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2002 State Index Home
 
Introduction
 
Overview & Methodology
 
Overall Rankings
 
Summary of Results
 
THE INDICATORS
 
PART I: KNOWLEDGE JOBS
 
Information Technology Jobs

Managerial, Professional, and Technical Jobs

Workforce Education

Education Level of the Manufacturing Workforce
 
PART II: GLOBALIZATION
 
Export Focus of Manufacturing

Foreign Direct Investment
 
PART III: ECONOMIC DYNAMISM
 
"Gazelle" Jobs

Job Churning

IPOs
 
PART IV: THE DIGITAL ECONOMY
 
Online Population

Commercial Internet Domain Names

Technology in Schools

Digital Government

Online Agriculture

Online Manufacturers

Broadband Telecommunications
 
PART V: INNOVATION CAPACITY
 
High-Tech Jobs

Scientists and Engineers

Patents

Industry Investment in R&D

Venture Capital
 
ECONOMIC DEVELOPMENT STRATEGIES
 
Data Sources
 
Weighting Methodology
 
Endnotes
 
The Author

BROWSE BY STATE: Choose State ---------- Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

PART 3: ECONOMIC DYNAMISM

"Almost 650,000 jobs were added to the U.S. economy between 1997 and 1998, but that was after start-up firms had created 6.3 million jobs and failing firms eliminated 5.6 million jobs."

WHY IS THIS IMPORTANT? Steady growth in employment masks the constant churning of job creation and destruction, as less innovative and efficient companies downsize or go out of business and more innovative and efficient companies grow and take their place. A total of almost 650,000 jobs were added to the U.S. economy between 1997 and 1998, but that was after start-up firms had created 6.3 million jobs and failing firms eliminated 5.6 million jobs (jobs were also created and lost from expanding and contracting firms). This churning has accelerated as the number of new start-ups and existing business failures per year has grown. While such turbulence increases the economic risk faced by workers, companies, and even regions, it is also a major driver of economic innovation and growth.

THE RANKINGS: Some fast-growing states (like Arizona, Florida, Nevada, and Utah) have seen a great deal of churning. In part, this is because fast-growing economies produce more start-ups, especially in local-serving industries (such as restaurants, dry cleaners, or accountants). But a high churn rate also reflects a dynamism that leads to the death of old, outmoded firms and the creation of innovative new companies that sell outside the state. States with slower overall growth rates, but with dynamic business sectors, such as California and Maryland, also see high rates of churn.

STATES BY RANK Rank State Score 1 Nevada 25.0% 2 Florida 23.7% 3 Arizona 22.7% 4 Utah 22.5% 5 Georgia 22.4% 6 Colorado 22.1% 7 Texas 21.6% 8 California 21.3% 9 Idaho 21.3% 10 Washington 21.3% 11 New Mexico 21.2% 12 Arkansas 20.8% 13 Oregon 20.7% 14 Delaware 20.5% 15 South Carolina 20.4% 16 North Carolina 20.3% 17 Montana 20.3% 18 Alaska 20.3% 19 Tennessee 20.2% 20 Alabama 20.1% 21 Oklahoma 20.1% 22 Maryland 19.8% 23 Virginia 19.8% 24 Mississippi 19.7% 25 New Jersey 19.7% 26 Louisiana 19.5% 27 Wyoming 19.4% 28 Hawaii 19.2% 29 New York 19.2% 30 Missouri 19.0% 31 Kentucky 18.8% 32 Kansas 18.7% 33 Maine 18.5% 34 New Hampshire 18.1% 35 Vermont 18.0% 36 Michigan 17.9% 37 Connecticut 17.8% 38 South Dakota 17.8% 39 Illinois 17.8% 40 Indiana 17.8% 41 Massachusetts 17.4% 42 West Virginia 17.4% 43 Rhode Island 17.1% 44 Minnesota 16.9% 45 Nebraska 16.9% 46 Ohio 16.9% 47 Pennsylvania 16.7% 48 Wisconsin 16.3% 49 North Dakota 16.3% 50 Iowa 16.1% U.S. Average 19.8%

ALPHABETICALLY Rank State Score 20 Alabama 20.1% 18 Alaska 20.3% 3 Arizona 22.7% 12 Arkansas 20.8% 8 California 21.3% 6 Colorado 22.1% 37 Connecticut 17.8% 14 Delaware 20.5% 2 Florida 23.7% 5 Georgia 22.4% 28 Hawaii 19.2% 9 Idaho 21.3% 39 Illinois 17.8% 40 Indiana 17.8% 50 Iowa 16.1% 32 Kansas 18.7% 31 Kentucky 18.8% 26 Louisiana 19.5% 33 Maine 18.5% 22 Maryland 19.8% 41 Massachusetts 17.4% 36 Michigan 17.9% 44 Minnesota 16.9% 24 Mississippi 19.7% 30 Missouri 19.0% 17 Montana 20.3% 45 Nebraska 16.9% 1 Nevada 25.0% 34 New Hampshire 18.1% 25 New Jersey 19.7% 11 New Mexico 21.2% 29 New York 19.2% 16 North Carolina 20.3% 49 North Dakota 16.3% 46 Ohio 16.9% 21 Oklahoma 20.1% 13 Oregon 20.7% 47 Pennsylvania 16.7% 43 Rhode Island 17.1% 15 South Carolina 20.4% 38 South Dakota 17.8% 19 Tennessee 20.2% 7 Texas 21.6% 4 Utah 22.5% 35 Vermont 18.0% 23 Virginia 19.8% 10 Washington 21.3% 42 West Virginia 17.4% 48 Wisconsin 16.3% 27 Wyoming 19.4%

Source: U.S. Census, 1997-1998 data.

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2002 State Index Home | Introduction | Overview &
Methodology | The Rankings | Summary of Results
Development Strategies | Data Sources
Weighting Methodology | Endnotes | The Author

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