Innovation and entrepreneurial ingenuity have long been drivers of growth and prosperity in the United States (US) and the US continues to be at the forefront of the technology frontier. Yet not all places in the United States have the same opportunities to participate in, and benefit from, innovation and entrepreneurship, which in part explains many longstanding geographical inequalities between large metropolitan areas and rural places. Tackling geographical inequalities in innovation, including in the factors conducive to it, are therefore critical.

The United States (US) is a major source of global innovation, with a strong history of record-breaking patent activity and technological development. Yet innovation is not equally distributed across the country. It occurs differently in rural and urban places and often with a different emphasis. In rural counties, for example, many innovations are developed to overcome barriers in accessing basic services or in managing resources used in local supply chains.

The United States (US) is a leader of high-tech innovation amongst OECD countries, containing 14.6% of total global scientific publications in 2021, the largest share of any OECD country (OECD, 2023[1]). Such high-tech innovation, however, tends to be concentrated mainly in urban areas. For example, in 2019 while metropolitan counties in the US recorded on average 13.2 patents per 1 000 innovative occupations, this share was less than half (5.6 on average) in rural counties.

This chapter undertakes a diagnosis of productivity and innovation levels in the United States, by comparing metropolitan and non-metropolitan counties with predominantly urban or rural characteristics. It identifies strengths and challenges for innovation in rural areas, and sets the scene for the policy discussions of the report. It pays special regard to geographic disparities and to equal opportunities for education, entrepreneurship and innovation in rural counties.

This chapter aims to shed light on the main policies and programmes targeted specifically for rural innovation. It discusses the scope of the definition of innovation, the main federal institutions in charge of policies and financial initiatives to support entrepreneurs. The chapter uses analysis gathered from desk research, and case study visits to Gallup, New Mexico, Pine Bluff, Arkansas, and Columbiana, Ohio.

This chapter analyses the main challenges and opportunities to improve broadband connectivity as well as accessibility to quality education to foster rural innovation in the United States. The chapter begins with the assessment of the state of connectivity in the United States, identifying key challenges and opportunities to improve broadband connectivity to boost innovation in rural areas. The chapter ends with an assessment and overview of the measures to improve rural education in the United States.