The Information Technology & Innovation Foundation (ITIF) advocates investment in...

decline in manufacturing and other sectors, including high tech: “Unless the United States addresses this fundamental economic competitiveness challenge, it will be difficult for the U.S. economy and, by extension, individual state economies to thrive.” The report’s index attempts to “measure the economic structure of states,” looking at 26 indicators broadly grouped into categories of knowledge jobs, globalization, economic dynamism, the digital economy and innovation capacity. One major factor is the deployment of broadband. The report describes the need for “faster transmission of larger amounts of data” and the need for adoption and buildout. The index’s top three states are Massachusetts, Delaware and Washington and the bottom three are Arkansas, West Virginia and Mississippi. The top “new economy” states tend to have high-tech firms as well as “a high concentration of managers, professionals, and college-educated residents working in ‘knowledge jobs'” and be more geared toward global markets, the report added. “All of the states, and perhaps most importantly, the federal government, need to implement innovation strategies in order to compete in the New Economy,” ITIF said. “Successful strategies will incentivize, among other things, having a workforce and jobs based on higher skills; strong global connections; dynamic firms, including strong, high-growth entrepreneurial startups; industries and individuals embracing digital technologies; and strong capabilities in technological innovation."