Building a knowledge economy index for the fifty states with a focus on South Carolina: The Clemson Knowledge Economy Index

This paper seeks to express the relevance of the knowledge economy to economic growth and development and to demonstrate the construction of a knowledge economy index for the fifty states, with a focus on South Carolina. The effort involves a survey of economic literature, reports and indexes related to the knowledge economy. Once significant knowledge economy indicators are identified, regression analysis is performed to select the most promising indicators for use as variables in the index. Statistical testing is also used to determine weights for index components. The thesis project was supported by the South Carolina Research Authority, an organization charged with developing South Carolina's knowledge economy. The Clemson Knowledge Economy Index that resulted from this thesis research specifically assesses the performance of South Carolina's emerging knowledge economy relative to other states and the nation. The index can be readily constructed for other states and for any state in future years.