2012 ‘New Economy’ Ranking Highlights Innovation Leaders

afearon — Tue, 11 Dec 2012 05:00:00 +0000

WASHINGTON (December 11, 2012) – The 2012 State New Economy Index showcases the regions that are at the forefront of the nation’s movement toward a global, innovation-based New Economy. The index, produced by the Information Technology and Innovation Foundation (ITIF), ranks states on a series of indicators that analyze the environment for innovation and high-tech job growth.

The top five states in this year’s index are Massachusetts, Delaware, Washington, California and Maryland. Mississippi and West Virginia have lagged the most in making the transition to the New Economy. The other lowest-scoring states, in reverse order, are Arkansas, Oklahoma and Alabama.

The State New Economy Index uses 26 indicators in five categories to assess states’ fundamental capacity to transform their economies and incubate innovation. The categories are: knowledge jobs, globalization, economic dynamism, the digital economy and innovation capacity. The 2012 index builds on five earlier indexes, published in 1999, 2002, 2007, 2008 and 2010.

“More than three years on from the end of the Great Recession, only six states have regained employment levels enjoyed prior to the recession and 17 states are still more than 5 percent below their pre-recession employment levels,” says Luke Stewart an economic analyst at ITIF and co-author of the Index. “In addition, U.S. manufacturing employment has declined 33 percent between 2000 and 2011, exceeding the losses of the Great Depression. Much of this decline can be attributed to declining U.S. competitiveness resulting from our failure to adapt to the demands of the globalized New Economy.”

To address these impacts and enhance economic transformation, the authors argue that state strategies should focus on establishing policies that reduce within-state zero-sum competition, spur “win-win” economic results that benefit the local and national economy, and enhance state-federal innovation-based economic development partnerships.

“In today’s highly competitive environment states must work together and with the federal government to overhaul their economic development policies,” says Robert Atkinson, president of ITIF and co-author of the Index. “Too often, states still view their economic competitors as next door, rather than halfway around the world. If, instead, they used incentives to expand broadband, support entrepreneurial assistance programs, or invest in research and technology transfer, they – and the nation as a whole – would be far more globally competitive.”

To view the full report visit http://www.itif.org/publications/2012-state-new-economy-index

The 2012 State New Economy Index

afearon — Thu, 06 Dec 2012 05:00:00 +0000

The State New Economy Index uses 26 indicators to measure the extent to which state economies are knowledge-based, globalized, entrepreneurial, IT-driven and innovation-based.

How States and Localities Can Get Off the Economic Development Treadmill

afearon — Fri, 09 Nov 2012 05:00:00 +0000

If state and local governments want to get off the treadmill and begin to make real progress, officials will need to make their voices heard and demand that Washington comes together in a bipartisan way.

The Future of Workforce Development: Where Research Meets Practice

afearon — Wed, 19 Sep 2012 04:00:00 +0000

Rob Atkinson will give a presentation on “Technology and the Future of Work.”

Innovation in Cities and Innovation by Cities

afearon — Wed, 08 Feb 2012 05:00:00 +0000

Innovation is becoming popular. Economists see it is not accumulation of more capital that is key to improving standards of living; rather it is innovation.

The Race for Global Innovation Advantage and U.S. Economic Prospects

kangstadt — Fri, 14 Jan 2011 05:00:00 +0000

Rob Atkinson gave the keynote at the Fayette Chamber of Commerce Annual Meeting.

Why Some States are “New Economy” States

lstewart — Wed, 24 Nov 2010 05:00:00 +0000

ITIF Research Fellow Scott Andes defines the features of the "New Economy" states.

2010 Ranking of ‘New Economy States’ Highlights Leaders and Laggers in Innovation, According to Kauffman/ITIF Study

lstewart — Thu, 18 Nov 2010 05:00:00 +0000

WASHINGTON – Massachusetts, Washington, Maryland, Connecticut, and New Jersey are the top five states at the forefront of the nation’s movement toward a global, innovation-based new economy, according to the 2010 State New Economy Index, released today by the Information Technology and Innovation Foundation (ITIF) and the Ewing Marion Kauffman Foundation.

The bottom five states were unchanged from 2008. Mississippi and West Virginia have lagged most in making the transition to the New Economy. The other lowest-scoring states include, in reverse order, Arkansas, Alabama and Wyoming.

“In today’s highly competitive environment, states must work together and with the federal government to overhaul their economic development policies,” said Dr. Robert D. Atkinson, president of the Information Technology and Innovation Foundation and co-author of the Index. “Too often, states still view their economic competitors as next door, rather than halfway around the world. If, instead, they used incentives to expand broadband, support entrepreneurial assistance programs, or invest in research and technology transfer, they – and the nation as a whole – would be far more globally competitive.”

