Beacon Hill Institute Eleventh Annual State Competitiveness Report State Rankings 2011 by State Overall Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada NewHampshire NewJersey NewMexico NewYork NorthCarolina NorthDakota Ohio Oklahoma Oregon Pennsylvania RhodeIsland SouthCarolina SouthDakota Tennessee Texas Utah Vermont Virginia Washington WestVirginia Wisconsin Wyoming Index Rank 3.478 49 4.284 36 4.494 32 4.368 34 4.501 31 6.899 3 4.875 26 4.974 24 5.466 18 4.523 30 5.383 20 5.612 16 3.896 44 3.913 43 5.939 8 5.828 12 3.869 46 4.099 40 4.557 28 5.196 23 7.34 1 4.9 25 6.501 4 3.054 50 4.431 33 4.806 27 5.97 6 4.175 37 5.844 11 3.726 48 4.003 41 4.525 29 5.357 21 7.289 2 3.895 45 4.355 35 5.563 17 4.149 39 5.394 19 3.803 47 5.754 13 4.166 38 5.698 15 6.333 5 5.724 14 5.962 7 5.909 9 3.998 42 5.352 22 5.871 10 Page 2 / Govt&Fiscal Policy I R 5.056 25 2.777 50 5.31 14 5.379 12 4.267 47 5.203 20 4.786 39 5.674 2 5.77 1 5.435 10 4.675 41 5.266 17 4.363 45 5.527 7 5.232 18 4.887 32 4.943 30 4.869 34 4.639 42 5.411 11 4.995 27 4.815 37 4.994 28 5.302 15 5.54 6 4.584 43 5.061 23 5.143 22 5.453 9 4.216 48 4.806 38 4.287 46 5.289 16 4.497 44 4.995 26 4.976 29 5.219 19 4.875 33 4.895 31 5.571 5 5.354 13 5.623 4 5.06 24 5.504 8 4.757 40 5.67 3 4.828 36 5.199 21 4.847 35 4.176 49 Security I 4.389 4.62 4.57 4.983 5.139 5.29 5.764 3.927 5.056 4.378 5.913 5.272 5.11 4.858 5.653 5.175 4.88 4.319 5.003 4.924 5.054 4.922 5.593 4.231 4.364 4.761 5.544 5.002 5.227 5.502 4.416 4.888 4.93 6.237 4.681 4.792 4.896 5.035 5.601 4.175 4.304 4.018 4.994 5.097 5.31 5.204 5.03 6.041 5.563 5.367 R 42 39 40 28 18 13 4 50 21 43 3 14 19 35 5 17 34 45 25 30 22 31 7 47 44 37 9 26 15 10 41 33 29 1 38 36 32 23 6 48 46 49 27 20 12 16 24 2 8 11 Subindexes,Rankin2011 Human InfrStrc Tech Resources I R I R I R 4.859 35 3.959 48 4.752 33 5.303 6 4.901 30 4.211 45 4.895 33 4.92 29 4.759 31 4.975 28 4.318 41 3.936 49 4.563 46 4.464 37 5.778 5 5.593 2 5.467 14 5.772 6 4.639 43 5.426 15 5.692 8 4.913 32 5.073 25 5.067 22 5.081 21 4.309 43 4.323 39 5.207 13 4.144 45 4.636 36 4.83 36 5.574 9 4.666 35 5.008 27 4.578 34 4.859 28 5.075 22 4.939 27 5 23 4.827 38 4.818 32 4.685 34 5.041 25 5.987 5 5.106 20 5.299 7 5.387 16 4.901 24 5.026 26 4.437 40 4.233 43 5.047 24 3.996 46 4.248 42 4.573 45 5.557 11 4.209 46 4.626 44 5.552 12 6.661 2 4.968 29 6.457 1 7.932 1 4.92 31 4.61 33 5.189 18 5.235 10 6.166 2 5.753 7 4.555 47 3.412 50 4.155 48 5.158 17 4.956 26 4.876 27 5.19 14 5.14 24 4.774 30 5.311 5 5.663 7 4.9 25 5.577 3 3.942 49 3.826 50 4.554 48 6.095 4 5.552 10 4.678 42 5.287 19 4.829 29 4.827 37 4.461 38 5.271 15 4.693 41 5.193 21 5.472 11 5.189 15 4.445 39 5.151 19 5.63 1 5.932 6 5.295 14 5.088 20 4.934 28 4.884 26 5.146 18 4.487 35 4.256 41 5.23 11 4.896 31 5.192 17 4.932 30 5.308 17 5.357 13 4.866 34 5.169 23 5.836 4 4.716 40 3.985 47 4.272 40 5.27 9 5.561 10 4.503 37 5.22 12 4.223 44 4.382 38 5.179 16 4.31 42 4.758 32 5.101 19 5.547 13 5.437 12 4.271 50 6.163 3 6.303 3 5.065 23 5.186 22 5.264 16 5.297 8 5.302 18 5.564 9 4.457 49 4.48 36 4.219 44 4.819 39 5.606 8 5.083 21 5.477 4 5.278 20 4.171 47 BizIncub. Openness EnviroPlcy I 4.888 4.524 5.072 5.223 4.938 5.359 4.205 5.679 5.202 5.247 4.836 5.439 4.305 4.86 4.887 5.119 4.867 5.045 5.127 4.744 5.219 5.215 4.774 5.137 4.795 5.2 5.01 4.754 5.065 4.417 4.921 4.512 5.469 5.481 4.784 5.163 4.616 4.667 4.843 5.129 5.749 5.102 5.139 5.566 4.757 5.248 4.251 4.785 4.908 5.388 I 4.668 6.996 4.934 4.315 5.994 4.699 5.414 5.348 5.346 4.825 4.969 4.627 5.307 4.953 4.7 4.787 4.966 5.874 4.508 4.853 5.408 4.931 4.85 4.46 4.348 4.18 4.636 5.261 4.743 5.691 4.43 5.735 4.697 4.596 4.722 4.35 5.17 4.624 4.939 4.921 4.158 4.827 6.299 5.124 5.273 4.763 5.997 4.538 4.667 5.134 I 4.626 5.579 4.483 5.274 4.363 5.584 4.766 3.64 5.208 4.618 5.539 5.765 4.104 3.171 5.241 5.788 4.228 4.516 6.075 4.344 4.919 5.182 5.709 5.204 4.863 5.733 5.432 3.912 5.517 3.374 5.435 5.198 4.877 5.903 3.653 5.258 6.072 3.793 4.902 4.908 5.969 4.476 5.059 4.558 5.957 5.115 5.953 4.598 5.543 6.015 R 30 45 23 11 27 8 50 2 14 10 35 6 48 33 31 21 32 25 20 42 12 13 39 18 36 15 26 41 24 47 28 46 5 4 38 16 44 43 34 19 1 22 17 3 40 9 49 37 29 7 11th Annual BHI State Competitiveness Report R 36 1 22 48 4 34 8 10 11 28 18 39 12 20 33 29 19 5 43 25 9 23 26 44 47 49 38 14 31 7 45 6 35 41 32 46 15 40 21 24 50 27 2 17 13 30 3 42 37 16 R 34 13 39 19 41 12 33 48 22 35 15 9 44 50 21 8 43 38 1 42 28 25 11 23 32 10 18 45 16 49 17 24 31 7 47 20 2 46 30 29 4 40 27 37 5 26 6 36 14 3 From the Project Manager The Report provides a state-based inventory of what Michael Porter of the Harvard Business School calls “the microfoundations of prosperity.” The BHI State Competitiveness Index identifies how well a state performs in its ability to cultivate, for example, a solid base of scientists and engineers or how well a state is doing in protecting its environment while holding down utility costs. The index can point to whether a state can improve the productivity of its workers by cutting down on the time spent on daily commutes to work. No one walks away without taking a clear picture of conditions in his state. Our measure offers compelling lessons from perennially successful states such as Massachusetts, North Dakota, Colorado, Minnesota, Utah, and Nebraska. It also highlights the disadvantages faced by highly uncompetitive states such as New Jersey, Alabama, and Mississippi. The index can be a motivational tool to change policy to improve productivity because, in the end, that’s what really matters. This year, Massachusetts regains its first-place ranking thanks in part to its high concentration of physicians, mathproficient students, and residents with health-care coverage. Also helping Massachusetts edge out other top performing states, like North Dakota and Colorado, is its top placement in technology. Despite its overall first-place finish, Massachusetts does have areas (picked up by our discrete variables) that suggest a need for improvements. High electricity prices and expensive rent contributed to Massachusetts earning a bottom half rank in infrastructure. Massachusetts has an emissions problem which dragged down its overall environmental policy ranking. In addition to Massachusetts, North Dakota, and Colorado, Minnesota, Utah, Nebraska, Virginia, Iowa, Washington and Wyoming fill out this year’s top ten. New Hampshire finished 11th. Policymakers often compare Massachusetts’ performance with that of “leading technology states.” However, these high technology states do not always prove to be competitive by the Institute’s measure. Massachusetts (1), Colorado (3), Minnesota (4), Virginia (7), Washington (9), and Texas (15) are the only leading technology states to finish in the top 10. Other LTS states Connecticut (26), New York (29), California (31), North Carolina (21), Pennsylvania (39), and New Jersey (48) did not dramatically improve their standings. Improving productivity and increasing personal income should be part of any state’s economic development strategy. And the report continues to show that improvement can translate measurably into real capita income growth. This year’s edition would be impossible without the talented resources available to the Institute from its internship program and its affiliation with Suffolk University’s Graduate Program in Economics. Erta Muca, a second year PhD candidate, refined the data collection methods used in this report. With her attention to detail, her inquisitive nature and her congenial spirit, Erta greatly improved the Institute’s flagship project. The release of this latest edition coincides with the addition of a course offering here at Suffolk University. This year, the Economics Department introduced a new course, “Economic Competitiveness,” as part of an Expanded Classroom Requirement option. The course seeks to explore the theoretical foundations of the concept and the current debate over its utility in identifying the policies that promote economic growth. This year’s report is the product of months of collaboration by an enthusiastic group of students who assisted in various aspects of data collection and production. They also learned the arts of number-crunching, fact-checking and Microsoft Excel programming along the way. In particular, the authors of this edition would like to thank Suffolk University students Taylor Lewis, Manuel Londono, Yen Sekoko, Betty Venieri, Shruti Venkatesh, Kai Yin Pang and intern Lynnette Nolan of UMass-Dartmouth. We believe that our project team is proof positive that human capital is a critical variable for highly-motivated entities, whether they are states, metropolitan areas, or research organizations - like our own Beacon Hill Institute. 11th Annual BHI State Competitiveness Report / Page 3 BHI The Beacon Hill Institute at Suffolk University is pleased to release its 11th Annual State Competitiveness Report. Published since 2001, the report has drawn the growing nationwide attention of policymakers, economists, and public officials seeking to identify strengths and weaknesses in their state’s economic performance. BHI Table of Contents Alabama................................................................................................................................................................ 16 Alaska.................................................................................................................................................................... 17 Arizona.................................................................................................................................................................. 18 Arkansas................................................................................................................................................................ 19 California............................................................................................................................................................... 20 Colorado................................................................................................................................................................ 21 Connecticut........................................................................................................................................................... 22 Delaware............................................................................................................................................................... 23 Florida................................................................................................................................................................... 24 Georgia.................................................................................................................................................................. 25 Hawaii................................................................................................................................................................... 26 Idaho..................................................................................................................................................................... 27 Illinois.................................................................................................................................................................... 28 Indiana.................................................................................................................................................................. 29 Iowa...................................................................................................................................................................... 30 Kansas................................................................................................................................................................... 31 Kentucky................................................................................................................................................................ 32 Louisiana............................................................................................................................................................... 33 Maine.................................................................................................................................................................... 34 Maryland............................................................................................................................................................... 35 Massachusetts....................................................................................................................................................... 36 Michigan................................................................................................................................................................ 37 Minnesota............................................................................................................................................................. 38 Mississippi............................................................................................................................................................. 39 Missouri................................................................................................................................................................ 40 Montana................................................................................................................................................................ 41 Nebraska............................................................................................................................................................... 42 Nevada.................................................................................................................................................................. 43 New Hampshire..................................................................................................................................................... 44 New Jersey............................................................................................................................................................ 45 New Mexico.......................................................................................................................................................... 46 New York............................................................................................................................................................... 47 North Carolina....................................................................................................................................................... 48 North Dakota......................................................................................................................................................... 49 Ohio....................................................................................................................................................................... 50 Oklahoma.............................................................................................................................................................. 51 Oregon.................................................................................................................................................................. 52 Pennsylvania......................................................................................................................................................... 53 Rhode Island......................................................................................................................................................... 54 South Carolina....................................................................................................................................................... 55 South Dakota......................................................................................................................................................... 56 Tennessee.............................................................................................................................................................. 57 Texas...................................................................................................................................................................... 58 Utah...................................................................................................................................................................... 59 Vermont................................................................................................................................................................ 60 Virginia.................................................................................................................................................................. 61 Washington........................................................................................................................................................... 62 West Virginia......................................................................................................................................................... 63 Wisconsin.............................................................................................................................................................. 64 Wyoming............................................................................................................................................................... 65 Page 4 / BHI State Competitiveness Report 2011 BHI “A state is competitive if it has in place the policies and conditions that ensure and sustain a high level of per capita income and continued growth.” BHI State Competitiveness Report 2011 / Page 5 BHI About the indexes How does one state create more economic activity, and hence more income for its citizens, than other states? What special characteristics or attributes lead to generating this higher income? Since 2001, BHI’s State Competitiveness Report has identified the qualities that allow some areas to excel in income generation, and the qualities that inhibit other areas from attaining the same level of competitiveness. This question quickly leads on to others: • • • • How are these qualities measured? What standard should be used to determine whether a state is competitive or not? Indeed, why is it even interesting to measure competitiveness? How does economic competitiveness differ from interstate competition for workers, firms and capital? Defining State Competitiveness Table1 StateCompetitivenessRankings 2011 Index Rank Alabama 3.48 49 Alaska 4.28 36 Arizona 4.49 32 Arkansas 4.37 34 California 4.50 31 Colorado 6.90 3 Connecticut 4.88 26 Delaware 4.97 24 Florida 5.47 18 Georgia 4.52 30 Hawaii 5.38 20 Idaho 5.61 16 Illinois 3.90 44 Indiana 3.91 43 Iowa 5.94 8 Kansas 5.83 12 Kentucky 3.87 46 Louisiana 4.10 40 Maine 4.56 28 Maryland 5.20 23 Massachusetts 7.34 1 Michigan 4.90 25 Minnesota 6.50 4 Mississippi 3.05 50 Missouri 4.43 33 Montana 4.81 27 Nebraska 5.97 6 Nevada 4.17 37 NewHampshire 5.84 11 NewJersey 3.73 48 NewMexico 4.00 41 NewYork 4.53 29 NorthCarolina 5.36 21 NorthDakota 7.29 2 Ohio 3.90 45 Oklahoma 4.35 35 Oregon 5.56 17 Pennsylvania 4.15 39 RhodeIsland 5.39 19 SouthCarolina 3.80 47 SouthDakota 5.75 13 Tennessee 4.17 38 Texas 5.70 15 Utah 6.33 5 Vermont 5.72 14 Virginia 5.96 7 Washington 5.91 9 WestVirginia 4.00 42 Wisconsin 5.35 22 Wyoming 5.87 10 Page 6 / 2010 Index Rank 3.42 48 4.79 27 5.04 24 4.16 38 4.71 29 6.79 2 4.73 28 5.19 22 5.79 12 3.78 46 4.13 40 5.37 18 4.49 34 4.35 37 5.95 9 5.68 13 4.08 41 4.14 39 4.65 32 4.81 26 6.76 3 4.59 33 6.42 5 2.88 50 4.71 30 5.47 17 6.36 6 5.47 16 5.91 10 4.45 36 3.74 47 4.66 31 5.21 21 7.39 1 3.91 43 3.82 45 5.60 15 4.47 35 5.31 20 3.98 42 6.01 8 3.84 44 4.99 25 6.22 7 5.36 19 5.81 11 5.62 14 3.27 49 5.18 23 6.54 4 2009 Index Rank 3.20 50 6.31 7 5.12 21 4.23 38 4.48 32 6.33 6 4.81 26 5.16 20 4.87 25 4.69 28 4.72 27 6.12 10 4.33 36 4.26 37 6.13 9 5.72 14 3.95 43 4.06 41 5.05 23 4.48 31 7.04 1 4.47 33 6.58 4 3.29 49 4.44 34 5.52 17 5.55 16 5.35 19 5.70 15 4.03 42 4.14 40 4.37 35 4.51 30 6.93 2 3.68 47 3.91 44 6.11 11 4.18 39 4.68 29 3.86 45 5.89 12 3.76 46 4.95 24 6.65 3 5.48 18 5.80 13 6.15 8 3.54 48 5.07 22 6.37 5 2008 Index Rank 3.39 48 4.82 24 5.10 22 4.03 43 4.70 25 6.73 4 5.16 21 5.37 19 4.58 32 4.28 37 3.94 45 6.58 5 4.45 33 4.37 36 5.74 12 5.62 18 4.21 38 3.30 49 4.70 26 4.66 28 7.33 1 4.60 30 6.17 7 3.12 50 4.61 29 5.88 10 5.68 14 5.64 15 5.63 17 4.15 42 4.39 34 4.38 35 4.68 27 6.75 3 3.95 44 4.17 40 5.97 8 4.18 39 4.58 31 3.93 46 5.75 11 4.16 41 4.94 23 6.79 2 5.69 13 5.64 16 6.57 6 3.70 47 5.33 20 5.94 9 2007 Index Rank 3.44 48 5.77 13 5.47 19 3.54 46 5.10 24 6.59 3 4.93 25 4.85 27 4.63 33 4.68 31 4.30 40 6.24 5 4.43 36 3.91 44 5.48 18 5.53 17 4.31 39 2.75 50 4.45 35 5.12 23 7.07 2 4.16 41 6.20 6 2.97 49 4.87 26 5.68 15 5.82 11 4.73 28 5.88 9 4.07 43 4.72 29 4.37 38 4.70 30 6.36 4 3.89 45 4.68 32 5.74 14 4.47 34 5.19 21 4.07 42 5.90 8 4.41 37 5.35 20 7.39 1 5.78 12 5.62 16 5.94 7 3.46 47 5.15 22 5.86 10 2006 Index Rank 3.61 47 5.75 14 5.62 16 3.61 46 5.26 20 6.33 4 5.01 24 5.22 21 4.89 27 4.70 30 4.00 42 6.06 6 4.51 33 3.72 45 5.54 18 5.61 17 4.14 39 3.44 48 4.33 36 5.13 23 7.28 1 4.46 34 6.00 9 3.02 50 4.58 31 4.87 28 5.97 11 4.79 29 6.60 3 3.94 43 4.22 38 4.44 35 4.90 26 6.27 5 3.91 44 4.13 40 5.66 15 4.57 32 4.95 25 4.28 37 6.00 8 4.01 41 5.15 22 7.12 2 5.95 12 5.98 10 5.87 13 3.32 49 5.27 19 6.00 7 2005 Index Rank 4.05 43 6.00 9 5.17 22 3.08 48 5.02 26 6.37 6 5.21 21 5.17 23 4.79 28 4.92 27 3.95 45 5.67 14 4.58 35 3.73 46 5.45 15 5.71 13 4.42 39 2.60 50 4.46 38 5.95 10 7.16 1 4.68 30 6.05 7 2.83 49 5.40 17 4.62 33 6.02 8 4.62 34 6.67 3 4.54 36 4.00 44 4.27 40 5.05 25 6.41 5 4.07 42 4.16 41 5.32 19 4.65 32 4.67 31 4.77 29 5.71 12 4.48 37 5.25 20 6.78 2 5.37 18 5.73 11 6.45 4 3.40 47 5.42 16 5.14 24 BHI State Competitiveness Report 2011 the microeconomic level … - in the ability of firms to create valuable goods and services using productive methods.” 