Beacon Hill Institute

Metro Area and State Beacon Hill Institute Competitiveness Report 2004

Overall Index Overall Rank State Report 2004 Overall index and rank in 2004 Subindexes, rank in 2004 Government & Fiscal Policy Security Infrastructure Human Resources Technology Business Incubation Environmental Policy Openness Massachusetts 7.29 1 39 11 38 4 1 1 7 37 Utah 6.94 2 13 36 3 5 6 3 22 26 Washington 6.81 3 23 21 14 26 8 5 4 15 Minnesota 6.45 4 43 12 1 2 15 23 26 14 Colorado 6.27 5 37 31 5 18 3 8 29 8 Nebraska 6.22 6 22 13 2 6 24 30 41 10 New Hampshire 6.11 7 33 3 48 1 9 4 35 20 Vermont 6.10 8 27 9 39 3 4 46 9 4 Virginia 6.06 9 2 22 21 11 11 7 28 31 Kansas 6.05 10 28 14 7 8 14 32 36 13 North Dakota 5.86 11 14 10 10 12 30 33 44 9 Wyoming 5.69 12 34 27 12 14 39 13 17 6 Wisconsin 5.66 13 40 1 9 16 22 40 32 21 Idaho 5.58 14 36 26 8 29 12 15 37 12 Connecticut 5.57 15 42 4 31 10 5 18 13 43 Oregon 5.57 16 29 20 6 32 19 45 16 5 Iowa 5.57 17 11 29 15 9 23 36 40 19 Delaware 5.43 18 8 23 32 25 20 2 14 47 Maryland 5.29 19 7 38 44 7 2 10 34 46 Missouri 5.21 20 12 32 16 21 28 19 43 28 Texas 5.21 21 24 39 30 45 27 14 2 25 California 5.14 22 48 24 47 33 7 6 3 22 South Dakota 5.13 23 5 17 29 13 41 35 49 1 Michigan 5.08 24 15 25 22 28 18 48 11 27 Georgia 5.08 25 4 37 17 36 35 11 24 32 North Carolina 5.06 26 20 30 18 38 21 12 31 35 Alaska 5.01 27 45 35 11 39 38 50 1 11 Montana 4.92 28 31 16 27 31 29 20 50 2 Florida 4.81 29 21 33 20 34 44 9 15 40 Pennsylvania 4.79 30 19 18 24 23 16 25 42 45 Rhode Island 4.72 31 46 8 37 17 10 47 25 23 Arizona 4.60 32 10 50 26 35 32 22 10 30 New Mexico 4.50 33 18 45 40 44 13 27 30 3 New York 4.43 34 50 15 50 22 17 31 5 29 Oklahoma 4.42 35 32 40 13 42 37 16 47 17 Maine 4.36 36 44 6 42 19 47 42 39 7 Nevada 4.33 37 17 48 4 37 50 24 19 41 Kentucky 4.31 38 30 7 25 40 45 41 23 36 Illinois 4.22 39 35 41 43 30 25 34 12 38 South Carolina 4.15 40 1 47 28 43 42 28 20 33 Tennessee 4.13 41 9 43 19 41 43 21 33 42 Indiana 4.12 42 3 28 36 27 34 38 21 49 Ohio 3.92 43 38 19 23 24 33 44 27 48 New Jersey 3.84 44 49 5 49 20 26 17 6 50 Arkansas 3.69 45 6 34 45 48 49 26 46 18 Hawaii 3.67 46 47 44 35 15 36 49 18 16 Alabama 3.66 47 16 46 33 46 31 39 38 34 West Virginia 3.58 48 25 2 34 47 46 43 45 44 Louisiana 3.16 49 41 49 41 49 40 29 8 39 Mississippi 2.93 50 26 42 46 50 48 37 48 24 Metro Area and State Competitiveness Report / Page 2

Overall index and rank in 2004 Overall Overall Index Rank Metro Area Report 2004 Government & Fiscal Policy Security Infrastructure Subindexes, rank in 2004 Human Resources Technology Business Incubation Openness Environmental Policy Seattle 7.80 1 28 22 28 9 5 1 1 6 Raleigh 6.91 2 2 18 13 30 2 27 25 18 Portland 6.81 3 17 11 8 16 21 26 11 5 Boston 6.77 4 37 3 45 4 1 5 14 33 Denver 6.59 5 31 20 6 14 9 6 37 10 Minneapolis-St. Paul 6.53 6 29 8 9 1 28 23 24 4 Austin 6.21 7 14 14 43 28 4 24 7 17 Salt Lake City 6.19 8 24 27 3 2 7 3 32 50 San Francisco 6.03 9 46 15 49 6 8 2 6 9 Kansas City 5.85 10 11 25 10 7 12 32 47 12 Atlanta 5.79 11 9 26 12 38 18 12 21 20 San Antonio 5.58 12 14 43 19 46 33 22 8 1 Dallas 5.37 13 12 40 33 45 15 20 5 27 San Diego 5.35 14 43 7 46 10 10 4 9 36 Grand Rapids 5.32 15 13 10 16 11 36 45 18 15 Orlando 5.30 16 21 21 4 24 45 10 28 21 Richmond 5.28 17 6 24 26 21 30 16 46 31 Providence 5.27 18 42 13 39 26 14 25 20 8 Greensboro 5.26 19 5 16 5 43 35 35 39 26 Hartford 5.20 20 34 6 23 15 11 34 19 37 Charlotte 5.18 21 1 35 2 44 27 39 31 29 Washington 5.05 22 18 33 47 5 6 15 38 28 Nashville 4.96 23 4 32 25 35 41 29 35 24 Albany 4.90 24 49 2 11 3 32 36 41 38 Milwaukee 4.90 25 30 28 17 22 19 43 33 13 Rochester 4.90 26 48 17 30 8 3 31 34 22 Norfolk 4.80 27 7 34 29 27 38 28 45 19 Jacksonville 4.71 28 21 42 24 37 46 13 44 2 Las Vegas 4.59 29 27 41 1 42 50 17 26 11 Phoenix 4.58 30 10 44 31 34 39 19 16 45 Sacramento 4.57 31 44 23 42 13 23 9 13 16 Miami 4.56 32 35 48 37 50 49 7 3 3 Houston 4.53 33 26 45 40 48 31 18 2 34 Cleveland 4.49 34 33 1 34 32 40 37 22 44 Oklahoma City 4.41 35 16 46 14 40 42 41 50 7 Indianapolis 4.39 36 3 39 27 31 37 47 27 39 Louisville 4.36 37 25 31 21 25 44 50 29 41 Columbus 4.25 38 19 37 22 17 13 40 22 48 Tampa 4.21 39 35 30 18 19 47 11 36 47 Pittsburgh 4.20 40 38 9 35 18 17 42 49 43 St. Louis 4.19 41 20 38 32 20 25 46 48 25 Detroit 4.11 42 32 29 38 36 24 38 17 40 Buffalo 4.08 43 50 5 20 12 26 49 40 23 Los Angeles 4.04 44 45 36 48 41 16 8 4 30 Philadelphia 4.03 45 41 12 44 29 22 21 42 35 Cincinnati 3.96 46 23 19 7 23 34 44 30 49 New York 3.72 47 47 4 50 33 20 14 10 42 Memphis 3.39 48 8 50 15 47 48 30 43 46 New Orleans 3.37 49 40 47 36 49 43 48 12 14 Chicago 3.17 50 39 49 41 39 29 33 15 32 Metro Area and State Competitiveness Report / Page 3

From the Executive Director BHI From the Executive Director The Beacon Hill Institute at Suffolk University is pleased to release the 4 th edition of its Metro Area and State Competitiveness Report. This year s report contains some slight modifications from previous years editions. Like any good index, such as the Dow Jones Industrial or others, the BHI Competitiveness Indexes must adapt to a changing business environment. As economies grow and change, so must the parameters that strive to measure them. To this end, BHI has added new variables to the index and discontinued the use of others. In some cases, the discontinued variables are no longer being published, but in most cases the discovery of a better variable precipitated the removal of the older one. We believe these minor modifications serve to advance the usefulness of the indexes. At the state level, Massachusetts moved up one position to claim the top spot, displacing last year s number one, Delaware. All of the states in the top ten, with the exception of Vermont, improved their position over last year. The biggest improvement among the states in the top ten belonged to Nebraska, which improved its ranking from 15 th to 6 th. The state with the largest improvement in the entire index is North Dakota, which moved up seventeen positions from 28 th to 11 th. The state with the dubious distinction of having the biggest drop in the ranking is New Jersey, it moved down eighteen places from 26 th to 44 th. At the metro area level, the top ten remains very stable, with Kansas City being the only metro area not ranked in the top ten last year. Seattle retains its position at number one, which it held in the two previous indexes. The metro areas of Raleigh and Portland round out the top three in the index, moving up four and six places respectively. Dallas gains the right to the biggest improvement title, moving from 45 th to 13 th. Several metro areas dropped over twenty positions including Indianapolis, Pittsburgh, St. Louis, Cincinnati and Chicago. The institute would like to thank authors Jonathan Haughton and Cagdas Sirin for their work on this year s edition. We hope that the Report will continue to be a topic of discussion for lawmakers, voters and academics in metro areas and states across the country. Metro Area and State Competitiveness Report / Page 4

Table of Contents From the Executive Director... 4 Defining Metro and State Competitiveness... 7 What is Competitiveness?... 7 Quantifying Competitiveness... 8 Is the competitiveness index useful?... 10 Putting the competitiveness index to work... 10 Other studies... 11 Why cities?... 12 What s next?... 12 How to read the index pages... 16 State Indexes... 17 Alabama... 18 Alaska... 19 Arizona... 20 Arkansas... 21 California... 22 Colorado... 23 Connecticut... 24 Delaware... 25 Florida... 26 Georgia... 27 Hawaii... 28 Idaho... 29 Illinois... 30 Indiana... 31 Iowa... 32 Kansas... 33 Kentucky... 34 Louisiana... 35 Maine... 36 Maryland... 37 Massachusetts... 38 Michigan... 39 Minnesota... 40 Mississippi... 41 Missouri... 42 Montana... 43 Nebraska... 44 Nevada... 45 New Hampshire... 46 New Jersey... 47 New Mexico... 48 New York... 49 North Carolina... 50 North Dakota... 51 Ohio... 52 Oklahoma... 53 Oregon... 54 Pennsyvlania... 55 Rhode Island... 56 South Carolina... 57 South Dakota... 58 Tennessee... 59 Texas... 60 Utah... 61 Vermont... 62 Metro Area and State Competitiveness Report / Page 5

Virginia... 63 Washington... 64 West Virginia... 65 Wisconsin... 66 Wyoming... 67 Metro Area Indexes... 68 Albany... 69 Atlanta... 70 Austin... 71 Boston... 72 Buffalo... 73 Charlotte... 74 Chicago... 75 Cincinnati... 76 Cleveland... 77 Columbus... 78 Dallas... 79 Denver... 80 Detroit... 81 Grand Rapids... 82 Greensboro... 83 Hartford... 84 Houston... 85 Indianapolis... 86 Jacksonville... 87 Kansas City... 88 Las Vegas... 89 Los Angeles... 90 Louisville... 91 Memphis... 92 Miami... 93 Milwaukee... 94 Minneapolis... 95 Nashville... 96 New Orleans... 97 New York... 98 Norfolk... 99 Oklahoma City... 100 Orlando... 101 Philadelphia... 102 Phoenix... 103 Pittsburgh... 104 Portland... 105 Providence... 106 Raleigh... 107 Richmond... 108 Rochester... 109 Sacramento... 110 Salt Lake City... 111 San Antonio... 112 San Diego... 113 San Francisco... 114 Seattle... 115 St Louis... 116 Tampa... 117 Washington... 118 About the Authors... 119 Acknowledgements... 119 Metro Area and State Competitiveness Report / Page 6

Defining Metro and State Competitiveness BHI Defining Metro Area and State Competitiveness The Metro Area and State Competitiveness Report 2004 Introducing the indexes How does one geographic area, such as a state or metropolitan area, create more economic activity, and hence more income for its citizens, than other areas? What special characteristics or attributes lead to generating this higher income? BHI s Metro Area and State Competitiveness Report attempts to identify the qualities that allow some areas to excel in income generation and the qualities that prohibit other areas from attaining the same level of competitiveness. During this endeavor questions arise: How can these qualities be measured? What standard should be used to determine whether a state or metro area is competitive or not? Indeed, why is it even interesting to measure competitiveness? The State and Metro Area Competitive Indexes constantly use these questions as guideposts in compiling and estimating its measures of competitiveness. The indexes are designed to measure the long-term competitiveness of an area, and use a similar approach to the one taken in BHI s earlier studies of state competitiveness (State Competitiveness Report 2001, 2002, 2003) and metropolitan competitiveness (State and Metropolitan Competitiveness Report 2002, 2003). This year marks the fourth year of the report which includes minor revisions and additions to the indexes. At the state level, Massachusetts moves up from second to first and is followed by Utah and Washington (Table 1). Four states, Colorado, Nebraska, Virginia and Kansas, enter the top ten, ranking 5 th, 6 th, 9 th and 10 th respectively. Nebraska is a first-time entrant into the top ten. At the metro level, Seattle retains the top spot for the third year in a row (Table 2). Raleigh jumps four places to reach the second spot and Portland moves up six places to rank third. The rest of the top ten are metro areas that were ranked in the top ten in 2003, with the exception of Kansas City which traded places with formerly tenth ranked Atlanta. Table 1 State Competitiveness Index Index 2004 2004 Rank in 2003 2002 1995 Massachusetts 7.29 1 2 2 1 Utah 6.94 2 4 13 9 Washington 6.81 3 5 3 8 Minnesota 6.45 4 7 9 11 Colorado 6.27 5 11 4 3 Nebraska 6.22 6 15 17 13 New Hampshire 6.11 7 8 8 5 Vermont 6.10 8 6 7 6 Virginia 6.06 9 12 15 10 Kansas 6.05 10 17 14 20 North Dakota 5.86 11 28 18 18 Wyoming 5.69 12 3 6 4 Wisconsin 5.66 13 20 25 17 Idaho 5.58 14 14 11 19 Connecticut 5.57 15 9 5 7 Oregon 5.57 16 13 10 16 Iowa 5.57 17 16 12 24 Delaware 5.43 18 1 1 2 Maryland 5.29 19 18 19 23 Missouri 5.21 20 24 20 22 Texas 5.21 2 1 3 2 2 8 2 6 California 5.14 22 19 16 15 South Dakota 5.13 23 10 23 14 Michigan 5.08 24 23 30 29 Georgia 5.08 25 34 40 35 North Carolina 5.06 2 6 3 3 3 5 2 5 Alaska 5.01 27 25 34 12 Montana 4.92 28 21 31 28 Florida 4.81 29 36 39 31 Pennsylvania 4.79 30 29 27 38 Rhode Island 4.72 31 22 29 21 Arizona 4.60 3 2 4 4 4 2 4 2 New Mexico 4.50 3 3 3 7 4 1 4 3 New York 4.43 34 31 32 39 Oklahoma 4.42 35 42 44 45 Maine 4.36 36 27 24 27 Nevada 4.33 3 7 4 6 4 6 4 9 Kentucky 4.31 38 35 37 36 Illinois 4.22 3 9 4 0 3 3 3 3 South Carolina 4.15 40 41 38 40 Tennessee 4.13 41 39 22 34 Indiana 4.12 42 30 20 30 Ohio 3.92 4 3 3 8 3 6 3 2 New Jersey 3.84 44 26 26 37 Arkansas 3.69 4 5 4 7 4 9 4 7 Hawaii 3.67 46 48 45 44 Alabama 3.66 47 43 42 41 West Virginia 3.58 48 49 48 48 Louisiana 3.16 4 9 4 5 4 7 4 6 Mississippi 2.93 50 50 50 50 What is Competitiveness? We consider a state or a metropolitan area to be competitive if it has in place the policies and conditions that ensure and sustain a high level of per capita income and its continued growth. To achieve this, a state or metropolitan area needs to be able both to attract and incubate new businesses, and to provide an environment that is conducive to the growth of existing firms. Metro Area and State Competitiveness Report / Page 7

Defining Metro Area and State Competitiveness BHI Table 2 Metropolitan Competitiveness Index Index 2004 2004 Rank in 2003 2002 Seattle WA 7.80 1 1 1 Raleigh NC 6.91 2 6 7 Portland OR 6.81 3 9 9 Boston MA 6.77 4 4 3 Denver CO 6.59 5 5 4 Minneapolis-St. Paul MN 6.53 6 3 5 Austin TX 6.21 7 7 6 Salt Lake City UT 6.19 8 8 10 San Francisco CA 6.03 9 2 2 Kansas City KS-MO 5.85 10 11 8 Atlanta GA 5.79 11 10 12 San Antonio TX 5.58 12 38 38 Dallas TX 5.37 13 45 26 San Diego CA 5.35 14 34 25 Grand Rapids MI 5.32 15 14 14 Orlando FL 5.30 16 23 33 Richmond VA 5.28 17 16 16 Providence RI 5.27 18 21 21 Greensboro NC 5.26 19 24 20 Hartford CT 5.20 20 31 15 Charlotte NC 5.18 21 12 19 Washington DC 5.05 22 13 11 Nashville TN 4.96 23 37 45 Albany NY 4.90 24 - - Milwaukee WI 4.90 25 26 22 Rochester NY 4.90 26 46 41 Norfolk VA 4.80 27 25 32 Jacksonville FL 4.71 28 39 46 Las Vegas NV 4.59 29 28 35 Phoenix AZ 4.58 30 32 28 Sacramento CA 4.57 31 41 42 Miami FL 4.56 32 43 34 Houston TX 4.53 33 27 27 Cleveland OH 4.49 34 40 40 Oklahoma City OK 4.41 35 35 39 Indianapolis IN 4.39 36 15 17 Louisville KY 4.36 37 29 24 Columbus OH 4.25 38 33 31 Tampa FL 4.21 39 36 44 Pittsburgh PA 4.20 40 19 23 St. Louis MO 4.19 41 18 13 Detroit MI 4.11 42 30 36 Buffalo NY 4.08 43 48 49 Los Angeles CA 4.04 44 47 47 Philadelphia PA 4.03 45 44 43 Cincinnati OH 3.96 46 17 18 New York NY 3.72 47 42 37 Memphis TN 3.39 48 49 48 New Orleans LA 3.37 49 50 50 Chicago IL 3.17 50 22 29 Competitiveness may be thought of as a catchall term that covers what Michael Porter calls the microeconomic foundations of prosperity. The states and metropolitan areas of the United States all face the same macroeconomic conditions; where they differ is in their microeconomic policies. These policies matter. As Porter puts it, wealth is actually created at the microeconomic level - in the ability of firms to create valuable goods and services using productive methods. 1 It follows that the outcome of competitiveness is greater affluence, measured by higher levels of real Gross State (or Metropolitan) Product or personal income per capita. Quantifying Competitiveness To be useful as a concept, it is essential to have an operational measure of competitiveness, a measure that aggregates the key microeconomic variables into a single index. The World Economic Forum does this for the countries of the world in its influential annual Global Competitiveness Report, but there is no equivalent at the level of state or metropolitan areas of the U.S. (although some more specialized rankings of the states and metropolitan areas have been developed; we discuss these in more detail below). In thinking about how to create an index of competitiveness, we begin with the simple economic relation: Y = f (K,L,technology). This says that output (Y) depends on the amount of capital (K), labor (L) and technology that is harnessed by the economy. 2 Not surprisingly, more inputs lead to more output. But what raises input levels? And why do some urban areas or states mix the ingredients more successfully than others? To answer these questions we need to focus on the quality of the business environment. Using his celebrated diamond, Porter finds it helpful to group the influences into four components: the quality of available inputs, the sophistication of local demand, the nature of local suppliers and the extent to which they form clusters, and the rules and institutions that govern the market. 3 These are still very broad categories and so, following the Porterinspired Global Competitiveness Report, we actually classify our indicators into eight groups. The breakdown is as follows: Government and fiscal policies. Businesses are more likely to be attracted to areas with moderate tax rates and clear evidence of financial discipline (as evidenced, for instance, by high state and municipal bond ratings and Metro Area and State Competitiveness Report / Page 8

