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Graduation Term

Summer 2026

Degree Name

Master of Science (MS)

Department

Department of Technology

Committee Chair

Klaus Schmidt

Committee Member

Jaby Mohammed

Committee Member

Kim DeVico

Abstract

This study examines why the current top ten U.S. manufacturing states outperform others in productivity and innovation and how follower states can improve their performance. Focusing on the period from 2013 to 2022, it analyzes how operational factors (such as manufacturing scale, capital investment, and exports), innovation inputs and outputs (including research and development spending, patents, and high-skill employment), and workforce and policy conditions jointly shape state-level manufacturing outcomes. The research employs a state-level panel design with two fixed-effects regression equations: a productivity equation using manufacturing gross domestic product per worker as the dependent variable and an innovation equation based on a composite innovation index. Descriptive scatterplots, time-series trends, correlation analysis, analysis of variance, and fixed-effects panel regressions are used to identify statistically significant associations between these determinants and manufacturing performance over time. Results show that manufacturing scale is the strongest predictor of productivity, with capital investment having a positive but smaller effect and export intensity losing significance once scale and other controls are included. For innovation, patent activity is the most robust driver of the innovation index, while manufacturing research and development and the share of high-skill manufacturing workers exhibit positive but statistically weaker effects after controlling for patents and state and year fixed effects. Significant fixed effects indicate that structural characteristics, coordinated industrial strategies, and common shocks, such as the coronavirus disease 2019 (COVID-19) period, materially influence outcomes. The study concludes that lower-performing states should shift from broad, generic incentives to targeted, sector-specific policy bundles that deepen manufacturing scale in existing strengths, support modernization and digitalization, strengthen patenting and commercialization ecosystems, align workforce programs with priority sectors, and incorporate systematic evaluation and sunset provisions for major incentive tools

Access Type

Thesis-ISU Access Only

Available for download on Tuesday, October 12, 2027

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