Policy innovativeness and interstate compacts

Are some American states inherently more innovative than others? This question has confounded researchers for more than four decades. In this study we develop a measure of collective policy innovation that measures formal cooperative policy arrangements among the states, compare the measure to existing measures of internal state policy innovation, and assess whether existing innovativeness measures explain policy cooperation among the states. This test of the innovativeness concept addresses internal and external validity concerns that have long plagued this research tradition. Our multivariate analyses indicate that policy innovativeness is often a statistically and substantively important determinant of compact participation. These results suggest that (i) innovativeness is a meaningful and durable state attribute, (ii) several existing indices successfully capture the underlying latent concept, and (iii) innovativeness provides analytic utility in multiple empirical contexts.