How Does Your State Rank on the Innovation Scale?

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Innovation Is Key

Innovation is crucial to sustainable economic growth, but for innovation to occur businesses must have both the incentive and the capacity to invest.

As innovation is key to the United States’ economy as a whole, many U.S. states are showing off while others are falling short when it comes to patents, R&D, venture capital and academics.

So which states are excelling in innovation and which ones are lacking, you ask?

Patents

The top states in patents per population include:

  1. Wisconsin
  2. Washington
  3. Texas
  4. Utah
  5. California
  6. Massachusetts

The bottom five patented states include:

  1. Alaska
  2. Mississippi
  3. Tennessee
  4. West Virginia
  5. Wyoming

Venture Capital

The top states for venture capital are:

  1. Massachusetts
  2. California
  3. Utah
  4. Washington
  5. Colorado

The lowest are:

  1. Arkansas
  2. Alaska
  3. Hawaii
  4. Wyoming
  5. Iowa
  6. South Dakota

R&D Spending

The leaders in R&D spending are:

  1. Delaware
  2. Michigan
  3. California
  4. Connecticut
  5. Massachusetts

The states that spent the least on R&D include:

  1. Arkansas
  2. Wyoming
  3. Louisiana
  4. Alaska
  5. Mississippi

Academics

As for academics, the top states include:

  1. New Mexico
  2. Maryland
  3. Rhode Island
  4. Massachusetts
  5. Alabama

The lowest academic rankings were for:

  1. Louisiana
  2. Arkansas
  3. Delaware
  4. Wyoming
  5. Nevada

If you are a U.S. based company conducting R&D you may be eligible for the federal and/or state research tax credit. Please contact a Swanson Reed representative to find out further information.

R&D program seeks to reduce methane emissions

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The emission of methane from oil and gas operations has become the topic of considerable debate of late. It largely contributes to greenhouse gas emission and potentially contributes to global warming over 20 times that of carbon dioxide. In addition to being a major contributor to green house gas emission, it is considered to have quite a substantial value. Annual methane emissions globally from oil and gas industries, are equivalent to $10-$23 billion worth of natural gas lost to the atmosphere.

In 2010, offshore production of oil and natural gas made up 9% of methane emissions from the US production sector and 6% of total methane emissions, accounting for 41% of total methane emissions in the petroleum sector. The emissions come from a number of different sources, including drilling and production platforms, service fleets and pipelines (both offshore and onshore).

In response to the growing debate in the US, the Environmental Protection Agency (EPA) issued the first-ever standards to cut methane emissions from the oil and gas sector in May 2016. The standards, and associated regulations, are predicted to reduce 510,000 short tons of methane by 2025.

At the same time, an Interagency Methane Strategy was initiated by the Obama administration under the Climate Action Plan. The US Department of Energy (DOE) was enlisted to “continue to conduct research and analysis to help improve our ability to measure methane emissions and advance technologies and practices that will enable cost-effective emissions reductions”.

The result was the September 2016 announcement by DOE of a natural gas infrastructure R&D program to enhance operational efficiency while reducing emissions. $13 million of total program funding will be awarded to 12 multi-year research projects. This new initiative by the Office of Fossil Energy builds upon the President’s Climate Action Plan Strategy to Reduce Methane Emissions.

Colorado Projects

Colorado State University (Fort Collins, Colorado).

The University of Colorado and AECOM will:

  1. Develop nationally-representative, activity-weighted, emission factors for each type of principal equipment located at typical gathering compressor stations suitable for use in EPA’s GHGI;
  2. Develop estimates of episodic emissions; and
  3. Test new methods to characterize intermittent device emissions.

The primary objectives include conducting a field measurement campaign, consolidating and publishing measurement results, developing a national model of gathering operations, and publishing a national model of methane emissions, including activity-weighted emission factors.

University of Colorado Boulder (Boulder, Colorado).

University of Colorado Boulder, along with NIST, University of California-Davis, and Scientific Aviation, will collect ground-based regional scale measurements and aircraft measurements in order to estimate emissions across the underground storage sector. The project will consist of multi-month deployments of a ground based dual frequency comb spectrometer in conjunction with multiple, focused aircraft mass balance flights at oil and natural gas storage facilities.

 

Colorado Network Promotes Innovation

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“Colorado is the epicenter of today’s innovation conversation”

With a large R&D community and a progressive business environment, Colorado is well aware of the importance of experimentation and innovation in today’s culture. So much so they have created a network of more than 2000 global leaders dedicated to the concept.

As stated on its website, “the Colorado Innovation Network (COIN) is a catalyst for innovation with the mission of advancing connections in the global innovation ecosystem whereby Colorado is recognized as the most innovative state in the nation.”

Those a part of the physical and virtual network are devoted to the innovation ecosystem, growing companies and creating jobs in the public sector. They are working continuously to keep the conversation of innovation open and accelerating it.

