In with the old and in with the new

The Massachusetts economy is coming off its best year since the days of dot-coms and telecoms. Providing a lift this time around: guns, golf balls, and concrete.

The state's economic recovery broadened in 2006, boosted by a rebounding technology sector and renewed strength of some of Massachusetts's oldest companies and industries. This year's Globe 100 reflects this expansion, with a diverse mix of old- and new-economy firms among the state's best-performing, publicly held companies.

A 113-year-old construction firm, Perini Corp. of Framingham, leads the list, while the 155-year-old Springfield gun maker, Smith & Wesson Holding Corp., vaulted into the Top 10. At the same time, 20 companies broke into The Globe 100 for the first time, the largest class of newcomers since 2002.

In many ways, this blend of old and new represents the dynamism of the Massachusetts economy, which for more than 300 years has depended on innovation to overcome bad weather, high costs, and other challenges. These companies, despite age differences, share a common trait: the ability to find new approaches, products, and customers.

Perini Corp., for example, slumped badly after the real estate collapse of the 1990s, but climbed back by refocusing on high-end specialty construction and finding a niche in booming casino development. Smith & Wesson expanded its product line beyond handguns to include rifles and other weapons, revamped its production to become more efficient, and won an important new customer, the Pentagon.

Even Globe 100 newcomer, Art Technology Group Inc., a software firm still in its teens, reinvented itself. When the Cambridge firm took its stock public in 1999, it sold basic software for building websites. But as more competitors entered the market with low-cost, off-the-shelf versions, profit margins shrank.

So, Art Technology Group, like Perini, went higher end. It developed sophisticated e-commerce software, which sells for more but provides advanced features. The firm's customers now include some of the nation's biggest retailers, including electronics chain Best Buy Co. and the upscale department store Neiman Marcus Inc.

Developing advanced products for which customers will pay a premium has long been a key to success for Massachusetts's innovation economy. The Globe 100, of course, captures just a small slice of this economy, since it excludes private firms, corporations headquartered in other states, and nonprofits, including universities and hospitals, where many innovations are born.

In the future, economists say, innovation will become more critical as Massachusetts firms compete globally. "When you're selling into world markets, it's either price or you have to have the best product," says Andre Mayer, senior vice president for research at Associated Industries of Massachusetts. "And given our costs, we're not selling on price."

Acushnet Co. of Fairhaven, the maker of Titleist -brand golf balls, has pursued the same strategy for 75 years -- making top-performing balls that will sell at a premium price, says Wally Uihlein, Acushnet's chief executive. That, in turn, has required a constant search for better materials, designs, and processes.

As a result, Titleist today holds half the world market, measured by dollar value, and Acushnet's parent, Fortune Brands Inc. of Deerfield, Illinois, ranks among the top performing out-of-state firms with large operations in Massachusetts. Meanwhile, Massachusetts's golf ball exports jumped nearly 40 percent last year to a record $150 million , according to the nonprofit World Institute for Strategic Economic Research.

Robert Gavin can be reached at rgavin@globe.com.