1 It follows that the outcome of competitiveness is greater affluence, measured by higher levels of per capita real Gross State Product (GSP) or personal income. Where they differ from one another is in their microeconomic policies such as tax and regulatory regimes, their provision and emphasis on education, and their attractiveness to business. These policies matter. As Porter puts it, “wealth is actually created at Y = f ( K , L,Technology) This says that output (Y) depends on the amount of capital (K), labor (L) and technology that is harnessed by the economy. As expected, more inputs lead to more output. But what raises input levels? And why do some states mix the ingredients – sound fiscal policies, educated workforce, and openness to trade – more successfully than others? To answer these questions we need to focus on the quality of the business environment. Using his 11th Annual BHI State Competitiveness Report / Page 7 Defining State Competitiveness Massachusetts regained the top spot this year. North Dakota finished second, followed by Colorado, and then Minnesota, Utah, Nebraska, Virginia, Iowa, Washington Quantifying Competitiveness and Wyoming. All New England states improved this year. New Hampshire, a perennial competitor on the border, To be useful as a concept, it is essential to have an moved from 17th place last year to 11th. Vermont operational measure of competitiveness, a measure improved to 14th while other that aggregates the key microeconomic New England states finished in the variables into a single index. In its middle of the pack: Maine (28), influential annual Global Competitiveness Rhode Island (19) and Connecticut Report, the World Economic Forum does (26). The lowest-ranked states were this for the countries of the world, but New Jersey (48) Alabama (49) and until BHI’s index there has not been an Mississippi (50) . equivalent at the level of the states of the U.S. There are some more specialized What is Competitiveness? rankings of the states, but none meet the criteria for measuring competitiveness We consider a state to be as defined above, or have an equivalent competitive if it has in place the breadth of coverage. We believe the policies and conditions that ensure and sustain a high Institute’s index meets the challenge. level of per capita income and its continued growth. To achieve this, a state should be able both to attract and In thinking about how to create an index of incubate new businesses and provide an environment competitiveness, we begin with the simple economic that is conducive to the growth of existing firms. relation: Competitiveness may be thought of as a catch-all term that covers what Michael Porter calls “the microeconomic foundations of prosperity.” The states of the United States all face the same macroeconomic conditions set at the top – national fiscal, monetary, and trade policy. BHI This State Competitiveness Report uses these questions as a starting point. The indexes are designed to measure the long-term competitiveness of an area, and use a similar approach to the one taken in BHI’s earlier studies of state competitiveness. BHI TechnicalNote1: CreatingtheIndexes Giventherawdataseriesforeachstate,several stepswereneededinordertoconstructthe competitivenessindex. 1. First,eachvariablewasnormalizedtogiveita meanof5,astandarddeviationof1,anda rangefrom0(worst)to10(best). 2. ThentheeightsubͲindexeswereformedasthe simpleaveragesofthenormalizedcomponent celebrated “diamond,” Porter finds it helpful to group the influences into four components: variables. 3. Next,thesubͲindexesthemselveswere normalized,againgivingameanof5and • • • Defining State Competitiveness • the quality of available inputs, the sophistication of local demand, the nature of local suppliers and the extent to which they form clusters, and the rules and institutions that govern the market.2 These are still very broad categories and so, following the Porter-inspired Global Competitiveness Report, we actually classify our indicators into eight groups. The breakdown is as follows: Government and fiscal policies. Businesses are more likely to be attracted to areas with moderate tax rates and clear evidence of financial discipline (as evidenced, for instance, by high state and municipal bond ratings, and budgetary balance). This subindex is designed to pick up these effects. standarddeviationof1toeach.These arepresentedinsidethefrontandback covers. Finally,theoverallindexofstatecompetitivenessis thesimpleaverageoftheeightsubͲindexes,again normalizingitsoithasameanof5andstandard deviationof1.Inpracticethecompetitiveness indicatorindexrangedfromalowof2.88toahigh of7.39. expensive is energy? These are the elements of competitiveness that are included in the infrastructure sub-index for each state. Security. A state will be more attractive to business if public officials are trusted, and if crime is low. The security sub-index addresses these dimensions of competitiveness, with particular emphasis on the importance of public safety. Human resources. A high level of labor force participation, and skilled labor that is readily available and not too expensive, combined with a widespread commitment to education, training and health care, make a state attractive for business. These factors are captured in the human resources sub-index. Infrastructure. How easy is commuting? Do most households have access to high-speed broadband and telephone service? Is housing affordable? How Technology. Since the arrival of the industrial revolution, the development and application of technology has been central to economic Page 8 / BHI State Competitiveness Report 2011 Openness. Open economies tend to be more competitive and hence more productive, in addition to specializing more thoroughly in their areas of comparative advantage. The openness sub-index measures how connected the firms and people in a state are with the rest of the world. It is based on the level of exports, as well as the percent of the population born abroad, a key element. Environmental Policy. States that are faced with environmental problems, or that have a heavyhanded policy of environmental regulation, are likely to be less attractive to businesses as well as to their workers and managers; we measure this effect with the environmental policy sub-index, which among other things reflects the levels of air pollution and of toxic releases. Decent air quality is A complete list of the components of the competitiveness indexes is given in Table A1 at the end of this section of the report. To generate this report we have used the most recent data available. The eight categories are coherent, but there is inevitably some degree of arbitrariness in the way in which individual data series are assigned to the subindexes. For instance, the amount of air travel could be included in the infrastructure subindex or the measure of openness; and electricity prices could be included in the infrastructure subindex or the environmental sub-index. In practice, the assignment of a data series is much less important than the fact that it is included at all. A competitiveness index is simply a summary measure based on a large number of variables. One difficult, and controversial, part is choosing a weighting scheme. Our approach is the simplest and most transparent: within each sub-index, each variable carries equal weight. Then each sub-index is given the same weight when constructing the overall index. This has been referred to as a “democratic” weighting structure, and is a reasonable artifact. If two series were very highly correlated, there would be no need to include both of them in the index; at first sight, one might expect some series to move together, such as the level of taxation and the number of state employees. In practice, neither these series, nor the others that make up the building blocks of our index, are closely correlated, suggesting that they are BHI State Competitiveness Report 2011 / Page 9 Defining State Competitiveness Business Incubation. A good idea is not enough; businesses also need to be able to mobilize financing for investment, both internally and from the financial system. A higher rate of business births is a particularly clear sign of a competitive environment, and is an important component of the business incubation subindex. This year we have added two other variables: an index that tracks the potential costs of tort liability, and a measure of the education-adjusted cost of labor. a measure that states are pursuing policies that improve the environment, and attracts workers and investors. BHI development. The technology sub-index measures this by taking into account research funding; the number of patents issued the proportion of scientists and engineers in the labor force, and the importance of high tech companies. BHI indeed picking up different facets of competitiveness. Is the competitiveness index useful? Do the indexes of state competitiveness explain affluence and growth? If the index is properly constructed, then it should help explain why some areas are affluent and others are not. In our experiment we estimate an equation with the following general form: 50000 45000 40000 Real Personal Income per capita, $'000 In short, competitiveness really does matter. We use a measure of personal income per capita for 2010, which is the year that corresponds best to the timing of Putting the competitiveness index to work most of the component series that make up our most recent competitiveness index. Since the cost of What do we learn from this exercise? Figure 1 living varies from Naturally it is state to state we interesting to look adjust the raw at the raw rankings numbers to take (Table 1 on page account of these 6), but this may differences, using not be the most spatial price indexes important use of generated by the the information. Bureau of Economic The detailed data, Analysis.3 This gives both in individual us the following variables and the estimated equation: sub-indexes, allow 35000 Defining State Competitiveness Real Personal Income per capita = a + b × Competitiveness Index The coefficient on the Index variable, which is on a scale of 0 (not competitive) to 10 (very competitive) indicates that every additional one point on the competitiveness index is associated with $1,893 more in real per capita income. Thus if Alabama (ranked 49th with an index of 3.48) could achieve the same competitiveness as Massachusetts (ranked 1st, with an index of 7.34), real per capita income in Alabama would be over $7,300 higher than it currently is, an increase of nearly 22 percent. 3 4 Real Personal income per capita = 30,873 + 1,893 × Competitiveness Index 2010 p=0.002 one to identify the determinants of 7 6 5 competitiveness. Competitiveness Index 2011 This is of value to policy makers, who are then in a better position to identify what needs to be done, in order of priority, to improve the position of their states. This equation has an R2 of 0.21; the low p-value indicates that the coefficient on the competitiveness index is highly statistically significant, or in other words, higher values of the index are associated with higher levels of per capita personal income. The data points, and the line fitted through them, are shown in Figure 1. Page 10 / The logic behind this is that a higher competitiveness indicator index is associated with greater affluence. A reasonable inference is that if one were to improve competitiveness, then residents of the state would be better off. And the greatest upside potential is for the indicators whose performance is currently weak. For instance, a low-crime state may BHI State Competitiveness Report 2011 Since 2001, when we began compiling these rankings, we have set out to invite the policymakers, citizens and the media to pore over the detailed results contained here. We have also visited state houses from Massachusetts to Rhode Island and Arizona to Wisconsin, and have hosted discussions with delegations from the Republic of Georgia, China, and other nations. Legislatures and planning agencies have sought ways to improve their rankings. (Endnotes) 1 Michael Porter, “The Current Competitiveness Index: Measuring the Microeconomic Foundations of Prosperity,” in World Economic Forum, The Global Competitiveness Report 2000, Oxford University Press, New York, 2000. For more discussion of competitiveness applied to nations see “What is Competitiveness?” The Competitiveness Institute, (September 2007): http://www.competitiveness.org/article/ articleview/774/1/32/ (accessed November 1, 2008). 2 Michael E. Porter, The Competitive Advantage of Nations, Free Press, New York, 1990. Since then, we have received significant press attention 3 Bettina H. Aten, Eric B. Figueroa, and Troy M. Martin Research and fielded very many questions about our methodology. Spotlight Regional Price Parities by Expenditure Class 2009. Some have compared our rankings to those of other 5–2009. http://www.bea.gov/scb/pdf/2011/05%20May/0511_ studies that stress economic freedom or low tax criteria. price_parities.pdf. We do agree that economic freedom and sound tax policy are important, and our index of competitiveness includes some indicators, such as the share of state tax collections 11th Annual BHI State Competitiveness Report / Page 11 Defining State Competitiveness What next? BHI have trouble reducing the crime rate further, while for a in Gross State Product, that measure the weight of high-crime state, efforts to reduce crime are likely to be an government quite well. However, we believe that other efficient way to boost competitiveness. factors are also important to competitiveness, even if they are not easy to place on a scale of economic To illustrate, we could pick a state which performs freedom or fit into the ideals of low tax regimes; these particularly well in some areas but ranks very low in some include such variables as the time that is required to others. That is to say a state that ranks in the middle of travel to work, the availability of venture capital, the our index. number of patents generated, and the importance to the economy of high-tech firms. For each state, we set th This year, Rhode Island ranks 19 , with a competitiveness out the main competitive strengths and weaknesses to index of 5.39. The state has clear strengths in technology give individuals a sense of where their home state has (4th, sub-index of 6.12) and security (6th / 6.17). However, been and which direction it could be taking. it ranked below the national mean on fiscal policy (31st / 4.80), infrastructure (34th/ 4.56), business incubation The central goal of this report is to engage everyone (34th / 4.57), openness (21st / 4.91), and environment in thinking about how best to improve long term th (30 / 4.87). Suppose that Rhode Island were to raise economic growth, while expanding and maintaining these sub-indexes just high levels of personal income. to the national mean of At the state level, even if it is 5.0, surely a manageable essential to think global, we still proposition; then its have to act local. th ranking would rise to 13 in the nation, its index would increase to 5.81, and state GDP would increase by an estimated $800 million annually. State Index BHI TableA1 ComponentsofSubͲindexesforStates2011 SubͲindex CompetitivenessIndicatorsIndex(“objective”) Government& FiscalPolicy Stateandlocaltaxespercapita/incomepercapita(Ͳ) Workers’compensationpremiumrates(Ͳ) Bondrating(compositeofS&P’sandMoody’s,scale1Ͳ25)(+) Budgetsurplus/deficitas%ofGrossStateProduct(+) Averageweeklypaymenttoinsuredunemployed(Ͳ) FullͲtimeͲequivalentstateandlocalgovernmentemployeesper100residents (Ͳ) Security Crimeindexper100,000inhabitants(Ͳ) %Changeincrimeindex,2009Ͳ2010(Ͳ) Murdersindexper100,000inhabitants(Ͳ) TheBGAIntegrityIndex(+) Infrastructure MobilePhonesper1000)(+) HighͲspeedlinesper1000(+) Airpassengerspercapita(+) Averagetraveltimetowork(Ͳ) ElectricityPricesperkWh(Ͳ) Averagerentof2bedroomapartment(Ͳ) HumanResources %ofpopulationwithouthealthinsurance(Ͳ) %ofpopulationaged25andoverthatgraduatedfromhighschool(+) Unemploymentrate,notseasonallyadjusted(Ͳ) %ofstudentsenrolledindegreeͲgrantinginstitutionsper1000(+) %ofadultsinthelaborforce(+) Infantmortalityrateindeathsper1,000livebirths(Ͳ) Totalactivephysiciansper100,000inhabitants(+) %ofstudentsatoraboveproficientinmathematics,Grade4publicschools (+) Technology AcademicScienceandEngineeringR&Dper$1,000GSP(+) NIHsupporttoinstitutionsinthestate,percapita(+) Patentsper100,000inhabitants(+) NumberofS&Egraduatestudentsper100,000residents(+) S&Edegreesawardedper100,000residents(+) Individualsinscienceandengineeringoccupationsas%ofthelaborforce(+) EmploymentinhighͲtechindustryasa%oftotalemployment(+) Business Depositsincommercialbanksandsavingsinstitutions,percapita(+) Incubation Venturecapitalinvestmentdollarsperworker(+) Employerfirmbirthsper100,000inhabitants(+) IPOvolume,in$percapita(+) %oflaborforcethatisrepresentedbyunions(Ͳ) Minimumwage(Ͳ) PacificResearchInstitute’sTortLiabilityIndex(Ͳ) Costoflaboradjustedforeducationalattainment(Ͳ) Openness Exportspercapita,$(+) Incomingforeigndirectinvestmentpercapita,$(+) %ofpopulationbornabroad(+) Environmental Toxic release inventory, onͲsite and offͲsite, total (new and original Policy industries),pounds/sq.miles(Ͳ) GreenhouseGasEmissions(millionmetrictonsofcarbonequivalent (MTCE) per1000Sq.Miles)(Ͳ) Airquality(%goodaveragedays)(+) Page 12 / 11th Annual BHI State Competitiveness Report BHI “The states of the United States all face the same macroeconomic conditions set at the top – national fiscal, monetary and trade policy. Where they differ from one another is in their microeconomic policies such as tax and regulatory regimes, their provision and emphasis on education, and their attractiveness to business. These policies matter.” State Index 11th Annual BHI State Competitiveness Report / Page 13 BHI How to read the index pages Page 14 / BHI State Competitiveness Report 2011 BHI State Index BHI State Competitiveness Report 2011 / Page 15 BHI ALABAMA Index 3.48 2011 COMPETITIVE ADVANTAGES Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Average weekly payment to insured unemployed Index 5.06 6.17 6.69 Overall Rank 49 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 25 2 3 Government and fiscal