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The Honolulu Advertiser
Posted on: Wednesday, November 19, 2008

Isles move up to No. 35 in ranking of state economies

By Greg Wiles
Advertiser Staff Writer

Hawai'i is doing a little better in a ranking of states when it comes to the "new economy," or activities in which technology, innovation and knowledge play a role.

A study released by the Information Technology and Innovation Foundation shows the state moved up to the No. 35 spot from No. 41 last year, with strong showings in several areas, including workforce education and immigration of knowledge workers.

The report tries to identify which states are doing well when it comes to being innovative, globally-linked, entrepreneurial and dynamic, with an educated workforce and all sectors embracing the use of information technology. Massachusetts, a state that boasts many software, hardware and biotech companies along with world-class universities, ranked first on the list.

The report said that states with economies rooted in natural resources, manufacturing or tourism typically rank low on the list, with Mississippi coming in last.

"But innovative capacity (derived through universities, R&D investments, scientists, scientists and engineers, and entrepreneurial drive) is increasingly what drives competitive success in the New Economy," the report said.

Some of the report's findings on Hawai'i:

  • The state moved up to 30 from 35 last year in workers who have knowledge-based jobs, whether they be managerial, professional or technical positions.

  • Hawai'i ranked sixth in attracting knowledge workers from other countries.

  • The state moved up to 26th from 40th in the number of people using the Internet.

  • Hawai'i ranked 48th in the export focus of manufacturing and services, fastest growing firms, and jobs at fast-growing companies.

  • The state, while ranking 40th in migration of U.S. knowledge workers, ranks fourth in the number of years of education possessed by those it does attract. The report said the quality of outdoor life played a role in migration of workers in several states.

  • The state was ranked 11th in workforce education.

  • Hawai'i also ranked 48th in the study's economic dynamism category.

    Reach Greg Wiles at gwiles@honoluluadvertiser.com.