Startup Talk: Arkansas ranks as third tier state for ‘innovation friendly’ policies

Editor’s note: Each Thursday, Talk Business & Politics provides “Startup Talk,” a round-up of startup, technology and entrepreneurial news. 

ARKANSAS RANKS AS THIRD TIER STATE FOR ‘INNOVATION FRIENDLY’ POLICIES
Twelve states and the District of Columbia are now championing innovation-friendly policies at the highest level according to the 2016 Innovation Scorecard, an annual innovation policy performance index recently released by the Consumer Technology Association (CTA). Those top states earned high grades for maintaining strong right-to-work legislation, fast Internet access, a robust entrepreneurial climate and an open posture to new business models and technologies. Other scorecard criteria are tax policy, tech workforce, investment attraction; Science, Technology, Engineering and Mathematics (STEM) degrees; unmanned innovations and sustainability policies.

The 2016 Innovation Scorecard grades every state and Washington, D.C. on ten quantitative and qualitative criteria and assigns each to one of four categories — Innovation Champion, Innovation Leader, Innovation Adopter or Modest Innovator. Arkansas, Maryland, Mississippi and Oregon were the only states earning an ‘A’ grade for creating a policy environment favorable toward drones. However, Arkansas was graded as a third tier innovator for lacking key elements of the infrastructure needed for new businesses to flourish: fast Internet connections, large tech workforces, and significant numbers of college graduates with science and engineering degrees. To check out the 2016 Innovation Scorecard, click here.

U.S. PRODUCES VAST MAJORITY OF ‘UNICORN’ STARTUPS WORTH MORE THAN $1 BILLION
The U.S. continues to be a global magnet for innovative startup companies with valuations in excess of $1 billion and by the total valuation during the past two years, according to a new study released by the University of Southern California’s Marshall Center for Global Innovation.

Between January 2014 and the end of 2015, the U.S. minted nearly two-thirds (65%) of the world’s “Unicorns” – defined as ground-breaking startup companies that achieve a financial valuation of $1 billion or more in any month of the two-year period. That was almost five times as many as second-ranked China (14%), followed by India (4%), United Kingdom (3%), Singapore, Sweden, Germany and Canada (all with 2%), South Korea (1.5%), and Russia and Czech Republic (with 1%).

The U.S. also captured a 63% share of total global unicorn valuation, while Silicon Valley again accounted for the highest percentage regional share startups with a billion-plus market value at 45%, followed by Beijing (15%), Los Angeles (8%), New York (5%), Bangalore and Shanghai (both 3%).

INVESTORS POUR $280 MILLION INTO TENNESSEE STARTUPS IN 2015
Launch Tennessee (LaunchTN), the publicly-private partnership for high-growth startups in Tennessee, said recently that the state had businesses attract more than $280 million from investors in 2015, bringing aggregate investment in the state’s startups to more than $945 million since the alliance began tracking investment data in 2012.

Investment activity last year was marked by a 7% increase in aggregate capital raised, with an 11% spike in investments greater than $3 million. Spurred by diversification across emerging sectors like music, logistics and medical devices, investment in startups outside the strongest industries – healthcare and technology – more than quadrupled year-over-year. To learn more, click here.

‘SMALL BUSINESS CHAMPIONSHIP’ WILL PROVIDE MONEY, MENTORING TO 102 SMALL BUSINESSES
Sam’s Club and SCORE, the business mentoring organization, are on the hunt for 102 small businesses as part of their annual Small Business Championship. The program, funded by the Walmart Foundation, will award a grand champion $25,000. How does the contest work? How do you sign up to participate? And what other benefits are part of the contest? Read full details and how to beat a Friday deadline to apply at this link.