policy subindex Workers’ compensation premium rates Budget deficit, % of GSP Full-time-equivalent state and local government employees per 100 residents Index Rank 4.21 3.96 4.53 41 46 39 5.06 Security subindex Crime index change 2009-2010, % 4.39 6.30 42 5 Security subindex Crime index, per 100,000 inhabitants Murder index, per 100,000 inhabitants The BGA Integrity Index 4.39 4.01 4.24 3.00 42 38 40 48 Infrastructure subindex Mobile Phones per 1000 Average rent of 2 bedroom apartment 4.86 5.27 5.82 35 19 9 Infrastructure subindex High-speed lines per 1000 Air passengers per capita 4.86 3.71 4.21 35 46 45 Human resources subindex % of population enrolled in degree-granting institutions 3.96 5.31 48 17 Human resources subindex % of population without health insurance 3.96 4.87 48 31 % of population aged 25 and over that graduated from high school Unemployment rate, not seasonally adjusted % of adults who are in the labor force Infant mortality rate, deaths per 1000 live births Rate of active physicians per 100,000 inhabitants % of students at or above proficient in mathematics, grade 4 - public schools 3.50 45 4.65 3.59 2.63 3.99 3.13 31 48 49 44 48 Technology subindex Patents per 100,000 inhabitants 4.75 4.09 33 43 Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants 4.61 32 4.56 34 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Venture capital per capita Employer firm births per 100,000 inhabitants 4.89 4.70 30 37 4.45 3.96 46 41 Technology subindex Academic Science and Engineering R&D per $1,000 GSP 4.75 5.43 33 14 4.89 5.52 30 1 Cost of Labor Adjusted for Educ. Attainment 5.58 19 Openness subindex Incoming foreign direct investment per capita, dollars 4.67 5.01 36 12 Openness subindex % of population born abroad 4.67 4.15 36 42 Environmental policy subindex 4.63 34 Environmental policy subindex Toxic release inventory, pounds per sq. miles Air Quality Index 4.63 4.42 4.36 34 38 36 State Index Business incubation subindex Minimum wage Page 16 / 11th Annual BHI State Competitiveness Report 25 ALASKA 2011 COMPETITIVE ADVANTAGES Subindex/Variable Government and fiscal policy subindex Average weekly payment to insured unemployed Index 2.78 6.02 Overall Rank 36 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 50 8 Government and fiscal policy subindex State and local taxes per capita /income per capita Workers’ compensation premium rates Bond rating: composite Budget deficit, % of GSP Full-time-equivalent state and local government employees per 100 residents Index Rank 0.37 2.88 4.53 0.34 2.54 50 49 36 50 49 2.78 Security subindex 4.62 39 Security subindex Crime index, per 100,000 inhabitants The BGA Integrity Index 4.62 4.60 4.27 39 32 40 Infrastructure subindex High-speed lines per 1000 Air passengers per capita Average travel time to work 5.30 6.31 7.15 6.38 6 6 3 6 Infrastructure subindex Mobile Phones per 1000 Electricity Prices per kWh Average rent of 2 bedroom apartment 5.30 4.34 3.69 3.95 6 38 45 42 Human resources subindex % of population aged 25 and over that graduated from high school Unemployment rate, not seasonally adjusted % of adults who are in the labor force 4.90 6.16 30 5 Human resources subindex % of population without health insurance 4.90 4.24 30 37 5.36 5.25 19 20 % of population enrolled in degree-granting institutions % of students at or above proficient in mathematics, grade 4 - public schools 3.55 4.49 50 33 Technology subindex Scientists and engineers as % of labor force 4.21 5.84 45 8 Technology subindex Academic Science and Engineering R&D per $1,000 GSP 4.21 4.31 45 38 NIH support to institutions per capita Patents per 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants Employment in high-tech industry as % of total employment 4.22 3.82 3.56 4.53 45 50 49 31 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Venture capital per capita % of labor force that is represented by unions Minimum wage Cost of Labor Adjusted for Educ. Attainment 4.52 4.60 45 49 4.44 2.71 4.14 3.38 47 49 42 47 Business incubation subindex Employer firm births per 100,000 inhabitants 4.52 5.18 45 20 Pacific Research Institute Tort Index 7.04 1 Openness subindex Exports per capita, dollars Incoming foreign direct investment per capita, dollars 7.00 6.28 10.00 1 5 1 Openness subindex 7.00 1 Environmental policy subindex Carbon emission per 1000 sq. miles Air Quality Index 5.58 6.00 5.84 13 1 12 Environmental policy subindex Toxic release inventory, pounds per sq. miles 5.58 4.90 13 34 50 BHI Index 4.28 State Index 11th Annual BHI State Competitiveness Report / Page 17 BHI ARIZONA Index 4.49 2011 COMPETITIVE ADVANTAGES Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Workers’ compensation premium rates Average weekly payment to insured unemployed Full-time-equivalent state and local government employees per 100 residents Index 5.31 5.74 5.72 6.54 6.24 Overall Rank 32 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 14 10 13 4 2 Government and fiscal policy subindex Bond rating: composite Budget deficit, % of GSP Index Rank 3.62 4.00 48 45 5.31 Security subindex The BGA Integrity Index 4.57 5.84 40 11 Security subindex Crime index, per 100,000 inhabitants Crime index change 2009-2010, % Murder index, per 100,000 inhabitants 4.57 3.94 4.60 3.90 40 40 33 45 Infrastructure subindex Air passengers per capita 4.89 5.65 33 8 Infrastructure subindex Mobile Phones per 1000 Average travel time to work Electricity Prices per kWh Average rent of 2 bedroom apartment 4.89 4.26 4.70 5.08 4.76 33 39 33 32 33 Human resources subindex % of population enrolled in degree-granting institutions 4.92 8.69 29 1 Human resources subindex % of population without health insurance 4.92 3.96 29 40 % of population aged 25 and over that graduated from high school Unemployment rate, not seasonally adjusted % of adults who are in the labor force Rate of active physicians per 100,000 inhabitants % of students at or above proficient in mathematics, grade 4 - public schools 4.55 33 4.41 4.00 4.58 4.08 36 42 31 42 4.76 5.03 5.33 31 19 15 Technology subindex NIH support to institutions per capita Science & Engineering grad. students 100,000 inhabitants 4.76 4.36 4.35 31 39 37 Business incubation subindex IPO volume, in $ per capita 5.07 5.25 23 4 5.07 4.62 23 47 % of labor force that is represented by unions Pacific Research Institute Tort Index 5.78 5.42 14 16 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Venture capital per capita Minimum wage 4.46 5.24 45 34 Openness subindex % of population born abroad 4.93 5.77 22 12 Openness subindex Exports per capita, dollars Incoming foreign direct investment per capita, dollars 4.93 4.40 4.63 22 36 42 Environmental policy subindex Carbon emission per 1000 sq. miles 4.48 5.69 39 14 Environmental policy subindex Air Quality Index 4.48 2.35 39 49 State Index Technology subindex Patents per 100,000 inhabitants Employment in high-tech industry as % of total employment Page 18 / 11th Annual BHI State Competitiveness Report 14 Index 4.37 2011 COMPETITIVE ADVANTAGES Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Index 5.38 5.52 Overall Rank 34 COMPETITIVE DISADVANTAGES Rank 12 15 Subindex/Variable Government and fiscal policy subindex Full-time-equivalent state and local government employees per 100 residents Index Rank 4.51 40 5.38 Workers’ compensation premium rates Budget deficit, % of GSP 6.80 5.37 3 16 Security subindex Crime index change 2009-2010, % The BGA Integrity Index 4.98 5.56 5.89 28 16 8 Security subindex Crime index, per 100,000 inhabitants 4.98 3.76 28 44 Infrastructure subindex Average travel time to work Electricity Prices per kWh Average rent of 2 bedroom apartment 4.98 5.67 5.78 5.99 28 11 7 6 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 Air passengers per capita 4.98 4.76 3.40 4.24 28 33 49 44 Human resources subindex Unemployment rate, not seasonally adjusted 4.32 5.41 41 17 Human resources subindex % of population without health insurance % of population aged 25 and over that graduated from high school % of population enrolled in degree-granting institutions % of adults who are in the labor force Infant mortality rate, deaths per 1000 live births Rate of active physicians per 100,000 inhabitants % of students at or above proficient in mathematics, grade 4 - public schools 4.32 4.07 3.74 41 39 44 4.40 4.22 4.42 3.79 4.49 33 37 37 47 33 Technology subindex Academic Science and Engineering R&D per $1,000 GSP 3.94 4.00 49 43 NIH support to institutions per capita Patents per 100,000 inhabitants Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 4.33 3.93 3.88 41 47 46 3.59 3.73 3.89 48 47 47 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita 5.22 4.70 11 36 Openness subindex Exports per capita, dollars Incoming foreign direct investment per capita, dollars % of population born abroad Environmental policy subindex 4.31 4.04 4.59 4.31 5.27 48 42 46 35 19 Technology subindex 3.94 BHI ARKANSAS 49 Business incubation subindex Venture capital per capita 5.22 4.92 11 20 % of labor force that is represented by unions Minimum wage Cost of Labor Adjusted for Educ. Attainment 6.28 5.52 6.13 3 1 4 Openness subindex 4.31 48 Environmental policy subindex Carbon emission per 1000 sq. miles 5.27 5.55 19 19 12 State Index 11th Annual BHI State Competitiveness Report / Page 19 CALIFORNIA Index 4.50 Subindex/Variable Government and fiscal policy subindex Budget deficit, % of GSP Full-time-equivalent state and local government employees per 100 residents Index 4.27 5.35 6.02 COMPETITIVE DISADVANTAGES Rank 47 19 5 Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Workers’ compensation premium rates Index Rank 4.46 3.74 40 46 4.27 Bond rating: composite 1.17 50 Security subindex Crime index change 2009-2010, % The BGA Integrity Index 5.14 5.20 5.51 18 19 19 Security subindex Murder index, per 100,000 inhabitants 5.14 4.63 18 31 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 Air passengers per capita 4.56 5.58 5.75 5.05 46 12 15 16 Infrastructure subindex Average travel time to work Electricity Prices per kWh Average rent of 2 bedroom apartment 4.56 3.99 4.15 2.86 46 43 41 49 Human resources subindex % of population enrolled in degree-granting institutions 4.46 5.80 37 9 Human resources subindex % of population without health insurance 4.46 3.91 37 42 Infant mortality rate, deaths per 1000 live births 6.39 6 3.08 49 Rate of active physicians per 100,000 inhabitants 5.09 20 % of population aged 25 and over that graduated from high school Unemployment rate, not seasonally adjusted % of adults who are in the labor force % of students at or above proficient in mathematics, grade 4 - public schools 3.28 4.09 4.08 48 39 42 Technology subindex NIH support to institutions per capita Patents per 100,000 inhabitants Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 5.78 5.47 6.97 5.31 5 11 3 16 Technology subindex 5.78 5 5.11 5.96 6.75 19 7 5 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Venture capital per capita IPO volume, in $ per capita 4.94 4.81 27 15 Business incubation subindex % of labor force that is represented by unions 4.94 3.85 27 46 9.33 5.04 2 12 Minimum wage Pacific Research Institute Tort Index Cost of Labor Adjusted for Educ. Attainment 3.45 4.24 3.87 44 41 44 Openness subindex Exports per capita, dollars % of population born abroad 5.99 5.18 8.03 4 17 1 Openness subindex 5.99 4 Environmental policy subindex Toxic release inventory, pounds per sq. miles 4.36 5.85 41 5 Environmental policy subindex Air Quality Index 4.36 2.15 41 50 State Index BHI 2011 COMPETITIVE ADVANTAGES Overall Rank 31 Page 20 / 11th Annual BHI State Competitiveness Report 47 COLORADO 2011 COMPETITIVE ADVANTAGES Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Workers’ compensation premium rates Index 5.20 5.72 6.37 Overall Rank 3 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 20 11 4 Government and fiscal policy subindex Average weekly payment to insured unemployed Index Rank 4.01 44 5.20 Security subindex Murder index, per 100,000 inhabitants The BGA Integrity Index 5.29 5.84 5.86 13 12 10 Security subindex Crime index change 2009-2010, % 5.29 4.14 13 39 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 Air passengers per capita 5.59 5.96 6.24 6.65 2 8 8 4 Infrastructure subindex Average rent of 2 bedroom apartment 5.59 4.65 2 35 Human resources subindex % of population without health insurance % of population aged 25 and over that graduated from high school % of population enrolled in degree-granting institutions 5.47 5.47 5.78 14 14 15 Human resources subindex 5.47 14 5.26 18 % of adults who are in the labor force Infant mortality rate, deaths per 1000 live births Rate of active physicians per 100,000 inhabitants % of students at or above proficient in mathematics, grade 4 - public schools 5.56 5.65 5.22 5.86 13 12 18 9 Technology subindex Academic Science and Engineering R&D per $1,000 GSP NIH support to institutions per capita Patents per 100,000 inhabitants Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment Business incubation subindex Venture capital per capita 5.77 5.19 6 19 Technology subindex 5.77 6 4.99 5.63 5.99 19 11 6 5.85 6.95 6.98 7 4 3 5.36 5.80 8 4 5.36 4.72 8 33 Employer firm births per 100,000 inhabitants IPO volume, in $ per capita % of labor force that is represented by unions 6.59 5.31 5.80 4 3 13 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Minimum wage Pacific Research Institute Tort Index Cost of Labor Adjusted for Educ. Attainment 5.21 4.63 4.82 36 32 32 Openness subindex Incoming foreign direct investment per capita, dollars 4.70 5.13 34 5 Openness subindex Exports per capita, dollars 4.70 3.79 34 48 % of population born abroad 5.18 17 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles 5.58 5.84 5.66 12 6 15 Environmental policy subindex 5.58 12 20 BHI Index 6.90 State Index 11th Annual BHI State Competitiveness Report / Page 21 Index 4.88 2011 COMPETITIVE ADVANTAGES Subindex/Variable Government and fiscal policy subindex Budget deficit, % of GSP Full-time-equivalent state and local government employees per 100 residents Index 4.79 5.88 5.45 Overall Rank 26 COMPETITIVE DISADVANTAGES Rank 39 5 17 Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Workers’ compensation premium rates Index Rank 4.55 4.00 39 45 4.79 Bond rating: composite Average weekly payment to insured unemployed 4.53 4.31 36 41 Security subindex Crime index, per 100,000 inhabitants Crime index change 2009-2010, % The BGA Integrity Index 5.76 6.10 5.93 5.76 4 8 8 14 Security subindex 5.76 4 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 4.64 5.49 6.59 43 15 3 Infrastructure subindex Air passengers per capita Average travel time to work Electricity Prices per kWh Average rent of 2 bedroom apartment 4.64 4.32 4.64 2.92 3.88 43 41 35 49 43 Human resources subindex % of population without health insurance % of adults who are in the labor force Rate of active physicians per 100,000 inhabitants % of students at or above proficient in mathematics, grade 4 - public schools 5.43 5.96 5.65 6.50 5.58 15 8 12 5 13 Human resources subindex % of population enrolled in degree-granting institutions 5.43 4.19 15 42 Technology subindex NIH support to institutions per capita 5.69 6.21 8 4 Technology subindex Academic Science and Engineering R&D per $1,000 GSP 5.69 4.59 8 34 Patents per 100,000 inhabitants Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 6.08 6.45 9 4 5.70 5.58 5.12 11 11 20 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Venture capital per capita IPO volume, in $ per capita 4.21 4.90 50 10 Business incubation subindex Employer firm births per 100,000 inhabitants 4.21 4.36 50 36 5.27 5.19 8 6 % of labor force that is represented by unions Minimum wage Pacific Research Institute Tort Index Cost of Labor Adjusted for Educ. Attainment 4.07 2.77 4.23 2.86 42 47 42 48 Openness subindex Exports per capita, dollars Incoming foreign direct investment per capita, dollars 5.41 5.54 4.89 8 10 18 Openness subindex 5.41 8 % of population born abroad Environmental policy subindex Toxic release inventory, pounds per sq. miles 5.80 4.77 5.60 11 33 20 Environmental policy subindex Carbon emission per 1000 sq. miles 4.77 3.33 33 47 State Index BHI CONNECTICUT Page 22 / 11th Annual BHI State Competitiveness Report 39 DELAWARE 2011 COMPETITIVE ADVANTAGES Subindex/Variable Overall Rank 24 COMPETITIVE DISADVANTAGES Index Rank 2 17 1 3 10 Government and fiscal policy subindex Index Rank Security subindex 3.93 50 Security subindex Crime index, per 100,000 inhabitants Crime index change 2009-2010, % Murder index, per 100,000 inhabitants The BGA Integrity Index Infrastructure subindex Air passengers per capita Average travel time to work Electricity Prices per kWh Average rent of 2 bedroom apartment 3.93 3.75 3.61 4.44 3.91 4.91 3.94 4.76 4.46 4.12 50 45 48 37 43 32 50 32 38 40 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 4.91 6.17 6.04 32 6 10 Human resources subindex % of population without health insurance Rate of active physicians per 100,000 inhabitants 5.07 5.90 5.30 25 10 15 Human resources subindex Infant mortality rate, deaths per 1000 live births 5.07 4.56 25 33 Technology subindex Patents per 100,000 inhabitants 5.07 5.43 22 12 Technology subindex Academic Science and Engineering R&D per $1,000 GSP 5.07 3.85 22 47 Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 5.92 8 NIH support to institutions per capita 4.55 32 5.43 6.51 5.22 14 6 17 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Venture capital per capita Employer firm births per 100,000 inhabitants Minimum wage Pacific Research Institute Tort Index 5.68 10.00 2 1 Business incubation subindex Cost of Labor Adjusted for Educ. Attainment 5.68 3.93 2 43 5.01 5.97 5.52 5.33 18 9 1 20 Openness subindex Exports per capita, dollars Incoming foreign direct investment per capita, dollars 5.35 6.11 5.04 10 6 7 Openness subindex 5.35 10 % of population born abroad Environmental policy subindex 4.89 3.64 20 48 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles Air Quality Index 3.64 2.81 4.06 4.06 48 48 42 44 Government and fiscal policy subindex Workers’ compensation premium rates Bond rating: composite Budget deficit, % of GSP Average weekly payment to insured unemployed 5.67 5.43 6.33 6.01 5.94 Subindex/Variable 5.67 2 BHI Index 4.97 State Index 11th Annual BHI State Competitiveness Report / Page 23 BHI FLORIDA Index 5.47 2011 COMPETITIVE ADVANTAGES Subindex/Variable COMPETITIVE DISADVANTAGES Index Rank 1 11 11 7 6 6 Government and fiscal policy subindex Security subindex Crime index change 2009-2010, % The BGA Integrity Index 5.06 6.30 5.74 21 6 16 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 Air passengers per capita 5.08 5.56 5.80 5.72 Human resources subindex 4.31 Government and fiscal policy subindex Workers’ compensation premium rates Bond rating: composite Budget deficit, % of GSP Average weekly payment to insured unemployed Full-time-equivalent state and local government employees per 100 residents Technology subindex 5.77 5.74 5.82 5.69 6.20 5.97 4.32 Overall Rank 18 Index Rank Security subindex Crime index, per 100,000 inhabitants Murder index, per 100,000 inhabitants 5.06 3.70 4.48 21 46 34 21 13 13 7 Infrastructure subindex Average travel time to work Electricity Prices per kWh Average rent of 2 bedroom apartment 5.08 4.40 4.86 4.15 21 38 37 38 43 Human resources subindex % of population without health insurance % of population aged 25 and over that graduated from high school Unemployment rate, not seasonally adjusted % of population enrolled in degree-granting institutions % of adults who are in the labor force % of students at or above proficient in mathematics, grade 4 - public schools 4.31 3.55 4.52 43 46 34 3.70 4.20 4.05 4.49 46 40 41 33 Technology subindex Academic Science and Engineering R&D per $1,000 GSP 4.32 3.89 39 45 NIH support to institutions per capita Patents per 100,000 inhabitants Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants Scientists and engineers as % of labor force 4.30 4.45 4.30 43 32 39 4.12 4.28 42 38 39 Subindex/Variable 5.77 5.20 4.80 14 19 Business incubation subindex Venture capital per capita 5.20 4.61 14 31 6.98 6.00 5.78 2 11 13 Minimum wage Pacific Research Institute Tort Index 5.35 3.28 33 48 Openness subindex % of population