The Information Technology and Innovation Foundation (ITIF) recently released an index that ranks states on a series of measures that analyze the economic environment for success in the 21st century.
Massachusetts and Delaware hold on to the top spots they held in the 2012 index. Delaware has moved up four ranks since 2010, driven by top rankings in high-wage traded services, foreign direct investment, and industry investment in R&D.
A summary of the results states that Massachusetts survived the early 2000s downturn and has maintained the top spot in the New Economy Index for many years because of a concentration of software, hardware, and biotech firms supported by world-class universities such as MIT and Harvard.
Third ranked California dominates in venture capital, receiving 55 percent of U.S. venture investments, and also scores extremely well across the board on R&D, patents, entrepreneurship and skilled workforce indicators.
At the bottom of the list, the two states whose economies have lagged the most in making the transition to the New Economy are Mississippi and West Virginia. The bottom five also includes Oklahoma, Arkansas, and Louisiana.
The index uses 25 indicators to measure the extent to which state economies are knowledge-based, globalized, entrepreneurial, IT-driven and innovation-based.
The Information Technology and Innovation Foundation (ITIF) is a non-profit, non-partisan think tank headquartered in Washington, DC. The 80 page document explaining The 2014 State New Economy Index can be downloaded from the www.itif.org website. For the number crunchers and stats geeks, you can also download a spread sheet of the 2014 Indicator Ranks and Scores by category.
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