Massachusetts Maintains Lead as Nation's Top State in Technology and Science, According to Milken Institute

SAN DIEGO, CA, Jun 19 (MARKET WIRE) --
Massachusetts, which just passed a $1-billion life sciences bill to
invest in high-tech infrastructure and research and development over the
next 10 years, is in the best position of any state to achieve
high-quality economic growth thanks to its vast array of technology and
science assets, a new Milken Institute study shows.

Massachusetts ranks first in the Milken Institute's "2008 State Technology
and Science Index," followed by Maryland, Colorado and California.

According to the report, regional competition for technology industries
has increased since the last release of the Index in 2004. Not only are
states vying with each other for human capital and resources, but
countries like China and India are increasing the competition on a global
level.

At the same time, the post-9/11 decrease in international graduate
students and flat or decreased federal funding for research and
development are applying negative pressure to states that are not making
serious investments to build and retain these 21st century industries.

"States that have a vision and a plan for building and retaining high-wage
jobs and viable industries are finding ways to invest in their science and
technology assets," said Ross DeVol, director of Regional Economics at the
Milken Institute, and lead author of the study. "The changes in this
year's Index give a good measure of who is ahead in the increasing
competition for scarce human capital and other resources needed for a
successful industry."

The states in the best position to succeed in the technology-led
information age are (with 2004 rankings):

1) Massachusetts (1) 6) Virginia (5)
2) Maryland (4) 7) Connecticut (10)
3) Colorado (3) 8) Utah (9)
4) California (2) 9) New Hampshire (12)
5) Washington (6) 10) Rhode Island (11)

Massachusetts's dominance in the rankings is related to its
established strength in world-class research institutions, cutting-edge
firms and its ability to leverage these assets in attracting and
retaining a skilled work force. Massachusetts scores well ahead of the
competition in these areas.

"This report is great news for Massachusetts and reflects our continuing
commitment to the best science and technology," said Gov. Deval Patrick.
"We know that to compete and win in a global economy we need a work force
skilled in these areas."

Maryland moved up from fourth in this year's ranking, thanks to strong
positions across the many indicators used by the Institute. In particular,
the report cited an improvement in the ability to attract business into
the state and new projects that link research institutions with industry
to produce the most advanced products.

"With strong partnerships between the public and private sectors, and
collaborative research with universities, federal and commercial partners,
we have been able to create a strong technology industry in Maryland,"
said Gov. Martin O'Malley. "The results of the Milken Institute study are
further evidence that Maryland is highly and increasingly competitive in
drawing, retaining, and growing technology-based businesses."

Colorado held its position in third place, just under Maryland's score.
California, however, slipped from second place to fourth and, according to
the report, shows signs of faltering in its efforts to capture federal
funding and build its future work force. In particular, the report said
the decline in "standardized test scores and a low proportion of its
population with bachelor's degrees" could significantly hamper the
ability to provide a skilled work force to take advantage of its
financial and industrial strength.

Several states made dramatic improvements in the update of the Index.
North Dakota showed the greatest gains, moving up 14 positions to 31st.
This rise is due in large part to a state initiative to develop "Centers
of Excellence," which was implemented in 2004. The state provides matching
funds to universities and colleges that join the program and commit to
regional development in science and technology.

Other big movers in the Index are Hawaii, up 11 spots to 28th, and
Alabama, which moved up seven positions. On the other hand, Mississippi
has the dubious position of being ranked 50th again and West Virginia
slid from 46th to 49th place.

Because states can no longer succeed with a low-skill, low-cost economic
development formula, they must compete globally on the basis of new ideas,
new products and new markets, along with superior productivity growth, the
report states. The future will belong to those regions that can develop a
thriving technology industry in a wide variety of fast-growing fields
including biotech, clean technology, nanotechnology, communications and
next-generation computer applications. The Index takes an objective
measure of just how prepared each state is to take advantage of these
opportunities.

The "2008 State Technology and Science Index" looks at 77 unique
indicators that are categorized into five major components: Research and
Development Inputs, Risk Capital and Entrepreneurial Infrastructure,
Human Capital Investment, Technology and Science Work Force, and
Technology Concentration and Dynamism. It is one of the most
comprehensive examinations of state technology and science assets ever
compiled. A companion report that offers an in-depth look at California's
technology and science industry is also available. The study was made
possible in part through the generous support of Goodwin Procter LLP.

Complete rankings (including interactive tables and maps) and the full
reports are available at www.milkeninstitute.org.

About the Milken Institute: The Milken Institute is a nonprofit,
independent economic think tank whose mission is to improve the lives and
economic conditions of diverse populations around the world by helping
business and public policy leaders identify and implement innovative ideas
for creating broad-based prosperity. It is based in Santa Monica, Calif.
(www.milkeninstitute.org).

Contact
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