born abroad 5.35 6.76 11 4 Openness subindex Exports per capita, dollars Incoming foreign direct investment per capita, dollars 5.35 4.68 4.60 11 32 45 Environmental policy subindex Air Quality Index 5.21 6.06 22 7 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles 5.21 4.93 4.63 22 32 38 State Index Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Employer firm births per 100,000 inhabitants % of labor force that is represented by unions Cost of Labor Adjusted for Educ. Attainment Page 24 / 11th Annual BHI State Competitiveness Report 1 GEORGIA 2011 COMPETITIVE ADVANTAGES Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Bond rating: composite Average weekly payment to insured unemployed Index 5.43 5.67 6.33 5.39 Overall Rank 30 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 10 13 1 16 Government and fiscal policy subindex Budget deficit, % of GSP Index Rank 4.90 32 5.43 Security subindex 4.38 43 Security subindex Crime index, per 100,000 inhabitants Crime index change 2009-2010, % Murder index, per 100,000 inhabitants 4.38 3.79 4.48 4.19 43 43 36 42 Infrastructure subindex Mobile Phones per 1000 Air passengers per capita 5.21 5.84 6.23 13 10 5 Infrastructure subindex Average travel time to work Average rent of 2 bedroom apartment 5.21 3.96 4.91 13 44 31 Human resources subindex 4.14 45 Human resources subindex % of population without health insurance % of population aged 25 and over that graduated from high school Unemployment rate, not seasonally adjusted % of population enrolled in degree-granting institutions % of adults who are in the labor force Infant mortality rate, deaths per 1000 live births Rate of active physicians per 100,000 inhabitants % of students at or above proficient in mathematics, grade 4 - public schools Technology subindex Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants 4.14 3.90 4.16 45 43 38 4.32 3.91 3.98 4.16 4.22 4.49 38 47 43 42 40 33 4.64 4.16 36 41 4.17 39 Technology subindex Employment in high-tech industry as % of total employment 4.64 5.19 36 19 Business incubation subindex Venture capital per capita Employer firm births per 100,000 inhabitants IPO volume, in $ per capita % of labor force that is represented by unions Minimum wage 5.25 5.00 5.27 5.20 6.35 5.52 10 19 19 5 2 1 Business incubation subindex 5.25 10 Openness subindex % of population born abroad 4.82 5.17 28 19 Openness subindex Exports per capita, dollars Incoming foreign direct investment per capita, dollars 4.82 4.70 4.61 28 31 44 Environmental policy subindex 4.62 35 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles Air Quality Index 4.62 4.85 4.91 4.10 35 36 35 43 10 BHI Index 4.52 State Index 11th Annual BHI State Competitiveness Report / Page 25 Index 5.38 2011 COMPETITIVE ADVANTAGES Subindex/Variable Government and fiscal policy subindex Workers’ compensation premium rates Budget deficit, % of GSP Index 4.67 5.74 5.43 Overall Rank 20 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 41 11 14 Government and fiscal policy subindex State and local taxes per capita /income per capita Average weekly payment to insured unemployed Index Rank 4.26 2.54 44 50 4.67 Security subindex Crime index change 2009-2010, % Murder index, per 100,000 inhabitants The BGA Integrity Index 5.91 6.67 6.13 6.37 3 3 7 3 Security subindex Crime index, per 100,000 inhabitants 5.91 4.48 3 35 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 Air passengers per capita 4.83 5.87 6.53 9.30 36 9 5 1 Infrastructure subindex Average travel time to work Electricity Prices per kWh Average rent of 2 bedroom apartment 4.83 4.40 0.77 2.09 36 38 50 50 Human resources subindex % of population without health insurance % of population aged 25 and over that graduated from high school Unemployment rate, not seasonally adjusted % of adults who are in the labor force Infant mortality rate, deaths per 1000 live births Rate of active physicians per 100,000 inhabitants 5.57 6.77 5.84 9 2 13 Human resources subindex % of population enrolled in degree-granting institutions 5.57 4.34 9 37 6.02 5.56 5.36 5.79 7 13 20 10 Technology subindex Academic Science and Engineering R&D per $1,000 GSP 4.67 5.44 35 13 Technology subindex Patents per 100,000 inhabitants 4.67 4.06 35 44 Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 4.63 4.11 31 40 Business incubation subindex Minimum wage Pacific Research Institute Tort Index 4.84 5.52 7.00 35 1 2 Business incubation subindex Venture capital per capita Employer firm births per 100,000 inhabitants % of labor force that is represented by unions Cost of Labor Adjusted for Educ. Attainment 4.84 4.58 4.46 2.95 4.71 35 33 35 48 34 Openness subindex Incoming foreign direct investment per capita, dollars 4.97 5.02 18 9 Openness subindex Exports per capita, dollars 4.97 3.33 18 50 % of population born abroad 6.56 6 Environmental policy subindex Toxic release inventory, pounds per sq. miles Air Quality Index 5.54 5.83 5.44 15 7 18 Environmental policy subindex 5.54 15 State Index BHI HAWAII Page 26 / 11th Annual BHI State Competitiveness Report 41 IDAHO Index 5.61 Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Average weekly payment to insured unemployed Full-time-equivalent state and local government employees per 100 residents Index 5.27 5.79 5.79 5.79 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 17 8 13 8 Government and fiscal policy subindex Budget deficit, % of GSP Index Rank 4.28 44 5.27 Security subindex Crime index, per 100,000 inhabitants Murder index, per 100,000 inhabitants 5.27 6.48 6.38 14 3 3 Security subindex The BGA Integrity Index 5.27 3.53 14 44 Infrastructure subindex Average travel time to work Electricity Prices per kWh Average rent of 2 bedroom apartment 5.01 5.91 5.99 5.72 27 9 2 14 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 Air passengers per capita 5.01 4.03 3.90 4.49 27 43 43 33 Human resources subindex 4.58 34 Human resources subindex % of population without health insurance % of population enrolled in degree-granting institutions Rate of active physicians per 100,000 inhabitants 4.58 3.95 4.19 3.67 34 41 41 49 Technology subindex Patents per 100,000 inhabitants 4.86 6.70 28 6 Technology subindex Academic Science and Engineering R&D per $1,000 GSP 4.86 3.88 28 46 Employment in high-tech industry as % of total employment 5.72 9 NIH support to institutions per capita 4.04 50 Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants 4.37 35 4.46 36 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Venture capital per capita 5.44 4.58 6 50 4.52 36 Business incubation subindex Employer firm births per 100,000 inhabitants 5.44 6.16 6 8 % of labor force that is represented by unions Minimum wage Pacific Research Institute Tort Index Cost of Labor Adjusted for Educ. Attainment 5.69 5.52 6.05 6.28 17 1 7 3 Openness subindex 4.63 39 Openness subindex Incoming foreign direct investment per capita, dollars 4.63 4.53 39 49 Environmental policy subindex Carbon emission per 1000 sq. miles Air Quality Index 5.77 5.95 6.03 9 2 8 Environmental policy subindex 5.77 9 17 BHI 2011 COMPETITIVE ADVANTAGES Overall Rank 16 State Index 11th Annual BHI State Competitiveness Report / Page 27 Index 3.90 2011 COMPETITIVE ADVANTAGES Subindex/Variable Government and fiscal policy subindex Budget deficit, % of GSP Full-time-equivalent state and local government employees per 100 residents Index 4.36 5.41 5.77 Overall Rank 44 COMPETITIVE DISADVANTAGES Rank 45 15 9 Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Workers’ compensation premium rates Index Rank 4.78 2.98 34 48 4.36 Bond rating: composite Average weekly payment to insured unemployed 2.72 4.52 49 37 Security subindex The BGA Integrity Index 5.11 5.84 19 11 Security subindex Murder index, per 100,000 inhabitants 5.11 4.34 19 38 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 Air passengers per capita 5.08 5.67 5.52 5.58 22 11 19 9 Infrastructure subindex Average travel time to work Average rent of 2 bedroom apartment 5.08 3.70 4.74 22 47 34 Human resources subindex % of population enrolled in degree-granting institutions 4.94 5.34 27 15 Human resources subindex Unemployment rate, not seasonally adjusted 4.94 4.27 27 40 Rate of active physicians per 100,000 inhabitants 5.20 19 % of students at or above proficient in mathematics, grade 4 - public schools 4.63 32 Technology subindex Patents per 100,000 inhabitants 5.00 5.04 23 18 Technology subindex Academic Science and Engineering R&D per $1,000 GSP 5.00 4.61 23 33 Science & Engineering grad. students 100,000 inhabitants 5.63 10 Scientists and engineers as % of labor force 4.61 33 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Venture capital per capita IPO volume, in $ per capita 4.30 4.93 48 8 Business incubation subindex Employer firm births per 100,000 inhabitants 4.30 4.57 48 31 5.13 4.87 13 20 % of labor force that is represented by unions Minimum wage Pacific Research Institute Tort Index Cost of Labor Adjusted for Educ. Attainment 4.26 2.77 3.40 4.52 38 47 47 38 Openness subindex Exports per capita, dollars Incoming foreign direct investment per capita, dollars 5.31 5.21 4.89 12 16 19 Openness subindex 5.31 12 % of population born abroad Environmental policy subindex 5.82 4.10 10 44 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles Air Quality Index 4.10 4.44 4.43 3.44 44 37 41 48 State Index BHI ILLINOIS Page 28 / 11th Annual BHI State Competitiveness Report 45 INDIANA Index 3.91 Subindex/Variable Government and fiscal policy subindex Workers’ compensation premium rates Bond rating: composite Full-time-equivalent state and local government employees per 100 residents Index 5.53 6.85 5.94 5.37 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 7 2 10 20 Government and fiscal policy subindex Budget deficit, % of GSP Index Rank 4.87 35 5.53 Security subindex 4.86 35 Security subindex 4.86 35 Infrastructure subindex Electricity Prices per kWh Average rent of 2 bedroom apartment 4.83 5.68 5.72 38 12 14 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 Air passengers per capita 4.83 4.15 4.03 4.29 38 40 40 42 Human resources subindex % of population without health insurance % of students at or above proficient in mathematics, grade 4 - public schools 4.82 5.36 5.45 32 20 18 Human resources subindex Unemployment rate, not seasonally adjusted % of adults who are in the labor force 4.82 4.32 4.66 32 38 32 Infant mortality rate, deaths per 1000 live births Rate of active physicians per 100,000 inhabitants 4.48 4.28 36 37 Technology subindex 4.68 34 Technology subindex NIH support to institutions per capita Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 4.68 4.50 4.53 4.12 34 34 34 39 Business incubation subindex Minimum wage 4.86 5.52 33 1 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Employer firm births per 100,000 inhabitants 4.86 4.65 33 44 4.08 39 Openness subindex Exports per capita, dollars Incoming foreign direct investment per capita, dollars 4.95 5.51 5.02 20 12 10 Openness subindex % of population born abroad 4.95 4.33 20 33 Environmental policy subindex 3.17 50 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles Air Quality Index 3.17 2.16 3.73 3.62 50 49 45 47 7 BHI 2011 COMPETITIVE ADVANTAGES Overall Rank 43 State Index 11th Annual BHI State Competitiveness Report / Page 29 Index 5.94 2011 COMPETITIVE ADVANTAGES Subindex/Variable Government and fiscal policy subindex Workers’ compensation premium rates Bond rating: composite Index 5.23 5.50 5.82 Overall Rank 8 COMPETITIVE DISADVANTAGES Rank 18 15 11 Subindex/Variable Government and fiscal policy subindex Average weekly payment to insured unemployed Full-time-equivalent state and local government employees per 100 residents Index Rank 4.44 4.70 39 37 5.23 Budget deficit, % of GSP 5.97 4 Security subindex Crime index, per 100,000 inhabitants Murder index, per 100,000 inhabitants 5.65 6.04 6.38 5 9 3 Security subindex 5.65 5 Infrastructure subindex Average travel time to work Electricity Prices per kWh Average rent of 2 bedroom apartment 5.04 6.29 5.67 6.05 25 7 13 5 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 Air passengers per capita 5.04 4.04 4.01 4.18 25 41 41 46 Human resources subindex % of population without health insurance % of population aged 25 and over that graduated from high school Unemployment rate, not seasonally adjusted % of population enrolled in degree-granting institutions 5.99 5.63 6.04 5 12 7 Human resources subindex Rate of active physicians per 100,000 inhabitants 5.99 4.12 5 41 6.26 7.68 4 2 % of adults who are in the labor force Infant mortality rate, deaths per 1000 live births 6.70 6.15 4 8 Technology subindex Academic Science and Engineering R&D per $1,000 GSP NIH support to institutions per capita 5.11 5.13 20 20 Technology subindex Scientists and engineers as % of labor force 5.11 4.17 20 40 5.03 17 Employment in high-tech industry as % of total employment 4.30 35 Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants 5.35 14 6.10 4 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Minimum wage Pacific Research Institute Tort Index 4.89 4.80 31 18 Business incubation subindex Employer firm births per 100,000 inhabitants 4.89 3.51 31 50 5.52 5.78 1 10 % of labor force that is represented by unions 4.73 31 Openness subindex 4.70 33 Openness subindex Incoming foreign direct investment per capita, dollars % of population born abroad 4.70 4.74 4.33 33 32 33 Environmental policy subindex 5.24 21 Environmental policy subindex 5.24 21 State Index BHI IOWA Page 30 / 11th Annual BHI State Competitiveness Report 18 KANSAS Index 5.83 2011 Subindex/Variable Government and fiscal policy subindex Workers’ compensation premium rates Bond rating: composite Index 4.89 6.05 5.56 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 32 8 14 Government and fiscal policy subindex State and local taxes per capita /income per capita Average weekly payment to insured unemployed Full-time-equivalent state and local government employees per 100 residents Index Rank 4.92 4.38 3.20 31 40 48 4.89 Security subindex The BGA Integrity Index 5.18 5.59 17 18 Security subindex Crime index, per 100,000 inhabitants 5.18 4.61 17 31 Infrastructure subindex Average travel time to work Electricity Prices per kWh Average rent of 2 bedroom apartment 5.30 6.29 5.48 5.73 7 7 18 12 Infrastructure subindex Air passengers per capita 5.30 4.09 7 48 Human resources subindex % of population without health insurance % of population aged 25 and over that graduated from high school Unemployment rate, not seasonally adjusted % of population enrolled in degree-granting institutions 5.39 5.54 5.63 16 13 17 Human resources subindex Infant mortality rate, deaths per 1000 live births Rate of active physicians per 100,000 inhabitants 5.39 4.20 4.24 16 40 39 5.83 5.68 9 11 % of adults who are in the labor force % of students at or above proficient in mathematics, grade 4 - public schools 5.98 5.99 10 6 Technology subindex Science & Engineering grad. students 100,000 inhabitants 4.90 5.63 24 10 Technology subindex 4.90 24 Business incubation subindex % of labor force that is represented by unions Minimum wage Pacific Research Institute Tort Index 5.12 5.60 5.52 5.59 21 18 1 12 Business incubation subindex 5.12 21 Openness subindex 4.79 29 Openness subindex Incoming foreign direct investment per capita, dollars 4.79 4.75 29 31 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles Air Quality Index 5.79 5.80 5.66 5.90 8 12 15 10 Environmental policy subindex 5.79 8 32 BHI COMPETITIVE ADVANTAGES Overall Rank 12 State Index 11th Annual BHI State Competitiveness Report / Page 31 BHI KENTUCKY Index 3.87 2011 COMPETITIVE ADVANTAGES Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Index 4.94 5.41 Overall Rank 46 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 30 19 Government and fiscal policy subindex Workers’ compensation premium rates Bond rating: composite Full-time-equivalent state and local government employees per 100 residents Index Rank 4.53 4.40 5.04 36 40 31 4.94 Security subindex Crime index, per 100,000 inhabitants 4.88 5.63 34 16 Security subindex Crime index change 2009-2010, % 4.88 3.95 34 44 Infrastructure subindex Average travel time to work Electricity Prices per kWh Average rent of 2 bedroom apartment 5.03 5.26 5.94 6.14 26 17 4 4 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 5.03 4.59 3.56 26 34 47 Human resources subindex 4.44 40 Human resources subindex % of population aged 25 and over that graduated from high school Unemployment rate, not seasonally adjusted % of adults who are in the labor force Rate of active physicians per 100,000 inhabitants 4.44 3.44 40 46 4.18 3.76 4.36 42 46 34 Technology subindex NIH support to institutions per capita Patents per 100,000 inhabitants Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 4.23 4.51 4.20 3.83 43 33 40 47 4.04 3.98 4.13 46 44 38 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Venture capital per capita Employer firm births per 100,000 inhabitants Pacific Research Institute Tort Index 4.87 4.67 32 40 4.49 3.77 4.47 41 46 36 Technology subindex 4.23 43 4.87 5.52 32 1 Cost of Labor Adjusted for Educ. Attainment 5.80 11 Openness subindex Exports per capita, dollars Incoming foreign direct investment per capita, dollars 4.97 5.52 5.28 19 11 4 Openness subindex % of population born abroad 4.97 4.10 19 44 Environmental policy subindex 4.23 43 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles Air Quality Index 4.23 3.90 4.57 4.22 43 43 39 39 State Index Business incubation subindex Minimum wage Page 32 / 11th Annual BHI State Competitiveness Report 30 LOUISIANA Index 4.10 Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Average weekly payment to insured unemployed Index 4.87 5.63 6.78 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 34 14 2 Government and fiscal policy subindex Bond rating: composite Budget deficit, % of GSP Full-time-equivalent state and local government employees per 100 residents Index Rank 3.75 3.64 4.40 46 47 41 4.87 Security subindex Crime index change 2009-2010, % The BGA Integrity Index 4.32 5.89 6.25 45 9 5 Security subindex Crime index, per 100,000 inhabitants Murder index, per 100,000 inhabitants 4.32 3.56 1.57 45 47 50 Infrastructure subindex Electricity Prices per kWh 5.05 5.62 24 16 Infrastructure subindex Air passengers per capita Average travel time to work 5.05 4.52 4.61 24 31 36 Human resources subindex Unemployment rate, not seasonally adjusted 4.00 5.60 46 14 Human resources subindex % of population without health insurance % of population aged 25 and over that graduated from high school % of population enrolled in degree-granting institutions % of adults who are in the labor force Infant mortality rate, deaths per 1000 live births % of students at or above proficient in mathematics, grade 4 - public schools 4.00 3.75 3.44 46 44 46 4.23 4.11 3.21 2.99 39 38 48 49 Technology subindex Academic Science and Engineering R&D per $1,000 GSP 4.25 4.56 42 35 NIH support to institutions per capita Patents per 100,000 inhabitants Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 4.45 3.95 4.45 37 46 34 4.17 3.69 3.91 39 49 46 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Venture capital per capita Employer firm births per 100,000 inhabitants 5.04 4.72 25 32 4.51 3.58 38 49 Technology subindex 4.25 42 Business incubation subindex % of labor force that is represented by unions 5.04 6.26 25 4 Minimum wage Pacific Research Institute Tort Index 5.52 5.75 1 11 Openness subindex Exports per capita, dollars Incoming foreign direct investment per capita, dollars 5.87 8.11 5.32 5 1 3 Openness subindex % of population born abroad 5.87 4.20 5 41 Environmental policy subindex 4.52 38 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles 4.52 3.67 4.64 38 46 37 34 BHI 2011 COMPETITIVE ADVANTAGES Overall Rank 40 State Index 11th Annual BHI State Competitiveness Report / Page 33 BHI MAINE Index 4.56 2011 COMPETITIVE ADVANTAGES Subindex/Variable Government and fiscal policy subindex Average weekly payment to insured unemployed Index 4.64 5.36 Overall Rank 28 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 42 19 Government and fiscal policy subindex State and local taxes per capita /income per capita Workers’ compensation premium rates Bond rating: composite Budget deficit, % of