Innovation
Costs to Individuals
The cost of living for individuals — a component of the quality of life — is examined in the Costs to Individuals subcategory. One indicator estimates costs other than taxes and two indicators estimate the amount of taxes paid.
The quality of life in a community is a significant feature of the innovative environment. Innovative companies and their employees place considerable value on the many conditions — such as educational availability and quality, transportation and other infrastructure, entertainment and recreational opportunities, public safety, and environmental quality — generally considered to be part of the quality of life. Other subcategories of the Innovation Indicators dashboard address some of these factors: Human Capital, which includes several measures of education, and Physical Infrastructure. However, most aspects of the quality of life are difficult to measure.
Caution is urged in interpreting these cost figures. Living costs tend to be higher in popular areas with an otherwise high quality of life. Thus, the level of taxes and other costs is related to innovation only to the extent that the quality and quantity of public services and other quality-of-life components are equal across geographic areas. Innovative individuals and businesses flourish in many high-cost, high-tax areas, such as the California coast and Boston.
