As states and metropolitan areas fight to regain ground lost during the economic downturn, the ability to innovate is proving increasingly crucial. Innovation allows economies to adapt as new technologies emerge. It enables existing companies to survive and thrive and encourages new businesses to develop. A strong innovation ecosystem facilitates the design of new products and the development of new production processes. Without it, states and metros will find themselves lagging behind in the next economy.
http://www.brookings.edu/research/articles/2012/01/17-tennessee-innovation-katz-rodin
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