Virginia, Maryland make ‘new economy’ top 10

Maryland ranked third among the 50 states, behind New Jersey and Massachusetts, while Virginia ranked eighth overall, according to “The 2007 State New Economy Index.” The Information Technology and Innovation Foundation and the Ewing Marion Kauffman Foundation published the index.

The report defines the “new economy” by a few key characteristics, calling it knowledge-dependent, global, entrepreneurial, innovation-driven and rooted in information technology, among other attributes. The researchers used 26 different indicators, ranging from the growth rate of companies in the states to the number of IT professionals located there.

Both Maryland and Virginia showed high marks in such categories as the number of technical and professional jobs in the area, and the education levels of their workforce.

“This reaffirms that we’re succeeding in Virginia in building a technology future that’s poised to compete globally as we move forward,” Northern Virginia Technology Council Vice President of Policy Josh Levi said. He added that some institutions conducting similar research ranked Virginia even higher. The report credited Maryland’s high score in part to its high concentration of workers in the D.C. suburbs, employed by federal labs and government contractors.

But Maryland and Virginia did not do as well as other states in some areas. Both had companies spending less on foreign investments than other states’ averages. Virginia’s and Maryland’s manufacturing industries concentrated less on export activities than some other states as well. Virginia also showed a higher amount of job turnover than in many other states, and ranked fourth from the bottom among states in the amount of entrepreneurial activity happening in the region.

Levi said that in order for Virginia to improve its standings in the new economy, it must capture more patents, do more research and make sure its manufacturing industry has a more global focus.

melissa.frederick@dcexaminer.com