PROVIDENCE – Rhode Island ranked No. 20 with a score of 66.7 out of a possible 100 on the 2017 State New Economy Index, a report by the Information Technology & Innovation Foundation said Monday.
The average U.S. index score was 62.7 points.
The report, grades states on their economic structures, specifically, on a state’s adaptiveness to innovation-driven fields, global reach and employment in the “new economy.”
“A defining trend of this economic era is the way innovative new technologies drive productivity and competitiveness in everything from agriculture and mining to professional services. That affects all state and regional economies, regardless of their particular areas of focus,” said Robert D. Atkinson, ITIF’s president and co-author of the report. “The bottom line is all states – and the federal government – need concerted innovation strategies to compete in the New Economy. Without the right fundamentals, states will find themselves stuck in the economic doldrums, unable to reap the job growth and quality-of-life improvements that the New Economy enables.”
The ITIF divided 24 metrics into five categories: knowledge jobs, globalization, economic dynamism, the digital economy and innovation capacity.
In ranking No. 20, Rhode Island regressed one place since the last report in 2014. Compared with its New England neighbors, Rhode Island ranked No. 5, behind Massachusetts (which placed first in the nation), Connecticut (No. 10), New Hampshire (No. 13) and Vermont (No. 18). Only Maine, at No. 36, fell behind the Ocean State.
Rhode Island ranked No. 1 in the nation for two metrics in the study, initial public offerings and online agriculture.
The Ocean State had metric rankings in the top 10 in the nation for:
- No. 2 – Broadband telecommunication
- No. 4 – Non-industry investment in research and development
- No. 6 – Foreign direct investment
- No. 9 – Internal migration of U.S. knowledge workers
Rhode Island’s worst rankings were:
- No. 50 – Moving towards a green economy
- No. 49 – Export focus on manufacturing
- No. 47 – E-government
- No. 42 – Health IT
- No. 43 – Manufacturing value added
Rhode Island earned seven scores in the 11-20 range, and three in the 31-40 ranking range.
In the 11-20 range were the following metrics:
- No. 12 – Workforce education
- No. 14 – Information technology jobs
- No. 16 – Managerial, professional and technical jobs
- No. 17 – Business churning
- No. 17 – High wage traded services
- No. 18 – Scientists and engineers
- No. 20 – Industry investment in research and development
Rhode Island ranks in the 21-30 range:
- No. 21 – High-tech jobs
- No. 23 – Inventor patents
- No. 26 – Patents
- No. 27 – Venture Capital
Rhode Island ranked in the 31-40 range in the following metrics:
- No. 32 – Immigration of knowledge workers
- No. 35 – Fast growing firms
- No. 38 – High-tech exports
Massachusetts ranked No. 1 in the overall rankings, with a score of 96.6. The Bay State had No. 1 ranks in five metrics: managerial, professional and technical jobs; workforce education; internal migration of U.S. knowledge workers; online agriculture; and high-tech jobs.
Massachusetts’ lowest rank was No. 21 for e-government. The state has ranked No. 1 in the ITIF index since 1999.
Mississippi ranked last in the index.
Chris Bergenheim is the PBN web editor.