GSP Index Rank 4.08 4.06 4.53 4.62 46 43 36 40 4.64 Security subindex Crime index, per 100,000 inhabitants Murder index, per 100,000 inhabitants 5.00 5.92 6.13 25 13 7 Security subindex Crime index change 2009-2010, % The BGA Integrity Index 5.00 3.25 4.71 25 49 33 Infrastructure subindex Average rent of 2 bedroom apartment 4.57 5.58 45 20 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 Air passengers per capita Electricity Prices per kWh 4.57 3.61 4.52 4.44 4.23 45 47 34 36 40 Human resources subindex % of population without health insurance % of population aged 25 and over that graduated from high school Unemployment rate, not seasonally adjusted % of adults who are in the labor force Infant mortality rate, deaths per 1000 live births Rate of active physicians per 100,000 inhabitants % of students at or above proficient in mathematics, grade 4 - public schools 5.56 6.35 5.95 11 4 10 Human resources subindex % of population enrolled in degree-granting institutions 5.56 4.09 11 43 5.41 5.52 5.51 6.05 5.58 17 16 15 7 13 Technology subindex 4.21 46 Technology subindex Academic Science and Engineering R&D per $1,000 GSP 4.21 4.09 46 42 Patents per 100,000 inhabitants Science & Engineering grad. students 100,000 inhabitants Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 4.31 3.21 35 50 4.08 4.03 41 43 Business incubation subindex Employer firm births per 100,000 inhabitants Pacific Research Institute Tort Index Cost of Labor Adjusted for Educ. Attainment 5.13 5.59 6.09 5.68 20 17 6 15 Business incubation subindex Venture capital per capita Minimum wage 5.13 4.47 4.83 20 44 40 Openness subindex Incoming foreign direct investment per capita, dollars 4.51 5.02 43 11 Openness subindex Exports per capita, dollars 4.51 4.37 43 37 % of population born abroad 4.13 43 Environmental policy subindex 6.08 1 6.08 5.80 5.82 6.61 1 13 8 1 State Index Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles Air Quality Index Page 34 / 11th Annual BHI State Competitiveness Report 42 MARYLAND 2011 COMPETITIVE ADVANTAGES Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Workers’ compensation premium rates Bond rating: composite Full-time-equivalent state and local government employees per 100 residents Index 5.41 5.39 5.88 6.33 5.47 Overall Rank 23 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 11 20 9 1 16 Government and fiscal policy subindex Budget deficit, % of GSP Average weekly payment to insured unemployed Index Rank 4.92 4.47 31 38 5.41 Security subindex Crime index change 2009-2010, % The BGA Integrity Index 4.92 5.88 5.87 30 10 9 Security subindex Crime index, per 100,000 inhabitants Murder index, per 100,000 inhabitants 4.92 4.52 3.42 30 33 49 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 4.63 6.48 6.55 44 4 4 Infrastructure subindex Average travel time to work Electricity Prices per kWh Average rent of 2 bedroom apartment 4.63 2.55 4.24 3.05 44 50 39 48 Human resources subindex % of population without health insurance Unemployment rate, not seasonally adjusted % of adults who are in the labor force Rate of active physicians per 100,000 inhabitants % of students at or above proficient in mathematics, grade 4 - public schools 5.55 5.46 5.60 5.89 7.26 5.99 12 17 14 11 2 6 Human resources subindex Infant mortality rate, deaths per 1000 live births 5.55 4.15 12 43 Technology subindex Academic Science and Engineering R&D per $1,000 GSP NIH support to institutions per capita Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 6.66 9.46 2 1 Technology subindex 6.66 2 6.95 5.97 2 7 5.93 7.13 6.79 6 3 4 Business incubation subindex Venture capital per capita IPO volume, in $ per capita Minimum wage 4.74 5.36 4.93 5.52 42 6 16 1 Business incubation subindex Cost of Labor Adjusted for Educ. Attainment 4.74 2.57 42 49 Openness subindex % of population born abroad 4.85 5.85 25 9 Openness subindex Exports per capita, dollars Incoming foreign direct investment per capita, dollars 4.85 4.02 4.68 25 43 36 Environmental policy subindex 4.34 42 Environmental policy subindex Carbon emission per 1000 sq. miles Air Quality Index 4.34 3.68 4.19 42 46 40 11 BHI Index 5.20 State Index 11th Annual BHI State Competitiveness Report / Page 35 MASSACHUSETTS Index 7.34 2011 Subindex/Variable Government and fiscal policy subindex Workers’ compensation premium rates Full-time-equivalent state and local government employees per 100 residents Index 4.99 6.07 5.72 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 27 7 10 Government and fiscal policy subindex Average weekly payment to insured unemployed Index Rank 3.08 48 4.99 Security subindex Crime index, per 100,000 inhabitants Murder index, per 100,000 inhabitants The BGA Integrity Index 5.05 5.60 5.45 5.38 22 20 19 20 Security subindex Crime index change 2009-2010, % 5.05 3.78 22 47 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 Air passengers per capita 4.97 6.83 6.59 5.01 29 2 2 17 Infrastructure subindex Average travel time to work Electricity Prices per kWh Average rent of 2 bedroom apartment 4.97 3.79 3.81 3.78 29 46 44 44 Human resources subindex % of population without health insurance % of population aged 25 and over that graduated from high school % of population enrolled in degree-granting institutions 6.46 7.29 5.60 1 1 18 Human resources subindex 6.46 1 5.83 8 % of adults who are in the labor force Infant mortality rate, deaths per 1000 live births Rate of active physicians per 100,000 inhabitants % of students at or above proficient in mathematics, grade 4 - public schools 5.54 6.61 8.32 7.35 15 2 1 1 Technology subindex Academic Science and Engineering R&D per $1,000 GSP NIH support to institutions per capita Patents per 100,000 inhabitants Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Venture capital per capita IPO volume, in $ per capita Pacific Research Institute Tort Index 7.93 6.94 1 2 Technology subindex 7.93 1 10.00 6.96 8.78 1 4 1 7.49 7.56 7.41 2 2 1 5.22 5.00 12 7 Business incubation subindex Employer firm births per 100,000 inhabitants 5.22 4.54 12 33 9.70 5.77 5.42 1 2 16 % of labor force that is represented by unions Minimum wage Cost of Labor Adjusted for Educ. Attainment 4.40 3.45 3.47 35 44 46 Openness subindex Exports per capita, dollars Incoming foreign direct investment per capita, dollars 5.41 5.28 4.91 9 15 16 Openness subindex 5.41 9 % of population born abroad Environmental policy subindex Toxic release inventory, pounds per sq. miles Air Quality Index 6.03 4.92 5.67 5.81 8 28 17 13 Environmental policy subindex Carbon emission per 1000 sq. miles 4.92 3.28 28 48 State Index BHI COMPETITIVE ADVANTAGES Overall Rank 1 Page 36 / 11th Annual BHI State Competitiveness Report 27 MICHIGAN 2011 COMPETITIVE ADVANTAGES Subindex/Variable Government and fiscal policy subindex Full-time-equivalent state and local government employees per 100 residents Index 4.81 5.96 Overall Rank 25 COMPETITIVE DISADVANTAGES Rank 37 7 Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Index Rank 4.76 35 4.81 Bond rating: composite Budget deficit, % of GSP 3.75 4.59 46 41 Security subindex Crime index change 2009-2010, % 4.92 5.30 31 18 Security subindex Murder index, per 100,000 inhabitants 4.92 4.24 31 40 Infrastructure subindex Mobile Phones per 1000 4.92 5.26 31 20 Infrastructure subindex High-speed lines per 1000 Electricity Prices per kWh 4.92 4.04 5.04 31 39 35 Human resources subindex % of population without health insurance % of population aged 25 and over that graduated from high school % of population enrolled in degree-granting institutions 4.61 5.47 5.48 33 15 20 Human resources subindex Unemployment rate, not seasonally adjusted % of adults who are in the labor force 4.61 3.23 3.76 33 49 46 5.21 19 Infant mortality rate, deaths per 1000 live births 4.19 41 Rate of active physicians per 100,000 inhabitants 5.32 14 % of students at or above proficient in mathematics, grade 4 - public schools 4.22 41 Technology subindex Academic Science and Engineering R&D per $1,000 GSP NIH support to institutions per capita Patents per 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants Scientists and engineers as % of labor force 5.19 5.52 18 12 Technology subindex 5.19 18 5.03 5.42 5.11 5.45 18 13 19 12 Business incubation subindex IPO volume, in $ per capita 5.22 10.00 13 1 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Employer firm births per 100,000 inhabitants % of labor force that is represented by unions Minimum wage Pacific Research Institute Tort Index 5.22 4.67 13 41 3.87 4.09 5.10 4.06 44 41 37 43 Openness subindex Exports per capita, dollars 4.93 5.57 23 9 Openness subindex Incoming foreign direct investment per capita, dollars 4.93 4.67 23 39 Environmental policy subindex 5.18 25 Environmental policy subindex 5.18 25 37 BHI Index 4.90 State Index 11th Annual BHI State Competitiveness Report / Page 37 MINNESOTA Index 6.50 Subindex/Variable Government and fiscal policy subindex Bond rating: composite Budget deficit, % of GSP Full-time-equivalent state and local government employees per 100 residents Index 4.99 6.07 5.37 5.43 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 28 8 17 18 Government and fiscal policy subindex State and local taxes per capita /income per capita Workers’ compensation premium rates Average weekly payment to insured unemployed Index Rank 4.69 4.57 3.82 37 35 45 4.99 Security subindex Crime index, per 100,000 inhabitants Murder index, per 100,000 inhabitants The BGA Integrity Index 5.59 5.61 6.13 5.75 7 17 7 15 Security subindex 5.59 7 Infrastructure subindex Air passengers per capita Average travel time to work Electricity Prices per kWh 5.24 5.44 5.17 5.47 10 11 19 19 Infrastructure subindex 5.24 10 Human resources subindex % of population without health insurance % of population aged 25 and over that graduated from high school Unemployment rate, not seasonally adjusted % of population enrolled in degree-granting institutions 6.17 6.25 6.40 2 6 2 Human resources subindex 6.17 2 5.69 6.29 13 6 % of adults who are in the labor force Infant mortality rate, deaths per 1000 live births Rate of active physicians per 100,000 inhabitants % of students at or above proficient in mathematics, grade 4 - public schools Technology subindex NIH support to institutions per capita 6.55 6.11 5.36 6.67 5 9 13 3 5.75 5.47 7 10 Technology subindex Academic Science and Engineering R&D per $1,000 GSP 5.75 4.33 7 37 Patents per 100,000 inhabitants Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 6.76 6.95 5 3 5.58 5.76 5.42 12 9 14 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Minimum wage 4.77 4.85 39 13 Business incubation subindex Employer firm births per 100,000 inhabitants 4.77 4.50 39 34 5.52 1 % of labor force that is represented by unions Cost of Labor Adjusted for Educ. Attainment 4.31 4.53 37 36 Openness subindex 4.85 26 Openness subindex 4.85 26 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles Air Quality Index 5.71 5.80 5.60 5.73 11 11 17 14 Environmental policy subindex 5.71 11 State Index BHI 2011 COMPETITIVE ADVANTAGES Overall Rank 4 Page 38 / 11th Annual BHI State Competitiveness Report 28 MISSISSIPPI 2011 COMPETITIVE ADVANTAGES Subindex/Variable Government and fiscal policy subindex Workers’ compensation premium rates Budget deficit, % of GSP Index 5.30 5.21 5.81 Overall Rank 50 COMPETITIVE DISADVANTAGES Rank 15 20 6 Subindex/Variable Government and fiscal policy subindex Bond rating: composite Full-time-equivalent state and local government employees per 100 residents Index Rank 4.53 3.92 36 45 5.30 Average weekly payment to insured unemployed 7.00 1 Security subindex 4.23 47 Security subindex Crime index change 2009-2010, % Murder index, per 100,000 inhabitants The BGA Integrity Index 4.23 4.01 3.61 4.35 47 43 47 39 Infrastructure subindex Average rent of 2 bedroom apartment 4.55 5.79 47 11 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 Air passengers per capita 4.55 3.58 3.49 4.15 47 48 48 47 Human resources subindex 3.41 50 Human resources subindex % of population without health insurance % of population aged 25 and over that graduated from high school Unemployment rate, not seasonally adjusted % of population enrolled in degree-granting institutions % of adults who are in the labor force Infant mortality rate, deaths per 1000 live births Rate of active physicians per 100,000 inhabitants % of students at or above proficient in mathematics, grade 4 - public schools Technology subindex NIH support to institutions per capita 3.41 3.48 3.17 50 47 48 4.22 4.35 3.17 2.51 3.54 2.86 41 36 50 50 50 50 4.15 4.14 48 48 Patents per 100,000 inhabitants Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 3.86 4.11 49 43 3.80 3.44 3.69 47 50 49 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Venture capital per capita Employer firm births per 100,000 inhabitants 5.14 4.66 18 43 4.44 3.87 47 43 Technology subindex Academic Science and Engineering R&D per $1,000 GSP 4.15 5.33 48 17 Business incubation subindex % of labor force that is represented by unions 5.14 6.24 18 5 Minimum wage Cost of Labor Adjusted for Educ. Attainment 5.52 6.38 1 2 Openness subindex 4.46 44 Openness subindex Exports per capita, dollars % of population born abroad 4.46 4.59 3.92 44 33 48 Environmental policy subindex Carbon emission per 1000 sq. miles 5.20 5.52 23 20 Environmental policy subindex Toxic release inventory, pounds per sq. miles 5.20 4.87 23 35 15 BHI Index 3.05 State Index 11th Annual BHI State Competitiveness Report / Page 39 Index 4.43 2011 COMPETITIVE ADVANTAGES Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Workers’ compensation premium rates Bond rating: composite Average weekly payment to insured unemployed Index 5.54 5.80 5.33 6.33 5.98 Overall Rank 33 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 6 7 18 1 9 Government and fiscal policy subindex Budget deficit, % of GSP Index Rank 4.56 42 5.54 Security subindex 4.36 44 Security subindex Crime index, per 100,000 inhabitants Crime index change 2009-2010, % Murder index, per 100,000 inhabitants 4.36 4.15 4.54 3.61 44 36 35 47 Infrastructure subindex Air passengers per capita Electricity Prices per kWh Average rent of 2 bedroom apartment 5.16 4.91 5.63 5.73 17 20 14 12 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 5.16 4.88 4.66 17 31 31 Human resources subindex % of population enrolled in degree-granting institutions 4.96 5.31 26 16 Human resources subindex Unemployment rate, not seasonally adjusted 4.96 4.60 26 33 Infant mortality rate, deaths per 1000 live births 4.56 33 Technology subindex Academic Science and Engineering R&D per $1,000 GSP NIH support to institutions per capita 4.88 5.21 27 18 Technology subindex Patents per 100,000 inhabitants 4.88 4.41 27 33 5.31 12 Science & Engineering grad. students 100,000 inhabitants 4.62 31 Scientists and engineers as % of labor force 5.03 19 Business incubation subindex Minimum wage Cost of Labor Adjusted for Educ. Attainment 4.80 5.52 5.62 36 1 17 Business incubation subindex Venture capital per capita Employer firm births per 100,000 inhabitants Pacific Research Institute Tort Index 4.80 4.60 3.89 4.01 36 32 42 45 Openness subindex 4.35 47 Environmental policy subindex 4.86 32 Openness subindex Exports per capita, dollars Incoming foreign direct investment per capita, dollars % of population born abroad Environmental policy subindex Air Quality Index 4.35 4.25 4.58 4.21 4.86 4.29 47 39 47 40 32 37 State Index BHI MISSOURI Page 40 / 11th Annual BHI State Competitiveness Report 6 MONTANA Index 4.81 Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Average weekly payment to insured unemployed Index 4.58 5.46 5.45 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 43 16 15 Government and fiscal policy subindex Workers’ compensation premium rates Budget deficit, % of GSP Full-time-equivalent state and local government employees per 100 residents Index Rank 2.41 4.76 4.65 50 38 38 4.58 Security subindex Crime index, per 100,000 inhabitants Murder index, per 100,000 inhabitants 4.76 5.60 5.75 37 19 14 Security subindex Crime index change 2009-2010, % The BGA Integrity Index 4.76 4.26 3.43 37 38 46 Infrastructure subindex Average travel time to work Electricity Prices per kWh Average rent of 2 bedroom apartment 5.19 6.44 5.62 5.97 14 5 16 7 Infrastructure subindex Mobile Phones per 1000 5.19 3.73 14 46 Human resources subindex % of population aged 25 and over that graduated from high school Unemployment rate, not seasonally adjusted % of adults who are in the labor force Infant mortality rate, deaths per 1000 live births % of students at or above proficient in mathematics, grade 4 - public schools 5.14 6.37 24 3 Human resources subindex % of population without health insurance 5.14 4.21 24 38 5.74 5.32 5.47 5.58 12 18 16 13 % of population enrolled in degree-granting institutions Rate of active physicians per 100,000 inhabitants 3.93 4.50 45 33 Technology subindex Academic Science and Engineering R&D per $1,000 GSP S&E degrees awarded per 100,000 inhabitants 4.77 5.84 30 6 Technology subindex NIH support to institutions per capita 4.77 4.49 30 35 5.20 17 Patents per 100,000 inhabitants Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 4.12 4.49 4.18 42 35 37 Business incubation subindex Employer firm births per 100,000 inhabitants 5.20 6.60 15 3 5.20 4.71 15 35 IPO volume, in $ per capita Cost of Labor Adjusted for Educ. Attainment 5.14 6.76 10 1 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Venture capital per capita % of labor force that is represented by unions Minimum wage Pacific Research Institute Tort Index 4.47 4.62 5.24 4.06 43 32 34 43 Openness subindex 4.18 49 Openness subindex Exports per capita, dollars % of population born abroad 4.18 3.83 3.90 49 47 49 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles Air Quality Index 5.73 5.80 5.94 5.46 10 10 4 17 Environmental policy subindex 5.73 10 43 BHI 2011 COMPETITIVE ADVANTAGES Overall Rank 27 State Index 11th Annual BHI State Competitiveness Report / Page 41 Index 5.97 2011 COMPETITIVE ADVANTAGES Subindex/Variable Government and fiscal policy subindex Bond rating: composite Index 5.06 5.56 Overall Rank 6 COMPETITIVE DISADVANTAGES Rank 23 14 Subindex/Variable Government and fiscal policy subindex Full-time-equivalent state and local government employees per 100 residents Index Rank 3.75 47 5.06 Average weekly payment to insured unemployed 5.75 14 Security subindex Murder index, per 100,000 inhabitants The BGA Integrity Index 5.54 5.55 6.18 9 18 6 Security subindex 5.54 9 Infrastructure subindex Average travel time to work Electricity Prices per kWh Average rent of 2 bedroom apartment 5.31 6.50 5.70 5.81 5 4 10 10 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 5.31 4.85 4.43 5 32 35 Human resources subindex % of population without health insurance % of population aged 25 and over that graduated from high school Unemployment rate, not seasonally adjusted % of population enrolled in degree-granting institutions 5.66 5.40 5.98 7 19 9 Human resources subindex Rate of active physicians per 100,000 inhabitants 5.66 4.36 7 34 6.92 5.85 2 7 % of adults who are in the labor force 6.88 2 Technology subindex Academic Science and Engineering R&D per $1,000 GSP Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants 4.90 5.42 25 15 Technology subindex Patents per 100,000 inhabitants 4.90 4.20 25 41 5.35 14 Scientists and engineers as % of labor force 4.63 31 5.16 18 Employment in high-tech industry as % of total employment 4.48 32 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita IPO volume, in $ per capita Minimum wage Cost of Labor Adjusted for Educ. Attainment 5.01 4.83 26 14 Business incubation subindex Venture capital per capita 5.01 4.53 26 35 4.94 5.52 5.59 14 1 18 Pacific Research Institute Tort Index 4.62 33 Openness subindex 4.64 38 Openness subindex Incoming foreign direct investment per capita, dollars 4.64 4.52 38 50 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles 5.43 5.67 5.78 18 18 9 Environmental policy subindex Air Quality Index 5.43 4.85 18 31 State Index BHI NEBRASKA Page 42 / 11th Annual BHI State Competitiveness Report 23 Nevada NEVADA 2011 COMPETITIVE ADVANTAGES Subindex/Variable Government and fiscal policy subindex Full-time-equivalent state and local government employees per 100 residents Index 5.14 6.70 