Innovation Index falls slightly
The University of Michigan-Dearborn’s Center for Innovation Research – iLabs – today released its Innovation Index for fourth quarter 2011. The Index, which quarterly measures economic innovation activity in the state of Michigan, fell slightly in the quarter from 92.8 to 90.5. The index remains well above the levels near 80, which it hit during the recession.
“The slight fourth quarter drop is largely due to a drop in trademark applications,” said Lee Redding, interim dean, associate professor of business economics and director of the Innovation Index at the College of Business. “Looking ahead to the first quarter, preliminary data shows growth in the Index, as a seasonal increase in incorporations is likely to be joined by a rebound from a quiet quarter for trademark activity.”
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 fourth quarter four of the indicators declined, while two advanced.
Positive indicators in the fourth quarter 2011 Innovation Index were gross job creation, which was well ahead of gross job losses and innovation workers, which continued an increase from the previous quarter of workers employed in science and engineering. Negative indicators include trademark applications, which reversed an earlier increase, venture capital funding, which was near 2010 levels, incorporations and LLC filings, which were down in the quarter but ahead of the year-earlier mark, and Small Business Administration Loans, which fell modestly in the quarter.
The next UM-Dearborn Innovation Index report, due August 12, will contain a detailed report of first quarter 2012 activity with preliminary indications for the second quarter of 2012. 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.