Defining Metro Area and State Competitiveness budget surpluses). This subindex is designed to pick up these effects. Technical note 1: Creating the indexes Security. A state or metropolitan area will be more attractive to business if public officials are trusted, and if crime is low. The security subindex addresses these dimensions of competitiveness, with particular emphasis on the importance of public safety. Infrastructure. How easy is commuting? Do most households have access to high-speed broadband? Is housing affordable? How affordable is energy? These are the elements of competitiveness that are included in the infrastructure subindex for each state or metropolitan area. Human resources. A high level of labor force participation, and skilled labor that is readily available and not too expensive, combined with a widespread commitment to education, training and health care, make a state or metropolitan area attractive for business. These factors are captured in the human resources subindex. Technology. The development and application of technology is central to economic development, and has been ever since the industrial revolution. The technology subindex measures this by taking into account research funding, patents issued, the proportion of scientists and engineers in the labor force, and the importance of high tech companies. Business incubation. A good idea is not enough; businesses also need to be able to mobilize financing for investment, both internally and from the financial system. A higher rate of business births is a particularly clear sign of a competitive environment, and is an important component of the business incubation subindex. Openness. Open economies tend to be more competitive and hence more productive. The openness subindex measures how connected the firms and people in a state or metropolitan area are with the rest of the world. It is based on the level of exports, as well as the percent of the population born abroad. Given the raw data series for each metropolitan area or state, several steps were needed in order to construct the competitiveness index. 1. First, each variable was normalized to give it a mean of 5, a standard deviation of 1, and a range from 0 (worst) to 10 (best). 2. Then the nine subindexes were formed as the simple averages of the normalized component variables. 3. Next, the subindexes themselves were normalized, again giving a mean of 5 and standard deviation of 1 to each. These are presented at the beginning of this report. 4. Finally, the overall index of state and metro area competitiveness is the simple average of the eight subindexes, again normalizing it so it has a mean of 5 and standard deviation of 1. Environmental Policy. States or metropolitan areas that are faced with environmental problems, or that have a heavy-handed policy of environmental regulation, are likely to be less attractive to businesses as well as to their workers and managers; we measure this effect with the environmental policy subindex, which among other things reflects the levels of air pollution and of toxic releases. A complete list of the components of the competitiveness indexes are given in Table A1 (for states) and Table A2 (for metropolitan areas) at the end of this section of the report. We have used the most recent data avail- Metro Area and State Competitiveness Report / Page 9

Defining Metro Area and State Competitiveness able; due to time lags, most of the series refer to 2002, 2003 or 2004. The eight categories are coherent, but there is inevitably some degree of arbitrariness in the way in which individual data series are assigned to the subindexes. For instance, the amount of air travel could be included in the infrastructure subindex or the measure of openness; and electricity prices could be included in the infrastructure subindex or the environmental subindex. In practice the assignment of the data series is much less important than the fact that they are included at all. A competitiveness index is simply a summary measure based on a large number of variables. The difficult, and controversial, part is choosing a weighting scheme. Our approach is the simplest and most transparent: within each subindex, each variable carries equal weight. Then each subindex is given the same weight when constructing the overall index. This has been referred to as a democratic weighting structure, but it is of course arbitrary (although reasonable). Is the competitiveness index useful? Do the indexes of state competitiveness explain affluence and growth? If the index is properly constructed, then it should help explain why some areas are affluent and others are not. In our experiment we estimate the following equation: Real PI per capita t = constant + index + real PI per capita t-1 Real PI per capita t = 10176 + 877 index +.499 real PI per capita t-1 t = 2.6 t = 2.1 t = 3.47 This equation has an R 2 of 0.35. The coefficient on the Index variable is significant at the.05 level and indicates that if a state gains a point in the index, it will also gain $877 in real per capita income. Competitiveness really does matter. Putting the competitiveness index to work What do we learn from this exercise? Naturally it is interesting to look at the raw rankings (Tables 1 and 2), but this may not be the most important use of the information. The detailed data, both in individual variables and the subindexes, allow one to identify the determinants of competitiveness. This is of value to policy makers, who are then in a better position to identify what needs to be done in order to improve the position of their states or metropolitan areas. The logic behind this is that a higher competitiveness indicator index is associated with greater affluence. A reasonable inference is that if one were to improve competitiveness, then residents of the state would be better off. And the greatest upside potential is for the indicators whose performance is currently weak. For instance, a low-crime state may have trouble reducing the crime rate further, while for a high-crime state, efforts to reduce crime are likely to be an efficient way to boost competitiveness. To illustrate, consider the case of Tennessee, which ranks 41 st with a competitiveness indicator index of 4.13, or almost a point below the average. Tennessee excels in the government and fiscal policy subindex with a rank of ninth. It achieves this by virtue of its lower than average tax burden, workers compensation premium rates and average first payment for unemployment. Its overall index score is hurt by poor performances in the security, human resources, technology and environmental policy subindexes. Though these are the areas of greatest deficiency for Tennessee, they also mark the areas with the greatest potential. For example, if Tennessee can institute measures that would raise their security and technology variables to the national average, it could raise its overall index to 4.81 and in the process raise its real per capita personal income by almost $600. The competitive index and its subindexes are powerful tools policymakers can use to improve their areas affluence. To make it easier to identify the strengths and weaknesses of each state and metropolitan area, a subsequent section of this report sets out the relevant details for each area. Metro Area and State Competitiveness Report / Page 10

Other studies We are not the first to develop a set of statewide indexes, but we are the first to create a broad-based index of competitiveness, to design and present it in a way that policy makers will find useful, and to re-estimate the indexes annually. capita, net in-migration, and growth in manufacturing value added. After creating five subindexes, they assign weights to these using the technique of principal components, and apply these weights to create the overall index. By this measure, Idaho has the greatest amount of economic freedom (an index of 3.9) while New York has the least (index = 7.9). States The Progressive Policy Institute has created a State New Economy Index, which aims to measure the New Economy. The authors define the new economy as a knowledge and idea-based economy where the keys to wealth and job creation are the extent to which ideas, innovation, and technology are embedded in all sectors of the economy. 4 They identify 21 indicators, grouped into five categories. The index ranges from 40.7 (West Virginia) to 90.0 (Massachusetts). Although we include a number of technology-related variables in our own index, we also believe that there is much more to competitiveness and hence to achieving and maintaining affluence than technology alone. This is why our index is based on almost three times as many variables, and so has greater breadth. Conceived in a similar spirit is the Index of the Massachusetts Innovation Economy, published by the Massachusetts Technology Collaborative in December 2003. 5 The report compares Massachusetts with six other leading technology states (CA, CO, CT, MN, NJ and NY), as well as presenting a wealth of information on the state itself. Most of the emphasis is on the state s knowledge-based innovation economy. To do this it focuses on 9 key industry clusters, which together cover 25% of non-government jobs in Massachusetts. Interestingly enough, these key sectors are growing no faster than the rest of the state economy. In our view it is preferable to consider the economy as a whole which is what our index does rather than just a fashionable quarter of it. John Byars, Robert McCormick and Bruce Yandle of Clemson University have created an Index of Economic Freedom for the states of the U.S. They define economic freedom as the right of individuals to pursue their own interests through voluntary exchange under a rule of law. 6 They sift through 145 indicators, assigning them to deciles from 1 (most free) to 10 (least free). After experimenting with 47 different indexes, they choose the one that best explains state growth in income per Their report argues that greater economic freedom should be associated with faster economic growth, and their econometric results suggest that this is probably the case, 7 although their index may be more valuable as a summary measure of freedoms that have value in their own right, rather than as a predictor of growth or well being. We do agree that economic freedom is important, and our index of competitiveness includes some indicators, such as the share of state and local tax collections per capita in income per capita, that measure the weight of government quite well. However, we believe that other factors are also important to competitiveness, even if they are not easy to place on a scale of economic freedom; these include such variables as the time that is required to travel to work, the availability of venture capital, and the importance to the economy of high-tech firms. The Heritage Foundation has also created an influential and widely-cited Index of Economic Freedom, but it is constructed for the countries of the world rather than for the states of the U.S. 8 Metropolitan areas Robert Atkinson of the Progressive Policy Institute and Paul Gottlieb of the Center for Regional Economic Issues have created a Metropolitan New Economy Index, which uses sixteen economic indicators to assess the 50 largest metropolitan areas progress as they adapt to the new economic order. 9 They view the characteristics of the New Economy as an altered industrial and occupational order, greater globalization, and unprecedented levels of entrepreneurial dynamism and competition. 10 Their measures emphasize education, information flows, the growth of new firms, and technology. We include many similar variables in our index. However, we also believe that there are other important dimensions to competitiveness and hence to achieving and maintain- Metro Area and State Competitiveness Report / Page 11 Defining Metro Area and State Competitiveness

Defining Metro Area and State Competitiveness ing affluence such as the tax burden, public safety, and environmental issues. This is why our index is based on a wider set of variables. POLICOM Corporation annually measures and ranks the Economic Strength of the metropolitan areas for the purpose of studying the characteristics of strong and weak economies. Economic strength is a combination of both the rate of growth and the consistency of the growth. Simplistically, the formula is Growth - Instability = Strength. They have data for the 15-year term from 1976 through 1990 and the 10-year term from 1991 through 2000. They include eighteen categories. Their methodology is as follows, the average deviation from previous year (DEV) and the average annual increase (AAI) were calculated for each category for each time period. The DEV was subtracted from the AAI to create a strength factor for each category. Each category was adjusted to give each equal weight. The data for both the 15-year and 10-year terms were totaled for each of the categories. In their ranking among 318 MSAs Boston is ranked 38, while Austin is first for 2002. In a somewhat different spirit, Money magazine publishes an annual survey of the best places to live in the United States. Using 31 variables (including seven related to climate), the magazine s web site allows readers to express their preferences and then find the place that best suits their needs, from a list of over 400 towns and cities. The survey is not, however, designed to measure competitiveness per se. Why cities? In addition to reporting competitiveness indexes for all 50 states, this study gives the results for the 50 largest consolidated metropolitan statistical areas (CMSAs). Collectively they include 58% of the U.S. population, and reflect the fact that the country is overwhelmingly urban and suburban rather than rural. Metropolitan statistical areas are very coherent economic units they have common labor markets, commuter pools, and newspaper readership, indeed all the features that make up a natural geographical hinterland. In many respects it makes more sense to consider Philadelphia and Pittsburgh as separate economic units, than it does to consider Pennsylvania as a single entity. One alternative would have been to focus only on the central cities in each urban area. The disadvantage of this is that the central cities are often quite small, and unrepresentative of the greater urban area. For instance, the population of the city of Boston, at 555,000, is less than one tenth of the population of the CMSA, which came to 5.8 million in 2000. It is not clear how helpful it would be to compare the city of Boston, dense and highly urbanized, with the city of Houston, which constitutes 89% of its metropolitan area and includes extensive suburbs. What is next? We invite you to pore over the detailed results on the following pages. For each metropolitan area and state we set out the main competitive strengths and weaknesses. We welcome suggestions for ways in which we might improve our search for answers to that deceptively simple question: how competitive is the Boston area (or Massachusetts, or the Bay area, or greater New York, or Houston, or )? State Competitiveness Report/Page 10 Metro Area and State Competitiveness Report / Page 12

Table A1 Components of subindexes for states Sub index Government and fiscal policy Competitiveness indicators index State and local taxes per capita /income per capita (-)* Workers compensation premium rates (-)* Bond rating (composite of S&P s and Moody s, scale 1-25) (+) Budget surplus as a percent of gross state product (+) Average benefit per first payment for unemployed (-)* Full-time-equivalent state and local government employees per 100 residents (-)* Security Reported crime per 100,000 inhabitants (-) Percent change in crime index, 2001-2002 (-) Murders per 100,000 inhabitants (-) The BGA Integrity Index (+)* Infrastructure Percent of households with installed phones (+) High-speed broadband lines per 1,000 residents (+)* Air passengers per capita (+) Travel time to work (-) Electricity prices per million BTU (-) Average rent of 2 bedroom apartment (-) Human resources Percent of population without health insurance (-) Percent of population aged 25 and over that graduated from high school (+) Unemployment rate, not seasonally adjusted (-) Percent of students enrolled in degree-granting institutions per 1,000 residents(+) Percent of adults in the labor force (+) Infant mortality rate, deaths per 1,000 live births (-) Non-federal physicians per 100,000 inhabitants (+) Percentage of students at or above Proficient in mathematics, grade 4 public schools (+)* Technology Academic R&D per $1,000 GSP (+) NIH support to institutions in the state, per capita (+) Patents per 100,000 inhabitants (+) Science and engineering graduate students per 100,000 inhabitants (+) Science and engineering degrees awarded per 100,000 inhabitants (+) Scientists and engineers as percent of labor force (+) Percentage of total wage and salary jobs in high technology industries(+)* Business incubation Total deposits (commercial banks and savings institutions) per capita (+) Venture capital investment per capita (+) Employer firm births per 100,000 inhabitants (+) IPO (A weighted measure of the value and number of initial public stock offerings of companies as a share of gross state product) (+)* Percent of labor force that is represented by unions (-) Minimum wage (-)* Openness Exports per capita, $ (+) Incoming foreign direct investment per capita, $ (+) Percent of population born abroad (+) Environmental policy * New variable in the index Toxic release inventory, on-site and off-site, total (new and original industries), pounds/1,000 sq. miles (-) Greenhouse gas emissions (metric tons of carbon equivalent (MTCE) per 1,000 sq. miles) (-)* Defining Metro Area and State Competitiveness Metro Area and State Competitiveness Report // Page 13

Defining Metro Area and State Competitiveness Table A2 Components of subindexes for metro areas Sub index Competitiveness indicators index Government and fiscal policy State and local taxes per capita /income per capita, state level (-) * Workers compensation premium rates, state level (-)* Bond rating of main cities and counties(composite of S&P s and Moody s, scale 1-25) (+) Bond rating of state (composite of S&P s and Moody s, scale 1-25) (+) Average benefit per first payment for unemployed, state level (-) Security Violent crimes per 100,000 inhabitants (-) Percent change in crime index, 2001-2002 (-) Thefts per 100,000 inhabitants (-) Murders per 100,000 inhabitants (-) Infrastructure High-speed broadband lines per 1,000 residents, state level (+)* Travel time to work (-) Average rent of 2 bedroom apartment (-) Air passengers per capita (+) Electricity prices per million BTU, state level (-) Human resources Percent of population without health insurance (-) Percent of population aged 25 and over that graduated from high school (+)* Unemployment rate, not seasonally adjusted (-) Percent of students enrolled in degree-granting institutions per 1,000 residents, state level (+) Percent of adults in the labor force (+) Infant mortality rate in deaths per 1,000 live births, state level (-) Non-federal physicians per 100,000 inhabitants, state level (+) Technology Academic R&D per $1,000 GSP, state level (+) NIH support to institutions, per capita (+) Patents per 100,000 inhabitants (+) Science and engineering graduate students per 100,000 inhabitants, state level (+) Scientists and engineers as % of labor force (+) High-tech payroll as percent of total payroll (+) Business Incubation Total deposits (commercial banks and savings institutions) per capita (+) Venture capital investment per capita, state level (+) Employer firm births per 100,000 inhabitants, state level (+) Entrepreneurial Activity Index (+)* Forbes Cost of Doing Business Index (-)* New publicly traded companies, state level (+)* Percent of labor force that is represented by unions (-) Openness Exports per capita, state level $ (+) Percent of population born abroad (+) Environmental policy * New variable in the index Toxic release inventory, on-site and off-site, total (new and original industries), pounds/1,000 sq. miles (-) Pollution standards index (-)* Serious pollution days per annum (-) * Metro Area and State Competitiveness Report / Page 14

