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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

The New Economy Index
The Metro New Economy Index
The 1999 New Economy Index

BROWSE BY STATE:
The State New Economy Index
PART 5: INNOVATION CAPACITY
Innovation Capacity

In the old economy, a large share of economic growth stemmed from increases in the supply of capital, labor, or natural resources. Most growth in the New Economy, especially growth in per-capita incomes, stems from increases in knowledge and innovation and its widespread adoption. 32 Technological innovation, in particular, is one of the fundamental drivers of growth in the New Economy. Studies show that technological innovation is responsible for over two-thirds of per capita economic growth. 33

The innovation capacity indicators in this section measure five things: 1) share of jobs in high-tech industries; 2) scientists and engineers as a share of the workforce; 3) the number of patents relative to the size of the workforce; 4) industry R&D as a share of GSP; and 5) venture capital invested as a share of GSP.

Aggregated Innovation Capacity Scores

 
STATES BY RANK
Rank State Score
1 Massachusetts 18.58
2 California 17.41
3 Colorado 17.14
4 New Jersey 14.8
5 Delaware 14.72
6 Maryland 14.22
7 New Mexico 13.77
8 Washington 13.41
9 Connecticut 13.34
10 Idaho 13.07
11 New Hampshire 12.54
12 Rhode Island 12.44
13 Minnesota 12.17
14 New York 12.09
15 Utah 11.62
16 Vermont 11.53
17 Arizona 11.51
18 Oregon 11.45
19 Virginia 11.36
20 Pennsylvania 11.29
21 Texas 10.8
22 Illinois 10.01
23 North Carolina 9.82
24 Michigan 9.42
25 Georgia 9.15
26 Ohio 8.68
27 Florida 8.53
28 Kansas 8.34
29 Wisconsin 8.18
30 Missouri 8.15
31 Maine 7.87
32 Iowa 7.85
33 Montana 7.84
34 Nebraska 7.66
35 Hawaii 7.47
36 Indiana 7.39
37 Tennessee 7.27
38 North Dakota 7.24
39 Alaska 7.17
40 Oklahoma 7.17
41 Alabama 7.15
42 Nevada 7.03
43 South Carolina 6.7
44 Kentucky 6.64
45 West Virginia 6.62
46 South Dakota 6.54
47 Wyoming 6.53
48 Louisiana 6.35
49 Arkansas 6.07
50 Mississippi 5.9
U.S. Average 10.00
    
ALPHABETICALLY
Rank State Score
41 Alabama 7.15
39 Alaska 7.17
17 Arizona 11.51
49 Arkansas 6.07
2 California 17.41
3 Colorado 17.14
9 Connecticut 13.34
5 Delaware 14.72
27 Florida 8.53
25 Georgia 9.15
35 Hawaii 7.47
10 Idaho 13.07
22 Illinois 10.01
36 Indiana 7.39
32 Iowa 7.85
28 Kansas 8.34
44 Kentucky 6.64
48 Louisiana 6.35
31 Maine 7.87
6 Maryland 14.22
1 Massachusetts 18.58
24 Michigan 9.42
13 Minnesota 12.17
50 Mississippi 5.9
30 Missouri 8.15
33 Montana 7.84
34 Nebraska 7.66
42 Nevada 7.03
11 New Hampshire 12.54
4 New Jersey 14.8
7 New Mexico 13.77
14 New York 12.09
23 North Carolina 9.82
38 North Dakota 7.24
26 Ohio 8.68
40 Oklahoma 7.17
18 Oregon 11.45
20 Pennsylvania 11.29
12 Rhode Island 12.44
43 South Carolina 6.7
46 South Dakota 6.54
37 Tennessee 7.27
21 Texas 10.8
15 Utah 11.62
16 Vermont 11.53
19 Virginia 11.36
8 Washington 13.41
45 West Virginia 6.62
29 Wisconsin 8.18
47 Wyoming 6.53

Source: Author's calculations based on the states' scores in five indicators — high-tech jobs, scientists and engineers, patents, industry investment in R&D, and venture capital.

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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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