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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



|
 |
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.
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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
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
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