Mass. shines in tech study, NH ranked 9th
SAN FRANCISCO—Massachusetts remains the "gold standard" for mining economic growth from technology and science while California is losing its luster, according to a new study.
The report by the Milken Institute has ranked Massachusetts as the United States' top technology incubator all three times that it has been compiled since 2002.
But California slipped from second place for the first time, despite being home to Silicon Valley's fount of innovation.
New Hampshire was ninth.
Drawing upon a complex index that analyzes a variety of factors, the Milken Institute dropped California to fourth place in its 2008 rankings.
Maryland moved into the second spot while Colorado held on to third, where it stood the last time the study was done in 2004. Washington, the home state of
The Milken Institute, a Santa Monica-based think tank, assembles the index in an attempt to identify states that appear to be in the best position to foster innovation and, theoretically, cash in on the resulting benefits.
North Dakota and Hawaii made the most significant strides since the Milken Institute released its last report. North Dakota moved up from 45th to 31st place while Hawaii catapulted from 39th to 28th place.
The report attributed North Dakota's rapid rise to government programs that have helped keep tech-savvy workers in the state.
Hawaii, meanwhile, appears to be benefiting from an emphasis on "clean" technology aimed at reducing the United States' reliance on fossil fuels. The island also is leveraging its splendor to attract older tech workers looking for a more laid-back lifestyle.
Overall, though, more states appear to be doing a better job cultivating technology and science, said Ross DeVol, the Milken Institute's director of regional economics.
"States are starting to recognize they need to change because, as a country, we can no longer compete using the low-cost, low-skill formula of the past," DeVol said.
California's high-tech stature is diminishing largely because it's having more trouble educating and retaining future computer engineers and scientists.
New Hampshire moved from 12th to ninth in this year's report.
"This report confirms what we already know - that New Hampshire is a great home for high-tech," said Gov. John Lynch.
Fred Kocher, president of the New Hampshire High Technology Council, said he was not surprised by the ranking.
"New Hampshire is a technology state, but many people don't realize that fact," Kocher said. "In actuality, high-tech accounts for one-third of our state's gross state product. That statistic, along with studies like this, will let the world know about our state's high-tech entrepreneurial nature."
