&gt;  That is the size of the state matters (in a way that penalizes states with larger, more diverse economies).<p>Like 2nd rank California, home to 50 Fortune 500 companies ranging from Apple to Clorox to Allergan? &#x2F;s<p>Also, diverse economy doesn&#x27;t mean more innovative. Some companies like, say CVS in Rhode Island, can prop up a state&#x27;s economy, but add little to the innovativeness of the state.