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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 4: THE DIGITAL ECONOMY

In the old economy, virtually all economic transactions involved the transfer of physical goods and paper records, or the interaction of people in person or by phone. In the emerging digital economy, a significant share of both business and government transactions are being conducted through digital electronic means. As a result, the U.S. Internet economy was worth $830 billion by 2000. Worldwide, Internet hosts increased by 19 million in 2001, from 98 million to 117 million. Over half of U.S. households are online. Worldwide Internet use is expected to more than triple by 2005 to over 1.5 billion people.

In the last few years, the digital economy has begun to show up in the productivity statistics, as IT is being infused into virtually all sectors. Trucking companies use geopositioning systems to better dispatch trucks. Farmers use the Internet to buy seed and fertilizer and sell crops. Insurance companies use the Internet to communicate with customers directly. Governments issue EZ passes to automate toll collection. In terms of productivity gains and increased standards of living, digital technology is likely to do as much to foster state economic growth in the 21st century as mechanical and electrical technologies did in the early and mid-20th century.

The digital economy indicators measure seven things: 1) the percentage of the population online; 2) commercial (".com") Internet domain names; 3) deployment and use of information technology in K-12 public schools; 4) the use of digital technologies to deliver state government services; 5) percentage of farmers online and using computers; 6) use of the Internet by manufacturers; and 7) broadband telecommunications availability and use.

Aggregated Digital Economy Scores

STATES BY RANK Rank State Score 1 Massachusetts 14.06 2 California 13.72 3 Washington 13.64 4 Utah 13.25 5 New Jersey 12.72 6 Oregon 12.62 7 Colorado 12.43 8 Connecticut 12.41 9 Minnesota 12.38 10 Arizona 12.15 11 Virginia 12.1 12 Nevada 11.97 13 Maryland 11.89 14 New York 11.68 15 Maine 11.38 16 Ohio 11.3 17 Texas 11.04 18 Nebraska 10.98 19 New Hampshire 10.89 20 Illinois 10.87 21 Florida 10.67 22 Kansas 10.65 23 Michigan 10.61 24 Rhode Island 10.34 25 Missouri 10.27 26 Idaho 10.14 27 Wisconsin 10.08 28 Pennsylvania 10.04 29 Iowa 9.87 30 North Dakota 9.66 31 Indiana 9.63 32 Wyoming 9.59 33 South Dakota 9.27 34 Montana 9.21 35 Delaware 9.21 36 Alaska 8.98 37 Hawaii 8.89 38 Georgia 8.46 39 Oklahoma 8.03 40 Vermont 7.94 41 New Mexico 7.92 42 South Carolina 7.7 43 Tennessee 7.64 44 Kentucky 7.32 45 North Carolina 7.22 46 Louisiana 7.04 47 Arkansas 6.06 48 West Virginia 5.26 49 Alabama 5.07 50 Mississippi 3.74 U.S. Average 10.00

ALPHABETICALLY Rank State Score 49 Alabama 5.07 36 Alaska 8.98 10 Arizona 12.15 47 Arkansas 6.06 2 California 13.72 7 Colorado 12.43 8 Connecticut 12.41 35 Delaware 9.21 21 Florida 10.67 38 Georgia 8.46 37 Hawaii 8.89 26 Idaho 10.14 20 Illinois 10.87 31 Indiana 9.63 29 Iowa 9.87 22 Kansas 10.65 44 Kentucky 7.32 46 Louisiana 7.04 15 Maine 11.38 13 Maryland 11.89 1 Massachusetts 14.06 23 Michigan 10.61 9 Minnesota 12.38 50 Mississippi 3.74 25 Missouri 10.27 34 Montana 9.21 18 Nebraska 10.98 12 Nevada 11.97 19 New Hampshire 10.89 5 New Jersey 12.72 41 New Mexico 7.92 14 New York 11.68 45 North Carolina 7.22 30 North Dakota 9.66 16 Ohio 11.3 39 Oklahoma 8.03 6 Oregon 12.62 28 Pennsylvania 10.04 24 Rhode Island 10.34 42 South Carolina 7.7 33 South Dakota 9.27 43 Tennessee 7.64 17 Texas 11.04 4 Utah 13.25 40 Vermont 7.94 11 Virginia 12.1 3 Washington 13.64 48 West Virginia 5.26 27 Wisconsin 10.08 32 Wyoming 9.59

Source: Author's calculations based on the states' scores in seven indicators — online population, ".com" domain name registrations, technology in schools, digital government, farmers online and using computers, manufacturers online, and broadband telecommunications.

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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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