Milken Institute State Technology and Science Index

Overall the State of Arizona ranks in the second tier (#13-25) in four out of the five categories established by the Milken Institute.

• Relative to neighboring states (particularly California, Colorado and Utah) Arizona underperforms in all key areas:

In September 2002 the Milken Institute released their economic index for the State of California vis- à -vis all other states: “State Technology and Science Index: Comparing and Contrasting California.”

Background
In 1999 the Milken Institute published a groundbreaking economic study that set the standard for defining the new economic geography of America’s high technology metropolitan areas. “America’s High-Tech Economy: Growth, Development, and Risks for Metropolitan Areas” accurately predicted the effects of a recession on metro Phoenix and other communities based on the concentration and diversity of “tech poles,” or clusters of advanced technology. In this 1999 study Metro Phoenix was cited as vulnerable due to its lack of diversity – relying heavily on electronics and manufacturing.

Much has occurred in the State of Arizona and in Metro Phoenix since the publication of that report. Among the most significant undertakings have been the passage of Proposition 301 and the enablement of ASU’s new thrust into biosciences research. Relatedly, the attraction of the Translational Genomics Research Institute to the Valley signals an important milestone in the process of creating a new economic capacity for the community. This achievement is one that will not only provide an impetus for growth, but for economic stability as well when we are again buffeted by future economic slowdowns.

Report
In September 2002 the Milken Institute produced a new report entitled, “State Technology and Science Index: Comparing and Contrasting California.” This study also contains data and analysis that should trigger some strategic assessment within the leadership of the Metro Phoenix economic development community.

The good news within the report is that, overall, Arizona is fairly competitive. This is also the bad news.

Taken in context relative to Arizona’s neighboring states (particularly California, Colorado and Utah) we underperform in all key areas (Human Capital Investment, R&D Inputs, Risk Capital & Infrastructure, Technology Concentration, and Science and Technology Workforce).

Overall the State of Arizona ranks in the second tier (#13-25) in four out of the five categories established by the Milken Institute. The State’s poorest showing is in the area of human capital, wherein we scored badly in state support for higher education. The other indicator worth noting is in the intensity index for life scientists, where again we rank quite low. On the positive side, Arizona scores well in the same indices for computer scientists and engineers.