By Susan A. Baird
PBN Web Editor
SANTA MONICA, Calif. – Massachusetts remains No. 1, Connecticut surges three spots to No. 7 and Rhode Island moves up one notch to No. 10 in the Milken Institute’s new ranking of states best-positioned for success in the dawning information age.
Filling out the Top 10 in the 2008 State Technology and Science Index are No. 2 Maryland, moving up two spots from its 2004 finish; Colorado, holding at No. 3; California, slipping two spots to No. 4; Washington and Virginia, moving up one notch each to 5 and 6, respectively; Utah, moving up one spot to No. 8; and New Hampshire, leaping three spots to No. 9.
“Regional competition for technology industries has increased since the last release of the Index in 2004,” the institute noted. “Not only are states vying with each other for human capital and resources, but countries like China and India are increasing the competition on a global level.
“At the same time, the post-9/11 decrease in international graduate students and flat or decreased federal funding for research and development are applying negative pressure to states. … The future will belong to those regions that can develop a thriving technology industry in a wide variety of fast-growing fields including biotech, clean technology, nanotechnology, communications and next-generation computer applications,” the think tank said.
The Milken Institute’s index of science and technology potential “takes an objective measure of just how prepared each state is to take advantage of these opportunities,” the nonprofit said. It ranks states based on five major categories – Research and Development Inputs, Risk Capital and Entrepreneurial Infrastructure, Human Capital Investment, Technology and Science Work Force, and Technology Concentration and Dynamism – examining 77 key indicators.
Rhode Island’s best showing was in Research and Development Inputs, coming in sixth nationwide in federal, private and academic R&D spending – ahead of No. 7 Connecticut – and was No. 1 in its funding rate for National Science Foundation research proposals. But Massachusetts – which just enacted a $1-billion, 10-year life sciences (READ MORE) – “continues to dominate the Research and Development Inputs Composites Index,” winning top-five rankings in 16 of the category’s 18 indicators. The Bay State was No. 2 in Risk Capital and Entrepreneurial Infrastructure, where California pulled ahead into first place Connecticut was No. 11 in that category, up one place from its 2004 showing, while Rhode Island fell 12 spots to No. 15.
In human capital investment, Rhode Island leapt seven positions to No. 15, while Massachusetts moved up one spot to No. 3 and Connecticut moved up two spots to No. 4. “Rhode Island’s new strength lies in different levels of science and engineering, from number of graduate students to number of postdocs awarded,” the study authors wrote.
In the Technology and Science Work Force index, Rhode Island moved up eight notches to No. 13, while Connecticut held steady at No. 9 and Massachusetts maintained its first-place finish.
The Ocean State also improved markedly in Technology Concentration and Dynamism, rising eight spots to No. 13, while Connecticut held steady at No. 14 and Massachusetts fell 8 spots to No. 11.
Overall, the Bay State “is in the best position of any state to achieve high-quality economic growth, thanks to its vast array of technology and science assets,” the institute said. Its report cites Massachusetts’ “established strength in world-class research institutions, cutting-edge firms and its ability to leverage these assets in attracting and retaining a skilled work force” – categories in which the state scores well above its peers.
“This report is great news for Massachusetts and reflects our continuing commitment to the best science and technology,” Gov. Deval L. Patrick said in a statement. “We know that to compete and win in a global economy, we need a work force skilled in these areas.”
Nationwide, the most dramatic improvement since 2004 was in North Dakota, which leapt 14 positions to No. 31 – thanks in large part, the institute said, to a Centers for Excellence initiative in science and technology that provides matching funds to participating colleges and universities. Also showing marked improvement were Hawaii, up 11 notches to No. 28, and Alabama, up seven spots to 29.
Lagging the nation in science and technology preparedness are Mississippi, No. 50 with a score of 29.81 out of a possible 100 points; West Virginia, with a score of 30.49; Arkansas, 32.96; Kentucky, at 34.67; and No. 5 Louisiana, at 35.58.
The report was prepared for the Milken Institute by Ross DeVol and Anita Charuworn, with Soojung Kim. Major support for the study came from Goodwin Procter LLP.
The Milken Institute is a nonprofit economic think-tank whose stated mission is “to improve the lives and economic conditions of diverse populations around the world by helping business and public policy leaders identify and implement innovative ideas for creating broad-based prosperity.” For more information – including the full report, “2008 State Technology and Science Index: Enduring Lessons for the Intangible Economy,” visit www.MilkenInstitute.org.