The report was released to coincide with Global Entrepreneurship Week, a worldwide initiative being held Nov. 15-21, 2010, to inspire young people to embrace imagination, innovation and creativity. The report makes clear that the nation – and, by extension, the states – cannot thrive without addressing fundamental economic competitiveness challenges.

“In this century, the global economy has shifted,” said Robert Litan, vice president of Research & Policy at the Kauffman Foundation. “A mix of highly productive and innovative New Economy firms is necessary for an economy to prosper. The United States is lagging, and that lack of innovation-based vitality has contributed to our continuing recession. States need to concentrate on achieving New Economy success factors and providing the entrepreneurial resources and access that are critical to boosting competitiveness within the global marketplace.”

The State New Economy Index uses 27 indicators to assess states’ fundamental capacity to successfully navigate the shoals of economic change. It measures the extent to which state economies are knowledge-based, globalized, entrepreneurial, IT-driven and innovation-based – in other words, to what degree state economies’ structures and operations match the ideal structure of the New Economy. The 2010 Index builds on four earlier Indexes, published in 1999, 2002, 2007 and 2008.

Regionally, the New Economy has taken the strongest hold in the Northeast, mid-Atlantic, Mountain West and Pacific regions; 13 of the top 20 states are in these four regions. In contrast, 18 of the 20 lowest-ranking states are in the Midwest, Great Plains and the South.

States at the top of the ranking not only have an abundance of high-tech firms, but also have a high concentration of managers, professionals and college-educated residents working in “knowledge jobs” – those that require at least a two-year degree. And, even if their employment is not growing rapidly, all of the top-ranked states show above-average levels of entrepreneurship.

A large share of the leading states’ institutions and residents have embraced the digital economy. Most of these states also have a solid innovation infrastructure that fosters and supports technological innovation, and many have a good quality of life coupled with high levels of domestic and foreign immigration of highly skilled knowledge workers.

The lowest-ranking states tend to rely on natural resources or on mass-production manufacturing, and to depend on low costs rather than innovative capacity to gain advantage. But innovative capacity, derived through universities, R&D investments, scientists and engineers, and entrepreneurial drive, increasingly impels competitive success, the report said.

Lower-ranking states are not without opportunity, however. The IT revolution makes it easier for businesses to relocate, or start up and grow in less densely populated states farther away from existing agglomerations of industry and commerce. Because metropolitan areas in many of the top states suffer from high costs and near-gridlock on their roads, locating in less-congested metros, many in lower-ranking states, may be more attractive to entrepreneurial companies.

The report recommends that, to pursue this new approach to economic development, states should 1) establish policies that reduce within-state zero-sum competition; 2) implement state policies to spur “win-win” economic results; and 3) pursue new state-federal innovation-based economic development partnerships.

In addition to 2010, Massachusetts topped the four previous State Index lists. Washington, which ranked fourth in 2007 and second in 2002, maintains its second-place ranking from 2008. Maryland, with its high concentration of knowledge workers, maintains the third-place rank it held in 2007 and 2008. New Jersey’s strong pharmaceutical industry, coupled with a high-tech agglomeration around Princeton, an advanced services sector in Northern New Jersey, and high levels of inward foreign direct investment help drive it to fourth place (up from sixth in 2002 and fifth in 2008). Connecticut also moved up in the rankings, from sixth in 2008 to fifth in 2010.

Between 2007 and 2008, most states and the United States as a whole made sustained progress toward the New Economy. Of the 23 indicators that were comparable between 2008 and 2010, overall the United States increased on 14 and decreased on three, for a net increase of 11 indicators.

The 2010 State New Economy Index

lstewart — Thu, 18 Nov 2010 05:00:00 +0000

The State New Economy Index uses 26 indicators to measure the extent to which state economies are knowledge-based, globalized, entrepreneurial, IT-driven and innovation-based.

New Senate COMPETES Act Includes Key ITIF Proposals

Fri, 23 Jul 2010 04:00:00 +0000

WASHINGTON – The Information Technology and Innovation Foundation today welcomed the Senate Commerce Committee’s approval of legislation to authorize the COMPETES Act with a number of provisions based in part on ITIF proposals.

The COMPETES Act reauthorization aims to enhance national innovation with a comprehensive approach to invest in research and education. The Committee approved the bill with solid bipartisan support. It includes a provision offered by Sen. Amy Klobuchar, D-MN, and Sen. George LaMieux, R-FL, which would encourage and facilitate the commercialization of innovations taking place in university laboratories and another offered by Sen. Mark Warner, D-VA, and others requiring the Administration to develop a national competitiveness and innovation strategy.

