Despite Drop in Population, Boston Area is Number One in Competiveness, Says Beacon Hill Institute
       The Suffolk University-based Beacon Hill Institute has announced that for the first time for the metro area and the second consecutive year for the state, Boston and Massachusetts as a whole outrank all other states and metro areas in terms of its economic competitiveness. The study paints a very positive picture for the state, which holds the unfortunate distinction of being the only state to lose population for two consecutive years.
       The Boston metro area finished up from last year's fourth place finish.
According to the Beacon Hill Institute press release, in the state ranking, Utah finished second while New Hampshire ranked third, improving from its 7th place ranking in 2004. Louisiana finished last. The Los Angeles metropolitan area finished last due to its poor performance in several broad measures. 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 more than three dozen 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 and the Boston metro area rise 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.
This is the fifth year that BHI has published a Competitiveness Report. All competitiveness reports will be available at www.beaconhill.org.