The Colorado Innovation Network conducts an annual report on the state of innovation in Colorado over the past four years. The reports are founded on the pillars of talent, entrepreneurship, ideas and capital and evaluate data, statistics and qualitative insights across these four ideals.

If you would like to view the innovation reports from 2012-2015.

The network seems to be doing a great job with promoting statewide innovation and growth. According to coloradoinnovationnetwork.com, Colorado holds the following titles:

  • 1st in the nation for arts participation (2015)
  • 5th in the nation for startup  activity (2016)
  • home to the first startup weekend and the largest startup weekend in the world
  • the fastest growing economy in the United States (2014)
  • 2nd most highly educated state

Colorado offers a tax incentive to businesses conducting R&D and any innovative work within the state. Our specialists at Swanson Reed are always available to discuss your benefits on both a federal and state level.

To find out more about the Colorado R&D tax credit, click here.

To speak with a Swanson Reed representative, click here.

Colorado Emerging as Top Leader in Renewable Energy

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Since the early 2000’s, when technological advancements allowed wind to be used as a viable source of energy, the United States has emerged as one of the leading nations in renewable energy research and job creation. According to the American Wind Energy Association, 769,000 renewable energy jobs have been created in the United States, designating 88,000 jobs in the renewable wind sector alone. In an effort to remain competitive among other renewable sources of energy and fossil fuels, significant investments in wind energy are now being made all across the United States. So who is leading the charge in wind research and development? The answer may come as a surprise to some – it’s Colorado.

But Colorado’s emergence as a leader in renewable wind energy really shouldn’t come as a surprise. Since passing the nation’s first voter-led Renewable Energy Standard in 2004 – requiring electrical utilities to obtain a percentage of it’s power from renewable sources – Colorado’s investments in wind, solar and other renewable energy’s have ignited several projects all across the state. Now looking to grow it’s already diverse renewable energy portfolio, Colorado aims to tackle the wind energy’s most pressing technological challenges associated with cost and manufacturing while simultaneously creating an abundance of jobs. Until now, Colorado’s presence as an emerging leader has gone largely unnoticed. However with its latest $1.6 million investment in the National Wind Technology Center, Colorado has now solidified it’s presence on the wind industry map and has distinguished itself as a top leader.

The total $1.6 million investment coming from the state of Colorado in partnership with the National Renewable Energy Laboratory, a member of the Institute for Advanced Composites Manufacturing Innovation, will be used to shape the future of composite manufacturing. Perhaps you recall the announcement of the creation of the IACMI, a partnership consisting of 122 corporations, nonprofits, universities, and the Department of Energy, in an effort from the Obama Administration to bridge the gap between industrial and advanced research institutions. The objective is to create cutting edge manufacturing technologies of advanced polymer composites.

In this joint effort to further advance the wind renewable energy sector, the $1.6 million investment will go towards “Structural upgrades, like insulation and exhaust vents, along with manufacturing improvements including the installation of a gantry crane to move and support large objects,” according to project engineers. The investment was also made in an effort to turn the National Wind Technology Center into an innovation catalyst center while attracting the state’s top renewable energy innovators and leaders to simultaneously support the work force.

The project also calls for the completion of a Wind Blade Component Manufacturing Facility, which will serve as an R&D site for the renewable energy industry. The specific R&D projects are likely to include automated production and 3D printing to produce a more durable, inexpensive wind blade.

For a more in-depth look at how Federal R&D Tax Credits have helped to spur developments in Colorado, we at Swanson Reed encourage you to speak with our highly specialized team consisting of Certified Public Accountants, Engineers or PhD qualified chemists, who manage all facets of the R&D tax credit claim process.

For an unbiased guide to everything you need to know to get started with Solar: The National Council for Solar Growth

Are you and your business eligible for an R&D Credit? Find out here.

Colorado

State Credit Name: Research and Development Income Tax Credit for Enterprise Zones

Expiration Date: Permanent

Who Can Apply? Corporations and flow-through entities

Credit Carry Forward: Unlimited carry forward, but no carry back

About the Credit: The credit rate is 3% and the dollar limit that is imposed on the amount of expenses that can qualify is 25% of the amount of the credit. Taxpayers can claim the remaining 75% in 25% increments over the next 3 years. Unlike most state research credits, the qualifying research activities do not have to be performed within Colorado.

Notes: The Colorado research credit only adopts one of the requirements in the federal definition of qualified research activities, being that the expenses meet the definition of research and experimental expenditures. The credit does not require taxpayers to be able to currently deduct their R&E expenditures, which allows taxpayers to claim the credit for research activities that would not qualify for the federal research credit.

Click here to find out if you qualify for the federal research credit.


Contact Us


Contact your local Swanson Reed office to speak with a representative in your area today. 

 

Swanson Reed

10180 E Colfax Aenue
Unite 203-1040
Aurora, CO80010

 

T: (720) 808-0229
F: (512) 256-8157

Swanson Reed

10180 E Colfax AenueUnite 203-1040Aurora, Colorado80010

Tel: (720) 808-0229, Fax: (512) 256-8157

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