PPI Technology Project
 
NewEconomy
Index.org Home

 
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
Industry Investment in R&D
Industry investment in research and development as a percentage of Gross State Product (GSP). 38

"Business-funded R&D as a share of GDP has continued its upward climb, reaching its highest levels ever in 2000."

WHY IS THIS IMPORTANT? Research and development, which yields product innovations and adds to the knowledge base of industry, is a key driver of economic growth. Business provides more than two-thirds of all R&D funding. After steadily rising in the 1980s and falling in the early 1990s, business-funded R&D as a share of GDP has continued its upward climb, reaching its highest levels ever in 2000, both in inflation-adjusted dollars and as a share of GDP.

THE RANKINGS: The two smallest states, Rhode Island and Delaware, rank 1st and 3rd respectively in R&D intensity. Rhode Island's rank may be because of a number of defense electronics firms there and the fact that it instituted the nation's most generous R&D tax credit several years ago. In Delaware's case, the presence of Dupont and other R&D-intensive chemical and pharmaceutical firms led to its No. 3 showing. The other leading states (such as California, Massachusetts, or Washington) all tend to have strong high-tech sectors that perform significant amounts of R&D. In general, states score well that have significant corporate R&D laboratory facilities (like Connecticut, Michigan, and New Jersey), or significant federal laboratory facilities (as in Idaho and New Mexico), which may further stimulate corporate R&D.

 
STATES BY RANK
Rank State Score
1 Rhode Island 4.29%
2 Idaho 3.68%
3 Delaware 3.63%
4 New Jersey 3.21%
5 New Mexico 3.15%
6 Arizona 3.00%
7 Pennsylvania 2.76%
8 California 2.56%
9 Massachusetts 2.45%
10 Michigan 2.33%
11 Washington 2.25%
12 Colorado 2.18%
13 Connecticut 2.16%
14 Minnesota 2.10%
15 New York 1.87%
16 Illinois 1.83%
17 Vermont 1.73%
18 New Hampshire 1.70%
19 North Carolina 1.69%
20 Utah 1.54%
21 Texas 1.51%
22 Ohio 1.44%
23 Oregon 1.33%
24 Kansas 1.31%
25 Wisconsin 1.24%
26 Maryland 1.18%
27 Virginia 1.15%
28 Tennessee 1.01%
29 Missouri 0.81%
30 Florida 0.80%
31 Georgia 0.80%
32 Iowa 0.71%
33 Nevada 0.70%
34 Indiana 0.66%
35 West Virginia 0.61%
36 South Carolina 0.57%
37 North Dakota 0.55%
38 Alabama 0.54%
39 Kentucky 0.53%
40 Maine 0.48%
41 Oklahoma 0.46%
42 Nebraska 0.42%
43 Arkansas 0.40%
44 Montana 0.24%
45 Mississippi 0.20%
46 Alaska 0.18%
46 Wyoming 0.18%
48 Louisiana 0.17%
49 Hawaii 0.11%
50 South Dakota 0.06%
U.S. Average 1.91%
    
ALPHABETICALLY
Rank State Score
38 Alabama 0.54%
46 Alaska 0.18%
6 Arizona 3.00%
43 Arkansas 0.40%
8 California 2.56%
12 Colorado 2.18%
13 Connecticut 2.16%
3 Delaware 3.63%
30 Florida 0.80%
31 Georgia 0.80%
49 Hawaii 0.11%
2 Idaho 3.68%
16 Illinois 1.83%
34 Indiana 0.66%
32 Iowa 0.71%
24 Kansas 1.31%
39 Kentucky 0.53%
48 Louisiana 0.17%
40 Maine 0.48%
26 Maryland 1.18%
9 Massachusetts 2.45%
10 Michigan 2.33%
14 Minnesota 2.10%
45 Mississippi 0.20%
29 Missouri 0.81%
44 Montana 0.24%
42 Nebraska 0.42%
33 Nevada 0.70%
18 New Hampshire 1.70%
4 New Jersey 3.21%
5 New Mexico 3.15%
15 New York 1.87%
19 North Carolina 1.69%
37 North Dakota 0.55%
22 Ohio 1.44%
41 Oklahoma 0.46%
23 Oregon 1.33%
7 Pennsylvania 2.76%
1 Rhode Island 4.29%
36 South Carolina 0.57%
50 South Dakota 0.06%
28 Tennessee 1.01%
21 Texas 1.51%
20 Utah 1.54%
17 Vermont 1.73%
27 Virginia 1.15%
11 Washington 2.25%
35 West Virginia 0.61%
25 Wisconsin 1.24%
46 Wyoming 0.18%

Source: National Science Foundation, 1999 data.
 
Printer-friendly page (Adobe PDF)

Go to next indicator >>



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

pdf Download PDF Version of This Report (10 MB)
Please expect lengthy download time,
during which your browser window may appear blank.
(PDF version requires Acrobat Reader)
 
The Progressive Policy Institute (PPI)
Technology, Innovation, and New Economy Project
600 Pennsylvania Ave., S.E., Suite 400, Washington DC 20003
Phone: (202) 547-0001
www.ppionline.org
 
 
Website design by OnlineWorkshop.