New Economy Index

New Economy Index

Massachusetts, Washington, Maryland, New Jersey, and Connecticut rank as the five most competitive "New Economy" states, a new report from the Information Technology and Innovation Foundation and Ewing Marion Kauffman Foundation finds. Based on twenty-six indicators, the 2010 State New Economy Index (68 pages, PDF) assessed states' economic structures in terms of how globalized, entrepreneurial, IT-driven, and knowledge- and innovation-based they are. With its abundance of high-tech firms and skilled knowledge workers, Massachusetts topped the rankings, as it has since 1999, while Mississippi, West Virginia, Arkansas, Alabama, and Wyoming ranked at the bottom. Among its recommendations, the report calls for policies that reduce in-state zero-sum competition and spur "win-win" economic results, as well as innovation-based state-federal economic development partnerships that increase states' capacity to compete in the global economy of the twenty-first century.