Last month the Information Technology and Innovation Foundation released The 2010 State New Economy Index. It tracks the states readiness for the new economy, or as they say…
The State New Economy Index uses 26 indicators to assess states’ fundamental capacity to successfully navigate the shoals of economic change. It measures the extent to which state economies are knowledge-based, globalized, entrepreneurial, IT-driven and innovation-based – in other words, to what degree state economies’ structures and operations match the ideal structure of the New Economy.
Minnesota ranks 13. It’s not dismal, but it’s not good. I guess to put it in Minnesotan terms, we’re above average. What is a little disconcerting is that “18 of the 20 lowest-ranking states are in the Midwest, Great Plains and the South”. So we’re actually the top state listed from the Midwest (or Great Plains) but that’s sort of damning with faint praise.
Here are the top runners:
4. New Jersey
10. New York
11. New Hampshire
The New Economy is supposed to tear down barriers of geography – but I still see a heavy focus on the coasts. With the healthcare businesses and higher education institutes, I’d like to see Minnesota dong better.
Here’s how Minnesota stacks up with individual indicators. (I’ve listed Indication, then ranking and highlighted our best areas. Although maybe I should have highlighted the areas when we need improvement!)
IT professionals #6
Managerial, Professional, Technical Jobs #8
Workforce Education #8
Immigration of Knowledge Workers #28
Migration of Knowledge Workers #14
Manufacturing Value-Added #22
High-Wage Traded Services #5
Export Focus of Manufacturing and Services #24
Foreign Direct Investment #29
Job Churning #23
Fastest-Growing Firms #21
Entrepreneurial Activity #42
Inventor Patents #9
Online Population #7
Online Agriculture #14
Broadband Telecommunications #25
Health IT #4
High-Tech Jobs #13
Scientists & Engineers #8
Industry Investment in R&D #7
Non-Industry Investment in R&D #39
Alternative Energy Use #31
Venture Capital #11
One quick question – how can we be #7 for online population and #25 for broadband telecommunications? I know it all comes down to definition of broadband, whether we look at speed or ubiquity – but the report didn’t really answer that. They did report that population density helped and that their top five broadband states were all covered by Verizon.