(Endnotes) 1 Michael Porter, The Current Competitiveness Index: Measuring the Microeconomic Foundations of Prosperity, in World Economic Forum, The Global Competitiveness Report 2000, (Oxford University Press: New York, 2000). 2 By dividing across by the population, this equation may also be expressed in per capita terms; output per capita is a standard measure of affluence. 3 Michael E. Porter, The Competitive Advantage of Nations, (New York: Free Press, 1990). 4 Robert Atkinson, Randolph Court and Joseph Ward, The State New Economy Index, (Progressive Policy Institute, July 1999), 3. 5 Patricia Flynn et al., Index of the Massachusetts Innovation Economy 2003, (Westborough, MA: Massachusetts Technology Collaborative, 2003). 6 See John Byars, Robert McCormick and Bruce Yandle, Economic Freedom in America s 50 States: A 1999 Analysis, Clemson University, March 1999. 7 However, a regression of average annual growth in personal income against the index (and some additional variables) finds that the index does not have a statistically significant effect. 8 See William Beach and Gerald O Driscoll Jr., Methodology: Factors of the Index of Economic Freedom, in 2001 Index of Economic Freedom, Heritage Foundation, Washington DC, 2001. 9 Robert Atkinson and Paul Gottlieb, The Metropolitan New Economy Index, (Progressive Policy Institute and Center for Regional Economic Issues, 2001), 3. 10 Ibid. Defining Metro Area and State Competitiveness Metro Area and State Competitiveness Report / Page 15

How to read the index pages How to read the index pages How to Read Index Pages In this column, you will find variables where the metro area is competitive. The index value ranks from 0 to 10, with a mean of 5 and a standard deviation of 1. Each metro area s index is ordered to create the overall rank among the 50 metro areas. Index Overall Rank METRO AREA NAME 6.78 2 Each metro area s overall rank is based on its total index from 1 (highest) to 50 (lowest). In this box on each page, you will find a summary of the high and low points of the competitive index information to be found in detail in the table below. In this column, you will find variables where the metro area is not competitive. Competitive Advantages Competitive Disadvantages Government and fiscal policy subindex 4.38 36 Government and fiscal policy subindex 4.38 36 Workers compensation collections per employee 4.99 36 State bond rating 3.11 46 Security subindex 5.01 25 Security subindex 5.01 25 Thefts per 100,000 inhabitants 5.88 11 Crime index change 1999-2000, % 3.37 49 Murders per 100,000 inhabitants 5.54 16 Infrastructure subindex 4.78 27 Infrastructure subindex 4.78 27 Mass transit availability 6.59 3 Travel time to work 3.69 46 % of households with computers 6.03 7 Median household gross rent 1.23 50 % of adults online 7.07 1 Human resources subindex 6.19 8 Human resources subindex 6.19 8 % of population that graduated from high school 5.36 20 % of population without health insurance 3.94 41 Unemployment rate 6.01 Variables 9 % are of labor the force elements represented by unions 4.33 34 Enrollment in degree-granting institutions per that make up each capita 5.92 7 % of adults in the labor force 5.64 subindex. 13 Variables that A subindex combines one or more variables that explain certain social or economic characteristics. For example, the security subindex is composed of other variables such as thefts, percentage change in crime, and murders committed in the metro area. % of population born abroad 7.12 3 Nonfederal physicians per 100,000 inhabitants 5.08 11 Technology subindex 6.66 4 Technology subindex 6.66 4 Academic R&D funding relative to employment 5.00 50 are 15 considered Science & engineering grad. students per capita 5.20 disadvantages. 17 Scientists and engineers in the labor force 5.35 17 High tech payroll as % of total payroll 7.81 1 Finance and cost subindex 8.31 1 Finance and cost subindex 8.31 1 Bank deposits per capita 5.71 11 Cost of living 3.66 43 Venture capital as % of GMP 10.00 1 Openness subindex 6.99 3 Openness subindex 6.99 3 Exports per capita 7.50 2 Air passengers per capita 5.19 16 Domestic competition subindex 7.42 1 Domestic competition subindex 7.42 1 Net firm creation per 100,000 inhabitants 5.66 14 New publicly traded companies 9.70 1 Environmental policy subindex 5.48 14 Environmental policy subindex 5.48 14 Toxic release, pounds per capita 5.24 9 Electricity prices, $ per mbtu 3.64 42 Pollution standards index 6.18 6 Serious pollution days p.a. 5.85 8 rank between 1 and 20 are considered advantages to a metro area, while variables that rank between 30 and Metro Area and State Competitiveness Report / Page 16

State Indices BHI State Indexes State Index Metro Area and State Competitiveness Report / Page 17

ALABAMA Index Overall Rank 3.66 47 Government and fiscal policy subindex 5.29 16 Government and fiscal policy subindex 5.29 16 State and local taxes per capita/income per capita (cur $) 5.75 7 Workers' compensation premium rates 4.36 40 Budget surplus, % of GSP 5.90 6 Full-time-equivalent state and local government 4.52 40 Average benefit per first payment for unemployed 6.69 1 Security subindex 4.11 46 Security subindex 4.11 46 Crime index, per 100,000 inhabitants 4.51 34 Crime index change 2001-2002, % 4.17 42 Murder index, per 100,000 inhabitants 4.20 39 The BGA Integrity Index 3.57 47 Infrastructure subindex 4.87 33 Infrastructure subindex 4.87 33 Electricity prices per million BTU 5.71 12 Households with installed phones, % 3.71 43 Average rent of 2 bedroom apartment 5.95 5 High-speed lines by state per 1,000 residents 4.67 33 Air passengers per capita 4.27 45 Human resources subindex 4.07 46 Human resources subindex 4.07 46 Percent of population that graduated from high school, 3.38 47 persons 25 years and older Percent of adults who are in the labor force 3.88 43 Infant mortality rate, deaths per 1,000 live births 3.39 47 Rate of nonfederal physicians per 100,000 inhabitants 4.16 42 Percentage of students at or above Proficient in 3.16 48 Technology subindex 4.83 31 Technology subindex 4.83 31 Academic R&D per $1,000 GSP 5.40 17 Patents per 100,000 inhabitants 4.15 43 NIH support to institutions per capita 5.16 14 S&E degrees awarded per 100,000 inhabitants 4.65 34 Scientists and engineers/labor force 4.58 32 Business incubation subindex 4.74 39 Business incubation subindex 4.74 39 Percent of labor force that is represented by unions 5.63 18 Total deposits (commercial banks and savings 4.69 36 Minimum wage 5.52 1 institutions) per capita Venture capital investment per capita 4.51 34 Employer firm births per 100,000 inhabitants 3.89 46 IPO 4.20 34 Openness subindex 4.60 38 Openness subindex 4.60 38 Percent of population born abroad 4.09 44 Environmental policy subindex 4.73 34 Environmental policy subindex 4.73 34 Toxic release inventory, on-site and off-site, total (new and 4.45 40 original industries), pounds/1,000 sq. miles Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 5.01 31 State Index Metro Area and State Competitiveness Report / Page 18

ALASKA Index Overall Rank 5.01 27 Government and fiscal policy subindex 4.47 45 Government and fiscal policy subindex 4.47 45 State and local taxes per capita/income per capita (cur $) 8.31 1 Workers' compensation premium rates 4.48 36 Average benefit per first payment for unemployed 6.06 7 Budget surplus, % of GSP 1.25 50 Full-time-equivalent state and local government employees per 1.80 49 Security subindex 4.74 35 Security subindex 4.74 35 Crime index, per 100,000 inhabitants 4.66 31 Crime index change 2001-2002, % 4.33 41 Infrastructure subindex 5.27 11 Infrastructure subindex 5.27 11 Households with installed phones, % 5.88 9 Electricity prices per million BTU 3.54 42 High-speed lines by state per 1,000 residents 5.97 9 Average rent of 2 bedroom apartment 3.21 46 Air passengers per capita 7.03 3 Average travel time to work 6.00 8 Human resources subindex 4.58 39 Human resources subindex 4.58 39 Percent of population that graduated from high school, 6.22 5 Percent of population without health insurance 3.83 44 persons 25 years and older Unemployment rate 2.72 49 Percent of adults who are in the labor force 5.75 12 Infant mortality rate, deaths per 1,000 live births 4.27 39 Rate of nonfederal physicians per 100,000 inhabitants 4.15 43 Percentage of students at or above Proficient in mathematics, grade 4 public schools 4.78 34 Technology subindex 4.46 38 Technology subindex 4.46 38 Academic R&D per $1,000 GSP 5.75 13 NIH support to institutions per capita 4.20 44 Scientists and engineers/labor force 5.68 12 Patents per 100,000 inhabitants 3.99 48 Number of S&E graduate students per 100,000 inhabitants 3.88 46 S&E degrees awarded per 100,000 inhabitants 3.24 49 Percentage of total wage and salary jobs in high technology industries 4.49 31 Business incubation subindex 4.04 50 Business incubation subindex 4.04 50 Employer firm births per 100,000 inhabitants 5.75 11 Total deposits (commercial banks and savings institutions) per 4.39 50 capita Venture capital investment per capita 4.37 49 IPO 4.20 34 Percent of labor force that is represented by unions 2.92 48 Minimum wage 2.60 49 Openness subindex 7.25 1 Openness subindex 7.25 1 Exports per capita, dollars 7.03 4 Incoming FDI per capita, dollars 10.00 1 Environmental policy subindex 5.76 11 Environmental policy subindex 5.76 11 Greenhouse Gas Emissions (metric tons of carbon equivalent 5.99 1 per 1,000 sq. miles) Metro Area and State Competitiveness Report / Page 19 State Index

ARIZONA Index Overall Rank 4.60 32 Government and fiscal policy subindex 5.41 10 Government and fiscal policy subindex 5.41 10 Workers' compensation premium rates 6.11 6 Average benefit per first payment for unemployed 5.77 15 Full-time-equivalent state and local government 6.21 4 Security subindex 3.78 50 Security subindex 3.78 50 The BGA Integrity Index 5.26 20 Crime index, per 100,000 inhabitants 2.57 50 Crime index change 2001-2002, % 3.22 47 Murder index, per 100,000 inhabitants 4.07 42 Infrastructure subindex 4.98 26 Infrastructure subindex 4.98 26 High-speed lines by state per 1,000 residents 5.39 19 Households with installed phones, % 4.53 39 Air passengers per capita 5.65 7 Average travel time to work 4.68 33 Electricity prices per million BTU 5.00 35 Average rent of 2 bedroom apartment 4.66 36 Human resources subindex 4.65 35 Human resources subindex 4.65 35 Percent of students enrolled in degree-granting 5.44 14 Percent of population without health insurance 4.34 35 institutions per 1,000 residents Percent of population that graduated from high school, 4.41 37 persons 25 years and older Percent of adults who are in the labor force 4.54 35 Rate of nonfederal physicians per 100,000 inhabitants 4.32 37 Percentage of students at or above Proficient in mathematics, grade 4 public schools 4.04 39 Technology subindex 4.80 32 Technology subindex 4.80 32 Patents per 100,000 inhabitants 5.02 19 NIH support to institutions per capita 3.93 50 Scientists and engineers/labor force 5.31 19 Number of S&E graduate students per 100,000 inhabitants 4.57 33 Percentage of total wage and salary jobs in high technology industries 5.84 12 S&E degrees awarded per 100,000 inhabitants 4.07 42 Business incubation subindex 5.06 22 Business incubation subindex 5.06 22 IPO 5.12 18 Total deposits (commercial banks and savings institutions) 4.48 47 Percent of labor force that is represented by unions 6.19 4 per capita Minimum wage 5.52 1 Employer firm births per 100,000 inhabitants 4.30 36 Openness subindex 5.31 10 Openness subindex 5.31 10 Exports per capita, dollars 5.34 14 Incoming FDI per capita, dollars 4.55 47 Percent of population born abroad 6.04 8 Environmental policy subindex 4.94 30 Environmental policy subindex 4.94 30 Greenhouse Gas Emissions (metric tons of carbon 5.70 14 Toxic release inventory, on-site and off-site, total (new and 4.18 42 equivalent per 1,000 sq. miles) original industries), pounds/1,000 sq. miles State Index Metro Area and State Competitiveness Report / Page 20

ARKANSAS Index Overall Rank 3.69 45 Government and fiscal policy subindex 5.48 6 Government and fiscal policy subindex 5.48 6 Workers' compensation premium rates 6.12 5 Budget surplus, % of GSP 5.91 1 Average benefit per first payment for unemployed 5.80 13 Security subindex 4.74 34 Security subindex 4.74 34 Crime index change 2001-2002, % 4.77 36 Murder index, per 100,000 inhabitants 4.77 31 The BGA Integrity Index 4.61 31 Infrastructure subindex 4.60 45 Infrastructure subindex 4.60 45 Average travel time to work 5.70 13 Households with installed phones, % 2.31 50 Electricity prices per million BTU 5.52 18 High-speed lines by state per 1,000 residents 3.87 43 Average rent of 2 bedroom apartment 5.94 6 Air passengers per capita 4.29 44 Human resources subindex 3.95 48 Human resources subindex 3.95 48 Percent of population without health insurance 4.23 39 Percent of population that graduated from high school, persons 3.64 45 25 years and older Unemployment rate 4.44 36 Percent of students enrolled in degree-granting institutions per 3.40 50 1,000 residents Percent of adults who are in the labor force 3.52 48 Infant mortality rate, deaths per 1,000 live births 4.14 41 Rate of nonfederal physicians per 100,000 inhabitants 4.04 46 Percentage of students at or above Proficient in mathematics, grade 4 public schools 4.19 38 Technology subindex 3.87 49 Technology subindex 3.87 49 Academic R&D per $1,000 GSP 3.89 42 NIH support to institutions per capita 4.25 42 Patents per 100,000 inhabitants 3.99 49 Number of S&E graduate students per 100,000 inhabitants 3.83 47 S&E degrees awarded per 100,000 inhabitants 3.54 48 Scientists and engineers/labor force 3.50 49 Percentage of total wage and salary jobs in high technology industries 4.10 40 Business incubation subindex 4.95 26 Business incubation subindex 4.95 26 Percent of labor force that is represented by unions 6.28 3 Total deposits (commercial banks and savings institutions) 4.72 31 Minimum wage 5.52 1 per capita Venture capital investment per capita 4.39 42 IPO 4.20 34 Openness subindex 4.32 46 Openness subindex 4.32 46 Exports per capita, dollars 4.14 43 Incoming FDI per capita, dollars 4.59 43 Percent of population born abroad 4.21 39 Environmental policy subindex 5.57 18 Environmental policy subindex 5.57 18 Toxic release inventory, on-site and off-site, total (new and original industries), pounds/1,000 sq. miles 5.62 20 Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 5.53 18 Metro Area and State Competitiveness Report / Page 21 State Index

CALIFORNIA Index Overall Rank 5.14 22 Government and fiscal policy subindex 3.87 48 Government and fiscal policy subindex 3.87 48 Full-time-equivalent state and local government employees 5.82 7 Workers' compensation premium rates 1.37 50 per 100 residents Bond rating: composite 2.05 50 Budget surplus, % of GSP 4.66 41 Average benefit per first payment for unemployed 4.43 37 Security subindex 4.99 24 Security subindex 4.99 24 The BGA Integrity Index 6.35 5 Crime index change 2001-2002, % 4.42 38 Murder index, per 100,000 inhabitants 4.17 40 Infrastructure subindex 4.55 47 Infrastructure subindex 4.55 47 Households with installed phones, % 5.74 14 Average travel time to work 3.78 46 High-speed lines by state per 1,000 residents 6.24 5 Electricity prices per million BTU 2.99 49 Air passengers per capita 5.01 17 Average rent of 2 bedroom apartment 3.54 43 Human resources subindex 4.80 33 Human resources subindex 4.80 33 Percent of students enrolled in degree-granting institutions 7.13 2 Percent of population without health insurance 3.96 42 per 1,000 residents Percent of population that graduated from high school, 3.69 42 Infant mortality rate, deaths per 1,000 live births 6.11 5 persons 25 years and older Unemployment rate 3.96 43 Percent of adults who are in the labor force 4.54 35 Percentage of students at or above Proficient in mathematics, grade 4 public schools 4.04 39 Technology subindex 5.69 7 Technology subindex 5.69 7 NIH support to institutions per capita 5.56 10 Patents per 100,000 inhabitants 6.37 5 Number of S&E graduate students per 100,000 inhabitants 5.32 16 S&E degrees awarded per 100,000 inhabitants 5.11 20 Scientists and engineers/labor force 5.96 7 Percentage of total wage and salary jobs in high technology industries 6.50 5 Business incubation subindex 5.49 6 Business incubation subindex 5.49 6 Total deposits (commercial banks and savings institutions) 4.95 18 Percent of labor force that is represented by unions 4.03 43 per capita Minimum wage 3.18 43 Venture capital investment per capita 8.38 2 Employer firm births per 100,000 inhabitants 5.15 17 IPO 7.24 3 Openness subindex 6.19 3 Openness subindex 6.19 3 Exports per capita, dollars 5.58 10 Percent of population born abroad 8.21 1 Environmental policy subindex 5.50 22 Environmental policy subindex 5.50 22 Toxic release inventory, on-site and off-site, total (new and 5.86 11 original industries), pounds/1,000 sq. miles State Index Metro Area and State Competitiveness Report / Page 22

COLORADO Index Overall Rank 6.27 5 Government and fiscal policy subindex 4.81 37 Government and fiscal policy subindex 4.81 37 State and local taxes per capita/income per capita (cur $) 5.56 11 Workers' compensation premium rates 4.66 32 Full-time-equivalent state and local government employees 5.43 19 Bond rating: composite 4.10 37 per 100 residents Budget surplus, % of GSP 5.00 34 Average benefit per first payment for unemployed 4.12 40 Security subindex 4.84 31 Security subindex 4.84 31 The BGA Integrity Index 5.61 16 Crime index, per 100,000 inhabitants 4.62 32 Crime index change 2001-2002, % 3.88 45 Infrastructure subindex 5.41 5 Infrastructure subindex 5.41 5 Households with installed phones, % 6.27 3 Average rent of 2 bedroom apartment 4.61 37 Air passengers per capita 5.92 5 Electricity prices per million BTU 5.55 15 Human resources subindex 5.28 18 Human resources subindex 5.28 18 Percent of population that graduated from high school, 5.71 12 Percent of population without health insurance 4.28 36 persons 25 years and older Unemployment rate 4.63 33 Percent of students enrolled in degree-granting institutions per 5.46 13 1,000 residents Percent of adults who are in the labor force 6.05 8 Infant mortality rate, deaths per 1,000 live births 5.84 10 Percentage of students at or above Proficient in mathematics, grade 4 public schools 5.37 17 Technology subindex 6.12 3 Technology subindex 6.12 3 NIH support to institutions per capita 5.14 15 Patents per 100,000 inhabitants 5.88 9 Number of S&E graduate students per 100,000 inhabitants 6.20 5 S&E degrees awarded per 100,000 inhabitants 6.31 6 Scientists and engineers/labor force 7.13 3 Percentage of total wage and salary jobs in high technology industries 7.13 2 Business incubation subindex 5.41 8 Business incubation subindex 5.41 8 Venture capital investment per capita 6.24 4 Total deposits (commercial banks and savings 4.70 35 Employer firm births per 100,000 inhabitants 6.97 3 institutions) per capita IPO 6.15 4 Minimum wage 2.67 48 Percent of labor force that is represented by unions 5.72 15 Openness subindex 4.81 29 Openness subindex 4.81 29 Percent of population born abroad 5.34 16 Exports per capita, dollars 4.38 36 Incoming FDI per capita, dollars 4.70 34 Environmental policy subindex 5.79 8 Environmental policy subindex 5.79 8 Toxic release inventory, on-site and off-site, total (new and 5.90 7 original industries), pounds/1,000 sq. miles Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 5.69 15 Metro Area and State Competitiveness Report / Page 23 State Index

