KC’s startup economy so-so, study says
August 3, 2015 | Bobby Burch
Kansas City for years has been making waves as an innovative community.
Launching and attracting dozens of tech ventures serving a variety of industries, the Kansas City metro’s brand as an entrepreneurial hub continues to grow. But how does it compare to other communities in the U.S.?
While focused on St. Louis, a recent report by the East-West Gateway Council of Governments aimed to answer that question. The group’s “Where We Stand” report analyzed 90 metrics such as innovation, segregation and economic opportunity.
The report looks at the top 50 cities in each category. Here are a few key findings related to innovation and startup business activity:
- Patent creation: Kansas City was granted on average 8.8 “utility patents” per 10,000 employees in 2013, giving it a No. 19 ranking in the U.S. Utility patents are issued for the invention of a new “process, machine, manufacture or composition of matter” and comprise about 90 percent of patents issued, according to the U.S. Patent and Trademark Office.
- Startup formation: Kansas City ranked as the No. 22 city for per capita startup formation, with 136.6 startups per 100,000 residents, according to the report. The U.S. average is about 130 startups per 100,000 residents.
- Venture capital investments: In 2014, Kansas City ranked as the No. 31 city for venture capital investment per employee in dollars, with about $90 per employee. For comparison, St. Louis on average had about $95 per employee (No. 28 ranking), Denver about $363 (No. 9 ranking) and San Francisco $8,002 (No. 1 ranking).
- STEM employment: In 2011, about 20.4 percent of all Kansas City jobs required science, technology, engineering or math skills, ranking it No. 28 in the nation. About 22 percent of St. Louis jobs required STEM expertise (No. 14 ranking), Austin about 22.7 percent (No. 10 ranking) and San Jose 33.2 percent (No. 1 ranking).
- High-speed Internet: About 10 percent of Kansas City’s population has access to gigabit Internet, earning it a No. 13 ranking. About 14 percent of Chicago has access to such speeds (No. 9 ranking) Salt Lake City about 40 percent (No. 4 ranking) and Providence about 64 percent (No. 1 ranking).
Featured Business
2015 Startups to Watch
stats here
Related Posts on Startland News
By the Numbers: A look at Midwest tech investment in 2015
Startland News recently distilled a report by Lead Bank and investment research firm CB Insights that analyzed the Midwest tech investing scene. Here are a few more of the findings from the nearly 40-page report, as presented by Startland’s Kat Hungerford.
Shawnee tax incentives aim to lure startups to the ‘burbs
The City of Shawnee is poised to kick off a tax incentive program that hopes to attract “high-growth” tech companies to the area by alleviating initial startup costs. Shawnee City councilman Brandon Kenig said that the “Startup Workforce Relocation and Expansion Program” will encourage job growth and innovation in one of Kansas’ fastest growing cities.…
Farmobile plows an agricultural revolution by empowering farmers with data
Agriculture techie Jason Tatge spent Monday morning as he often would: with a farmer interested in his company. The two kicked off the week in Fargo, North Dakota, kicking the proverbial tractor tires on Tatge’s ag tech business, Farmobile, and how the farmer’s data could generate additional revenue for his operations. They also chatted about…
‘Tis the season: Kauffman supports KC entrepreneurship with $1M in grants
The Ewing Marion Kauffman Foundation awarded more than $1 million in grants to not-for-profit organizations that serve Kansas City entrepreneurs. The grants — totalling $1,020,000 — are a part of the foundation’s projected $8 million of investments in Kansas City’s entrepreneurial community over the next three years. “The Kauffman Foundation is committed to helping Kansas…