Regional innovation potential in the United States: Evidence of spatial transformation

Abstract. The new economy hypothesis identifies the southern and western parts of the United States as important source points for industrial creativity that can rival the northeast. This study shows that this viewpoint, based on patent activity, is warranted. Regional technology production in the country is being helped by the presence of professional, skilled labor, rather than manufacturing and related activities as in times past. While the northeast or midwest now operate in a much more competitive inventive spatial system, and are being outperformed technologically by California, Texas, and Florida combined, all regions of the country are patenting inventions more than ever before.