Investing in Innovation provides a snapshot of how states have been investing in research and development (R&D) and identifies a wide range of strategies states have employed to grow their economies by making strategic investments. California’s big investments, such as $3 billion for stem cell research, have already grabbed national headlines. But states like Arizona, Indiana and North Dakota, which haven’t historically been big R&D spenders, are also strategically investing public dollars. This analysis provides a first look into which states are taking action and why, what they are funding, and how. Moreover, this report provides clear guidance on how to design R&D investments that work.