developing innovative ecosystems [3][4] The Index - The U.S.-India Subnational Innovation Competitiveness Index (SICI) evaluates 87 regions using 13 indicators across three dimensions: Knowledge Economy, Globalization, and Innovation Capacity [13][14] - Innovation Capacity is the most weighted dimension at 44.42%, followed closely by Knowledge Economy at 44.32% [15] Overall Scores and Rankings - California ranks first with an overall score of 64.42, followed by Massachusetts and Washington [17] - Indian regions rank significantly lower, with Delhi scoring 26.32, placing it at 61st overall [20] Knowledge Economy - The number of doctoral degree recipients is a critical indicator, with U.S. states like California leading significantly [31][33] - Indian states show variability in doctoral degree production, with Uttar Pradesh leading but many regions lacking higher education institutions [32] Globalization - Indian regions are strong in attracting FDI, receiving $70.9 billion in 2022-2023, with a target of$100 billion [7] - The concentration of high-tech exports in a few Indian states highlights the need for broader regional development [2][4] Innovation Capacity - The report identifies a strong correlation between GDP per capita and innovation scores, with U.S. states significantly outperforming Indian states [28] - U.S. states show a more diverse distribution of STEM employment compared to India, where many regions struggle to integrate STEM graduates into the workforce [39][41]