Overall Rank 37 COMPETITIVE DISADVANTAGES Rank 22 1 Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Index Rank 4.73 36 5.14 Average weekly payment to insured unemployed 4.56 34 Security subindex Crime index change 2009-2010, % 5.00 6.56 26 4 Security subindex Murder index, per 100,000 inhabitants The BGA Integrity Index 5.00 4.14 4.62 26 43 34 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 Air passengers per capita 5.58 5.50 5.86 7.86 3 14 12 2 Infrastructure subindex Electricity Prices per kWh Average rent of 2 bedroom apartment 5.58 5.07 4.12 3 34 40 Human resources subindex Infant mortality rate, deaths per 1000 live births 3.94 5.46 49 17 Human resources subindex % of population without health insurance % of population aged 25 and over that graduated from high school Unemployment rate, not seasonally adjusted % of population enrolled in degree-granting institutions % of adults who are in the labor force Rate of active physicians per 100,000 inhabitants % of students at or above proficient in mathematics, grade 4 - public schools 3.94 3.42 4.28 49 48 36 2.10 3.66 4.36 3.91 4.36 50 49 34 46 38 Technology subindex Academic Science and Engineering R&D per $1,000 GSP 3.83 3.35 50 50 NIH support to institutions per capita Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 4.06 3.61 49 48 3.33 3.72 4.00 50 48 44 Technology subindex 3.83 50 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Employer firm births per 100,000 inhabitants 4.75 5.78 41 4 Business incubation subindex % of labor force that is represented by unions 4.75 4.18 41 40 5.72 13 Minimum wage Pacific Research Institute Tort Index Cost of Labor Adjusted for Educ. Attainment 4.14 4.36 4.53 42 40 37 Openness subindex % of population born abroad 5.26 6.66 14 5 Openness subindex Exports per capita, dollars 5.26 4.26 14 38 Environmental policy subindex Carbon emission per 1000 sq. miles 3.91 5.88 45 5 Environmental policy subindex Toxic release inventory, pounds per sq. miles Air Quality Index 3.91 2.11 3.74 45 50 46 22 BHI Index 4.17 State Index 11th Annual BHI State Competitiveness Report / Page 43 Index 5.84 2011 COMPETITIVE ADVANTAGES Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Budget deficit, % of GSP Average weekly payment to insured unemployed Index 5.45 5.67 7.59 5.38 Overall Rank 11 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 9 12 1 17 Government and fiscal policy subindex Workers’ compensation premium rates Index Rank 4.21 41 5.45 Security subindex Crime index, per 100,000 inhabitants Murder index, per 100,000 inhabitants 5.23 6.28 6.52 15 5 1 Security subindex Crime index change 2009-2010, % The BGA Integrity Index 5.23 3.86 4.24 15 46 41 Infrastructure subindex High-speed lines per 1000 4.55 5.75 48 14 Infrastructure subindex Air passengers per capita Average travel time to work Electricity Prices per kWh Average rent of 2 bedroom apartment 4.55 4.48 4.29 3.65 4.12 48 34 41 47 39 Human resources subindex % of population without health insurance % of population aged 25 and over that graduated from high school Unemployment rate, not seasonally adjusted % of adults who are in the labor force Infant mortality rate, deaths per 1000 live births Rate of active physicians per 100,000 inhabitants % of students at or above proficient in mathematics, grade 4 - public schools 6.10 6.14 6.31 4 7 4 Human resources subindex % of population enrolled in degree-granting institutions 6.10 4.32 4 38 6.26 6.39 6.26 5.85 7.22 4 6 7 9 2 Technology subindex Academic Science and Engineering R&D per $1,000 GSP NIH support to institutions per capita Patents per 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 5.55 5.75 10 9 Technology subindex Science & Engineering grad. students 100,000 inhabitants 5.55 4.23 10 40 5.11 6.16 5.77 5.42 6.30 16 8 8 13 8 Business incubation subindex Venture capital per capita Employer firm births per 100,000 inhabitants Minimum wage 5.07 5.02 6.33 5.52 24 16 6 1 Business incubation subindex Cost of Labor Adjusted for Educ. Attainment 5.07 3.94 24 42 Openness subindex Incoming foreign direct investment per capita, dollars 4.74 4.90 31 17 Openness subindex % of population born abroad 4.74 4.44 31 31 Environmental policy subindex Toxic release inventory, pounds per sq. miles Air Quality Index 5.52 5.72 5.56 16 16 16 Environmental policy subindex 5.52 16 State Index BHI NEW HAMPSHIRE Page 44 / 11th Annual BHI State Competitiveness Report 9 NEW JERSEY Index 3.73 2011 COMPETITIVE ADVANTAGES Index 4.22 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 48 Government and fiscal policy subindex State and local taxes per capita /income per capita Workers’ compensation premium rates Bond rating: composite Average weekly payment to insured unemployed Full-time-equivalent state and local government employees per 100 residents Index Rank 4.10 4.04 4.27 2.92 4.77 45 44 41 49 36 4.22 Security subindex Crime index, per 100,000 inhabitants The BGA Integrity Index 5.50 6.23 6.75 10 6 1 Security subindex Crime index change 2009-2010, % 5.50 4.07 10 40 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 Air passengers per capita 4.68 6.49 6.83 4.93 42 3 1 19 Infrastructure subindex Average travel time to work Electricity Prices per kWh Average rent of 2 bedroom apartment 4.68 2.99 3.68 3.15 42 48 46 47 Human resources subindex Infant mortality rate, deaths per 1000 live births Rate of active physicians per 100,000 inhabitants % of students at or above proficient in mathematics, grade 4 - public schools 5.29 6.41 5.79 6.40 19 5 10 4 Human resources subindex % of population without health insurance Unemployment rate, not seasonally adjusted % of population enrolled in degree-granting institutions 5.29 4.87 4.65 3.76 19 32 31 48 Technology subindex Patents per 100,000 inhabitants 4.83 5.68 29 10 Technology subindex Academic Science and Engineering R&D per $1,000 GSP 4.83 3.67 29 49 Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 5.76 5.71 9 10 NIH support to institutions per capita S&E degrees awarded per 100,000 inhabitants 4.44 4.58 38 33 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Venture capital per capita Employer firm births per 100,000 inhabitants IPO volume, in $ per capita Minimum wage 4.42 4.93 47 9 Business incubation subindex % of labor force that is represented by unions 4.42 4.02 47 44 5.23 5.62 4.90 5.52 10 14 18 1 Pacific Research Institute Tort Index Cost of Labor Adjusted for Educ. Attainment 2.56 2.56 50 50 Openness subindex Exports per capita, dollars Incoming foreign direct investment per capita, dollars 5.69 5.08 4.98 7 19 13 Openness subindex 5.69 7 % of population born abroad Environmental policy subindex 7.02 3.37 3 49 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles 3.37 4.37 0.70 49 39 50 48 BHI Subindex/Variable Government and fiscal policy subindex Overall Rank 48 State Index 11th Annual BHI State Competitiveness Report / Page 45 NEW MEXICO Index 4.00 Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Workers’ compensation premium rates Bond rating: composite Index 4.81 5.45 5.31 5.56 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 38 18 19 14 Government and fiscal policy subindex Budget deficit, % of GSP Average weekly payment to insured unemployed Full-time-equivalent state and local government employees per 100 residents Index Rank 3.61 4.65 4.26 48 32 42 4.81 Security subindex Crime index change 2009-2010, % 4.42 6.16 41 7 Security subindex Crime index, per 100,000 inhabitants Murder index, per 100,000 inhabitants The BGA Integrity Index 4.42 3.82 3.66 4.03 41 42 46 42 Infrastructure subindex Average travel time to work Electricity Prices per kWh Average rent of 2 bedroom apartment 4.83 5.38 5.46 5.63 37 15 20 19 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 4.83 4.02 3.82 37 44 44 Human resources subindex % of population enrolled in degree-granting institutions 4.46 5.73 38 10 Human resources subindex % of population without health insurance 4.46 3.36 38 49 Infant mortality rate, deaths per 1000 live births 5.53 13 % of population aged 25 and over that graduated from high school % of adults who are in the labor force Rate of active physicians per 100,000 inhabitants % of students at or above proficient in mathematics, grade 4 - public schools 3.86 42 3.98 4.52 3.54 43 32 46 Technology subindex S&E degrees awarded per 100,000 inhabitants 5.27 4.20 15 38 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Minimum wage Pacific Research Institute Tort Index 4.92 4.60 28 48 4.83 4.40 40 38 Technology subindex Academic Science and Engineering R&D per $1,000 GSP Science & Engineering grad. students 100,000 inhabitants Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 5.27 6.16 15 4 5.47 12 5.38 6.41 14 7 Business incubation subindex % of labor force that is represented by unions 4.92 5.49 28 20 Cost of Labor Adjusted for Educ. Attainment 5.86 10 Openness subindex % of population born abroad 4.43 5.20 45 16 Openness subindex Exports per capita, dollars Incoming foreign direct investment per capita, dollars 4.43 3.46 4.63 45 49 41 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles 5.44 5.95 5.83 17 3 7 Environmental policy subindex Air Quality Index 5.44 4.52 17 35 State Index BHI 2011 COMPETITIVE ADVANTAGES Overall Rank 41 Page 46 / 11th Annual BHI State Competitiveness Report 38 NEW YORK Index 4.53 2011 Subindex/Variable Government and fiscal policy subindex Budget deficit, % of GSP Index 4.29 5.45 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 46 13 Government and fiscal policy subindex State and local taxes per capita /income per capita Workers’ compensation premium rates Bond rating: composite Average weekly payment to insured unemployed Full-time-equivalent state and local government employees per 100 residents Index Rank 2.71 4.43 4.27 4.72 4.14 49 38 41 31 43 4.29 Security subindex Crime index, per 100,000 inhabitants 4.89 6.31 33 4 Security subindex Crime index change 2009-2010, % The BGA Integrity Index 4.89 3.89 4.52 33 45 36 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 Air passengers per capita 4.69 7.42 6.07 5.07 41 1 9 15 Infrastructure subindex Average travel time to work Electricity Prices per kWh Average rent of 2 bedroom apartment 4.69 2.69 3.19 3.71 41 49 48 46 Human resources subindex Infant mortality rate, deaths per 1000 live births 5.19 6.09 21 10 5.19 4.34 21 35 Rate of active physicians per 100,000 inhabitants 6.97 3 Human resources subindex % of population aged 25 and over that graduated from high school % of adults who are in the labor force % of students at or above proficient in mathematics, grade 4 - public schools 4.66 4.36 32 38 Technology subindex NIH support to institutions per capita Patents per 100,000 inhabitants Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants 5.47 5.71 5.36 6.33 11 7 14 5 Technology subindex 5.47 11 5.77 8 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Venture capital per capita Employer firm births per 100,000 inhabitants IPO volume, in $ per capita Minimum wage 4.51 5.27 46 5 Business incubation subindex % of labor force that is represented by unions 4.51 2.49 46 50 5.52 5.59 4.90 5.52 5 16 17 1 Pacific Research Institute Tort Index Cost of Labor Adjusted for Educ. Attainment 2.85 3.95 49 41 Openness subindex Incoming foreign direct investment per capita, dollars 5.73 4.95 6 14 Openness subindex 5.73 6 % of population born abroad 7.21 2 Environmental policy subindex Toxic release inventory, pounds per sq. miles 5.20 5.66 24 19 Environmental policy subindex Carbon emission per 1000 sq. miles 5.20 4.71 24 36 46 BHI COMPETITIVE ADVANTAGES Overall Rank 29 State Index 11th Annual BHI State Competitiveness Report / Page 47 BHI NORTH CAROLINA Index 5.36 2011 COMPETITIVE ADVANTAGES Subindex/Variable Government and fiscal policy subindex Bond rating: composite Index 5.29 6.33 Overall Rank 21 COMPETITIVE DISADVANTAGES Rank 16 1 Subindex/Variable Government and fiscal policy subindex Full-time-equivalent state and local government employees per 100 residents Index Rank 4.84 33 5.29 Budget deficit, % of GSP 5.46 11 Security subindex Crime index change 2009-2010, % 4.93 5.86 29 11 Security subindex Crime index, per 100,000 inhabitants Murder index, per 100,000 inhabitants 4.93 4.13 4.58 29 37 32 Infrastructure subindex Air passengers per capita 5.19 5.27 15 14 Infrastructure subindex 5.19 15 Human resources subindex % of students at or above proficient in mathematics, grade 4 - public schools 4.45 5.45 39 18 Human resources subindex % of population without health insurance 4.45 4.48 39 35 % of population aged 25 and over that graduated from high school Unemployment rate, not seasonally adjusted % of adults who are in the labor force Infant mortality rate, deaths per 1000 live births 4.28 36 4.13 4.25 3.75 43 36 45 Technology subindex S&E degrees awarded per 100,000 inhabitants 5.15 4.70 19 31 Business incubation subindex Venture capital per capita 5.47 4.49 5 40 5.15 5.92 19 5 5.61 5.11 8 17 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita IPO volume, in $ per capita % of labor force that is represented by unions Minimum wage Pacific Research Institute Tort Index Cost of Labor Adjusted for Educ. Attainment 5.47 4.79 5 20 5.16 6.37 5.52 6.91 5.72 8 1 1 3 14 Openness subindex 4.70 35 Openness subindex Exports per capita, dollars 4.70 4.50 35 35 Environmental policy subindex 4.88 31 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles Air Quality Index 4.88 4.93 5.03 4.68 31 33 31 34 State Index Technology subindex Academic Science and Engineering R&D per $1,000 GSP NIH support to institutions per capita Scientists and engineers as % of labor force Page 48 / 11th Annual BHI State Competitiveness Report 16 NORTH DAKOTA Index 7.29 2011 Subindex/Variable Government and fiscal policy subindex Workers’ compensation premium rates Index 4.50 7.13 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 44 1 Government and fiscal policy subindex State and local taxes per capita /income per capita Budget deficit, % of GSP Average weekly payment to insured unemployed Full-time-equivalent state and local government employees per 100 residents Index Rank 3.45 2.89 4.56 3.78 48 49 33 46 4.50 Security subindex Crime index, per 100,000 inhabitants Crime index change 2009-2010, % Murder index, per 100,000 inhabitants 6.24 6.81 7.23 6.28 1 1 1 6 Security subindex The BGA Integrity Index 6.24 4.62 1 34 Infrastructure subindex Average travel time to work Electricity Prices per kWh Average rent of 2 bedroom apartment 5.63 7.18 5.83 6.32 1 1 6 2 Infrastructure subindex 5.63 1 Human resources subindex % of population without health insurance % of population aged 25 and over that graduated from high school Unemployment rate, not seasonally adjusted % of population enrolled in degree-granting institutions 5.93 5.45 5.95 6 18 10 Human resources subindex Infant mortality rate, deaths per 1000 live births 5.93 4.57 6 32 7.30 6.40 1 3 % of adults who are in the labor force % of students at or above proficient in mathematics, grade 4 - public schools 7.45 5.72 1 11 Technology subindex Academic Science and Engineering R&D per $1,000 GSP Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants 5.30 6.30 14 3 Technology subindex NIH support to institutions per capita 5.30 4.34 14 40 7.04 2 Patents per 100,000 inhabitants 4.31 34 5.38 15 Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 4.44 4.40 36 34 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Employer firm births per 100,000 inhabitants % of labor force that is represented by unions Minimum wage Pacific Research Institute Tort Index Cost of Labor Adjusted for Educ. Attainment 5.48 4.89 4 12 Business incubation subindex Venture capital per capita 5.48 4.44 4 47 6.54 5.60 5.52 6.60 5.57 5 18 1 4 20 Openness subindex Exports per capita, dollars 4.60 5.14 41 18 Openness subindex Incoming foreign direct investment per capita, dollars % of population born abroad 4.60 4.67 3.99 41 40 47 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles Air Quality Index 5.90 5.77 5.75 6.19 7 15 12 5 Environmental policy subindex 5.90 7 44 BHI COMPETITIVE ADVANTAGES Overall Rank 2 State Index 11th Annual BHI State Competitiveness Report / Page 49 OHIO Index 3.90 Subindex/Variable Government and fiscal policy subindex Full-time-equivalent state and local government employees per 100 residents Index 5.00 5.43 COMPETITIVE DISADVANTAGES Rank 26 19 Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Index Rank 4.67 38 5.00 Workers’ compensation premium rates 4.64 34 Security subindex 4.68 38 Security subindex Crime index, per 100,000 inhabitants Crime index change 2009-2010, % The BGA Integrity Index 4.68 4.50 4.35 4.86 38 34 37 31 Infrastructure subindex Mobile Phones per 1000 Average travel time to work Average rent of 2 bedroom apartment 5.09 5.39 5.20 5.71 20 17 18 16 Infrastructure subindex High-speed lines per 1000 Air passengers per capita 5.09 4.60 4.37 20 33 38 Human resources subindex Rate of active physicians per 100,000 inhabitants % of students at or above proficient in mathematics, grade 4 - public schools 4.93 5.26 5.58 28 16 13 Human resources subindex Unemployment rate, not seasonally adjusted % of population enrolled in degree-granting institutions 4.93 4.37 4.52 28 37 32 Infant mortality rate, deaths per 1000 live births 4.39 38 Technology subindex NIH support to institutions per capita Patents per 100,000 inhabitants Science & Engineering grad. students 100,000 inhabitants 4.88 4.93 5.06 5.14 26 20 17 20 Technology subindex S&E degrees awarded per 100,000 inhabitants 4.88 4.48 26 35 Business incubation subindex IPO volume, in $ per capita Pacific Research Institute Tort Index 4.78 4.93 5.43 38 15 15 Business incubation subindex Employer firm births per 100,000 inhabitants % of labor force that is represented by unions Minimum wage 4.78 3.67 4.57 5.10 38 48 33 37 Openness subindex Exports per capita, dollars Incoming foreign direct investment per capita, dollars 4.72 5.05 4.87 32 20 20 Openness subindex % of population born abroad 4.72 4.25 32 39 Environmental policy subindex 3.65 47 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles Air Quality Index 3.65 2.90 3.88 4.19 47 47 43 41 State Index BHI 2011 COMPETITIVE ADVANTAGES Overall Rank 45 Page 50 / 11th Annual BHI State Competitiveness Report 26 OKLAHOMA 2011 COMPETITIVE ADVANTAGES Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Budget deficit, % of GSP Index 4.98 6.15 5.45 Overall Rank 35 COMPETITIVE DISADVANTAGES Rank 29 3 12 Subindex/Variable Government and fiscal policy subindex Workers’ compensation premium rates Full-time-equivalent state and local government employees per 100 residents Index Rank 3.35 4.81 47 35 4.98 Average weekly payment to insured unemployed 5.31 20 Security subindex Crime index change 2009-2010, % 4.79 5.44 36 17 Security subindex Crime index, per 100,000 inhabitants Murder index, per 100,000 inhabitants 4.79 4.01 4.48 36 39 34 Infrastructure subindex Average travel time to work Electricity Prices per kWh Average rent of 2 bedroom apartment 5.15 5.79 5.69 5.87 18 10 11 8 Infrastructure subindex Mobile Phones per 1000 Air passengers per capita 5.15 4.35 4.36 18 37 39 Human resources subindex Unemployment rate, not seasonally adjusted 4.49 5.79 35 11 Human resources subindex % of population without health insurance % of population aged 25 and over that graduated from high school % of population enrolled in degree-granting institutions Infant mortality rate, deaths per 1000 live births Rate of active physicians per 100,000 inhabitants % of students at or above proficient in mathematics, grade 4 - public schools 4.49 4.49 4.73 35 34 32 4.52 3.73 3.95 3.95 31 46 45 44 Technology subindex Academic Science and Engineering R&D per $1,000 GSP 4.26 3.95 41 44 NIH support to institutions per capita Patents per 100,000 inhabitants Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 4.31 4.27 4.59 42 38 33 4.35 4.07 4.06 37 42 42 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Venture capital per capita Pacific Research Institute Tort Index 5.16 4.72 16 31 4.50 4.54 39 35 Technology subindex 4.26 41 Business incubation subindex IPO volume, in $ per capita 5.16 5.17 16 7 % of labor force that is represented by unions Minimum wage Cost of Labor Adjusted for Educ. Attainment 6.00 5.52 5.98 