<p>This study examines the impact of latent innovation on the growth and convergence of economic outcomes across United States (U.S.) counties from 2005 to 2020. We find that counties with lower initial gross domestic product (GDP) experience increased growth, and this growth accelerates with higher overall levels of innovation, with initial GDP and GDP growth both relative to the frontier of New York County. Additionally, we investigate innovation arising from supplier transactions (process innovation) and supplier transactions (product innovation). Our results are consistent for both process and product innovation, though we find that process innovation has a greater impact on growth and convergence than product innovation. These findings remain robust against endogeneity due to unobserved variables. Our research demonstrates that innovation influences economic development even at the granular level of U.S. counties. This can motivate policymakers to foster a local environment that encourages innovation and, consequently, economic growth.</p>