California, Massachusetts Rank as Most Innovative States

America’s top two most-innovative states share similar paths to success.

For the second consecutive year, California and Massachusetts took the first and second spots in Bloomberg’s annual State Innovation Index.

The ranking is based on six equally weighted metrics: research and development intensity, productivity, clusters of companies in technology, STEM jobs, residents with degrees in science and engineering disciplines and patent activity.

California and Massachusetts’ success dates back more than 150 years ago with the creation of land-grant universities under the Morrill Act, according to New York University Stern School of Business economist Paul Romer.

The Morrill Act of 1862 helped boost higher education in America by granting states public land they could sell and then use the proceeds to establish colleges. Massachusetts Institute of Technology was among the earliest recipients of the act, which served as the basis for many other institutions, including the University of California and Washington State University.

Keep reading this article at MSN