Connecticut BHI CONNECTICUT Index Overall Rank 5.57 15 Government and fiscal policy subindex 4.65 42 Government and fiscal policy subindex 4.65 42 Full-time-equivalent state and local government employees 5.57 13 State and local taxes per capita/income per capita (cur $) 4.42 40 per 100 residents Workers' compensation premium rates 4.44 39 Budget surplus, % of GSP 5.06 31 Average benefit per first payment for unemployed 3.91 43 Security subindex 5.84 4 Security subindex 5.84 4 Crime index, per 100,000 inhabitants 5.98 10 Crime index change 2001-2002, % 5.71 12 Murder index, per 100,000 inhabitants 5.87 12 The BGA Integrity Index 5.81 13 Infrastructure subindex 4.88 31 Infrastructure subindex 4.88 31 Households with installed phones, % 6.80 1 Air passengers per capita 4.45 33 High-speed lines by state per 1,000 residents 6.65 3 Average travel time to work 4.62 35 Electricity prices per million BTU 3.96 41 Average rent of 2 bedroom apartment 2.81 48 Human resources subindex 5.59 10 Human resources subindex 5.59 10 Percent of population without health insurance 6.10 6 Percent of students enrolled in degree-granting 4.12 42 Infant mortality rate, deaths per 1,000 live births 5.63 16 institutions per 1,000 residents Rate of nonfederal physicians per 100,000 inhabitants 6.87 4 Percentage of students at or above Proficient in mathematics, grade 4 public schools 6.40 4 Technology subindex 5.83 5 Technology subindex 5.83 5 NIH support to institutions per capita 5.98 5 Patents per 100,000 inhabitants 5.98 7 Number of S&E graduate students per 100,000 inhabitants 6.70 3 S&E degrees awarded per 100,000 inhabitants 5.12 19 Scientists and engineers/labor force 6.12 6 Percentage of total wage and salary jobs in high technology industries 6.15 8 Business incubation subindex 5.09 18 Business incubation subindex 5.09 18 Total deposits (commercial banks and savings institutions) 5.12 9 Employer firm births per 100,000 inhabitants 4.35 35 per capita Percent of labor force that is represented by unions 4.57 33 Venture capital investment per capita 5.25 12 IPO 5.69 9 Minimum wage 5.52 1 Openness subindex 5.27 13 Openness subindex 5.27 13 Exports per capita, dollars 5.29 15 Incoming FDI per capita, dollars 4.89 15 Percent of population born abroad 5.63 12 Environmental policy subindex 3.99 43 Environmental policy subindex 3.99 43 Toxic release inventory, on-site and off-site, total (new and 4.70 32 original industries), pounds/1,000 sq. miles Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 3.28 49 State Index Metro Area and State Competitiveness Report / Page 24

DELAWARE Index Overall Rank 5.43 18 Government and fiscal policy subindex 5.45 8 Government and fiscal policy subindex 5.45 8 State and local taxes per capita/income per capita (cur $) 6.79 3 Workers' compensation premium rates 3.81 47 Bond rating: composite 6.57 1 Full-time-equivalent state and local government 4.79 35 Budget surplus, % of GSP 5.62 13 employees per 100 residents Security subindex 5.07 23 Security subindex 5.07 23 Crime index change 2001-2002, % 5.38 19 The BGA Integrity Index 4.31 38 Infrastructure subindex 4.88 32 Infrastructure subindex 4.88 32 Households with installed phones, % 5.83 12 Air passengers per capita 4.02 50 Electricity prices per million BTU 5.11 33 Average rent of 2 bedroom apartment 4.46 39 Human resources subindex 5.04 25 Human resources subindex 5.04 25 Percent of population without health insurance 5.91 14 Infant mortality rate, deaths per 1,000 live births 2.51 50 Percent of population that graduated from high school, 5.71 12 persons 25 years and older Unemployment rate 6.17 7 Rate of nonfederal physicians per 100,000 inhabitants 5.19 15 Technology subindex 5.15 20 Technology subindex 5.15 20 Patents per 100,000 inhabitants 5.66 10 Academic R&D per $1,000 GSP 3.79 45 Number of S&E graduate students per 100,000 inhabitants 5.65 12 NIH support to institutions per capita 4.52 33 S&E degrees awarded per 100,000 inhabitants 5.87 8 Scientists and engineers/labor force 5.37 16 Percentage of total wage and salary jobs in high technology industries 5.21 19 Business incubation subindex 5.82 2 Business incubation subindex 5.82 2 Total deposits (commercial banks and savings institutions) 10.00 1 IPO 4.20 34 per capita Minimum wage 4.06 40 Venture capital investment per capita 5.36 9 Employer firm births per 100,000 inhabitants 6.22 8 Openness subindex 5.27 14 Openness subindex 5.27 14 Exports per capita, dollars 5.27 16 Incoming FDI per capita, dollars 5.81 3 Environmental policy subindex 3.14 47 Environmental policy subindex 3.14 47 Toxic release inventory, on-site and off-site, total (new and 2.91 48 original industries), pounds/1,000 sq. miles Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 3.36 48 Metro Area and State Competitiveness Report / Page 25 State Index

Florida BHI FLORIDA Index Overall Rank 4.81 29 Government and fiscal policy subindex 5.16 21 Government and fiscal policy subindex 5.16 21 State and local taxes per capita/income per capita (cur $) 5.84 6 Workers' compensation premium rates 2.33 49 Bond rating: composite 5.34 18 Budget surplus, % of GSP 5.91 1 Full-time-equivalent state and local government employees per 100 residents 6.29 3 Security subindex 4.75 33 Security subindex 4.75 33 The BGA Integrity Index 5.52 18 Crime index, per 100,000 inhabitants 3.54 48 Murder index, per 100,000 inhabitants 4.69 33 Infrastructure subindex 5.06 20 Infrastructure subindex 5.06 20 High-speed lines by state per 1,000 residents 6.21 6 Households with installed phones, % 4.67 35 Air passengers per capita 5.51 8 Average travel time to work 4.27 41 Electricity prices per million BTU 4.81 37 Average rent of 2 bedroom apartment 4.88 33 Human resources subindex 4.70 34 Human resources subindex 4.70 34 Unemployment rate 5.50 15 Percent of population without health insurance 4.02 41 Percent of population that graduated from high school, persons 4.65 35 25 years and older Percent of adults who are in the labor force 3.84 44 Technology subindex 4.24 44 Technology subindex 4.24 44 Academic R&D per $1,000 GSP 3.85 44 NIH support to institutions per capita 4.25 43 Number of S&E graduate students per 100,000 inhabitants 4.35 38 S&E degrees awarded per 100,000 inhabitants 3.63 47 Scientists and engineers/labor force 4.48 33 Business incubation subindex 5.31 9 Business incubation subindex 5.31 9 Employer firm births per 100,000 inhabitants 6.10 9 IPO 4.96 19 Percent of labor force that is represented by unions 5.83 13 Minimum wage 5.52 1 Openness subindex 5.26 15 Openness subindex 5.26 15 Percent of population born abroad 6.69 4 Exports per capita, dollars 4.49 34 Incoming FDI per capita, dollars 4.59 44 Environmental policy subindex 4.54 40 Environmental policy subindex 4.54 40 Toxic release inventory, on-site and off-site, total (new and 4.53 36 original industries), pounds/1,000 sq. miles Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 4.54 40 State Index Metro Area and State Competitiveness Report / Page 26

GEORGIA Index Overall Rank 5.08 25 Government and fiscal policy subindex 5.51 4 Government and fiscal policy subindex 5.51 4 Bond rating: composite 6.57 1 Budget surplus, % of GSP 5.50 17 Average benefit per first payment for unemployed 5.85 12 Security subindex 4.67 37 Security subindex 4.67 37 Crime index, per 100,000 inhabitants 4.46 36 Murder index, per 100,000 inhabitants 4.07 41 Infrastructure subindex 5.12 17 Infrastructure subindex 5.12 17 High-speed lines by state per 1,000 residents 5.81 13 Households with installed phones, % 3.90 42 Air passengers per capita 6.09 4 Average travel time to work 3.89 45 Average rent of 2 bedroom apartment 5.64 16 Human resources subindex 4.64 36 Human resources subindex 4.64 36 Unemployment rate 5.88 12 Percent of population without health insurance 4.50 33 Percent of adults who are in the labor force 5.49 16 Percent of population that graduated from high school, 4.76 34 persons 25 years and older Percent of students enrolled in degree-granting institutions per 4.00 46 1,000 residents Infant mortality rate, deaths per 1,000 live births 3.93 43 Rate of nonfederal physicians per 100,000 inhabitants 4.26 39 Percentage of students at or above Proficient in mathematics, grade 4 public schools 4.33 37 Technology subindex 4.64 35 Technology subindex 4.64 35 Percentage of total wage and salary jobs in high 5.13 20 Patents per 100,000 inhabitants 4.47 31 technology industries Number of S&E graduate students per 100,000 inhabitants 4.27 41 S&E degrees awarded per 100,000 inhabitants 4.05 43 Business incubation subindex 5.29 11 Business incubation subindex 5.29 11 Venture capital investment per capita 5.43 7 IPO 5.43 15 Percent of labor force that is represented by unions 5.90 12 Minimum wage 5.52 1 Openness subindex 4.91 24 Openness subindex 4.91 24 Percent of population born abroad 5.03 19 Environmental policy subindex 4.76 32 Environmental policy subindex 4.76 32 Toxic release inventory, on-site and off-site, total (new and 4.64 33 original industries), pounds/1,000 sq. miles Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 4.87 35 Metro Area and State Competitiveness Report / Page 27 State Index

Hawaii BHI HAWAII Index Overall Rank 3.67 46 Government and fiscal policy subindex 4.24 47 Government and fiscal policy subindex 4.24 47 State and local taxes per capita/income per capita (cur $) 3.66 47 Workers' compensation premium rates 3.67 48 Bond rating: composite 4.10 37 Budget surplus, % of GSP 4.93 36 Average benefit per first payment for unemployed 4.12 41 Security subindex 4.29 44 Security subindex 4.29 44 Murder index, per 100,000 inhabitants 6.03 7 Crime index, per 100,000 inhabitants 2.92 49 The BGA Integrity Index 6.37 4 Crime index change 2001-2002, % 1.84 50 Infrastructure subindex 4.81 35 Infrastructure subindex 4.81 35 Households with installed phones, % 5.45 18 Average travel time to work 4.36 38 Air passengers per capita 9.64 1 Electricity prices per million BTU 1.98 50 Average rent of 2 bedroom apartment 2.48 49 Human resources subindex 5.39 15 Human resources subindex 5.39 15 Percent of population without health insurance 6.18 3 Percentage of students at or above Proficient in 3.74 43 Percent of population that graduated from high school, 5.66 17 mathematics, grade 4 public schools persons 25 years and older Unemployment rate 6.26 5 Percent of students enrolled in degree-granting 5.34 16 institutions per 1,000 residents Infant mortality rate, deaths per 1,000 live births 5.56 18 Rate of nonfederal physicians per 100,000 inhabitants 5.54 9 Technology subindex 4.49 36 Technology subindex 4.49 36 Academic R&D per $1,000 GSP 5.32 19 Patents per 100,000 inhabitants 4.04 47 Number of S&E graduate students per 100,000 inhabitants 4.45 35 Scientists and engineers/labor force 4.38 35 Percentage of total wage and salary jobs in high technology industries 3.76 47 Business incubation subindex 4.19 49 Business incubation subindex 4.19 49 Total deposits (commercial banks and savings 4.92 19 Venture capital investment per capita 4.39 44 institutions) per capita IPO 4.20 34 Percent of labor force that is represented by unions 2.89 49 Minimum wage 3.91 41 Openness subindex 5.16 18 Openness subindex 5.16 18 Incoming FDI per capita, dollars 5.48 4 Exports per capita, dollars 3.41 50 Percent of population born abroad 6.59 6 Environmental policy subindex 5.65 16 Environmental policy subindex 5.65 16 Toxic release inventory, on-site and off-site, total (new 5.87 10 and original industries), pounds/1,000 sq. miles State Index Metro Area and State Competitiveness Report / Page 28

IDAHO Index Overall Rank 5.58 14 Government and fiscal policy subindex 4.86 36 Government and fiscal policy subindex 4.86 36 Average benefit per first payment for unemployed 5.79 14 State and local taxes per capita/income per capita (cur $) 4.61 38 Bond rating: composite 4.10 37 Budget surplus, % of GSP 4.72 40 Full-time-equivalent state and local government employees per 100 residents 4.79 35 Security subindex 4.98 26 Security subindex 4.98 26 Crime index, per 100,000 inhabitants 5.81 14 Crime index change 2001-2002, % 4.42 39 Murder index, per 100,000 inhabitants 5.75 13 The BGA Integrity Index 3.96 42 Infrastructure subindex 5.35 8 Infrastructure subindex 5.35 8 Households with installed phones, % 6.17 6 High-speed lines by state per 1,000 residents 3.90 42 Average travel time to work 5.82 11 Electricity prices per million BTU 6.05 3 Average rent of 2 bedroom apartment 5.54 19 Human resources subindex 4.95 29 Human resources subindex 4.95 29 Percent of population that graduated from high 5.58 19 Percent of population without health insurance 3.91 43 school, persons 25 years and older Rate of nonfederal physicians per 100,000 inhabitants 3.53 50 Unemployment rate 5.21 20 Percent of students enrolled in degree-granting 5.58 11 institutions per 1,000 residents Percent of adults who are in the labor force 5.29 18 Infant mortality rate, deaths per 1,000 live births 5.56 18 Technology subindex 5.44 12 Technology subindex 5.44 12 Patents per 100,000 inhabitants 9.50 1 Academic R&D per $1,000 GSP 4.05 40 Scientists and engineers/labor force 5.75 10 NIH support to institutions per capita 4.06 49 Percentage of total wage and salary jobs in high 5.80 14 Number of S&E graduate students per 100,000 inhabitants 4.44 36 technology industries S&E degrees awarded per 100,000 inhabitants 4.49 37 Business incubation subindex 5.15 15 Business incubation subindex 5.15 15 Employer firm births per 100,000 inhabitants 6.41 6 Total deposits (commercial banks and savings institutions) 4.42 48 Percent of labor force that is represented by unions 5.79 14 per capita Minimum wage 5.52 1 IPO 4.20 34 Openness subindex 4.61 37 Openness subindex 4.61 37 Exports per capita, dollars 4.56 31 Incoming FDI per capita, dollars 4.57 45 Environmental policy subindex 5.75 12 Environmental policy subindex 5.75 12 Greenhouse Gas Emissions (metric tons of carbon 5.93 3 equivalent per 1,000 sq. miles) Metro Area and State Competitiveness Report / Page 29 State Index

ILLINOIS Index Overall Rank 4.22 39 Government and fiscal policy subindex 4.86 35 Government and fiscal policy subindex 4.86 35 Budget surplus, % of GSP 5.79 8 Workers' compensation premium rates 4.66 32 Full-time-equivalent state and local government employees per 100 residents 5.74 8 Average benefit per first payment for unemployed 3.36 47 Security subindex 4.55 41 Security subindex 4.55 41 Murder index, per 100,000 inhabitants 3.90 45 The BGA Integrity Index 4.04 41 Infrastructure subindex 4.67 43 Infrastructure subindex 4.67 43 Air passengers per capita 5.48 9 Households with installed phones, % 3.08 49 Average rent of 2 bedroom apartment 5.69 14 Average travel time to work 3.63 47 Human resources subindex 4.90 30 Human resources subindex 4.90 30 Percent of students enrolled in degree-granting institutions per 5.65 9 Percent of population that graduated from high school, 4.97 31 1,000 residents persons 25 years and older Rate of nonfederal physicians per 100,000 inhabitants 5.39 11 Unemployment rate 3.96 43 Percent of adults who are in the labor force 4.56 33 Infant mortality rate, deaths per 1,000 live births 4.54 36 Technology subindex 4.98 25 Technology subindex 4.98 25 Patents per 100,000 inhabitants 5.05 17 Academic R&D per $1,000 GSP 4.47 35 Number of S&E graduate students per 100,000 inhabitants 6.06 6 Business incubation subindex 4.85 34 Business incubation subindex 4.85 34 Total deposits (commercial banks and savings institutions) 5.27 7 Employer firm births per 100,000 inhabitants 4.19 39 per capita Percent of labor force that is represented by unions 4.00 44 IPO 6.02 5 Minimum wage 5.01 39 Openness subindex 5.29 12 Openness subindex 5.29 12 Exports per capita, dollars 5.07 20 Incoming FDI per capita, dollars 4.86 18 Percent of population born abroad 5.96 10 Environmental policy subindex 4.55 38 Environmental policy subindex 4.55 38 Toxic release inventory, on-site and off-site, total (new and original industries), pounds/1,000 sq. miles 4.59 34 Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 4.52 41 State Index Metro Area and State Competitiveness Report / Page 30

