Becon Hill Insitute releases State Competitiveness Report 2005. Montana Ranks 33rd

For the second year in a row, The Beacon Hill Institute has found that Massachusetts outranks all other states in terms of its economic competitiveness. Despite population loss and slow job growth, the state’s economic fundamentals are strong, making it the state most able to sustain a high standard of living for its residents and best equipped to enjoy economic growth.

Massachusetts continues to rank number one for economic competitiveness. According to a new study, entitled State Competitiveness Report 2005, and just released by the Beacon Hill Institute at Suffolk University in Boston, Massachusetts leads the nation for its strength across a broad variety of economic indicators. Massachusetts found itself in the top position for the second straight year. Neighboring New Hampshire ranked second, improving from its 7th place ranking in 2004. Louisiana finished last.

The Institute defines competitiveness as “the policies and conditions that ensure and sustain a higher level of per capita income and its continued growth.” The 2005 Report assigns 42 variables to eight categories – government and fiscal policy, security, infrastructure, human resources, technology, business incubation, openness, and environmental policy – and combined these eight measures into a single “competitiveness index”.

“This year’s report should go a long way toward dispelling recent, gloomy assessments of the state’s economy,” said David G. Tuerck, BHI Executive Director. “Looking at just one or two economic indicators can, as we see, prove misleading. Despite slow job growth and population loss, Massachusetts continues to be an attractive place to live and work. In fact, chambers of commerce and planners across the nation should look to Massachusetts as a role model for economic competitiveness.”

Massachusetts rises to the top based on its competitive advantages in technology, business incubation, human resources and openness. These strengths more than offset areas in which the state is weak: infrastructure and environmental policy.

Colorado, Maryland, Minnesota and Washington are high-tech states that continue to challenge Massachusetts’ competitiveness. Second-place New Hampshire benefits from its ability to attract and cultivate human resources (highly-educated workers), security (low-crime) as well as its ability to export its products and services. New Hampshire also improved its performance for the government and fiscal policy measure. The report shows that so-called “red” and “blue” states are equally likely to be competitive (or uncompetitive).

This is the fifth year that BHI has published a Competitiveness Report. Next week BHI will release the complete 2005 report that includes rankings of the top 50 Metropolitan areas in the United States. All competitiveness reports will be available at http://www.beaconhill.org.

Contact:
Frank Conte, Communications

617-573-8050; 8750

[email protected]

Full Report: http://www.beaconhill.org/Compete05/Compete2005StateFinal.pdf

Metro Area and State Competititveness Report 2004 – Montana Ranks 28th : http://www.matr.net/article-17538.html