“I am delighted the Committee strengthened this important bill with these amendments,” said ITIF President Robert D. Atkinson. “As ITIF has documented in numerous reports and Congressional testimony, the United States is quickly falling behind other nations when it comes to innovation and competitiveness. I salute the Senators for working with ITIF in developing their ideas to reverse that trend and bolster our long-term economic health and prosperity.”

Senator Warner’s amendment would require the Secretary of Commerce to study all aspects of U.S. competitiveness, from our manufacturing infrastructure to intellectual property enforcement to the role of state and local governments. This would enable policy makers in the Congress and the Administration to can design and adopt policies to enhance U.S. innovation and jobs in the coming decades.

The Klobuchar-LaMieux amendment would help spur greater commercialization of university research into innovations in the economy. Included in the amendment are provisions that would allow universities to use up to five percent of grant amounts toward patent applications for inventions generated by the research, expand PhD fellowships by allowing NSF to match industry donations for fellowship programs, and establish a loan guarantee program for small businesses seeking to commercialize products and patents that emerge from NSF grant-funded projects.

Atkinson testified before the Subcommittee on Competitiveness, Innovation and export Promotion, which Senator Klobuchar chairs and on which Senator LeMieux serves as ranking member, in June and helped shape the legislation. He has also worked closely on innovation policy with Senator Warner, who is an honorary co-chair of ITIF.

The House passed its version of the COMPETES Act reauthorization in May.

Getting Ready for the Next Recession

dcastro — Mon, 19 Jul 2010 04:00:00 +0000

Once the economy recovers, states should be required to maintain larger rainy day funds or risk losing federal money.

High-Technology and Regions in an Era of Open Innovation

Wed, 26 May 2010 04:00:00 +0000

Open innovation is becoming an increasingly important form of innovation and requires new firm strategies.

World Future Society 2009

Mon, 20 Jul 2009 04:00:00 +0000

Rob Atkinson's presentations, "Transforming the World with Information Technology" and "Innovation-Based Economic Development" at the 2009 WFS conference in Chicago.

The 2008 State New Economy Index

Tue, 18 Nov 2008 05:00:00 +0000

ITIF employs 29 indicators to assess the extent to which the 50 state economies are structured according to the tenets of the New Economy.

Measuring Up

Tue, 24 Jun 2008 04:00:00 +0000

ITIF President Rob Atkinson’s article in the Economic Development Journal.

The 2007 State New Economy Index: Benchmarking Economic Transformation in the States

Tue, 27 Feb 2007 05:00:00 +0000

ITIF employs 26 indicators to assess the extent to which the 50 state economies are structured according to the tenets of the New Economy.

The Implications of Service Offshoring for Metropolitan Economies

Thu, 01 Feb 2007 05:00:00 +0000

In a coauthored report with The Brookings Institution, Robert Atkinson and Howard Wial analyze the projected impact of service sector offshoring on U.S. metropolitan economies. While the report finds that the impacts of offshoring in most metropolitan areas over the next decade are likely to be modest, it forecasts higher than average job losses in twenty-eight U.S. metropolitan areas between 2004 and 2015. To address the impacts, the paper urges federal, state, and local leaders to pursue together policies that boost productivity and innovation, assist workers who are harmed by offshoring, and modernize approaches to economic and workforce development.

The 2002 State New Economy Index

afearon — Sat, 01 Jun 2002 04:00:00 +0000

The State New Economy Index uses 21 indicators to measure the extent to which state economies include knowledge-jobs, globalized, entrepreneurial, IT-driven and innovation-based.

Report ranks Utah No. 8 in tech-based economy

afearon — Fri, 04 Jan 2013 16:26:27 +0000

Study: WV Unprepared for 'New Economy'

afearon — Wed, 26 Dec 2012 15:41:53 +0000

Massachusetts' "New Economy" Ranks First in Nation

afearon — Wed, 26 Dec 2012 15:38:24 +0000

Massachusetts has once again been recognized as the number one state for its “New Economy.” WAMC’s Berkshire Bureau Chief Lucas Willard reports on the ITIF ranking.

Report: Maryland Strong for Innovation

afearon — Wed, 26 Dec 2012 15:43:13 +0000

Indiana's New Right-to-Work Law Could Prompt Copycats

afearon — Fri, 17 Feb 2012 15:29:01 +0000

Rhode Island EDC gives Toray $1 Million in Grants

afearon — Wed, 24 Aug 2011 20:51:51 +0000

Advocates Urge Easier Visa Policies To Boost Startups

afearon — Wed, 24 Aug 2011 20:08:55 +0000

Rob Atkinson says the U.S. needs to do more to lure immigrant entrepreneurs.