11 1 7 Openness subindex 4.35 46 Openness subindex Exports per capita, dollars Incoming foreign direct investment per capita, dollars 4.35 3.84 4.74 46 46 33 Environmental policy subindex 5.26 20 Environmental policy subindex Air Quality Index 5.26 4.79 20 32 29 BHI Index 4.35 State Index 11th Annual BHI State Competitiveness Report / Page 51 OREGON Index 5.56 Subindex/Variable Government and fiscal policy subindex Workers’ compensation premium rates Full-time-equivalent state and local government employees per 100 residents Index 5.22 5.76 5.55 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 19 10 13 Government and fiscal policy subindex Budget deficit, % of GSP Index Rank 4.81 37 5.22 Security subindex Murder index, per 100,000 inhabitants 4.90 5.84 32 12 Security subindex Crime index change 2009-2010, % The BGA Integrity Index 4.90 4.06 4.75 32 42 32 Infrastructure subindex High-speed lines per 1000 Air passengers per capita Average travel time to work Electricity Prices per kWh 5.23 5.56 4.93 5.35 5.71 11 18 18 16 9 Infrastructure subindex 5.23 11 Human resources subindex % of population aged 25 and over that graduated from high school Infant mortality rate, deaths per 1000 live births Rate of active physicians per 100,000 inhabitants 4.90 5.51 31 19 Human resources subindex % of population without health insurance 4.90 4.68 31 33 5.95 5.50 11 12 Unemployment rate, not seasonally adjusted % of adults who are in the labor force % of students at or above proficient in mathematics, grade 4 - public schools 4.04 4.36 4.49 44 34 33 Technology subindex NIH support to institutions per capita 5.19 5.25 17 13 Technology subindex Science & Engineering grad. students 100,000 inhabitants 5.19 4.35 17 37 Patents per 100,000 inhabitants Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 6.16 5.10 5.66 7 18 12 Business incubation subindex Venture capital per capita 4.62 5.14 44 11 4.62 4.63 44 46 Employer firm births per 100,000 inhabitants Cost of Labor Adjusted for Educ. Attainment 5.92 5.86 10 9 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita % of labor force that is represented by unions Minimum wage Pacific Research Institute Tort Index 4.02 2.08 4.59 44 49 34 Openness subindex Exports per capita, dollars % of population born abroad 5.17 5.61 5.18 15 8 17 Openness subindex Incoming foreign direct investment per capita, dollars 5.17 4.72 15 34 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles Air Quality Index 6.07 5.88 5.86 6.48 2 4 6 3 Environmental policy subindex 6.07 2 State Index BHI 2011 COMPETITIVE ADVANTAGES Overall Rank 17 Page 52 / 11th Annual BHI State Competitiveness Report 19 PENNSYLVANIA Index 4.15 2011 Subindex/Variable Government and fiscal policy subindex Full-time-equivalent state and local government employees per 100 residents Index 4.88 6.10 COMPETITIVE DISADVANTAGES Rank 33 4 Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Index Rank 4.91 32 4.88 Workers’ compensation premium rates Budget deficit, % of GSP Average weekly payment to insured unemployed 4.47 4.88 4.10 37 34 43 Security subindex Crime index, per 100,000 inhabitants 5.04 6.01 23 10 Security subindex Crime index change 2009-2010, % Murder index, per 100,000 inhabitants 5.04 4.55 4.48 23 34 34 Infrastructure subindex High-speed lines per 1000 4.93 5.18 30 20 Infrastructure subindex Average travel time to work Electricity Prices per kWh 4.93 4.29 4.92 30 41 36 Human resources subindex % of population without health insurance Rate of active physicians per 100,000 inhabitants % of students at or above proficient in mathematics, grade 4 - public schools 5.31 5.96 5.97 5.99 17 9 8 6 Human resources subindex Infant mortality rate, deaths per 1000 live births 5.31 4.50 17 35 Technology subindex Academic Science and Engineering R&D per $1,000 GSP NIH support to institutions per capita Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants 5.36 5.70 13 11 Technology subindex 5.36 13 5.83 5.16 6 19 5.72 10 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Venture capital per capita IPO volume, in $ per capita Minimum wage 4.67 4.81 43 16 Business incubation subindex Employer firm births per 100,000 inhabitants 4.67 4.54 43 32 5.07 4.87 5.52 15 19 1 % of labor force that is represented by unions Pacific Research Institute Tort Index Cost of Labor Adjusted for Educ. Attainment 4.35 3.44 4.74 36 46 33 Openness subindex 4.62 40 Openness subindex Exports per capita, dollars 4.62 4.57 40 34 Environmental policy subindex 3.79 46 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles Air Quality Index 3.79 3.74 3.88 3.76 46 45 43 45 33 BHI COMPETITIVE ADVANTAGES Overall Rank 39 State Index 11th Annual BHI State Competitiveness Report / Page 53 Index 5.39 2011 COMPETITIVE ADVANTAGES Subindex/Variable Government and fiscal policy subindex Budget deficit, % of GSP Full-time-equivalent state and local government employees per 100 residents Index 4.89 6.15 6.12 Overall Rank 19 COMPETITIVE DISADVANTAGES Rank 31 2 3 Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Bond rating: composite Index Rank 4.46 4.27 41 41 4.89 Average weekly payment to insured unemployed 3.29 47 Security subindex Crime index, per 100,000 inhabitants Murder index, per 100,000 inhabitants The BGA Integrity Index 5.60 5.60 5.65 6.50 6 18 16 2 Security subindex Crime index change 2009-2010, % 5.60 4.65 6 31 Infrastructure subindex High-speed lines per 1000 Average travel time to work 4.87 5.73 5.17 34 16 19 Infrastructure subindex Electricity Prices per kWh Average rent of 2 bedroom apartment 4.87 3.85 4.62 34 43 36 Human resources subindex % of population without health insurance 5.17 5.87 23 11 5.17 3.92 23 41 % of population enrolled in degree-granting institutions 6.37 5 Human resources subindex % of population aged 25 and over that graduated from high school Unemployment rate, not seasonally adjusted 3.66 47 Rate of active physicians per 100,000 inhabitants 6.63 4 Technology subindex Academic Science and Engineering R&D per $1,000 GSP NIH support to institutions per capita Patents per 100,000 inhabitants Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants Employment in high-tech industry as % of total employment 5.84 5.84 4 6 Technology subindex 5.84 4 6.37 5.02 5.69 3 20 9 6.87 5.22 3 18 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Venture capital per capita Employer firm births per 100,000 inhabitants 4.84 5.14 34 6 Business incubation subindex % of labor force that is represented by unions 4.84 4.07 34 42 5.35 5.82 7 11 Minimum wage Pacific Research Institute Tort Index Cost of Labor Adjusted for Educ. Attainment 5.10 4.40 4.16 37 38 39 Openness subindex Incoming foreign direct investment per capita, dollars 4.94 5.07 21 6 Openness subindex Exports per capita, dollars 4.94 4.08 21 41 % of population born abroad 5.67 14 Environmental policy subindex Toxic release inventory, pounds per sq. miles Air Quality Index 4.90 5.82 5.86 30 9 11 Environmental policy subindex Carbon emission per 1000 sq. miles 4.90 3.02 30 49 State Index BHI RHODE ISLAND Page 54 / 11th Annual BHI State Competitiveness Report 31 SOUTH CAROLINA Index 3.80 2011 Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Bond rating: composite Budget deficit, % of GSP Average weekly payment to insured unemployed Index 5.57 6.12 6.07 5.57 6.10 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 5 4 8 10 7 Government and fiscal policy subindex Workers’ compensation premium rates Index Rank 4.35 39 5.57 Security subindex 4.18 48 Security subindex Crime index, per 100,000 inhabitants Crime index change 2009-2010, % Murder index, per 100,000 inhabitants 4.18 3.12 4.62 4.05 48 50 32 44 Infrastructure subindex 4.72 40 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 Air passengers per capita 4.72 4.41 3.72 4.28 40 36 45 43 Human resources subindex 3.98 47 Human resources subindex % of population without health insurance % of population aged 25 and over that graduated from high school Unemployment rate, not seasonally adjusted % of population enrolled in degree-granting institutions % of adults who are in the labor force Infant mortality rate, deaths per 1000 live births Rate of active physicians per 100,000 inhabitants % of students at or above proficient in mathematics, grade 4 - public schools Technology subindex NIH support to institutions per capita Patents per 100,000 inhabitants Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 3.98 3.61 4.10 47 45 39 3.85 4.08 3.92 3.69 4.28 4.36 45 44 45 47 37 38 4.27 4.48 4.21 3.54 40 36 39 49 4.17 4.26 4.28 39 39 36 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Venture capital per capita Employer firm births per 100,000 inhabitants 5.13 4.65 19 45 4.52 4.16 37 38 Technology subindex 4.27 40 Business incubation subindex % of labor force that is represented by unions 5.13 6.13 19 8 Minimum wage Pacific Research Institute Tort Index Cost of Labor Adjusted for Educ. Attainment 5.52 5.48 5.87 1 14 8 Openness subindex Exports per capita, dollars Incoming foreign direct investment per capita, dollars 4.92 5.48 4.93 24 13 15 Openness subindex % of population born abroad 4.92 4.35 24 32 Environmental policy subindex Air Quality Index 4.91 5.40 29 20 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles 4.91 4.35 4.98 29 40 34 5 BHI COMPETITIVE ADVANTAGES Overall Rank 47 State Index 11th Annual BHI State Competitiveness Report / Page 55 SOUTH DAKOTA Index 5.75 Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Index 5.35 6.26 COMPETITIVE DISADVANTAGES Rank 13 1 Subindex/Variable Government and fiscal policy subindex Full-time-equivalent state and local government employees per 100 residents Index Rank 4.94 32 5.35 Average weekly payment to insured unemployed 5.82 11 Security subindex Crime index, per 100,000 inhabitants Murder index, per 100,000 inhabitants 4.30 6.62 5.65 46 2 16 Security subindex Crime index change 2009-2010, % The BGA Integrity Index 4.30 2.25 2.70 46 50 50 Infrastructure subindex Average travel time to work Electricity Prices per kWh Average rent of 2 bedroom apartment 5.27 6.97 5.63 6.27 9 2 14 3 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 Air passengers per capita 5.27 4.48 3.91 4.36 9 35 42 40 Human resources subindex % of population without health insurance % of population aged 25 and over that graduated from high school Unemployment rate, not seasonally adjusted % of adults who are in the labor force Infant mortality rate, deaths per 1000 live births 5.56 5.47 5.75 10 16 16 Human resources subindex Rate of active physicians per 100,000 inhabitants 5.56 4.36 10 34 6.87 6.74 5.40 3 3 18 Technology subindex Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants 4.50 5.30 37 17 Technology subindex Academic Science and Engineering R&D per $1,000 GSP 4.50 4.16 37 40 5.32 16 NIH support to institutions per capita Patents per 100,000 inhabitants Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 4.28 4.04 4.01 3.91 44 45 43 45 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Employer firm births per 100,000 inhabitants % of labor force that is represented by unions Minimum wage Pacific Research Institute Tort Index Cost of Labor Adjusted for Educ. Attainment 5.75 7.14 1 2 Business incubation subindex Venture capital per capita 5.75 4.44 1 47 5.46 6.06 5.52 6.60 6.08 18 9 1 4 5 Openness subindex 4.16 50 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles Air Quality Index 5.97 5.97 5.95 5.99 4 2 3 9 Openness subindex Exports per capita, dollars Incoming foreign direct investment per capita, dollars % of population born abroad Environmental policy subindex 4.16 3.90 4.55 4.02 5.97 50 45 48 46 4 State Index BHI 2011 COMPETITIVE ADVANTAGES Overall Rank 13 Page 56 / 11th Annual BHI State Competitiveness Report 13 TENNESSEE Index 4.17 2011 Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Bond rating: composite Budget deficit, % of GSP Average weekly payment to insured unemployed Full-time-equivalent state and local government employees per 100 residents Index 5.62 6.00 5.56 5.65 6.25 5.54 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 4 5 14 9 5 14 Government and fiscal policy subindex Workers’ compensation premium rates Index Rank 4.74 31 5.62 Security subindex 4.02 49 Security subindex Crime index, per 100,000 inhabitants Murder index, per 100,000 inhabitants The BGA Integrity Index 4.02 3.45 4.29 3.22 49 49 39 47 Infrastructure subindex Mobile Phones per 1000 Average rent of 2 bedroom apartment 5.22 6.47 5.64 12 5 18 Infrastructure subindex High-speed lines per 1000 5.22 4.16 12 38 Human resources subindex 4.22 44 Human resources subindex % of population aged 25 and over that graduated from high school Unemployment rate, not seasonally adjusted % of population enrolled in degree-granting institutions % of adults who are in the labor force Infant mortality rate, deaths per 1000 live births % of students at or above proficient in mathematics, grade 4 - public schools 4.22 3.95 44 40 4.56 3.92 4.07 3.90 3.54 35 46 40 44 46 Technology subindex Academic Science and Engineering R&D per $1,000 GSP 4.38 4.66 38 32 Patents per 100,000 inhabitants Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 4.30 3.97 36 45 4.06 3.97 4.09 45 45 41 5.10 4.72 22 34 4.58 3.99 34 40 Technology subindex NIH support to institutions per capita 4.38 5.21 38 14 Business incubation subindex % of labor force that is represented by unions 5.10 6.21 22 7 Minimum wage Cost of Labor Adjusted for Educ. Attainment 5.52 5.79 1 12 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Venture capital per capita Employer firm births per 100,000 inhabitants Openness subindex Exports per capita, dollars 4.83 5.32 27 14 Openness subindex % of population born abroad 4.83 4.31 27 35 Environmental policy subindex 4.48 40 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles Air Quality Index 4.48 4.13 5.02 4.27 40 42 32 38 4 BHI COMPETITIVE ADVANTAGES Overall Rank 38 State Index 11th Annual BHI State Competitiveness Report / Page 57 TEXAS Index 5.70 Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Bond rating: composite Index 5.06 5.94 5.56 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 24 6 14 Government and fiscal policy subindex Workers’ compensation premium rates Average weekly payment to insured unemployed Full-time-equivalent state and local government employees per 100 residents Index Rank 4.35 4.53 4.83 39 36 34 5.06 Security subindex Crime index change 2009-2010, % The BGA Integrity Index 4.99 5.78 6.11 27 13 7 Security subindex Crime index, per 100,000 inhabitants Murder index, per 100,000 inhabitants 4.99 3.51 4.58 27 48 32 Infrastructure subindex High-speed lines per 1000 Air passengers per capita 5.18 5.65 5.29 16 17 12 Infrastructure subindex Average travel time to work Electricity Prices per kWh 5.18 4.67 5.20 16 34 31 Human resources subindex Unemployment rate, not seasonally adjusted Infant mortality rate, deaths per 1000 live births 4.31 5.27 5.52 42 20 14 Human resources subindex % of population without health insurance % of population aged 25 and over that graduated from high school % of population enrolled in degree-granting institutions Rate of active physicians per 100,000 inhabitants 4.31 2.63 3.08 42 50 49 4.35 4.10 35 42 Technology subindex Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 4.76 5.30 5.31 32 15 16 Technology subindex S&E degrees awarded per 100,000 inhabitants 4.76 4.09 32 43 Business incubation subindex Venture capital per capita IPO volume, in $ per capita % of labor force that is represented by unions Minimum wage Pacific Research Institute Tort Index 5.14 5.01 5.15 6.04 5.52 5.41 17 17 9 10 1 18 Business incubation subindex Employer firm births per 100,000 inhabitants Cost of Labor Adjusted for Educ. Attainment 5.14 4.35 4.89 17 37 31 Openness subindex Exports per capita, dollars Incoming foreign direct investment per capita, dollars 6.30 7.60 5.03 2 2 8 Openness subindex 6.30 2 % of population born abroad Environmental policy subindex 6.26 5.06 7 27 Environmental policy subindex Air Quality Index 5.06 4.76 27 33 State Index BHI 2011 COMPETITIVE ADVANTAGES Overall Rank 15 Page 58 / 11th Annual BHI State Competitiveness Report 24 UTAH Index 6.33 2011 Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Workers’ compensation premium rates Bond rating: composite Full-time-equivalent state and local government employees per 100 residents Index 5.50 5.45 6.23 6.33 5.64 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 8 17 6 1 12 Government and fiscal policy subindex Budget deficit, % of GSP Average weekly payment to insured unemployed Index Rank 4.83 4.54 36 35 5.50 Security subindex Murder index, per 100,000 inhabitants 5.10 6.09 20 10 Security subindex The BGA Integrity Index 5.10 4.52 20 36 Infrastructure subindex Air passengers per capita Average travel time to work Electricity Prices per kWh 5.10 5.75 5.67 5.86 19 6 11 5 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 5.10 3.89 4.38 19 45 36 Human resources subindex % of population aged 25 and over that graduated from high school Unemployment rate, not seasonally adjusted % of population enrolled in degree-granting institutions 5.55 6.04 13 7 Human resources subindex Rate of active physicians per 100,000 inhabitants 5.55 4.05 13 43 5.50 6.37 16 4 % of adults who are in the labor force Infant mortality rate, deaths per 1000 live births 5.30 6.49 19 4 Technology subindex Academic Science and Engineering R&D per $1,000 GSP Patents per 100,000 inhabitants Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 5.44 5.38 12 16 Technology subindex 5.44 12 5.34 5.26 15 18 6.06 5.28 5.71 5 16 11 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Venture capital per capita Employer firm births per 100,000 inhabitants % of labor force that is represented by unions Minimum wage Pacific Research Institute Tort Index 5.57 6.42 3 3 Business incubation subindex 5.57 3 5.25 6.24 5.73 5.52 5.53 9 7 15 1 13 Openness subindex Exports per capita, dollars % of population born abroad 5.12 5.81 4.89 17 7 20 Openness subindex Incoming foreign direct investment per capita, dollars 5.12 4.67 17 38 Environmental policy subindex Carbon emission per 1000 sq. miles 4.56 5.72 37 13 Environmental policy subindex Toxic release inventory, pounds per sq. miles Air Quality Index 4.56 3.77 4.18 37 44 42 8 BHI COMPETITIVE ADVANTAGES Overall Rank 5 State Index 11th Annual BHI State Competitiveness Report / Page 59 Index 5.72 2011 COMPETITIVE ADVANTAGES Subindex/Variable Government and fiscal policy subindex Bond rating: composite Index 4.76 5.82 Overall Rank 14 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 40 11 Government and fiscal policy subindex State and local taxes per capita /income per capita Workers’ compensation premium rates Budget deficit, % of GSP Full-time-equivalent state and local government employees per 100 residents Index Rank 4.30 4.68 4.89 3.95 43 33 33 44 4.76 Security subindex Crime index, per 100,000 inhabitants Crime index change 2009-2010, % Murder index, per 100,000 inhabitants 5.31 6.19 5.58 6.47 12 7 15 2 Security subindex The BGA Integrity Index 5.31 2.99 12 49 Infrastructure subindex Average travel time to work 4.27 5.53 50 14 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 Air passengers per capita Electricity Prices per kWh Average rent of 2 bedroom apartment 4.27 1.98 4.66 4.46 4.11 4.89 50 50 32 35 42 32 Human resources subindex % of population without health insurance % of population aged 25 and over that graduated from high school Unemployment rate, not seasonally adjusted % of population enrolled in degree-granting institutions 6.16 6.33 6.16 3 5 5 Human resources subindex 6.16 3 6.21 5.52 6 12 % of adults who are in the labor force Infant mortality rate, deaths per 1000 live births Rate of active physicians per 100,000 inhabitants % of students at or above proficient in mathematics, grade 4 - public schools Technology subindex Academic Science and Engineering R&D per $1,000 GSP NIH support to institutions per capita Patents per 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 6.07 6.50 6.38 6.13 9 3 6 5 6.30 5.77 3 8 Technology subindex Science & Engineering grad. students 100,000 inhabitants 6.30 4.02 3 44 5.59 8.06 8.86 5.03 5.52 9 1 1 19 13 Business incubation subindex Venture capital per capita 4.76 5.13 40 12 4.76 