Indiana BHI INDIANA Index Overall Rank 4.12 42 Government and fiscal policy subindex 5.53 3 Government and fiscal policy subindex 5.53 3 Workers' compensation premium rates 6.45 2 State and local taxes per capita/income per capita (cur $) 4.70 35 Bond rating: composite 5.75 10 Budget surplus, % of GSP 5.48 18 Full-time-equivalent state and local government employees per 100 residents 5.49 16 Security subindex 4.89 28 Security subindex 4.89 28 Crime index change 2001-2002, % 5.38 20 Murder index, per 100,000 inhabitants 4.53 35 The BGA Integrity Index 4.44 34 Infrastructure subindex 4.80 36 Infrastructure subindex 4.80 36 Average travel time to work 5.32 17 Households with installed phones, % 3.51 46 Electricity prices per million BTU 5.87 7 High-speed lines by state per 1,000 residents 4.25 39 Average rent of 2 bedroom apartment 5.52 20 Air passengers per capita 4.34 40 Human resources subindex 5.00 27 Human resources subindex 5.00 27 Unemployment rate 5.50 15 Percent of students enrolled in degree-granting 4.44 35 Percent of adults who are in the labor force 5.29 18 institutions per 1,000 residents Percentage of students at or above Proficient in 5.51 15 Infant mortality rate, deaths per 1,000 live births 4.68 34 mathematics, grade 4 public schools Rate of nonfederal physicians per 100,000 inhabitants 4.32 36 Technology subindex 4.67 34 Technology subindex 4.67 34 NIH support to institutions per capita 4.44 36 Scientists and engineers/labor force 4.22 38 Percentage of total wage and salary jobs in high technology industries 4.41 32 Business incubation subindex 4.79 38 Business incubation subindex 4.79 38 IPO 4.96 19 Total deposits (commercial banks and savings 4.67 38 Minimum wage 5.52 1 institutions) per capita Venture capital investment per capita 4.47 35 Employer firm births per 100,000 inhabitants 4.07 43 Openness subindex 4.96 21 Openness subindex 4.96 21 Exports per capita, dollars 5.58 11 Percent of population born abroad 4.32 33 Incoming FDI per capita, dollars 4.98 11 Environmental policy subindex 2.88 49 Environmental policy subindex 2.88 49 Toxic release inventory, on-site and off-site, total (new and 2.17 50 original industries), pounds/1,000 sq. miles Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 3.59 46 Metro Area and State Competitiveness Report / Page 31 State Index

IOWA Index Overall Rank 5.57 17 Government and fiscal policy subindex 5.41 11 Government and fiscal policy subindex 5.41 11 Workers' compensation premium rates 5.96 9 Full-time-equivalent state and local government 4.56 39 Bond rating: composite 5.75 10 employees per 100 residents Budget surplus, % of GSP 5.76 11 Average benefit per first payment for unemployed 5.45 19 Security subindex 4.89 29 Security subindex 4.89 29 Crime index, per 100,000 inhabitants 5.53 16 Crime index change 2001-2002, % 3.93 44 Murder index, per 100,000 inhabitants 6.20 5 The BGA Integrity Index 3.90 43 Infrastructure subindex 5.20 15 Infrastructure subindex 5.20 15 Households with installed phones, % 5.40 19 High-speed lines by state per 1,000 residents 4.14 40 Average travel time to work 6.23 7 Air passengers per capita 4.24 46 Electricity prices per million BTU 5.50 20 Average rent of 2 bedroom apartment 5.66 15 Human resources subindex 5.59 9 Human resources subindex 5.59 9 Percent of population without health insurance 5.86 15 Rate of nonfederal physicians per 100,000 inhabitants 4.19 41 Percent of population that graduated from high school, 5.98 7 persons 25 years and older Unemployment rate 6.07 9 Percent of adults who are in the labor force 5.97 10 Infant mortality rate, deaths per 1,000 live births 5.97 8 Percentage of students at or above Proficient in mathematics, grade 4 public schools 5.66 10 Technology subindex 5.04 23 Technology subindex 5.04 23 Academic R&D per $1,000 GSP 6.50 4 Scientists and engineers/labor force 4.02 42 NIH support to institutions per capita 5.11 16 Percentage of total wage and salary jobs in high 4.14 39 Number of S&E graduate students per 100,000 inhabitants 5.37 14 technology industries S&E degrees awarded per 100,000 inhabitants 5.40 16 Business incubation subindex 4.84 36 Business incubation subindex 4.84 36 Total deposits (commercial banks and savings institutions) 4.97 13 Venture capital investment per capita 4.39 43 per capita Employer firm births per 100,000 inhabitants 3.76 49 IPO 5.61 11 Percent of labor force that is represented by unions 4.75 31 Minimum wage 5.52 1 Openness subindex 4.56 40 Openness subindex 4.56 40 Incoming FDI per capita, dollars 4.64 40 Percent of population born abroad 4.25 38 Environmental policy subindex 5.56 19 Environmental policy subindex 5.56 19 Toxic release inventory, on-site and off-site, total (new and 5.65 19 original industries), pounds/1,000 sq. miles State Index Metro Area and State Competitiveness Report / Page 32

KANSAS Index Overall Rank 6.05 10 Government and fiscal policy subindex 4.98 28 Government and fiscal policy subindex 4.98 28 Workers' compensation premium rates 5.83 11 Average benefit per first payment for unemployed 4.41 38 Bond rating: composite 5.75 10 Full-time-equivalent state and local government employees per 100 residents 3.89 47 Security subindex 5.47 14 Security subindex 5.47 14 Crime index change 2001-2002, % 6.12 3 Murder index, per 100,000 inhabitants 5.67 17 Infrastructure subindex 5.39 7 Infrastructure subindex 5.39 7 High-speed lines by state per 1,000 residents 5.73 15 Air passengers per capita 4.13 48 Average travel time to work 6.41 5 Average rent of 2 bedroom apartment 5.80 12 Human resources subindex 5.64 8 Human resources subindex 5.64 8 Percent of population without health insurance 5.94 12 Infant mortality rate, deaths per 1,000 live births 4.75 31 Percent of population that graduated from high school, persons 5.69 15 Rate of nonfederal physicians per 100,000 inhabitants 4.53 31 25 years and older Unemployment rate 5.21 20 Percent of students enrolled in degree-granting institutions per 6.92 3 1,000 residents Percent of adults who are in the labor force 5.68 14 Percentage of students at or above Proficient in mathematics, grade 4 public schools 6.40 4 Technology subindex 5.40 14 Technology subindex 5.40 14 Number of S&E graduate students per 100,000 inhabitants 6.77 2 NIH support to institutions per capita 4.42 38 S&E degrees awarded per 100,000 inhabitants 5.49 13 Scientists and engineers/labor force 5.13 20 Percentage of total wage and salary jobs in high technology industries 6.66 4 Business incubation subindex 4.87 32 Business incubation subindex 4.87 32 Minimum wage 5.52 1 Venture capital investment per capita 4.41 37 IPO 4.20 34 Openness subindex 4.62 36 Openness subindex 4.62 36 Incoming FDI per capita, dollars 4.56 46 Environmental policy subindex 5.73 13 Environmental policy subindex 5.73 13 Toxic release inventory, on-site and off-site, total (new and 5.80 15 original industries), pounds/1,000 sq. miles Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 5.67 16 Metro Area and State Competitiveness Report / Page 33 State Index

KENTUCKY Index Overall Rank 4.31 38 Government and fiscal policy subindex 4.92 30 Government and fiscal policy subindex 4.92 30 Budget surplus, % of GSP 5.42 19 Workers' compensation premium rates 4.48 36 Security subindex 5.73 7 Security subindex 5.73 7 Crime index, per 100,000 inhabitants 6.08 9 The BGA Integrity Index 6.61 3 Infrastructure subindex 4.99 25 Infrastructure subindex 4.99 25 Air passengers per capita 5.41 12 Households with installed phones, % 3.27 47 Electricity prices per million BTU 6.34 1 High-speed lines by state per 1,000 residents 3.90 41 Average rent of 2 bedroom apartment 5.96 3 Human resources subindex 4.47 40 Human resources subindex 4.47 40 Infant mortality rate, deaths per 1,000 live births 5.77 13 Percent of population that graduated from high school, persons 4.15 38 25 years and older Unemployment rate 4.44 36 Percent of students enrolled in degree-granting institutions per 4.46 34 1,000 residents Percent of adults who are in the labor force 3.74 46 Rate of nonfederal physicians per 100,000 inhabitants 4.44 33 Percentage of students at or above Proficient in mathematics, grade 4 public schools 3.60 46 Technology subindex 4.15 45 Technology subindex 4.15 45 Academic R&D per $1,000 GSP 4.27 38 NIH support to institutions per capita 4.44 37 Patents per 100,000 inhabitants 4.23 41 Number of S&E graduate students per 100,000 inhabitants 4.34 39 S&E degrees awarded per 100,000 inhabitants 3.96 45 Scientists and engineers/labor force 3.86 46 Percentage of total wage and salary jobs in high technology 3.99 42 industries Business incubation subindex 4.66 41 Business incubation subindex 4.66 41 Minimum wage 5.52 1 Total deposits (commercial banks and savings institutions) per 4.71 32 capita Venture capital investment per capita 4.38 46 Employer firm births per 100,000 inhabitants 3.87 47 IPO 4.43 31 Openness subindex 4.91 23 Openness subindex 4.91 23 Exports per capita, dollars 5.54 12 Percent of population born abroad 4.08 45 Incoming FDI per capita, dollars 5.11 8 Environmental policy subindex 4.62 36 Environmental policy subindex 4.62 36 Toxic release inventory, on-site and off-site, total (new and 4.56 35 original industries), pounds/1,000 sq. miles Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 4.69 37 State Index Metro Area and State Competitiveness Report / Page 34

LOUISIANA Index Overall Rank 3.16 49 Government and fiscal policy subindex 4.67 41 Government and fiscal policy subindex 4.67 41 Budget surplus, % of GSP 5.75 12 Workers' compensation premium rates 4.06 44 Average benefit per first payment for unemployed 5.90 9 Bond rating: composite 3.28 49 Full-time-equivalent state and local government employees 4.14 44 Security subindex 3.81 49 Security subindex 3.81 49 Crime index change 2001-2002, % 5.99 6 Crime index, per 100,000 inhabitants 3.87 44 Murder index, per 100,000 inhabitants 1.73 50 The BGA Integrity Index 3.64 46 Infrastructure subindex 4.71 41 Infrastructure subindex 4.71 41 Average rent of 2 bedroom apartment 5.88 8 Households with installed phones, % 3.13 48 Air passengers per capita 4.59 31 Average travel time to work 4.71 31 Electricity prices per million BTU 5.12 32 Human resources subindex 3.88 49 Human resources subindex 3.88 49 Percent of students enrolled in degree-granting 5.27 18 Percent of population without health insurance 3.37 48 institutions per 1,000 residents Percent of population that graduated from high school, 3.35 48 Rate of nonfederal physicians per 100,000 5.03 18 persons 25 years and older inhabitants Unemployment rate 4.06 42 Percent of adults who are in the labor force 3.42 49 Infant mortality rate, deaths per 1,000 live births 3.12 48 Percentage of students at or above Proficient in mathematics, grade 4 public schools 3.45 47 Technology subindex 4.32 40 Technology subindex 4.32 40 Academic R&D per $1,000 GSP 4.68 33 NIH support to institutions per capita 4.53 32 Patents per 100,000 inhabitants 4.13 45 S&E degrees awarded per 100,000 inhabitants 4.30 38 Scientists and engineers/labor force 3.86 45 Percentage of total wage and salary jobs in high technology industries 3.75 48 Business incubation subindex 4.92 29 Business incubation subindex 4.92 29 Percent of labor force that is represented by unions 5.92 10 Total deposits (commercial banks and savings institutions) 4.58 43 Minimum wage 5.52 1 Employer firm births per 100,000 inhabitants 3.96 45 Openness subindex 5.49 8 Openness subindex 5.49 8 Exports per capita, dollars 6.91 5 Percent of population born abroad 4.20 41 Incoming FDI per capita, dollars 5.37 5 Environmental policy subindex 4.54 39 Environmental policy subindex 4.54 39 Toxic release inventory, on-site and off-site, total (new and 4.50 38 original industries), pounds/1,000 sq. miles Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 4.58 39 Metro Area and State Competitiveness Report / Page 35 State Index

aine BHI MAINE Index Overall Rank 4.36 36 Government and fiscal policy subindex 4.54 44 Government and fiscal policy subindex 4.54 44 State and local taxes per capita/income per capita (cur $) 2.61 49 Budget surplus, % of GSP 4.84 37 Average benefit per first payment for unemployed 4.75 34 Full-time-equivalent state and local government employees per 100 residents 4.89 32 Security subindex 5.75 6 Security subindex 5.75 6 Crime index, per 100,000 inhabitants 6.33 6 Murder index, per 100,000 inhabitants 6.36 3 Infrastructure subindex 4.70 42 Infrastructure subindex 4.70 42 Households with installed phones, % 6.07 8 High-speed lines by state per 1,000 residents 4.58 35 Air passengers per capita 4.34 41 Electricity prices per million BTU 3.47 43 Average rent of 2 bedroom apartment 4.82 34 Human resources subindex 5.25 19 Human resources subindex 5.25 19 Percent of population without health insurance 6.10 6 Percent of students enrolled in degree-granting institutions 3.76 49 Unemployment rate 5.50 15 per 1,000 residents Infant mortality rate, deaths per 1,000 live births 5.63 16 Rate of nonfederal physicians per 100,000 inhabitants 5.53 10 Percentage of students at or above Proficient in mathematics, grade 4 public schools 5.37 17 Technology subindex 4.09 47 Technology subindex 4.09 47 Academic R&D per $1,000 GSP 3.65 47 Patents per 100,000 inhabitants 4.25 40 Number of S&E graduate students per 100,000 inhabitants 2.89 50 S&E degrees awarded per 100,000 inhabitants 4.68 32 Scientists and engineers/labor force 3.97 43 Percentage of total wage and salary jobs in high technology industries 4.34 34 Business incubation subindex 4.62 42 Business incubation subindex 4.62 42 Employer firm births per 100,000 inhabitants 5.04 19 Total deposits (commercial banks and savings institutions) per 4.62 40 capita Venture capital investment per capita 4.52 32 Minimum wage 3.91 41 Openness subindex 4.59 39 Openness subindex 4.59 39 Incoming FDI per capita, dollars 4.88 16 Percent of population born abroad 4.20 41 Environmental policy subindex 5.85 7 Environmental policy subindex 5.85 7 Toxic release inventory, on-site and off-site, total (new and 5.88 9 original industries), pounds/1,000 sq. miles Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 5.81 8 State Index Metro Area and State Competitiveness Report / Page 36

MARYLAND Index Overall Rank 5.29 19 Government and fiscal policy subindex 5.46 7 Government and fiscal policy subindex 5.46 7 Workers' compensation premium rates 5.83 11 Average benefit per first payment for unemployed 4.83 32 Bond rating: composite 6.57 1 Full-time-equivalent state and local government employees per 5.56 14 Security subindex 4.67 38 Security subindex 4.67 38 The BGA Integrity Index 6.02 10 Crime index, per 100,000 inhabitants 4.22 40 Murder index, per 100,000 inhabitants 3.19 49 Infrastructure subindex 4.64 44 Infrastructure subindex 4.64 44 High-speed lines by state per 1,000 residents 5.74 14 Average travel time to work 2.70 49 Average rent of 2 bedroom apartment 4.36 41 Human resources subindex 5.64 7 Human resources subindex 5.64 7 Unemployment rate 6.07 9 Infant mortality rate, deaths per 1,000 live births 4.27 39 Percent of students enrolled in degree-granting institutions per 1,000 residents 6.41 4 Percent of adults who are in the labor force 5.71 13 Rate of nonfederal physicians per 100,000 inhabitants 7.16 3 Technology subindex 6.41 2 Technology subindex 6.41 2 Academic R&D per $1,000 GSP 7.56 1 NIH support to institutions per capita 7.95 2 Number of S&E graduate students per 100,000 inhabitants 5.87 8 S&E degrees awarded per 100,000 inhabitants 5.49 14 Scientists and engineers/labor force 7.12 4 Percentage of total wage and salary jobs in high technology industries 5.93 10 Business incubation subindex 5.29 10 Business incubation subindex 5.29 10 Venture capital investment per capita 5.56 6 Percent of labor force that is represented by unions 4.38 37 Employer firm births per 100,000 inhabitants 5.74 12 IPO 5.82 7 Minimum wage 5.52 1 Openness subindex 4.70 34 Openness subindex 4.70 34 Percent of population born abroad 5.49 13 Exports per capita, dollars 3.97 45 Incoming FDI per capita, dollars 4.62 41 Environmental policy subindex 3.59 46 Environmental policy subindex 3.59 46 Toxic release inventory, on-site and off-site, total (new and 3.74 43 original industries), pounds/1,000 sq. miles Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 3.44 47 Metro Area and State Competitiveness Report / Page 37 State Index

