Initial Public Offerings

The value of the initial public stock offerings of
companies as a share of gross state product.

WHY IS THIS IMPORTANT? In the last two decades, financial
markets have embraced entrepreneurial dynamism. The number of initial public offerings (first rounds of companies’ stock sold when they make their debut in public markets) has risen by 50 percent between the 1960s and the 1990s. IPOs are important because they indicate the degree to which an economy is producing companies that have long-term and substantial growth potential.

THE RANKINGS: Some states score well on the IPO indicator because they are producing a large number of start-ups with growth potential (such as California, Virginia, Colorado, Florida, and Texas). Others are helped by the fact that they are close to major financial centers (as in Connecticut, New Jersey, New York, and Illinois). Still others score well for reasons somewhat particular to the state (for example, New Mexico, Maine, Oklahoma, North Dakota).

STATES BY RANK
Rank	State	Score
1	New Mexico	1.55%
2	Connecticut	1.22%
3	Oklahoma	1.06%
4	Colorado	1.05%
5	Maine	1.04%
6	Virginia	1.02%
7	Vermont	0.95%
8	North Dakota	0.78%
9	Kentucky	0.68%
10	New Jersey	0.64%
11	Texas	0.63%
12	New York	0.59%
13	Washington	0.54%
14	Florida	0.51%
15	California	0.49%
16	Illinois	0.39%
17	Maryland	0.39%
18	Utah	0.34%
19	Georgia	0.31%
20	Ohio	0.31%
21	Massachusetts	0.26%
22	Minnesota	0.25%
23	Arizona	0.25%
24	Oregon	0.22%
25	Nebraska	0.21%
26	Wisconsin	0.19%
27	Pennsylvania	0.19%
28	Louisiana	0.18%
29	North Carolina	0.18%
30	Indiana	0.17%
31	Iowa	0.16%
32	Missouri	0.15%
33	Mississippi	0.15%
34	Idaho	0.14%
35	New Hampshire	0.11%
36	Alaska	0.11%
37	South Carolina	0.10%
38	Michigan	0.08%
39	Tennessee	0.07%
40	Nevada	0.07%
41	Kansas	0.06%
42	Wyoming	0.05%
43	West Virginia	0.04%
44	Alabama	0.04%
45	Arkansas	0.04%
46	Hawaii	0.02%
47	Delaware	0.00%
48	Rhode Island	0.00%
49	Montana	0.00%
50	South Dakota	0.00%

	U.S. average	0.42%

ALPHABETICALLY
State	Rank	Score
Alabama	44	0.04%
Alaska	36	0.11%
Arizona	23	0.25%
Arkansas	45	0.04%
California	15	0.49%
Colorado	4	1.05%
Connecticut	2	1.22%
Delaware	47	0.00%
Florida	14	0.51%
Georgia	19	0.31%
Hawaii	46	0.02%
Idaho	34	0.14%
Illinois	16	0.39%
Indiana	30	0.17%
Iowa	31	0.16%
Kansas	41	0.06%
Kentucky	9	0.68%
Louisiana	28	0.18%
Maine	5	1.04%
Maryland	17	0.39%
Massachusetts	21	0.26%
Michigan	38	0.08%
Minnesota	22	0.25%
Mississippi	33	0.15%
Missouri	32	0.15%
Montana	49	0.00%
Nebraska	25	0.21%
Nevada	40	0.07%
New Hampshire	35	0.11%
New Jersey	10	0.64%
New Mexico	1	1.55%
New York	12	0.59%
North Carolina	29	0.18%
North Dakota	8	0.78%
Ohio	20	0.31%
Oklahoma	3	1.06%
Oregon	24	0.22%
Pennsylvania	27	0.19%
Rhode Island	48	0.00%
South Carolina	37	0.10%
South Dakota	50	0.00%
Tennessee	39	0.07%
Texas	11	0.63%
Utah	18	0.34%
Vermont	7	0.95%
Virginia	6	1.02%
Washington	13	0.54%
West Virginia	43	0.04%
Wisconsin	26	0.19%
Wyoming	42	0.05%

Source: Hale & Dorr, 1997 data.

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The Progressive Policy Institute (PPI)
Technology, Innovation, and New Economy Project
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