SOURCE: Milken Institute

Milken Institute

November 21, 2014 09:59 ET

In the Realm of High Tech, Massachusetts Continues Its Reign

Maryland, California, and Colorado Also Score Well in Milken Institute Survey of Top Tech States

LOS ANGELES, CA--(Marketwired - Nov 21, 2014) -  Massachusetts is first -- once again -- in the Milken Institute's State Technology and Science Index 2014, released today. The index tracks and evaluates every state's tech and science capabilities -- and their success at converting those assets into companies and high-paying jobs. Conducted every two years for more than a decade, the index has found Massachusetts performing in first place in every edition since 2004.

This time, Massachusetts rated its highest score ever. "By widening the gap between it and others, the Bay State has further cemented its lead in science and technology," says Kevin Klowden, Milken Institute managing economist and one of the authors of the report. "With a critical mass of universities, research institutions, and cutting-edge firms, it is the indomitable state."

Across the country, technology and science are paving the way to economic success. Competition at the very top has increased significantly, making it more difficult to break into the top 10. Indeed, the states in the top 10 are the same as those in 2010 and 2012, with only a few changes in rank:

The top 10 (with their previous index rankings in 2012)

1. Massachusetts (1)
2. Maryland (2)
3. California (3)
4. Colorado (4)
5. Utah (7)
6. Washington (5)
7. Virginia (6)
8. New Hampshire (10)
9. Connecticut (9)
10. Delaware (8)

"This index shows that the science and tech sectors continue to pace the overall economy, as well as the importance of innovation in state economies. States that are traditionally strong in science and technology are building on that strength," says Klowden.

Movers and shakers:

  • Maryland is back at number two, posting its highest score in the history of the index. The state is succeeding in its efforts to attract funding and streamline the process or transforming university research into commercially viable products.
  • California held on to its number three spot, though still below its peak in 2002. The leverage of high-tech industries in Silicon Valley, as well as strong showings in venture capital investment, contributed to the state's high ranking.
  • Colorado retained its number four position, but posted its third consecutive drop in score.
  • Utah regained its 2010 rank of number five as it posted gains in four of the index's five composites. The state has a strong life-sciences sector, as well as an impressive number of high-tech firms.
  • North Carolina was the biggest gainer, jumping from 21st to 15th, thanks largely to a recovery in its Risk Capital and Entrepreneurial Infrastructure ranking.

The State Technology and Science Index is made up of five composites that can be applied across all 50 states for comparison and analysis, with 78 unique indicators. The composites are: research and development inputs, risk capital and entrepreneurial infrastructure, human capital investment, technology and science work force, and technology concentration and dynamism. It is one of the most comprehensive examinations of state technology and science assets ever compiled.

Complete rankings and the full report, "State Technology and Science Index 2014: Enduring Lessons for the Intangible Economy," by Kevin Klowden, Kristen Keough, and Jason Barrett is available for download at no charge at http://statetechandscience.org/. This site includes a number of features that allow visitors to tailor data according to their particular interests. It also contains an interactive map and slideshows of the top performing states. This year's report also includes an in-depth look at California in the supplemental section "California's Position in Technology and Science: A Comparative Benchmarking Assessment."

About the Milken Institute
A nonprofit, nonpartisan think tank, the Milken Institute's mission is to improve lives around the world by advancing innovative economic and policy solutions that create jobs, widen access to capital and enhance health.
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