MASSACHUSETTS Index Overall Rank 7.29 1 Government and fiscal policy subindex 4.77 39 Government and fiscal policy subindex 4.77 39 State and local taxes per capita/income per capita (cur $) 5.27 17 Average benefit per first payment for unemployed 2.07 50 Workers' compensation premium rates 5.65 15 Full-time-equivalent state and local government employees per 5.74 8 Security subindex 5.56 11 Security subindex 5.56 11 Crime index, per 100,000 inhabitants 5.89 12 Crime index change 2001-2002, % 4.91 35 Murder index, per 100,000 inhabitants 5.74 14 The BGA Integrity Index 5.69 15 Infrastructure subindex 4.75 38 Infrastructure subindex 4.75 38 Households with installed phones, % 6.17 6 Average travel time to work 3.92 44 High-speed lines by state per 1,000 residents 7.26 1 Electricity prices per million BTU 3.12 47 Average rent of 2 bedroom apartment 3.21 47 Human resources subindex 5.92 4 Human resources subindex 5.92 4 Percent of population without health insurance 6.02 8 Percent of students enrolled in degree-granting institutions per 1,000 residents 5.35 15 Infant mortality rate, deaths per 1,000 live births 6.38 3 Rate of nonfederal physicians per 100,000 inhabitants 7.99 1 Percentage of students at or above Proficient in mathematics, grade 4 public schools 6.40 4 Technology subindex 7.69 1 Technology subindex 7.69 1 Academic R&D per $1,000 GSP 7.11 2 NIH support to institutions per capita 9.78 1 Patents per 100,000 inhabitants 6.50 3 Number of S&E graduate students per 100,000 inhabitants 9.02 1 S&E degrees awarded per 100,000 inhabitants 7.57 2 Scientists and engineers/labor force 6.87 5 Percentage of total wage and salary jobs in high technology industries 7.00 3 Business incubation subindex 5.98 1 Business incubation subindex 5.98 1 Total deposits (commercial banks and savings institutions) 5.56 4 Percent of labor force that is represented by unions 4.38 37 per capita Minimum wage 3.18 43 Venture capital investment per capita 9.69 1 IPO 8.19 2 Openness subindex 5.57 7 Openness subindex 5.57 7 Exports per capita, dollars 5.81 8 Incoming FDI per capita, dollars 4.87 17 Percent of population born abroad 6.02 9 Environmental policy subindex 4.56 37 Environmental policy subindex 4.56 37 Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 3.62 45 State Index Metro Area and State Competitiveness Report / Page 38

MICHIGAN Index Overall Rank 5.08 24 Government and fiscal policy subindex 5.30 15 Government and fiscal policy subindex 5.30 15 Bond rating: composite 5.75 10 State and local taxes per capita/income per capita (cur $) 4.70 35 Budget surplus, % of GSP 5.39 20 Average benefit per first payment for unemployed 4.81 33 Full-time-equivalent state and local government employees per 5.83 6 Security subindex 4.98 25 Security subindex 4.98 25 Crime index change 2001-2002, % 6.08 4 Murder index, per 100,000 inhabitants 4.20 38 The BGA Integrity Index 4.56 32 Infrastructure subindex 5.02 22 Infrastructure subindex 5.02 22 Electricity prices per million BTU 5.13 31 Human resources subindex 4.99 28 Human resources subindex 4.99 28 Percent of population without health insurance 5.97 9 Unemployment rate 3.39 47 Percent of students enrolled in degree-granting institutions 5.74 7 Percent of adults who are in the labor force 4.35 38 per 1,000 residents Infant mortality rate, deaths per 1,000 live births 4.34 38 Rate of nonfederal physicians per 100,000 inhabitants 5.38 12 Percentage of students at or above Proficient in mathematics, grade 4 public schools 5.37 17 Technology subindex 5.22 18 Technology subindex 5.22 18 Academic R&D per $1,000 GSP 5.19 20 Patents per 100,000 inhabitants 5.50 12 Number of S&E graduate students per 100,000 inhabitants 5.33 15 Scientists and engineers/labor force 5.86 9 Business incubation subindex 4.41 48 Business incubation subindex 4.41 48 Minimum wage 5.52 1 Total deposits (commercial banks and savings institutions) per 4.71 33 capita Venture capital investment per capita 4.51 33 Employer firm births per 100,000 inhabitants 4.09 42 IPO 4.43 32 Percent of labor force that is represented by unions 3.19 47 Openness subindex 5.30 11 Openness subindex 5.30 11 Exports per capita, dollars 6.15 6 Incoming FDI per capita, dollars 5.07 9 Environmental policy subindex 5.20 27 Environmental policy subindex 5.20 27 Metro Area and State Competitiveness Report / Page 39 State Index

MINNESOTA Index Overall Rank 6.45 4 Government and fiscal policy subindex 4.58 43 Government and fiscal policy subindex 4.58 43 Bond rating: composite 6.16 8 State and local taxes per capita/income per capita (cur $) 4.32 41 Workers' compensation premium rates 4.83 31 Budget surplus, % of GSP 3.44 47 Average benefit per first payment for unemployed 3.62 46 Security subindex 5.51 12 Security subindex 5.51 12 Crime index, per 100,000 inhabitants 5.44 18 Crime index change 2001-2002, % 5.15 31 Murder index, per 100,000 inhabitants 5.92 11 The BGA Integrity Index 5.54 17 Infrastructure subindex 5.62 1 Infrastructure subindex 5.62 1 Households with installed phones, % 6.61 2 High-speed lines by state per 1,000 residents 5.38 20 Air passengers per capita 5.46 11 Average travel time to work 5.18 19 Electricity prices per million BTU 5.54 16 Average rent of 2 bedroom apartment 5.55 18 Human resources subindex 6.09 2 Human resources subindex 6.09 2 Percent of population without health insurance 6.55 1 Percent of population that graduated from high school, 6.48 2 persons 25 years and older Unemployment rate 5.59 14 Percent of students enrolled in degree-granting institutions 5.24 19 per 1,000 residents Percent of adults who are in the labor force 6.92 1 Infant mortality rate, deaths per 1,000 live births 6.18 4 Rate of nonfederal physicians per 100,000 inhabitants 5.20 14 Percentage of students at or above Proficient in 6.54 2 mathematics, grade 4 public schools Technology subindex 5.32 15 Technology subindex 5.32 15 NIH support to institutions per capita 5.30 12 Academic R&D per $1,000 GSP 4.29 37 Patents per 100,000 inhabitants 6.47 4 Scientists and engineers/labor force 5.74 11 Percentage of total wage and salary jobs in high technology industries 5.36 18 Business incubation subindex 5.06 23 Business incubation subindex 5.06 23 Total deposits (commercial banks and savings institutions) 5.07 10 Percent of labor force that is represented by unions 4.09 41 per capita Venture capital investment per capita 5.32 10 IPO 5.52 13 Minimum wage 5.52 1 Openness subindex 4.86 26 Openness subindex 4.86 26 Exports per capita, dollars 5.19 17 Incoming FDI per capita, dollars 4.66 39 Environmental policy subindex 5.70 14 Environmental policy subindex 5.70 14 Toxic release inventory, on-site and off-site, total (new and 5.83 14 original industries), pounds/1,000 sq. miles Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 5.58 17 State Index Metro Area and State Competitiveness Report / Page 40

MISSISSIPPI Index Overall Rank 2.93 50 Government and fiscal policy subindex 5.06 26 Government and fiscal policy subindex 5.06 26 Workers' compensation premium rates 5.34 19 Full-time-equivalent state and local government employees per 3.91 46 100 residents Budget surplus, % of GSP 5.52 15 Average benefit per first payment for unemployed 6.25 3 Security subindex 4.40 42 Security subindex 4.40 42 Crime index change 2001-2002, % 5.09 32 Murder index, per 100,000 inhabitants 3.27 48 The BGA Integrity Index 4.45 33 Infrastructure subindex 4.60 46 Infrastructure subindex 4.60 46 Average travel time to work 5.21 18 Households with installed phones, % 3.66 44 Average rent of 2 bedroom apartment 5.93 7 High-speed lines by state per 1,000 residents 3.16 49 Air passengers per capita 4.19 47 Human resources subindex 3.68 50 Human resources subindex 3.68 50 Percent of population without health insurance 4.10 40 Percent of population that graduated from high school, persons 3.72 41 25 years and older Unemployment rate 4.35 38 Percent of students enrolled in degree-granting institutions per 4.57 32 1,000 residents Percent of adults who are in the labor force 3.57 47 Infant mortality rate, deaths per 1,000 live births 2.64 49 Rate of nonfederal physicians per 100,000 inhabitants 3.65 49 Percentage of students at or above Proficient in mathematics, grade 4 public schools 2.86 49 Technology subindex 4.06 48 Technology subindex 4.06 48 Academic R&D per $1,000 GSP 5.34 18 NIH support to institutions per capita 4.14 46 Patents per 100,000 inhabitants 3.98 50 Number of S&E graduate students per 100,000 inhabitants 3.97 45 S&E degrees awarded per 100,000 inhabitants 3.81 46 Scientists and engineers/labor force 3.44 50 Percentage of total wage and salary jobs in high technology industries 3.72 49 Business incubation subindex 4.80 37 Business incubation subindex 4.80 37 Percent of labor force that is represented by unions 6.15 6 Total deposits (commercial banks and savings institutions) per 4.57 44 Minimum wage 5.52 1 Venture capital investment per capita 4.37 48 Employer firm births per 100,000 inhabitants 3.98 44 IPO 4.20 34 Openness subindex 4.15 48 Openness subindex 4.15 48 Exports per capita, dollars 3.96 46 Incoming FDI per capita, dollars 4.52 48 Percent of population born abroad 3.96 49 Environmental policy subindex 5.37 24 Environmental policy subindex 5.37 24 Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 5.49 20 Metro Area and State Competitiveness Report / Page 41 State Index

Missouri BHI MISSOURI Index Overall Rank 5.21 20 Government and fiscal policy subindex 5.41 12 Government and fiscal policy subindex 5.41 12 State and local taxes per capita/income per capita (cur $) 5.46 13 Budget surplus, % of GSP 4.62 42 Bond rating: composite 6.57 1 Average benefit per first payment for unemployed 5.52 18 Security subindex 4.76 32 Security subindex 4.76 32 Crime index change 2001-2002, % 5.72 11 Crime index, per 100,000 inhabitants 4.37 37 Murder index, per 100,000 inhabitants 4.55 34 The BGA Integrity Index 4.43 35 Infrastructure subindex 5.18 16 Infrastructure subindex 5.18 16 Air passengers per capita 5.46 10 Households with installed phones, % 4.77 32 Electricity prices per million BTU 5.55 14 High-speed lines by state per 1,000 residents 4.62 34 Average rent of 2 bedroom apartment 5.98 2 Average travel time to work 4.71 31 Human resources subindex 5.21 21 Human resources subindex 5.21 21 Percent of population without health insurance 5.94 12 Infant mortality rate, deaths per 1,000 live births 4.75 31 Percent of population that graduated from high school, 5.61 18 Percentage of students at or above Proficient in 4.78 34 persons 25 years and older mathematics, grade 4 public schools Percent of adults who are in the labor force 5.51 15 Rate of nonfederal physicians per 100,000 inhabitants 5.11 16 Technology subindex 4.88 28 Technology subindex 4.88 28 Academic R&D per $1,000 GSP 5.46 16 Patents per 100,000 inhabitants 4.42 35 NIH support to institutions per capita 5.48 11 Scientists and engineers/labor force 4.47 34 Business incubation subindex 5.07 19 Business incubation subindex 5.07 19 IPO 5.68 10 Minimum wage 5.52 1 Openness subindex 4.41 43 Openness subindex 4.41 43 Exports per capita, dollars 4.31 39 Incoming FDI per capita, dollars 4.66 38 Percent of population born abroad 4.26 35 Environmental policy subindex 5.14 28 Environmental policy subindex 5.14 28 State Index Metro Area and State Competitiveness Report / Page 42

MONTANA Index Overall Rank 4.92 28 Government and fiscal policy subindex 4.92 31 Government and fiscal policy subindex 4.92 31 State and local taxes per capita/income per capita (cur $) 5.18 18 Workers' compensation premium rates 4.25 42 Average benefit per first payment for unemployed 5.93 8 Bond rating: composite 4.10 37 Full-time-equivalent state and local government employees per 4.82 34 Security subindex 5.35 16 Security subindex 5.35 16 Crime index, per 100,000 inhabitants 5.46 17 The BGA Integrity Index 3.83 45 Crime index change 2001-2002, % 6.02 5 Murder index, per 100,000 inhabitants 6.10 6 Infrastructure subindex 4.96 27 Infrastructure subindex 4.96 27 Average travel time to work 6.58 4 Households with installed phones, % 4.62 36 High-speed lines by state per 1,000 residents 3.25 48 Human resources subindex 4.88 31 Human resources subindex 4.88 31 Percent of population that graduated from high school, 6.09 6 Percent of population without health insurance 3.70 46 persons 25 years and older Percent of students enrolled in degree-granting institutions 3.82 48 Unemployment rate 5.88 12 per 1,000 residents Rate of nonfederal physicians per 100,000 inhabitants 4.44 34 Technology subindex 4.88 29 Technology subindex 4.88 29 Academic R&D per $1,000 GSP 6.43 6 NIH support to institutions per capita 4.55 31 S&E degrees awarded per 100,000 inhabitants 5.69 10 Patents per 100,000 inhabitants 4.29 39 Number of S&E graduate students per 100,000 inhabitants 4.67 31 Scientists and engineers/labor force 4.65 31 Percentage of total wage and salary jobs in high technology industries 3.89 45 Business incubation subindex 5.07 20 Business incubation subindex 5.07 20 Employer firm births per 100,000 inhabitants 7.01 2 Total deposits (commercial banks and savings institutions) 4.62 42 Minimum wage 5.52 1 per capita Venture capital investment per capita 4.38 45 IPO 4.20 34 Percent of labor force that is represented by unions 4.66 32 Openness subindex 4.09 50 Openness subindex 4.09 50 Exports per capita, dollars 3.51 49 Percent of population born abroad 3.99 47 Environmental policy subindex 5.92 2 Environmental policy subindex 5.92 2 Toxic release inventory, on-site and off-site, total (new and 5.91 6 original industries), pounds/1,000 sq. miles Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 5.93 4 Metro Area and State Competitiveness Report / Page 43 State Index

NEBRASKA Index Overall Rank 6.22 6 Government and fiscal policy subindex 5.15 22 Government and fiscal policy subindex 5.15 22 Workers' compensation premium rates 5.71 13 State and local taxes per capita/income per capita (cur $) 4.61 38 Bond rating: composite 5.75 10 Full-time-equivalent state and local government 3.62 48 Average benefit per first payment for unemployed 6.07 6 employees per 100 residents Security subindex 5.50 13 Security subindex 5.50 13 Murder index, per 100,000 inhabitants 5.71 15 The BGA Integrity Index 6.35 5 Infrastructure subindex 5.61 2 Infrastructure subindex 5.61 2 High-speed lines by state per 1,000 residents 5.53 17 Air passengers per capita 4.54 32 Average travel time to work 6.70 3 Electricity prices per million BTU 5.84 8 Average rent of 2 bedroom apartment 5.82 11 Human resources subindex 5.70 6 Human resources subindex 5.70 6 Percent of population without health insurance 5.86 15 Percent of population that graduated from high school, persons 6.27 4 25 years and older Unemployment rate 6.55 2 Percent of adults who are in the labor force 6.87 2 Percentage of students at or above Proficient in mathematics, grade 4 public schools 5.37 17 Technology subindex 4.99 24 Technology subindex 4.99 24 Academic R&D per $1,000 GSP 5.94 8 Patents per 100,000 inhabitants 4.30 38 Number of S&E graduate students per 100,000 inhabitants 5.13 20 S&E degrees awarded per 100,000 inhabitants 5.24 18 Business incubation subindex 4.89 30 Business incubation subindex 4.89 30 Total deposits (commercial banks and savings institutions) 5.00 12 Venture capital investment per capita 4.40 39 per capita Employer firm births per 100,000 inhabitants 4.40 34 Minimum wage 5.52 1 Openness subindex 4.52 41 Openness subindex 4.52 41 Incoming FDI per capita, dollars 4.48 49 Environmental policy subindex 5.78 10 Environmental policy subindex 5.78 10 Toxic release inventory, on-site and off-site, total (new and 5.76 17 original industries), pounds/1,000 sq. miles Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 5.80 9 State Index Metro Area and State Competitiveness Report / Page 44

NEVADA Index Overall Rank 4.33 37 Government and fiscal policy subindex 5.28 17 Government and fiscal policy subindex 5.28 17 State and local taxes per capita/income per capita (cur $) 5.18 18 Workers' compensation premium rates 4.28 41 Full-time-equivalent state and local government employees per 100 residents 6.94 1 Security subindex 3.94 48 Security subindex 3.94 48 Crime index, per 100,000 inhabitants 4.47 35 Crime index change 2001-2002, % 3.04 48 Murder index, per 100,000 inhabitants 3.60 47 Infrastructure subindex 5.46 4 Infrastructure subindex 5.46 4 High-speed lines by state per 1,000 residents 5.96 10 Households with installed phones, % 4.72 33 Air passengers per capita 8.00 2 Electricity prices per million BTU 4.73 39 Average travel time to work 5.15 20 Average rent of 2 bedroom apartment 4.20 42 Human resources subindex 4.64 37 Human resources subindex 4.64 37 Unemployment rate 5.40 18 Percent of population without health insurance 3.83 44 Infant mortality rate, deaths per 1,000 live births 5.90 9 Percent of population that graduated from high school, persons 4.89 33 25 years and older Percent of students enrolled in degree-granting institutions per 4.36 37 1,000 residents Rate of nonfederal physicians per 100,000 inhabitants 3.80 47 Percentage of students at or above Proficient in mathematics, grade 4 public schools 3.74 43 Technology subindex 3.70 50 Technology subindex 3.70 50 Academic R&D per $1,000 GSP 3.31 49 NIH support to institutions per capita 4.09 47 Number of S&E graduate students per 100,000 inhabitants 3.50 49 S&E degrees awarded per 100,000 inhabitants 2.96 50 Scientists and engineers/labor force 3.62 48 Percentage of total wage and salary jobs in high technology industries 3.82 46 Business incubation subindex 5.01 24 Business incubation subindex 5.01 24 Employer firm births per 100,000 inhabitants 6.37 7 Venture capital investment per capita 4.45 36 Minimum wage 5.52 1 Percent of labor force that is represented by unions 4.50 34 Openness subindex 5.15 19 Openness subindex 5.15 19 Incoming FDI per capita, dollars 4.85 20 Exports per capita, dollars 3.98 44 Percent of population born abroad 6.62 5 Environmental policy subindex 4.47 41 Environmental policy subindex 4.47 41 Greenhouse Gas Emissions (metric tons of carbon equivalent 5.84 5 Toxic release inventory, on-site and off-site, total (new and 3.10 47 per 1,000 sq. miles) original industries), pounds/1,000 sq. miles Metro Area and State Competitiveness Report / Page 45 State Index

