Decision 2024 Your Voices, Your Future: The Innovation Economy

Abstract

How Indiana embraces and fosters an economy where innovation thrives will largely decide its future. Indiana rebounded strongly compared to many states following the COVID-19 pandemic, but the effects of the crisis also laid bare some of the state’s economic weaknesses, including the need for greater technological competitiveness. Innovation involves introducing a new product, service, or process into the economy, and technological advancement driven by innovation links to economic prosperity more than ever before. Indiana has fallen behind in its ability to foster innovation and technology, which has limited its productivity. Investments in advanced manufacturing and life sciences manufacturing offer strong near-term opportunities to maintain or even increase Indiana's economic performance. In the long term, sustained investments in professional and scientific services must be a priority for the state. This brief highlights how policy makers can construct and implement policies to encourage more technological innovation and entrepreneurship so Indiana’s economy can thrive.