Location Advantages

The 2007 State New Economy Index incorporates a wide array of indicators to rank all 50 states against each other through their “transformation in structure, functioning, and rules of the economy” over the past 15 years.  The results of this benchmarking study show Massachusetts as the clear cut winner and display some of the many advantages Massachusetts has to offer. 

Overall Score: 1st   

• In the overall rankings, which are broken down below, five categories (Knowledge Jobs, Globalization, Economic Dynamism, Transformation to a Digital Economy, and the Capacity for Technological Innovation) help to characterize each state.   Massachusetts has consistently maintained the first place overall rank and has witnessed consistent growth in these five areas over the past decade.  

Workforce Education: 1st    

• One of Massachusetts’ greatest assets is its academic environment.  With dozens of top tier universities, the state has consistently produced highly educated and capable workers with the skills to succeed in today’s labor force.

Innovation Capacity Ranking: 1st       

• Innovation capacity measures the effective usage of available capital.  With indicator ratios and percentages on high-tech jobs, engineer and scientist involvement, patents, R&D, as well as venture capital; innovation capacity therefore has a direct correlation with state per capita income growth.

High Tech Jobs Ranking: 1st          

• As one of the pivotal parts of the New Economy’s growth in the United States, high-tech jobs are not only key to providing quality innovative products and services, but also in providing their skilled workers with above average wages – which in turn helps bring about a higher standard of living.  

Venture Capital Ranking: 1st        

• As a strong source of funding startups, a high percentage of venture capital shows the extended entrepreneurial environment of a state.  As they are also a good cause for job growth, the share of venture capital out of the GDP continues to increase.  Because geographic concentration has become a trait of venture capital, Massachusetts’ high percentages help to explain why it has the second-most amount of fastest-growing companies in the .

Knowledge Jobs: 1st          

• Education and modern-day employment go hand-in-hand.  Jobs in managerial, professional or technical fields are increasingly requiring academic background. Massachusetts’ consistent output of skilled and educated workers into the workforce helps make it the most suitable environment for Knowledge Jobs in the .

Patents: Top Movers Ranking: 1st      

• Developing new and improved products is essential for firms to become more competitive and better-paying in their respective concentrations.  Issuing patents is one method of doing so (the number of patents released annually has nearly doubled in the last 20 years) as it creates R&D incentives and grants bigger market share.

Managerial, Professional & Technical Jobs: 1st        

• In a period where off shoring is a standard practice, states with capital-intensive sectors such as engineering, science, law, higher education, banking etc. will have a high demand for these positions.   Massachusetts ’ rank shows that it is a national leader in technology and professional services with a firm bond between the quality of life and knowledge jobs.

Online Agriculture Ranking: 1st        

• As the new era of digital economy has altered the way businesses are run, the agricultural sector has similarly adjusted.  Over half of all American farmers use the internet for purposes such as buying feed, seeds, selling livestock, and finding information about weather conditions.  The access to this sort of information enables them to be more efficient as well as granting them a competitive edge in the market.

Manufacturing Value-Added: 2nd      

• States with higher percentages of manufacturing value-added tend to have the ability to invest greater capital into new machinery and equipment therefore giving them a competitive advantage.  Massachusetts’ pharmaceutical and plastics sectors are good examples of this case due to their significant economies of scale.

Fastest Growing Firms: 2nd    

• The firms that comprise this ranking were listed under the Fast 500 and Inc 500 indices for at least 200% and 300% growth respectively.  These companies are usually fairly small and entrepreneurial in nature.  A state’s performance in this measure is one indication of the vitality of its entrepreneurial network.  

Digital Economy Ranking: 2nd        

• Measured by 6 indicators: the percentage of the population online, internet domain names, use of IT public schools, employment of IT to deliver state government services, the percentage of farmers online and using computers, and the deployment of broadband telecommunications.  This has enabled Massachusetts to be at the forefront of the American digital economic growth and benefiting with dramatic increases in economic productivity and standard of living.

Scientists & Engineers Ranking: 3rd    

• Cutting-edge science and engineering attract technology and research.  As the percentage of scientists and engineers in the has risen 4.4% from 2001 to 2003 whereas overall employment growth has been only 0.3%, it is clear that expansion in these sectors is pivotal to economic well-being and will continue to be in the coming years.