NEW HAMPSHIRE Index Overall Rank 6.11 7 Government and fiscal policy subindex 4.90 33 Government and fiscal policy subindex 4.90 33 State and local taxes per capita/income per capita (cur $) 7.08 2 Workers' compensation premium rates 4.50 35 Full-time-equivalent state and local government employees per 5.65 10 Budget surplus, % of GSP 3.02 48 100 residents Average benefit per first payment for unemployed 4.26 39 Security subindex 5.84 3 Security subindex 5.84 3 Crime index, per 100,000 inhabitants 6.77 1 The BGA Integrity Index 4.42 36 Crime index change 2001-2002, % 5.78 10 Murder index, per 100,000 inhabitants 6.41 2 Infrastructure subindex 4.52 48 Infrastructure subindex 4.52 48 High-speed lines by state per 1,000 residents 6.18 7 Average travel time to work 4.33 39 Electricity prices per million BTU 3.38 46 Average rent of 2 bedroom apartment 3.28 45 Human resources subindex 6.09 1 Human resources subindex 6.09 1 Percent of population without health insurance 6.13 5 Percent of students enrolled in degree-granting 4.52 33 Percent of population that graduated from high school, 6.62 1 institutions per 1,000 residents persons 25 years and older Unemployment rate 6.26 5 Percent of adults who are in the labor force 6.24 6 Infant mortality rate, deaths per 1,000 live births 7.19 1 Rate of nonfederal physicians per 100,000 inhabitants 5.08 17 Percentage of students at or above Proficient in mathematics, grade 4 public schools 6.69 1 Technology subindex 5.62 9 Technology subindex 5.62 9 Academic R&D per $1,000 GSP 5.87 9 Number of S&E graduate students per 100,000 inhabitants 4.28 40 NIH support to institutions per capita 5.24 13 Patents per 100,000 inhabitants 6.14 6 S&E degrees awarded per 100,000 inhabitants 6.47 5 Percentage of total wage and salary jobs in high technology industries 6.22 7 Business incubation subindex 5.58 4 Business incubation subindex 5.58 4 Total deposits (commercial banks and savings institutions) per 5.32 5 capita Venture capital investment per capita 7.04 3 Employer firm births per 100,000 inhabitants 5.59 13 Minimum wage 5.52 1 Openness subindex 4.66 35 Openness subindex 4.66 35 Incoming FDI per capita, dollars 4.91 13 Exports per capita, dollars 4.52 32 Environmental policy subindex 5.51 20 Environmental policy subindex 5.51 20 Toxic release inventory, on-site and off-site, total (new and 5.75 18 original industries), pounds/1,000 sq. miles State Index Metro Area and State Competitiveness Report / Page 46

NEW JERSEY Index Overall Rank 3.84 44 Government and fiscal policy subindex 3.87 49 Government and fiscal policy subindex 3.87 49 State and local taxes per capita/income per capita (cur $) 4.70 35 Bond rating: composite 4.10 37 Budget surplus, % of GSP 1.31 49 Average benefit per first payment for unemployed 2.84 49 Security subindex 5.84 5 Security subindex 5.84 5 Crime index, per 100,000 inhabitants 5.96 11 Crime index change 2001-2002, % 6.21 2 The BGA Integrity Index 5.91 12 Infrastructure subindex 4.50 49 Infrastructure subindex 4.50 49 Households with installed phones, % 5.83 12 Average travel time to work 3.19 48 High-speed lines by state per 1,000 residents 6.66 2 Electricity prices per million BTU 4.05 40 Average rent of 2 bedroom apartment 2.42 50 Human resources subindex 5.25 20 Human resources subindex 5.25 20 Rate of nonfederal physicians per 100,000 inhabitants 6.31 7 Unemployment rate 4.73 32 Percentage of students at or above Proficient in 6.10 8 Percent of students enrolled in degree-granting institutions per 4.58 31 mathematics, grade 4 public schools 1,000 residents Percent of adults who are in the labor force 4.71 31 Technology subindex 4.97 26 Technology subindex 4.97 26 Patents per 100,000 inhabitants 5.65 11 Academic R&D per $1,000 GSP 3.51 48 Scientists and engineers/labor force 5.66 13 NIH support to institutions per capita 4.45 34 Percentage of total wage and salary jobs in high technology industries 6.06 9 S&E degrees awarded per 100,000 inhabitants 4.70 31 Business incubation subindex 5.09 17 Business incubation subindex 5.09 17 Total deposits (commercial banks and savings institutions) 5.30 6 Percent of labor force that is represented by unions 3.53 46 per capita Venture capital investment per capita 5.41 8 Employer firm births per 100,000 inhabitants 5.35 15 IPO 5.45 14 Minimum wage 5.52 1 Openness subindex 5.61 6 Openness subindex 5.61 6 Incoming FDI per capita, dollars 4.94 12 Percent of population born abroad 6.96 3 Environmental policy subindex 2.41 50 Environmental policy subindex 2.41 50 Toxic release inventory, on-site and off-site, total (new and 4.33 41 original industries), pounds/1,000 sq. miles Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 0.49 50 Metro Area and State Competitiveness Report / Page 47 State Index

NEW MEXICO Index Overall Rank 4.50 33 Government and fiscal policy subindex 5.23 18 Government and fiscal policy subindex 5.23 18 State and local taxes per capita/income per capita (cur $) 5.18 18 Full-time-equivalent state and local government employees 3.94 45 Workers' compensation premium rates 5.61 16 Bond rating: composite 5.75 10 Budget surplus, % of GSP 5.77 9 Security subindex 4.22 45 Security subindex 4.22 45 Crime index change 2001-2002, % 5.80 9 Crime index, per 100,000 inhabitants 3.89 43 Murder index, per 100,000 inhabitants 3.65 46 The BGA Integrity Index 3.54 48 Infrastructure subindex 4.73 40 Infrastructure subindex 4.73 40 Average travel time to work 5.85 10 Households with installed phones, % 3.66 44 Average rent of 2 bedroom apartment 5.59 17 High-speed lines by state per 1,000 residents 3.50 47 Electricity prices per million BTU 5.04 34 Human resources subindex 4.25 44 Human resources subindex 4.25 44 Percent of students enrolled in degree-granting institutions 5.98 6 Percent of population without health insurance 2.97 49 per 1,000 residents Percent of population that graduated from high school, 3.85 39 Infant mortality rate, deaths per 1,000 live births 5.43 20 persons 25 years and older Unemployment rate 4.25 40 Percent of adults who are in the labor force 4.15 41 Rate of nonfederal physicians per 100,000 inhabitants 4.47 32 Percentage of students at or above Proficient in mathematics, grade 4 public schools 2.86 49 Technology subindex 5.43 13 Technology subindex 5.43 13 Academic R&D per $1,000 GSP 6.61 3 S&E degrees awarded per 100,000 inhabitants 4.24 39 Number of S&E graduate students per 100,000 inhabitants 6.01 7 Scientists and engineers/labor force 5.94 8 Percentage of total wage and salary jobs in high technology industries 5.83 13 Business incubation subindex 4.94 27 Business incubation subindex 4.94 27 Venture capital investment per capita 5.02 17 Total deposits (commercial banks and savings 4.40 49 Percent of labor force that is represented by unions 5.63 18 institutions) per capita Minimum wage 5.52 1 IPO 4.20 34 Openness subindex 4.80 30 Openness subindex 4.80 30 Percent of population born abroad 5.39 15 Exports per capita, dollars 4.29 40 Incoming FDI per capita, dollars 4.72 31 Environmental policy subindex 5.90 3 Environmental policy subindex 5.90 3 Toxic release inventory, on-site and off-site, total (new and 5.98 2 original industries), pounds/1,000 sq. miles Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 5.82 7 State Index Metro Area and State Competitiveness Report / Page 48

NEW YORK Index Overall Rank 4.43 34 Government and fiscal policy subindex 3.85 50 Government and fiscal policy subindex 3.85 50 State and local taxes per capita/income per capita (cur $) 2.23 50 Workers' compensation premium rates 4.13 43 Bond rating: composite 3.69 48 Budget surplus, % of GSP 5.05 32 Average benefit per first payment for unemployed 3.84 44 Full-time-equivalent state and local government employees per 100 residents 4.17 43 Security subindex 5.41 15 Security subindex 5.41 15 Crime index, per 100,000 inhabitants 6.18 7 Crime index change 2001-2002, % 5.83 8 Infrastructure subindex 4.45 50 Infrastructure subindex 4.45 50 High-speed lines by state per 1,000 residents 6.26 4 Average travel time to work 2.64 50 Electricity prices per million BTU 3.07 48 Average rent of 2 bedroom apartment 4.60 38 Human resources subindex 5.20 22 Human resources subindex 5.20 22 Percent of students enrolled in degree-granting institutions per 5.57 12 Percent of population that graduated from high school, 4.52 36 1,000 residents persons 25 years and older Infant mortality rate, deaths per 1,000 live births 5.84 10 Unemployment rate 4.35 38 Rate of nonfederal physicians per 100,000 inhabitants 7.41 2 Percent of adults who are in the labor force 3.84 44 Technology subindex 5.29 17 Technology subindex 5.29 17 NIH support to institutions per capita 5.61 9 Patents per 100,000 inhabitants 5.25 15 Number of S&E graduate students per 100,000 inhabitants 6.26 4 S&E degrees awarded per 100,000 inhabitants 5.70 9 Business incubation subindex 4.88 31 Business incubation subindex 4.88 31 Total deposits (commercial banks and savings institutions) 5.79 3 Percent of labor force that is represented by unions 2.74 50 per capita Venture capital investment per capita 4.97 19 Employer firm births per 100,000 inhabitants 5.11 18 IPO 5.15 17 Minimum wage 5.52 1 Openness subindex 5.69 5 Openness subindex 5.69 5 Percent of population born abroad 7.24 2 Environmental policy subindex 5.06 29 Environmental policy subindex 5.06 29 Greenhouse Gas Emissions (metric tons of carbon equivalent 4.58 38 per 1,000 sq. miles) Metro Area and State Competitiveness Report / Page 49 State Index

orth Carolina BHI NORTH CAROLINA Index Overall Rank 5.06 26 Government and fiscal policy subindex 5.19 20 Government and fiscal policy subindex 5.19 20 Workers' compensation premium rates 5.40 18 Budget surplus, % of GSP 4.21 44 Bond rating: composite 6.16 8 Full-time-equivalent state and local government 4.91 31 Average benefit per first payment for unemployed 5.38 20 employees per 100 residents Security subindex 4.85 30 Security subindex 4.85 30 Crime index change 2001-2002, % 5.70 13 Crime index, per 100,000 inhabitants 4.25 38 Murder index, per 100,000 inhabitants 4.26 37 Infrastructure subindex 5.11 18 Infrastructure subindex 5.11 18 High-speed lines by state per 1,000 residents 5.55 16 Households with installed phones, % 4.62 36 Air passengers per capita 5.00 18 Human resources subindex 4.63 38 Human resources subindex 4.63 38 Percentage of students at or above Proficient in 6.40 4 Percent of population without health insurance 4.26 38 mathematics, grade 4 public schools Percent of population that graduated from high school, 3.77 40 persons 25 years and older Unemployment rate 4.16 41 Infant mortality rate, deaths per 1,000 live births 4.00 42 Technology subindex 5.11 21 Technology subindex 5.11 21 Academic R&D per $1,000 GSP 5.83 10 NIH support to institutions per capita 5.83 7 Business incubation subindex 5.29 12 Business incubation subindex 5.29 12 Total deposits (commercial banks and savings 4.96 16 institutions) per capita Venture capital investment per capita 5.29 11 Percent of labor force that is represented by unions 6.65 1 Minimum wage 5.52 1 Openness subindex 4.78 31 Openness subindex 4.78 31 Incoming FDI per capita, dollars 4.68 36 Environmental policy subindex 4.73 35 Environmental policy subindex 4.73 35 Toxic release inventory, on-site and off-site, total (new and 4.52 37 original industries), pounds/1,000 sq. miles Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 4.94 34 State Index Metro Area and State Competitiveness Report / Page 50

North Dakota BHI NORTH DAKOTA Index Overall Rank 5.86 11 Government and fiscal policy subindex 5.36 14 Government and fiscal policy subindex 5.36 14 State and local taxes per capita/income per capita (cur $) 5.18 18 Bond rating: composite 4.10 37 Workers' compensation premium rates 6.62 1 Full-time-equivalent state and local government 4.31 42 Budget surplus, % of GSP 5.81 7 employees per 100 residents Average benefit per first payment for unemployed 6.12 4 Security subindex 5.62 10 Security subindex 5.62 10 Crime index, per 100,000 inhabitants 6.58 3 The BGA Integrity Index 4.25 39 Murder index, per 100,000 inhabitants 6.47 1 Infrastructure subindex 5.28 10 Infrastructure subindex 5.28 10 Average travel time to work 7.02 2 High-speed lines by state per 1,000 residents 3.54 45 Electricity prices per million BTU 5.79 10 Air passengers per capita 4.42 37 Average rent of 2 bedroom apartment 5.85 9 Human resources subindex 5.46 12 Human resources subindex 5.46 12 Percent of population without health insurance 5.97 9 Infant mortality rate, deaths per 1,000 live births 3.80 45 Percent of population that graduated from high school, persons 5.98 7 25 years and older Unemployment rate 6.55 2 Percent of students enrolled in degree-granting institutions per 5.29 17 1,000 residents Percent of adults who are in the labor force 6.09 7 Percentage of students at or above Proficient in mathematics, grade 4 public schools 5.37 17 Technology subindex 4.88 30 Technology subindex 4.88 30 Academic R&D per $1,000 GSP 6.13 7 NIH support to institutions per capita 4.34 39 Number of S&E graduate students per 100,000 inhabitants 5.66 11 Patents per 100,000 inhabitants 4.13 44 S&E degrees awarded per 100,000 inhabitants 5.58 12 Scientists and engineers/labor force 4.10 41 Percentage of total wage and salary jobs in high technology industries 4.21 36 Business incubation subindex 4.85 33 Business incubation subindex 4.85 33 Total deposits (commercial banks and savings institutions) 4.95 17 Employer firm births per 100,000 inhabitants 4.20 38 per capita IPO 4.20 34 Percent of labor force that is represented by unions 5.72 15 Minimum wage 5.52 1 Openness subindex 4.41 44 Openness subindex 4.41 44 Exports per capita, dollars 4.38 35 Incoming FDI per capita, dollars 4.70 35 Percent of population born abroad 4.14 43 Environmental policy subindex 5.78 9 Environmental policy subindex 5.78 9 Toxic release inventory, on-site and off-site, total (new and original industries), pounds/1,000 sq. miles 5.83 13 Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 5.73 12 Metro Area and State Competitiveness Report / Page 51 State Index

Ohio BHI OHIO Index Overall Rank 3.92 43 Government and fiscal policy subindex 4.80 38 Government and fiscal policy subindex 4.80 38 Bond rating: composite 5.75 10 State and local taxes per capita/income per capita (cur $) 3.75 45 Full-time-equivalent state and local government 5.42 20 Workers' compensation premium rates 4.45 38 employees per 100 residents Budget surplus, % of GSP 4.47 43 Average benefit per first payment for unemployed 4.93 31 Security subindex 5.24 19 Security subindex 5.24 19 The BGA Integrity Index 5.75 14 Infrastructure subindex 5.00 23 Infrastructure subindex 5.00 23 Air passengers per capita 4.43 34 Human resources subindex 5.08 24 Human resources subindex 5.08 24 Percent of population without health insurance 5.64 18 Unemployment rate 4.54 34 Rate of nonfederal physicians per 100,000 inhabitants 5.35 13 Infant mortality rate, deaths per 1,000 live births 4.54 36 Percentage of students at or above Proficient in mathematics, grade 4 public schools 5.66 10 Technology subindex 4.74 33 Technology subindex 4.74 33 Patents per 100,000 inhabitants 5.17 16 Academic R&D per $1,000 GSP 4.45 36 S&E degrees awarded per 100,000 inhabitants 4.53 35 Percentage of total wage and salary jobs in high technology industries 4.33 35 Business incubation subindex 4.56 44 Business incubation subindex 4.56 44 Total deposits (commercial banks and savings 5.02 11 Employer firm births per 100,000 inhabitants 3.83 48 institutions) per capita IPO 4.27 33 Minimum wage 5.52 1 Percent of labor force that is represented by unions 4.09 41 Openness subindex 4.84 27 Openness subindex 4.84 27 Exports per capita, dollars 5.54 13 Percent of population born abroad 4.26 35 Environmental policy subindex 3.11 48 Environmental policy subindex 3.11 48 Toxic release inventory, on-site and off-site, total (new and 2.45 49 original industries), pounds/1,000 sq. miles Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 3.78 44 State Index Metro Area and State Competitiveness Report / Page 52

OKLAHOMA Index Overall Rank 4.42 35 Government and fiscal policy subindex 4.91 32 Government and fiscal policy subindex 4.91 32 State and local taxes per capita/income per capita (cur $) 5.56 11 Workers' compensation premium rates 4.54 34 Budget surplus, % of GSP 5.04 33 Full-time-equivalent state and local government employees per 4.68 37 Security subindex 4.62 40 Security subindex 4.62 40 Crime index, per 100,000 inhabitants 4.23 39 Crime index change 2001-2002, % 4.15 43 Infrastructure subindex 5.23 13 Infrastructure subindex 5.23 13 Average travel time to work 5.94 9 Households with installed phones, % 4.72 33 Electricity prices per million BTU 5.51 19 Air passengers per capita 4.42 36 Average rent of 2 bedroom apartment 5.98 1 Human resources subindex 4.31 42 Human resources subindex 4.31 42 Percent of population without health insurance 3.43 47 Percent of population that graduated from high school, persons 4.92 32 25 years and older Percent of students enrolled in degree-granting institutions per 4.31 39 1,000 residents Percent of adults who are in the labor force 4.30 39 Rate of nonfederal physicians per 100,000 inhabitants 4.05 45 Percentage of students at or above Proficient in mathematics, grade 4 public schools 3.74 43 Technology subindex 4.47 37 Technology subindex 4.47 37 Academic R&D per $1,000 GSP 4.50 34 NIH support to institutions per capita 4.32 40 Patents per 100,000 inhabitants 4.40 36 Number of S&E graduate students per 100,000 inhabitants 4.48 34 Scientists and engineers/labor force 4.32 36 Percentage of total wage and salary jobs in high technology industries 4.35 33 Business incubation subindex 5.14 16 Business incubation subindex 5.14 16 IPO 5.79 8 Total deposits (commercial banks and savings institutions) 4.64 39 Percent of labor force that is represented by unions 5.92 10 per capita Minimum wage 5.52 1 Venture capital investment per capita 4.52 31 Employer firm births per 100,000 inhabitants 4.42 33 Openness subindex 4.30 47 Openness subindex 4.30 47 Exports per capita, dollars 3.84 48 Incoming FDI per capita, dollars 4.61 42 Percent of population born abroad 4.45 31 Environmental policy subindex 5.63 17 Environmental policy subindex 5.63 17 Toxic release inventory, on-site and off-site, total (new and original industries), pounds/1,000 sq. miles 5.78 16 Metro Area and State Competitiveness Report / Page 53 State Index

