Found an interesting post on Twitter today - McKinsey & Company and the World Economic Forum recently produced an "innovation heat map" and it is fascinating.

The higher the circle and the further to the right, the more innovative the city/region/country. A key ingredient to their analysis is the number of patents issued. While not the sole indicator of innovation, it isn't a bad start.
The largest circle is labeled "Silicon Valley" and by all the calculations used by McKinsey it is the world leader in innovation. As noted by Om Malik from Gigaom yesterday, the conditions and intangibles that created Silicon Valley are quite unique.
He notes that "nowhere but in Silicon Valley is it O.K. to fail." So many successful start up team members have start up failures under their belts...that it becomes a condition of their success. Many of the rest of us not in Silicon Valley should take that message to heart!
Also - Silicon Valley isn't about government-provided jobs. While some grants may involved with some start-ups, for the most part it's actually about watching capitalistic wealth-creation in action.
If you want to see how dollars are created out of thin air (and hard work, and intelligence, and technology, and planning, and...well...you get the idea) become a student of the Valley.
It's nice to see our own Minneapolis-St Paul area not terribly far behind, and clustered with other U.S. cities like San Francisco and Boston. One of the reasons noted in the study for flourishing innovation is the wide availability of talented people. It is the single common factor across all innovative cities/regions/countries - and our metro area is well-known for the depth of talent available.
Another interesting observation - the next wave of innovative companies/products/services isn't coming from Europe. Look at the circles. Not only do they face the pressures of aging populations, for the most part they do not have governmental or regulatory structures that allow innovation to flourish.
The chart itself notes that the far right corner is considered the "dynamic ocean" and further states that this area consists of large and vibrant ecosystems with continuous creation and destruction of businesses large and small.
"Creation and destruction of businesses...." The heart of the free market economy. With all of the associated pain, heartache, frustration, unpaid bills, and risk.
Memo to the Obama administration - look at the chart. Please. In your haste to recreate the United States as a socialist paradise, you're forgetting a few things. Like, where is the money coming from to support all of your spending? You're in the process of trying to kill the goose that lays the golden eggs.
Luckily, I don't think that the American people are going to follow the Administration too far down that path. Our country was born in rebellion and a desire to be free. It will take a while, but most of us like geese and golden eggs. We don't want all of yours...we just want the opportunity to earn a couple of our own!