Each month, EDCUtah’s Research Minute highlights compelling economic development data and timely research insights. This month, we highlight the recently published Utah Innovation Ecosystem Report.

Utah’s broad innovation ecosystem ranks high among U.S. states across various measures, according to a new study produced jointly by EDCUtah and the Kem C. Gardner Policy Institute. The study, titled Utah Innovation Ecosystems, highlights the state’s top-ranking performance in innovation capacity and outcomes, driven by a combination of strategic strengths and industry-aligned ecosystems.

The report was commissioned by Utah Governor’s Office of Economic Opportunity and the Utah Policy Innovation Lab to examine the characteristics that contribute to the Utah’s success in innovation and identify gaps or opportunities for improvement. The results of the study offer insights that can help inform Utah’s entrepreneurs, investors, educators, and policymakers.

Here are a few takeaways from the report.

Innovation Intelligence Index

The report found that Utah ranks first in the nation on the Innovation Intelligence Index developed by the Indiana Business Research Center. This index evaluates critical attributes of innovation, including human capital and knowledge creation, business dynamics, business profile, employment and productivity, and economic well-being. Utah’s consistent performance across all these categories, ranking sixth or better in each, cements its status as a hub for innovation and economic growth.

Industry-aligned Innovation Ecosystems

An innovation ecosystem is the dynamic set of actors, activities, artifacts, institutions, and relationships that influence and are essential for the innovative performance of an individual or group. This includes not only direct relationships, but also complementary and substitute relationships, forming a complex and evolving environment for innovation.

Utah’s success is driven by five distinct, industry-aligned ecosystems:

• Aeronautics, Space Exploration, and Defense

• Energy Production

• Finance, Fintech, and Headquarters

• Health Care and Life Sciences

• Technology and Information Systems

These ecosystems represent varying levels of maturity but collectively contribute to the state’s competitive innovation landscape.

Utah’s Innovation Strengths

Utah’s potential innovation strengths and opportunities for growth were identified by conducting in-depth interviews with industry experts throughout the state as well as other qualitative analyses.  Utah’s core strengths include the role of higher education in cultivating a skilled workforce, a strong culture of entrepreneurship, and the existence of social infrastructure that encourages collaboration among key stakeholders.

Utah’s Innovation Opportunities

The report also outlines areas where Utah could further enhance its innovation ecosystems. Opportunities for growth include the further development of physical infrastructure, particularly research facilities, incubation spaces, and innovation hubs. Additionally, continuing to attract venture capital and other funding sources remains critical, especially in sectors like aeronautics, energy production, and health care.

By addressing these potential gaps, Utah has the opportunity to not only sustain but also accelerate its trajectory as a leader in innovation. The state’s strategic focus on infrastructure, funding, and collaboration will be crucial in ensuring long-term economic growth and continued success in fostering innovation and maintaining Utah’s status as one of the best states in the nation for innovation and economic growth.

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For more data like this, email us at connect@edcutah.org or explore the benefits of investing with EDCUtah.

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It was big news in February 2023 – Texas Instruments Incorporated (TI) selected Utah for its next 300-mm semiconductor wafer fabrication plant. Building upon their existing presence, the new facility is set to expand their operations, adding extra capacity and will bring up to 800 new high-tech jobs and $11 billion in capital investment to Lehi, Utah, during the next 20 years.

This year, Area Development Magazine recognized the expansion as a “Project of the Year” in its annual Gold and Silver Shovel awards. Utah was also recognized with a Silver Shovel – making this 14 out of the last 17 years that Utah’s economic development efforts have been recognized by Area Development.

Area Development’s annual Shovel Awards recognize state economic development agencies that drive significant job creation through innovative policies, infrastructure improvements, and processes that attract new employers and investments in new and expanded facilities. The awards are presented annually to states that have achieved significant success in terms of job creation and economic impact.

The seven projects recognized by Area Development were nominated by EDCUtah for their notable impact on Utah’s economic prosperity.

Here’s the writeup from Area Development Magazine:

“Silver Shovel winner Utah had a big year in terms of investments, tallying some $12 billion in promises from a variety of big projects. The vast majority of that total involves one investment in Lehi, a Project of the Year from Texas Instruments. The biggest investment (resulting from a corporate recruitment project) in Utah history, it’s a semiconductor wafer fabrication plant that’ll connect to an existing Texas Instruments fab—the two fabs together will be able to make tens of millions of chips a day.

It’s hard to measure up to an $11 billion project like that, but Utah has a healthy list of other growth to be proud of. Lakeshore Learning picked Garland for a massive distribution facility to help get the company’s education materials to kids and teachers. Procter & Gamble is expanding its Box Elder facility that makes products in the company’s paper, baby care and feminine care business lines. Delta Airlines picked its Salt Lake City hub for a pilot training facility. And a number of food companies are locating or expanding in Utah, such as C&J Specialties, Utah Flour Mill and Schreiber Foods, which makes a variety of cheese products and celebrated its 50th anniversary a couple years ago by baking a Guinness World Record-winning two-ton batch of macaroni and cheese.”

Learn more about EDCUtah’s business expansion and relocation services.

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For additional information or to schedule an interview, please contact us.

1,260 jobs
$90 million capex
Project 502

Today, the Utah Governor’s Office of Economic Opportunity (GOEO) and the Economic Development Corporation of Utah (EDCUtah) are pleased to announce that Adobe plans to bring 1,260 new, high-paying jobs and invest nearly $90 million in Utah.

“Adobe elevates Utah’s business community,” said Gov. Gary R. Herbert. “They play a key role in the development of the Point of the Mountain and Silicon Slopes. We look forward to their continued leadership and success in the state.”

Adobe has several locations at which it could have expanded, and the company chose Utah because of the state’s educated workforce and rapidly growing technology industry. A previous recipient of a post-performance incentive from GOED, Adobe is receiving a new incentive for its additional investment in the state and creation of new jobs.

Founded in 1982, Adobe is one of the largest, most diversified software companies in the world. Known for products including Photoshop, Acrobat Reader, Creative Cloud, Experience Cloud and more, the company employs more than 17,000 worldwide.

“As a pioneer to the Point of the Mountain development area, it has been exciting to witness the tremendous growth here for both Adobe and the state,” said Jonathan Francom, vice president of employee and workplace solutions at Adobe. “We are glad to be embarking on phase two of our marquee building in Lehi and are thrilled to be contributing to the growing economy through our local employee base.”

Adobe will embark on a “Phase 2” building in Lehi and working space expansion within its current Lehi building, adding capacity for approximately 1,260 employees over the next 20 years. The total wages in aggregate are required to exceed 110 percent of the Utah County average wage. The company projects the new positions will pay approximately 300 percent of the average wage. The projected new state wages over the life of the agreement are expected to be approximately $2.3 billion. Projected new state tax revenues, as a result of corporate, payroll and sales taxes, are estimated to be $85.8 million over 20 years.

“Not only is Adobe a leader in Utah’s tech market, but they are also an incredible community partner,” said Theresa Foxley, president and CEO of the Economic Development Corporation of Utah. “Their continued investment in Utah is a sign of our tech community’s bright future.”

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EDCUtah Investors: If you were involved with this project and would like to have your organization mentioned, please email connect@edcutah.org and we’ll update this article.

For additional information or to schedule an interview, please contact us.