Bay State facing tough competition in the new economy

BYLINE: Joan Goodchild

Massachusetts is the top-ranked state in the nation when it comes to being ready to compete in the new economy, according to a Washington-based think tank.

But how long can success last? That was the question debated by leaders in the Massachusetts technology industry who gathered in Boston Wednesday. The group discussed strategies for staying on top in an increasingly competitive and changing business climate and for spurring local job growth.

The new economy, as described by the Information Technology and Innovation Foundation, is a global, entrepreneurial and knowledge-based economy. They keys to a state's success in this new economy depends on the extent to which the area is producing products and services that are knowledge, technology or innovation-based.

Massachusetts, long known as a leader in this area, faces the threat of losing its edge as the rest of the country catches up.

"For a long time Massachusetts had a monopoly," said Robert Atkinson, president of the Information Technology and Innovation Foundation. "For quite awhile there weren't many places focused on the innovation economy. But now most states are focused on the space you're in."

Still, Atkinson noted Massachusetts was number one in many categories in an index compiled by his group that looks at several indicators of a state's readiness to compete. In addition to its overall first place ranking, the Bay State also ranked number one when it came to the number of managerial, professional and technological jobs in the region.

The event was lead by Mass Insight Corp., a consultancy working with several industry and university leaders to develop a globally focused economic development strategy known as Global Massachusetts 2015.

William Guenther, president of Mass Insight, said the state needs to work on initiatives that will better align the state college system and local universities with area business. Massachusetts is facing a serious talent shortage as it competes with other parts of the country that can now offer attractive positions along with a more affordable cost of living.

"We are a slow growth state, said Guenther. "We have extraordinary talent here, but we don't have an overabundant supply of it."