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Source: Honolulu Advertiser and AP
By MICHAEL LIEDTKE
AP Business Writer
SAN FRANCISCO (AP) — Massachusetts remains the "gold standard" for mining economic growth from technology and science while California is losing its luster, according to a study released Thursday.
The report by the Milken Institute has ranked Massachusetts as the United States' top technology incubator all three times that it has been compiled since 2002.
But California slipped from second place for the first time, despite being home to Silicon Valley's fount of innovation.
North Dakota and Hawaii made the most significant strides since the Milken Institute released its last report. North Dakota moved up from 45th to 31st place while Hawaii catapulted from 39th to 28th place.
The report attributed North Dakota's rapid rise to government programs that have helped keep tech-savvy workers in the state.
Hawaii, meanwhile, appears to be benefiting from an emphasis on "clean" technology aimed at reducing the United States' reliance on fossil fuels. The island also is leveraging its splendor to attract older tech workers looking for a more laid-back lifestyle.
Drawing upon a complex index that analyzes a variety of factors, the Milken Institute dropped California to fourth place in its 2008 rankings. The rankings are swayed by a state's entrepreneurial environment, population of technology-savvy workers and government commitments to education and other programs that plant the seeds for more tech growth.
Maryland moved into the second spot while Colorado held on to third, where it stood the last time the study was done in 2004. Washington, the home state of Microsoft Corp., rounded out the top five.
The Milken Institute, a Santa Monica-based think tank, assembles the index in an attempt to identify states that appear to be in the best position to foster innovation and, theoretically, cash in on the resulting benefits.
Mississippi ranked last in the rankings for the second consecutive time. West Virginia, Arkansas and Kentucky all remained in the bottom five, just as they were in the last report in 2004.
Ohio also fared badly as the state plummeted from 24th to 36th place. The erosion largely reflected the state's struggles to reduce its reliance on manufacturing, the report said.
Overall, though, more states appear to be doing a better job cultivating technology and science, said Ross DeVol, the Milken Institute's director of regional economics.
"States are starting to recognize they need to change because, as a country, we can no longer compete using the low-cost, low-skill formula of the past," DeVol said.
California's high-tech stature is diminishing largely because it's having more trouble educating and retaining future computer engineers and scientists.
The state ranked 13th in the Milken Institute's "human capital investment" category, which was headed up by Maryland.
"This should be seen as a red flag" for California," DeVol said. "It's not the end of the world, but it's something that needs to be addressed."
Some of California's problems can be traced to an "unintended consequence" from the U.S. government's response to the September 2001 terrorist attacks, DeVol said.
It's now more difficult for people outside the United States to attend school in the country — a factor that DeVol said has hurt California more than most states because its publicly subsidized universities tend to attract a disproportionate number of students from outside the U.S.
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The State Technology and Science Index looks at 77 unique indicators that are categorized into five major components:
* Human Capital Investment
* Research and Development Inputs
* Risk Capital and Entrepreneurial Infrastructure
* Technology and Science Work Force
* Technology Concentration and Dynamism
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Alaska
Overall Ranking
State Overall Ranking »
Rank Average Score Year
44 37.68 2008
40 39.91 2004
39 39.53 2002
Human Capital Investment Composite Index
State Subcomponents »
Rank Average Score Year
32 46.19 2008
31 47.22 2004
39 40.00 2002
Research and Development Inputs Composite Index
State Subcomponents »
Rank Average Score Year
33 41.39 2008
27 50.07 2004
20 52.69 2002
Risk Capital and Entrepreneurial Infrastructure Composite Index
State Subcomponents »
Rank Average Score Year
50 21.71 2008
47 24.67 2004
44 29.33 2002
Technology and Science Work Force Composite Index
State Subcomponents »
Rank Average Score Year
43 36.67 2008
39 44.00 2004
39 43.22 2002
Technology Concentration and Dynamism Composite Index
State Subcomponents »
Rank Average Score Year
36 42.44 2008
43 33.60 2004
44 32.40 2002
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Hawaii
Overall Ranking
State Overall Ranking »
Rank Average Score Year
28 51.23 2008
39 40.07 2004
43 33.98 2002
Human Capital Investment Composite Index
State Subcomponents »
Rank Average Score Year
27 49.81 2008
29 47.78 2004
34 43.70 2002
Research and Development Inputs Composite Index
State Subcomponents »
Rank Average Score Year
23 54.13 2008
28 49.54 2004
37 40.04 2002
Risk Capital and Entrepreneurial Infrastructure Composite Index
State Subcomponents »
Rank Average Score Year
27 52.55 2008
43 33.78 2004
40 33.11 2002
Technology and Science Work Force Composite Index
State Subcomponents »
Rank Average Score Year
32 50.15 2008
40 42.56 2004
42 39.22 2002
Technology Concentration and Dynamism Composite Index
State Subcomponents »
Rank Average Score Year
30 49.50 2008
47 26.60 2004
50 13.80 2002
*There are no figures for Puerto Rico, sorry--but i'd imagine that it would rank pretty high.
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Complete State Ranking 2008
State Rank Average Score
Massachusetts 1 82.61
Maryland 2 80.04
Colorado 3 78.32
California 4 74.62
Washington 5 72.09
Virginia 6 70.33
Connecticut 7 70.18
Utah 8 69.21
New Hampshire 9 67.90
Rhode Island 10 66.69
Minnesota 11 64.06
New Jersey 12 63.44
Pennsylvania 13 63.23
Delaware 14 62.30
New York 15 62.22
New Mexico 16 61.86
Arizona 17 61.34
North Carolina 18 59.63
Vermont 19 58.78
Texas 20 57.78
Illinois 21 57.19
Wisconsin 22 57.12
Oregon 23 56.17
Kansas 24 54.18
Georgia 25 53.30
Michigan 26 52.27
Idaho 27 51.37
Hawaii 28 51.23
Alabama 29 49.99
Missouri 30 49.62
North Dakota 31 48.92
Montana 32 48.15
Indiana 33 47.75
Nebraska 34 47.52
Iowa 35 45.90
Ohio 36 45.25
Florida 37 43.76
Oklahoma 38 41.85
Maine 39 41.82
Tennessee 40 40.32
South Dakota 41 39.64
South Carolina 42 39.12
Wyoming 43 38.38
Alaska 44 37.68
Nevada 45 37.02
Louisiana 46 35.58
Kentucky 47 34.67
Arkansas 48 32.96
West Virginia 49 30.49
Mississippi 50 29.81
*I'm glad to see Hawaii make so much progress over the past few years and would love to see it rank in the top 10 heck even top 20 in the near future!
For more information of other states go here -> Milken Institute
