The Innovation Score

Oregon's 2009 Innovation Score is 71, which is down five points from 2008. While the score decreased, the state still maintained a "B" grade, indicating that the state continues to perform above average in many aspects of the innovation economy. However, the decline of the innovation score highlights the competitive nature of innovation policy.

Oregon's innovation score declined primarily due to weakness in several market driven variables. The state saw strong performance in University Startups, Kauffman Index of Entrepreneurship, Patents, Foreign Exports, reducing Greenhouse Gas Emissions and R&D Investments. This strong performance was offset with poor performance in SBIR/STTR Awards, Venture Capital Investments, New Company Creation, Average Wage and Technology Sector Employment.

Overall, Oregon has a strong and improving innovation economy with positive one and five-year trends across the majority of indicators.

Since Oregon is an emerging player in innovation, the financial crisis (starting in 2007) and the economic recession (starting in 2008) presented unique challenges for innovation activity in the state. In an expanding economy (pre 2007), capital flows from innovation hubs into outlying areas in search of high returns, benefiting Oregon. When the economy contracts, capital flows reverse and return to key innovation hubs in a "flight to safety." The ebb and flow of capital has a direct impact on Oregon's market driven variables, areas of state that are particularly susceptible to economic activity around the nation and world.