HOW MASSACHUSETTS CAN BECOME MORE INNOVATIVELance Galletti

METHODOLOGY

Prediction vs Explanation (for future policies) Aiming for Interpretability and Simplicity so

as to guide (rather than dictate) policies Proxy for Innovation is change in Real GDP

change Linear model of Innovation?

BIAS

Assume similarity between states Innovation → GDP change, but converse may

be false Reliability and Precision (i.e. Startups)

VARIABLE SELECTION

Meaningless Variables: Region Non-Innovative Industries (Agriculture, Arts …

etc.) Potential Significant Variables:

Taxes Innovative Industries Startup Jobs Urban Population

VARIABLE SELECTIONEXAMPLE: INNOVATIVE INDUSTRIES

Innovative Industries in yellow region

VARIABLE SELECTION

MODEL DIAGNOSTICS

MODEL DIAGNOSTICS

THE MODEL

POLICIES

Encouraging Investment in: Retail Trade Mining Sector Management of Enterprise Non-Durable Goods Industries

SOURCES