4.69 40 38 Employer firm births per 100,000 inhabitants Cost of Labor Adjusted for Educ. Attainment 5.62 5.62 15 16 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Minimum wage Pacific Research Institute Tort Index 3.04 4.47 46 36 Openness subindex Exports per capita, dollars 5.27 6.85 13 4 Openness subindex Incoming foreign direct investment per capita, dollars % of population born abroad 5.27 4.68 4.30 13 37 38 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles Air Quality Index 5.96 6.02 5.76 6.09 5 1 10 6 Environmental policy subindex 5.96 5 State Index BHI VERMONT Page 60 / 11th Annual BHI State Competitiveness Report 40 VIRGINIA Index 5.96 Subindex/Variable COMPETITIVE DISADVANTAGES Index Rank 3 9 4 1 18 Government and fiscal policy subindex Index Rank Security subindex Crime index, per 100,000 inhabitants Crime index change 2009-2010, % 5.20 6.00 5.66 16 11 14 Security subindex The BGA Integrity Index 5.20 4.38 16 38 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 Air passengers per capita 5.07 6.08 5.93 5.47 23 7 11 10 Infrastructure subindex Average travel time to work Average rent of 2 bedroom apartment 5.07 3.81 3.72 23 45 45 Human resources subindex Unemployment rate, not seasonally adjusted 5.19 5.88 22 8 5.19 4.82 22 31 % of population enrolled in degree-granting institutions 5.13 20 Human resources subindex % of population aged 25 and over that graduated from high school Infant mortality rate, deaths per 1000 live births 4.31 39 % of adults who are in the labor force % of students at or above proficient in mathematics, grade 4 - public schools 5.39 5.72 17 11 Technology subindex Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 5.26 5.42 16 13 Technology subindex Academic Science and Engineering R&D per $1,000 GSP 5.26 4.15 16 41 5.58 7.62 7.35 12 1 2 NIH support to institutions per capita Patents per 100,000 inhabitants 4.57 4.52 31 31 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Venture capital per capita Employer firm births per 100,000 inhabitants % of labor force that is represented by unions Minimum wage Pacific Research Institute Tort Index 5.25 4.90 9 11 Business incubation subindex Cost of Labor Adjusted for Educ. Attainment 5.25 3.66 9 45 5.13 5.78 6.22 5.52 5.96 14 12 6 1 8 Openness subindex % of population born abroad 4.76 5.44 30 15 Openness subindex Exports per capita, dollars Incoming foreign direct investment per capita, dollars 4.76 4.24 4.61 30 40 43 Environmental policy subindex Air Quality Index 5.12 5.40 26 19 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles 5.12 4.93 5.01 26 31 33 Government and fiscal policy subindex State and local taxes per capita /income per capita Workers’ compensation premium rates Bond rating: composite Budget deficit, % of GSP 5.67 5.75 6.37 6.33 5.36 Subindex/Variable 5.67 3 BHI 2011 COMPETITIVE ADVANTAGES Overall Rank 7 State Index 11th Annual BHI State Competitiveness Report / Page 61 Index 5.91 2011 COMPETITIVE ADVANTAGES Subindex/Variable Government and fiscal policy subindex Bond rating: composite Full-time-equivalent state and local government employees per 100 residents Index 4.83 5.30 5.51 Overall Rank 9 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 36 20 15 Government and fiscal policy subindex Budget deficit, % of GSP Average weekly payment to insured unemployed Index Rank 4.30 3.43 43 46 4.83 Security subindex Murder index, per 100,000 inhabitants The BGA Integrity Index 5.03 5.89 6.34 24 11 4 Security subindex Crime index, per 100,000 inhabitants Crime index change 2009-2010, % 5.03 3.82 4.06 24 41 41 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 Air passengers per capita Electricity Prices per kWh 5.30 5.35 6.29 5.28 5.97 8 18 7 13 3 Infrastructure subindex Average travel time to work Average rent of 2 bedroom apartment 5.30 4.52 4.38 8 37 37 Human resources subindex % of population aged 25 and over that graduated from high school Infant mortality rate, deaths per 1000 live births Rate of active physicians per 100,000 inhabitants % of students at or above proficient in mathematics, grade 4 - public schools 5.30 5.81 18 14 Human resources subindex Unemployment rate, not seasonally adjusted 5.30 4.60 18 33 6.70 5.26 5.58 1 16 13 % of population enrolled in degree-granting institutions 4.40 34 Technology subindex NIH support to institutions per capita 5.56 6.09 9 5 Technology subindex Academic Science and Engineering R&D per $1,000 GSP 5.56 4.56 9 35 Patents per 100,000 inhabitants 7.21 2 4.16 41 Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 6.94 6.69 5 6 Science & Engineering grad. students 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants 4.69 32 Business incubation subindex Venture capital per capita 4.25 5.80 49 3 4.25 4.68 49 39 IPO volume, in $ per capita 4.96 13 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita % of labor force that is represented by unions Minimum wage Pacific Research Institute Tort Index Cost of Labor Adjusted for Educ. Attainment 3.35 1.61 4.77 4.10 47 50 31 40 Openness subindex Exports per capita, dollars % of population born abroad 6.00 7.45 5.72 3 3 13 Openness subindex 6.00 3 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles Air Quality Index 5.95 5.79 5.58 6.50 6 14 18 2 Environmental policy subindex 5.95 6 State Index BHI WASHINGTON Page 62 / 11th Annual BHI State Competitiveness Report 36 WEST VIRGINIA Index 4.00 Subindex/Variable Government and fiscal policy subindex Workers’ compensation premium rates Budget deficit, % of GSP Average weekly payment to insured unemployed Index 5.20 5.45 5.69 5.80 COMPETITIVE DISADVANTAGES Rank Rank 4.83 4.27 33 41 Security subindex 6.04 2 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 Air passengers per capita Average travel time to work 4.46 3.18 2.99 4.06 4.38 49 49 50 49 40 Human resources subindex % of population aged 25 and over that graduated from high school % of adults who are in the labor force Infant mortality rate, deaths per 1000 live births % of students at or above proficient in mathematics, grade 4 - public schools 4.48 3.83 36 43 3.22 4.58 3.68 49 31 45 Technology subindex Academic Science and Engineering R&D per $1,000 GSP 4.22 4.29 44 39 NIH support to institutions per capita Patents per 100,000 inhabitants Science & Engineering grad. students 100,000 inhabitants Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 4.16 3.92 4.37 47 48 35 3.79 3.77 46 48 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita Venture capital per capita Employer firm births per 100,000 inhabitants % of labor force that is represented by unions 4.78 4.66 37 42 4.48 3.82 4.24 42 45 39 6.04 5.98 6.93 5.41 5.84 4.46 5.74 6.39 2 12 2 20 11 49 8 1 Human resources subindex % of population enrolled in degree-granting institutions 4.48 5.52 36 13 4.22 Index Government and fiscal policy subindex State and local taxes per capita /income per capita Bond rating: composite Security subindex Crime index, per 100,000 inhabitants Crime index change 2009-2010, % Murder index, per 100,000 inhabitants The BGA Integrity Index Infrastructure subindex Electricity Prices per kWh Average rent of 2 bedroom apartment Technology subindex Subindex/Variable 21 16 8 12 44 5.20 Business incubation subindex Minimum wage 4.78 5.52 37 1 Cost of Labor Adjusted for Educ. Attainment 6.00 6 Openness subindex 4.54 42 Openness subindex % of population born abroad 4.54 3.77 42 50 Environmental policy subindex 4.60 36 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles 4.60 4.32 4.53 36 41 40 21 BHI 2011 COMPETITIVE ADVANTAGES Overall Rank 42 State Index 11th Annual BHI State Competitiveness Report / Page 63 Index 5.35 2011 COMPETITIVE ADVANTAGES Subindex/Variable Government and fiscal policy subindex Average weekly payment to insured unemployed Full-time-equivalent state and local government employees per 100 residents Index 4.85 5.37 5.71 Overall Rank 22 COMPETITIVE DISADVANTAGES Rank 35 18 11 Subindex/Variable Government and fiscal policy subindex State and local taxes per capita /income per capita Workers’ compensation premium rates Index Rank 4.36 4.70 42 32 4.85 Bond rating: composite Budget deficit, % of GSP 4.27 4.68 41 39 Security subindex 5.56 8 Infrastructure subindex Mobile Phones per 1000 High-speed lines per 1000 Air passengers per capita Electricity Prices per kWh 4.82 4.03 4.20 4.51 5.08 39 42 37 32 33 Human resources subindex 5.61 8 Technology subindex Employment in high-tech industry as % of total employment 5.08 4.41 21 33 Security subindex Crime index, per 100,000 inhabitants Crime index change 2009-2010, % Murder index, per 100,000 inhabitants The BGA Integrity Index Infrastructure subindex Average travel time to work 5.56 5.69 5.20 5.70 5.67 4.82 5.56 8 15 20 15 17 39 13 Human resources subindex % of population without health insurance % of population aged 25 and over that graduated from high school % of adults who are in the labor force Infant mortality rate, deaths per 1000 live births % of students at or above proficient in mathematics, grade 4 - public schools 5.61 6.36 5.89 8 3 12 6.11 5.38 5.86 8 19 9 Technology subindex Academic Science and Engineering R&D per $1,000 GSP NIH support to institutions per capita Patents per 100,000 inhabitants 5.08 5.73 21 10 5.11 5.25 15 16 Business incubation subindex Total deposits (Commercial banks and Savings institutions) per capita IPO volume, in $ per capita Minimum wage Pacific Research Institute Tort Index 4.91 4.81 29 17 Business incubation subindex Employer firm births per 100,000 inhabitants 4.91 3.76 29 47 5.08 5.52 5.89 11 1 9 % of labor force that is represented by unions 4.49 34 Openness subindex 4.67 37 Openness subindex Incoming foreign direct investment per capita, dollars % of population born abroad 4.67 4.71 4.31 37 35 35 Environmental policy subindex Air Quality Index 5.54 5.68 14 15 Environmental policy subindex 5.54 14 State Index BHI WISCONSIN Page 64 / 11th Annual BHI State Competitiveness Report 35 WYOMING 2011 COMPETITIVE ADVANTAGES Subindex/Variable Government and fiscal policy subindex Workers’ compensation premium rates Bond rating: composite Budget deficit, % of GSP Index 4.18 5.56 5.56 5.34 Overall Rank 10 COMPETITIVE DISADVANTAGES Rank Subindex/Variable 49 14 14 20 Government and fiscal policy subindex State and local taxes per capita /income per capita Average weekly payment to insured unemployed Full-time-equivalent state and local government employees per 100 residents Index Rank 3.55 4.20 0.85 47 42 50 4.18 Security subindex Crime index, per 100,000 inhabitants Crime index change 2009-2010, % Murder index, per 100,000 inhabitants 5.37 5.83 5.85 6.33 11 14 12 5 Security subindex The BGA Integrity Index 5.37 3.46 11 45 Infrastructure subindex Mobile Phones per 1000 Average travel time to work Electricity Prices per kWh Average rent of 2 bedroom apartment 5.48 5.39 6.53 6.09 5.67 4 16 3 1 17 Infrastructure subindex Air passengers per capita 5.48 4.40 4 37 Human resources subindex % of population aged 25 and over that graduated from high school Unemployment rate, not seasonally adjusted % of population enrolled in degree-granting institutions 5.28 6.55 20 1 Human resources subindex % of population without health insurance 5.28 4.41 20 36 5.83 5.39 9 14 Rate of active physicians per 100,000 inhabitants 3.75 48 % of adults who are in the labor force % of students at or above proficient in mathematics, grade 4 - public schools 6.17 5.45 7 18 Technology subindex 4.17 47 Technology subindex Academic Science and Engineering R&D per $1,000 GSP 4.17 3.78 47 48 NIH support to institutions per capita Patents per 100,000 inhabitants S&E degrees awarded per 100,000 inhabitants Scientists and engineers as % of labor force Employment in high-tech industry as % of total employment 4.19 4.28 4.09 4.36 3.58 46 37 43 37 50 Business incubation subindex Employer firm births per 100,000 inhabitants % of labor force that is represented by unions Minimum wage Pacific Research Institute Tort Index 5.39 7.68 5.73 5.52 5.35 7 1 15 1 19 Business incubation subindex Cost of Labor Adjusted for Educ. Attainment 5.39 4.64 7 35 Openness subindex Incoming foreign direct investment per capita, dollars 5.13 7.35 16 2 Openness subindex Exports per capita, dollars 5.13 4.01 16 44 % of population born abroad 4.03 45 Environmental policy subindex 6.02 3 Environmental policy subindex Toxic release inventory, pounds per sq. miles Carbon emission per 1000 sq. miles Air Quality Index 6.02 5.83 5.76 6.45 3 8 10 4 49 BHI Index 5.87 State Index 11th Annual BHI State Competitiveness Report / Page 65 BHI About the Authors Jonathan Haughton is Senior Economist at the Beacon Hill Institute and Assistant Professor of Economics at Suffolk University. He holds a doctorate in economics from Harvard University and has published widely in refereed journals on economic development and taxation. Frank Conte is Director of Communications and Information Systems at the Beacon Hill Institute. He holds a master’s degree in public policy from the McCormack Graduate School of Policy Studies at the University of Massachusetts-Boston. He is responsible for all aspects of the institute’s media outreach including its web presence. He serves as Project Manager for the annual competitiveness project. Erta Muca is a Research Intern at the Beacon Hill Institute and a graduate student in economics at Suffolk University. She holds a Bachelor’s degree in Economics and Mathematics from the American University in Bulgaria. She assisted with the data compilation and analysis for this year’s report. Acknowledgements BHI would like to gratefully acknowledge the assistance of staff Paul Bachman and Michael Head as well as Jessica Thanos of the Economics Department. The authors would also like to thank Suffolk University students Taylor Lewis, Kai Yin Pang, Manuel Londano, Yen Sekoko, Betty Venieri , Shruti Venkatesh and Intern Lynnette Nolan of UMass-Dartmouth who assisted in various aspects of data collection and production over the past year. About The Beacon Hill Institute at Suffolk University State Index The Beacon Hill Institute (BHI) is an independent, nonpartisan economic research organization located in the Department of Economics at Suffolk University in Boston, Massachusetts. Articles and references to BHI’s work have appeared in leading publications, including the Boston Globe, Washington Post, New York Times, Wall Street Journal, Los Angeles Times Magazine, The New York Sun, U.S. News & World Report and scholarly publications such as Cato Journal, State Tax Notes and the National Bureau of Economic Research’s Working Papers Series. For the last eight years, BHI has been a leader in the development of econometric models for the analysis of state tax policy changes, interstate economic competitiveness and community economic impact studies. In addition, BHI has applied its customized economic models to public construction projects, public school performance and alternative energy. The Institute has also produced state revenue forecasts, using its own models for the Massachusetts Joint Legislative Committee for Ways and Means. The Suffolk University Economics Department features 13 full-time faculty members and offers degrees at the undergraduate and graduate levels including a PhD program. Departmental research strengths include international trade, economic development, national and international taxation policy, globalization, and industrial organization. Page 66 / 11th Annual BHI State Competitiveness Report Massachusetts NorthDakota Colorado Minnesota Utah Nebraska Virginia Iowa Washington Wyoming NewHampshire Kansas SouthDakota Vermont Texas Idaho Oregon Florida RhodeIsland Hawaii NorthCarolina Wisconsin Maryland Delaware Michigan Connecticut Montana Maine NewYork Georgia California Arizona Missouri Arkansas Oklahoma Alaska Nevada Tennessee Pennsylvania Louisiana NewMexico WestVirginia Indiana Illinois Ohio Kentucky SouthCarolina NewJersey Alabama Mississippi Index Rank 7.34 1 7.289 2 6.899 3 6.501 4 6.333 5 5.97 6 5.962 7 5.939 8 5.909 9 5.871 10 5.844 11 5.828 12 5.754 13 5.724 14 5.698 15 5.612 16 5.563 17 5.466 18 5.394 19 5.383 20 5.357 21 5.352 22 5.196 23 4.974 24 4.9 25 4.875 26 4.806 27 4.557 28 4.525 29 4.523 30 4.501 31 4.494 32 4.431 33 4.368 34 4.355 35 4.284 36 4.175 37 4.166 38 4.149 39 4.099 40 4.003 41 3.998 42 3.913 43 3.896 44 3.895 45 3.869 46 3.803 47 3.726 48 3.478 49 3.054 50 Security I 5.054 6.237 5.29 5.593 5.097 5.544 5.204 5.653 5.03 5.367 5.227 5.175 4.304 5.31 4.994 5.272 4.896 5.056 5.601 5.913 4.93 5.563 4.924 3.927 4.922 5.764 4.761 5.003 4.888 4.378 5.139 4.57 4.364 4.983 4.792 4.62 5.002 4.018 5.035 4.319 4.416 6.041 4.858 5.11 4.681 4.88 4.175 5.502 4.389 4.231 R 22 1 13 7 20 9 16 5 24 11 15 17 46 12 27 14 32 21 6 3 29 8 30 50 31 4 37 25 33 43 18 40 44 28 36 39 26 49 23 45 41 2 35 19 38 34 48 10 42 47 InfrStrc I 4.968 5.63 5.593 5.235 5.101 5.311 5.065 5.041 5.297 5.477 4.554 5.299 5.27 4.271 5.179 5.008 5.23 5.081 4.866 4.83 5.189 4.819 4.626 4.913 4.92 4.639 5.19 4.573 4.693 5.207 4.563 4.895 5.158 4.975 5.146 5.303 5.577 5.22 4.932 5.047 4.827 4.457 4.827 5.075 5.088 5.026 4.716 4.678 4.859 4.555 R 29 1 2 10 19 5 23 25 8 4 48 7 9 50 16 27 11 21 34 36 15 39 44 32 31 43 14 45 41 13 46 33 17 28 18 6 3 12 30 24 37 49 38 22 20 26 40 42 35 47 BHI State Competitiveness Report 2011 Subindexes,Rankin2011 Human Tech Resources I R I R 6.457 1 7.932 1 5.932 6 5.295 14 5.467 14 5.772 6 6.166 2 5.753 7 5.547 13 5.437 12 5.663 7 4.9 25 5.186 22 5.264 16 5.987 5 5.106 20 5.302 18 5.564 9 5.278 20 4.171 47 6.095 4 5.552 10 5.387 16 4.901 24 5.561 10 4.503 37 6.163 3 6.303 3 4.31 42 4.758 32 4.578 34 4.859 28 4.896 31 5.192 17 4.309 43 4.323 39 5.169 23 5.836 4 5.574 9 4.666 35 4.445 39 5.151 19 5.606 8 5.083 21 5.552 12 6.661 2 5.073 25 5.067 22 4.61 33 5.189 18 5.426 15 5.692 8 5.14 24 4.774 30 5.557 11 4.209 46 5.193 21 5.472 11 4.144 45 4.636 36 4.464 37 5.778 5 4.92 29 4.759 31 4.956 26 4.876 27 4.318 41 3.936 49 4.487 35 4.256 41 4.901 30 4.211 45 3.942 49 3.826 50 4.223 44 4.382 38 5.308 17 5.357 13 3.996 46 4.248 42 4.461 38 5.271 15 4.48 36 4.219 44 4.818 32 4.685 34 4.939 27 5 23 4.934 28 4.884 26 4.437 40 4.233 43 3.985 47 4.272 40 5.287 19 4.829 29 3.959 48 4.752 33 3.412 50 4.155 48 BizIncub. Openness EnviroPlcy I 5.219 5.481 5.359 4.774 5.566 5.01 5.248 4.887 4.251 5.388 5.065 5.119 5.749 4.757 5.139 5.439 4.616 5.202 4.843 4.836 5.469 4.908 4.744 5.679 5.215 4.205 5.2 5.127 4.512 5.247 4.938 5.072 4.795 5.223 5.163 4.524 4.754 5.102 4.667 5.045 4.921 4.785 4.86 4.305 4.784 4.867 5.129 4.417 4.888 5.137 I 5.408 4.596 4.699 4.85 5.124 4.636 4.763 4.7 5.997 5.134 4.743 4.787 4.158 5.273 6.299 4.627 5.17 5.346 4.939 4.969 4.697 4.667 4.853 5.348 4.931 5.414 4.18 4.508 5.735 4.825 5.994 4.934 4.348 4.315 4.35 6.996 5.261 4.827 4.624 5.874 4.43 4.538 4.953 5.307 4.722 4.966 4.921 5.691 4.668 4.46 I 4.919 5.903 5.584 5.709 4.558 5.432 5.115 5.241 5.953 6.015 5.517 5.788 5.969 5.957 5.059 5.765 6.072 5.208 4.902 5.539 4.877 5.543 4.344 3.64 5.182 4.766 5.733 6.075 5.198 4.618 4.363 4.483 4.863 5.274 5.258 5.579 3.912 4.476 3.793 4.516 5.435 4.598 3.171 4.104 3.653 4.228 4.908 3.374 4.626 5.204 R 12 4 8 39 3 26 9 31 49 7 24 21 1 40 17 6 44 14 34 35 5 29 42 2 13 50 15 20 46 10 27 23 36 11 16 45 41 22 43 25 28 37 33 48 38 32 19 47 30 18 / Page 67 R 9 41 34 26 17 38 30 33 3 16 31 29 50 13 2 39 15 11 21 18 35 37 25 10 23 8 49 43 6 28 4 22 47 48 46 1 14 27 40 5 45 42 20 12 32 19 24 7 36 44 R 28 7 12 11 37 18 26 21 6 3 16 8 4 5 27 9 2 22 30 15 31 14 42 48 25 33 10 1 24 35 41 39 32 19 20 13 45 40 46 38 17 36 50 44 47 43 29 49 34 23 State Rankings 2010 by Rank Overall Govt&Fiscal Policy I R 4.995 27 4.497 44 5.203 20 4.994 28 5.504 8 5.061 23 5.67 3 5.232 18 4.828 36 4.176 49 5.453 9 4.887 32 5.354 13 4.757 40 5.06 24 5.266 17 5.219 19 5.77 1 4.895 31 4.675 41 5.289 16 4.847 35 5.411 11 5.674 2 4.815 37 4.786 39 4.584 43 4.639 42 4.287 46 5.435 10 4.267 47 5.31 14 5.54 6 5.379 12 4.976 29 2.777 50 5.143 22 5.623 4 4.875 33 4.869 34 4.806 38 5.199 21 5.527 7 4.363 45 4.995 26 4.943 30 5.571 5 4.216 48 5.056 25 5.302 15 The Beacon Hill Institute for Public Policy Research Suffolk University 8 Ashburton Place Boston, MA 02108 Phone: 617-573-8750 Fax: 617-720-4272 bhi@beaconhill.org http://www.beaconhill.org 2011