Innovation
Industrial Base
Regional economic theory states that a local economy is driven by “basic” economic activities that import money into the local area through the sales of goods and services to customers who do not live in the area. Innovation is more common in basic activities.
Mining, most types of manufacturing, most agriculture, and tourism are classic examples of basic activities. In the modern economy, various services also are basic. In contrast, some economic activities primarily serve local residents. Retail trade, construction, and services such as health care, finance, and real estate are examples of largely local-support activities that do not drive the economy.
The indicators presented in the Industrial Base subcategory of the Innovation Indicators dashboard consist of a measure of high technology, a measure of international exports, and a comparison of the industrial mix between Arizona and the United States.
