Endnotes

2. Robert D. Atkinson and Randolph H. Court, The New Economy Index: Understanding America’s Economic Transformation (Washington, D.C.: Progressive Policy Institute, 1998). http://www.neweconomyindex.org.

5. A similar set of old and New Economy characteristics has also been developed by John Doer, of Kleiner, Perkins, Caulfield & Byers (Menlo Park, California). We recognize that the factors represented in this table are generalizations that do not apply to every organization or individual. But they describe the overall changes we believe have taken place in the economy.

7. The Census Bureau last surveyed manufacturers on their use of manufacturing technology in 1993. We have chosen not to use these data because the information is now over 6 years old and more recent data are not available.

8. Data are available on the number of Internet “backbones” per state, which are positively correlated (0.44) with overall New Economy scores. (Backbones are connections between “network access points,” which are the junction points where major Internet service providers interconnect with each other.) However, backbone data do not work well as economic indicators because it is difficult to find suitable figures to use as denominators to control for the size and geographic characteristics of the states. The most useful measure would be to know the average distance of citizens and businesses from the nearest backbone. But, for practical purposes, this is incalculable.

9. Managerial and professional jobs were calculated using two of the Bureau of Labor Statistics’ top-level occupational categories: “Managerial and Administrative Occupations,” and “Professional, Paraprofessional, and Technical Occupations.”

10. Each state’s residents were classified by education level. The percentage of residents with more than a high school degree but no four-year college degree was weighted with a multiplier of 0.5. The multiplier for the percentage of residents with a college degree was 1, and the multiplier for graduate degrees was 2. The weighted percentages were added to find each state’s total score. In other words, a state where 10 percent of the residents had a high school degree and some college (earning a weighted score of 5), 20 percent with a bachelor’s degree (a weighted score of 20), and 10 percent with a graduate degree (a weighted score of 20), would earn a total score of 45.

11. Stuart A. Rosenfeld and Robert D. Atkinson, “Engineering Regional Growth,” Growth Policy in the Age of High Technology, edited by Jurgen Schmandt and Robert Wilson (Boston: Unwin Hyman, 1990).

12. “What’s New About Globalization,” The McKinsey Quarterly, No. 2, 1997, p. 179.

14. Andrew B. Bernard and J. Bradford Jensen, “Exporters, Jobs, and Wages in U.S. Manufacturing: 1976-1987,” Brookings Papers in Microeconomics, 1995, pp. 67-119.

15. Richard Florida and Martin Kenney, Beyond Mass Production: The Japanese System and Its Transfer to the U.S. (New York: Oxford Univ Press, 1993).

19. David Moschella and Robert D. Atkinson, The Internet and Society: Universal Access, Not Universal Service (Washington, D.C.: Progressive Policy Institute, 1998).

21. The number of “.com” domains registered in a state will not be an exact measure of the number of businesses with Web sites for a number of reasons. For one thing, not all registered domains are actually in use. (Sometimes organizations register names they think they might use. And some domain names are held by speculators hoping to sell them.) Further, many “.com” domain names are registered by individuals for non-commercial purposes, to create personal Web pages, fan sites, and the like. And, of the domains registered to businesses, not all of them are for commercial purposes, per se. (Some companies create rudimentary Web pages simply to make sure they’re on the map, just as they might place an ad in the Yellow Pages. Others invest hundreds of thousands or millions of dollars building elaborate e-commerce systems in order to sell to markets around the world.) Nonetheless, these factors will be true across all states, and thus should cancel each other out.

22. Education Week, “Technology Counts ’98: Putting School Technology To the Test” (October 1998).

23. Kenan Patrick Jarboe and Robert D. Atkinson, The Case for Technology in the Knowledge Economy: R&D, Economic Growth, and the Role of Government (Washington, D.C.: Progressive Policy Institute, 1998). Dóc...

24. Organization for Economic Cooperation and Development, The Knowledge Economy (Paris: OECD, 1996), p. 9.

25. American Electronics Association, Cyberstates (Washington, D.C.: AEA, 1999).

28. Notwithstanding the fact that federal government measurements of economic output and productivity appear to undercount both, the magnitude of the mismeasurement does not appear to be large enough to completely offset the nominal productivity slowdown that has occurred.

31. Senator Joe Lieberman (D-CT) was instrumental in placing language in the 1998 Workforce Investment Act that authorizes the U.S. Department of Labor to create a regional skills alliance program. As this report goes to press, the Labor Department is crafting a request for proposals to allocate the funds.

32. Robert D. Atkinson, Boosting Technological Innovation Through the Research and Experimentation Tax Credit (Washington, DC: Progressive Policy Institute, May 1999). Dóc...

33. Anna-Lee Saxenian, Regional Advantage: Culture and Competition in Silicon Valley and Route 128 (Cambridge, MA: Harvard University Press, 1996).

34. Joseph Cortright, “Reinventing Economic Development,” Staff Report to the State of Oregon’s Legislative Committee on Trade and Economic Development, October, 1994.

35. David Osborne and Peter Plastrik, Banishing Bureaucracy (Reading, MA: Addison-Wesley Publishing Company, Inc., 1997).

37. Marc Strassman and Robert D. Atkinson, Jump Starting the Digital Economy (with Department of Motor Vehicles-Issued Digital Certificates) (Washington, D.C.: Progressive Policy Institute, June 1999).

38. Rosabeth Moss Kantor, World Class: Thriving Locally in the Global Economy (New York: Simon & Schuster, 1995).

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