The Index of State Dynamism

The Index of State Dynamism (ISD) is a measure developed to assess the economic dynamism of U.S. states from 1992 to 2021. This index, created by the Economic Innovation Group, combines eight key indicators into a single metric to provide insights into each state's economic vitality and adaptability. The ISD incorporates various factors such as the core startup rate, labor force participation, and migration rates to capture different aspects of economic dynamism. It uses a methodology that normalizes each component based on maximum and minimum values over the study period, then averages these components to produce an overall score. This approach allows for comparison of dynamism across states and over time, offering policymakers, researchers, and business leaders a valuable tool to understand and analyze state-level economic trends and performance.