OREGON Index Overall Rank 5.57 16 Government and fiscal policy subindex 4.97 29 Government and fiscal policy subindex 4.97 29 State and local taxes per capita/income per capita (cur $) 5.37 14 Bond rating: composite 4.10 37 Workers' compensation premium rates 5.54 17 Budget surplus, % of GSP 4.74 38 Full-time-equivalent state and local government employees per 5.59 12 Average benefit per first payment for unemployed 4.50 36 Security subindex 5.23 20 Security subindex 5.23 20 Crime index change 2001-2002, % 5.54 14 Crime index, per 100,000 inhabitants 4.10 41 Murder index, per 100,000 inhabitants 5.99 9 The BGA Integrity Index 5.29 19 Infrastructure subindex 5.41 6 Infrastructure subindex 5.41 6 Households with installed phones, % 5.54 16 Average rent of 2 bedroom apartment 5.00 32 High-speed lines by state per 1,000 residents 5.82 12 Air passengers per capita 4.88 19 Average travel time to work 5.38 16 Electricity prices per million BTU 5.82 9 Human resources subindex 4.81 32 Human resources subindex 4.81 32 Percent of students enrolled in degree-granting 5.64 10 Percent of population without health insurance 4.28 36 institutions per 1,000 residents Unemployment rate 2.53 50 Infant mortality rate, deaths per 1,000 live births 6.11 5 Percent of adults who are in the labor force 4.56 33 Technology subindex 5.19 19 Technology subindex 5.19 19 NIH support to institutions per capita 5.11 17 Number of S&E graduate students per 100,000 inhabitants 4.35 37 Patents per 100,000 inhabitants 5.96 8 Scientists and engineers/labor force 5.63 15 Percentage of total wage and salary jobs in high technology industries 5.56 17 Business incubation subindex 4.55 45 Business incubation subindex 4.55 45 Venture capital investment per capita 5.02 16 Total deposits (commercial banks and savings institutions) 4.50 46 Employer firm births per 100,000 inhabitants 5.88 10 per capita Percent of labor force that is represented by unions 4.39 36 Minimum wage 2.74 47 Openness subindex 5.26 16 Openness subindex 5.26 16 Exports per capita, dollars 5.82 7 Percent of population born abroad 5.17 18 Environmental policy subindex 5.86 5 Environmental policy subindex 5.86 5 Toxic release inventory, on-site and off-site, total (new and 5.89 8 original industries), pounds/1,000 sq. miles Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 5.84 6 State Index Metro Area and State Competitiveness Report / Page 54

PENNSYLVANIA Index Overall Rank 4.79 30 Government and fiscal policy subindex 5.19 19 Government and fiscal policy subindex 5.19 19 State and local taxes per capita/income per capita (cur $) 5.37 14 Average benefit per first payment for unemployed 3.81 45 Budget surplus, % of GSP 5.57 14 Full-time-equivalent state and local government employees per 6.61 2 Security subindex 5.25 18 Security subindex 5.25 18 Crime index, per 100,000 inhabitants 6.14 8 The BGA Integrity Index 4.14 40 Crime index change 2001-2002, % 5.89 7 Infrastructure subindex 4.99 24 Infrastructure subindex 4.99 24 Households with installed phones, % 5.88 9 High-speed lines by state per 1,000 residents 4.68 32 Air passengers per capita 4.85 20 Average travel time to work 4.57 37 Electricity prices per million BTU 4.74 38 Human resources subindex 5.12 23 Human resources subindex 5.12 23 Percent of population without health insurance 5.83 17 Percent of students enrolled in degree-granting 4.00 45 Rate of nonfederal physicians per 100,000 inhabitants 6.30 8 institutions per 1,000 residents Percentage of students at or above Proficient in mathematics, grade 4 public schools 5.66 10 Percent of adults who are in the labor force 4.25 40 Technology subindex 5.29 16 Technology subindex 5.29 16 Academic R&D per $1,000 GSP 5.83 10 NIH support to institutions per capita 5.79 8 Number of S&E graduate students per 100,000 inhabitants 5.38 13 S&E degrees awarded per 100,000 inhabitants 5.42 15 Business incubation subindex 4.96 25 Business incubation subindex 4.96 25 Total deposits (commercial banks and savings institutions) 4.92 20 Employer firm births per 100,000 inhabitants 4.44 32 per capita Percent of labor force that is represented by unions 4.45 35 Venture capital investment per capita 4.85 20 IPO 5.61 12 Minimum wage 5.52 1 Openness subindex 4.50 42 Openness subindex 4.50 42 Exports per capita, dollars 4.36 37 Incoming FDI per capita, dollars 4.68 37 Environmental policy subindex 3.85 45 Environmental policy subindex 3.85 45 Toxic release inventory, on-site and off-site, total (new and 3.72 44 original industries), pounds/1,000 sq. miles Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 3.98 43 Metro Area and State Competitiveness Report / Page 55 State Index

Rhode Isalnd BHI RHODE ISLAND Index Overall Rank 4.72 31 Government and fiscal policy subindex 4.24 46 Government and fiscal policy subindex 4.24 46 Full-time-equivalent state and local government employees 6.03 5 State and local taxes per capita/income per capita (cur $) 3.75 45 per 100 residents Workers' compensation premium rates 3.92 45 Bond rating: composite 4.10 37 Budget surplus, % of GSP 3.69 46 Average benefit per first payment for unemployed 3.95 42 Security subindex 5.71 8 Security subindex 5.71 8 Crime index, per 100,000 inhabitants 5.39 20 Crime index change 2001-2002, % 5.42 18 The BGA Integrity Index 6.74 2 Infrastructure subindex 4.79 37 Infrastructure subindex 4.79 37 Households with installed phones, % 5.54 16 Electricity prices per million BTU 3.44 44 High-speed lines by state per 1,000 residents 6.09 8 Average rent of 2 bedroom apartment 3.33 44 Air passengers per capita 5.16 14 Average travel time to work 5.15 20 Human resources subindex 5.35 17 Human resources subindex 5.35 17 Percent of population without health insurance 6.15 4 Percent of population that graduated from high school, 3.67 43 Unemployment rate 5.30 19 persons 25 years and older Percent of students enrolled in degree-granting institutions per 1,000 residents Percent of adults who are in the labor force 5.22 20 Rate of nonfederal physicians per 100,000 inhabitants 6.71 5 6.09 5 Percentage of students at or above Proficient in mathematics, grade 4 public schools 4.48 36 Technology subindex 5.46 10 Technology subindex 5.46 10 Academic R&D per $1,000 GSP 5.58 15 NIH support to institutions per capita 6.01 4 Patents per 100,000 inhabitants 5.00 20 Number of S&E graduate students per 100,000 inhabitants 5.26 19 S&E degrees awarded per 100,000 inhabitants 6.70 3 Business incubation subindex 4.47 47 Business incubation subindex 4.47 47 Venture capital investment per capita 5.18 14 IPO 4.20 34 Employer firm births per 100,000 inhabitants 5.18 16 Percent of labor force that is represented by unions 4.20 40 Minimum wage 3.18 43 Openness subindex 4.88 25 Openness subindex 4.88 25 Percent of population born abroad 5.67 11 Exports per capita, dollars 4.15 42 Environmental policy subindex 5.44 23 Environmental policy subindex 5.44 23 Toxic release inventory, on-site and off-site, total (new and 5.91 5 Greenhouse Gas Emissions (metric tons of carbon equivalent 4.97 32 original industries), pounds/1,000 sq. miles per 1,000 sq. miles) State Index Metro Area and State Competitiveness Report / Page 56

SOUTH CAROLINA Index Overall Rank 4.15 40 Government and fiscal policy subindex 5.67 1 Government and fiscal policy subindex 5.67 1 State and local taxes per capita/income per capita (cur $) 5.75 7 Full-time-equivalent state and local government employees 4.66 38 Workers' compensation premium rates 5.86 10 per 100 residents Bond rating: composite 6.57 1 Average benefit per first payment for unemployed 6.07 5 Security subindex 3.97 47 Security subindex 3.97 47 The BGA Integrity Index 6.06 7 Crime index, per 100,000 inhabitants 3.67 47 Crime index change 2001-2002, % 2.16 49 Murder index, per 100,000 inhabitants 4.00 44 Infrastructure subindex 4.96 28 Infrastructure subindex 4.96 28 Electricity prices per million BTU 5.67 13 High-speed lines by state per 1,000 residents 4.54 36 Air passengers per capita 4.32 43 Human resources subindex 4.25 43 Human resources subindex 4.25 43 Percent of population that graduated from high school, persons 3.62 46 25 years and older Unemployment rate 3.87 45 Percent of students enrolled in degree-granting institutions per 4.21 40 1,000 residents Percent of adults who are in the labor force 4.03 42 Infant mortality rate, deaths per 1,000 live births 3.73 46 Rate of nonfederal physicians per 100,000 inhabitants 4.43 35 Technology subindex 4.29 42 Technology subindex 4.29 42 NIH support to institutions per capita 4.45 35 Patents per 100,000 inhabitants 4.38 37 Number of S&E graduate students per 100,000 inhabitants 3.67 48 S&E degrees awarded per 100,000 inhabitants 4.50 36 Scientists and engineers/labor force 4.18 39 Percentage of total wage and salary jobs in high technology industries 3.95 43 Business incubation subindex 4.92 28 Business incubation subindex 4.92 28 Percent of labor force that is represented by unions 6.38 2 Total deposits (commercial banks and savings institutions) 4.53 45 Minimum wage 5.52 1 per capita Venture capital investment per capita 4.38 47 Employer firm births per 100,000 inhabitants 4.52 31 IPO 4.20 34 Openness subindex 5.05 20 Openness subindex 5.05 20 Exports per capita, dollars 5.76 9 Percent of population born abroad 4.26 35 Incoming FDI per capita, dollars 5.12 7 Environmental policy subindex 4.74 33 Toxic release inventory, on-site and off-site, total (new and 4.45 39 original industries), pounds/1,000 sq. miles Metro Area and State Competitiveness Report / Page 57 State Index

South Dakota BHI SOUTH DAKOTA Index Overall Rank 5.13 23 Government and fiscal policy subindex 5.50 5 Government and fiscal policy subindex 5.50 5 State and local taxes per capita/income per capita (cur $) 5.75 7 Bond rating: composite 4.10 37 Workers' compensation premium rates 6.13 4 Budget surplus, % of GSP 5.51 16 Average benefit per first payment for unemployed 6.43 2 Security subindex 5.26 17 Security subindex 5.26 17 Crime index, per 100,000 inhabitants 6.71 2 The BGA Integrity Index 2.69 50 Crime index change 2001-2002, % 5.44 16 Murder index, per 100,000 inhabitants 6.22 4 Infrastructure subindex 4.94 29 Infrastructure subindex 4.94 29 Average travel time to work 7.08 1 Households with installed phones, % 4.29 40 High-speed lines by state per 1,000 residents 3.04 50 Air passengers per capita 4.35 39 Human resources subindex 5.43 13 Human resources subindex 5.43 13 Percent of population without health insurance 5.62 19 Percent of students enrolled in degree-granting 4.01 44 Percent of population that graduated from high school, 5.71 12 institutions per 1,000 residents persons 25 years and older Infant mortality rate, deaths per 1,000 live births 4.75 31 Unemployment rate 6.93 1 Rate of nonfederal physicians per 100,000 inhabitants 4.20 40 Percent of adults who are in the labor force 6.87 2 Percentage of students at or above Proficient in mathematics, grade 4 public schools 5.37 17 Technology subindex 4.32 41 Technology subindex 4.32 41 S&E degrees awarded per 100,000 inhabitants 5.93 7 Academic R&D per $1,000 GSP 3.19 50 NIH support to institutions per capita 4.27 41 Patents per 100,000 inhabitants 4.21 42 Scientists and engineers/labor force 3.67 47 Percentage of total wage and salary jobs in high technology industries 4.19 37 Business incubation subindex 4.85 35 Business incubation subindex 4.85 35 Total deposits (commercial banks and savings 5.16 8 Venture capital investment per capita 4.39 41 institutions) per capita Employer firm births per 100,000 inhabitants 3.63 50 Percent of labor force that is represented by unions 6.19 4 IPO 4.20 34 Minimum wage 5.52 1 Openness subindex 4.13 49 Openness subindex 4.13 49 Exports per capita, dollars 3.95 47 Incoming FDI per capita, dollars 4.47 50 Percent of population born abroad 3.97 48 Environmental policy subindex 5.95 1 Environmental policy subindex 5.95 1 Toxic release inventory, on-site and off-site, total (new and original industries), pounds/1,000 sq. miles 5.96 3 Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 5.94 2 State Index Metro Area and State Competitiveness Report / Page 58

TENNESSEE Index Overall Rank 4.13 41 Government and fiscal policy subindex 5.43 9 Government and fiscal policy subindex 5.43 9 State and local taxes per capita/income per capita (cur $) 6.32 4 Budget surplus, % of GSP 4.73 39 Average benefit per first payment for unemployed 5.88 10 Full-time-equivalent state and local government employees per 5.49 16 Security subindex 4.31 43 Security subindex 4.31 43 Crime index change 2001-2002, % 5.42 17 Crime index, per 100,000 inhabitants 3.95 42 Murder index, per 100,000 inhabitants 4.01 43 The BGA Integrity Index 3.84 44 Infrastructure subindex 5.10 19 Infrastructure subindex 5.10 19 Electricity prices per million BTU 5.73 11 Households with installed phones, % 4.62 36 Average rent of 2 bedroom apartment 5.96 4 High-speed lines by state per 1,000 residents 4.77 31 Average travel time to work 4.68 33 Human resources subindex 4.37 41 Human resources subindex 4.37 41 Percent of population that graduated from high school, persons 3.67 43 25 years and older Percent of students enrolled in degree-granting institutions per 3.98 47 1,000 residents Percent of adults who are in the labor force 4.39 37 Infant mortality rate, deaths per 1,000 live births 3.87 44 Percentage of students at or above Proficient in mathematics, grade 4 public schools 3.89 41 Technology subindex 4.26 43 Technology subindex 4.26 43 NIH support to institutions per capita 5.11 18 Academic R&D per $1,000 GSP 4.12 39 Patents per 100,000 inhabitants 4.42 34 Number of S&E graduate students per 100,000 inhabitants 4.23 42 S&E degrees awarded per 100,000 inhabitants 4.04 44 Scientists and engineers/labor force 3.91 44 Percentage of total wage and salary jobs in high technology industries 4.02 41 Business incubation subindex 5.06 21 Business incubation subindex 5.06 21 Employer firm births per 100,000 inhabitants 4.98 20 Percent of labor force that is represented by unions 5.68 17 Minimum wage 5.52 1 Openness subindex 4.72 33 Openness subindex 4.72 33 Exports per capita, dollars 5.13 18 Percent of population born abroad 4.21 39 Environmental policy subindex 4.27 42 Environmental policy subindex 4.27 42 Toxic release inventory, on-site and off-site, total (new and 3.68 45 original industries), pounds/1,000 sq. miles Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 4.85 36 Metro Area and State Competitiveness Report / Page 59 State Index

exas BHI TEXAS Index Overall Rank 5.21 21 Government and fiscal policy subindex 5.08 24 Government and fiscal policy subindex 5.08 24 State and local taxes per capita/income per capita (cur $) 5.94 5 Workers' compensation premium rates 3.92 45 Bond rating: composite 5.34 18 Average benefit per first payment for unemployed 4.51 35 Budget surplus, % of GSP 5.91 1 Full-time-equivalent state and local government 4.85 33 Security subindex 4.67 39 Security subindex 4.67 39 The BGA Integrity Index 6.03 9 Crime index, per 100,000 inhabitants 3.78 46 Crime index change 2001-2002, % 4.40 40 Murder index, per 100,000 inhabitants 4.49 36 Infrastructure subindex 4.93 30 Infrastructure subindex 4.93 30 Air passengers per capita 5.23 13 Households with installed phones, % 4.09 41 Average rent of 2 bedroom apartment 5.70 13 Average travel time to work 4.59 36 Electricity prices per million BTU 4.92 36 Human resources subindex 4.18 45 Human resources subindex 4.18 45 Infant mortality rate, deaths per 1,000 live births 5.77 13 Percent of population without health insurance 2.31 50 Percent of population that graduated from high school, 2.66 50 persons 25 years and older Unemployment rate 3.87 45 Percent of students enrolled in degree-granting institutions 4.34 38 per 1,000 residents Rate of nonfederal physicians per 100,000 inhabitants 4.29 38 Technology subindex 4.94 27 Technology subindex 4.94 27 Scientists and engineers/labor force 5.34 17 Academic R&D per $1,000 GSP 4.71 32 Percentage of total wage and salary jobs in high technology industries 5.59 16 S&E degrees awarded per 100,000 inhabitants 4.19 41 Business incubation subindex 5.16 14 Business incubation subindex 5.16 14 Venture capital investment per capita 5.11 15 Total deposits (commercial banks and savings 4.70 34 IPO 5.23 16 institutions) per capita Percent of labor force that is represented by unions 6.11 7 Employer firm births per 100,000 inhabitants 4.29 37 Minimum wage 5.52 1 Openness subindex 6.22 2 Openness subindex 6.22 2 Exports per capita, dollars 7.25 2 Incoming FDI per capita, dollars 5.05 10 Percent of population born abroad 6.35 7 Environmental policy subindex 5.23 25 Environmental policy subindex 5.23 25 State Index Metro Area and State Competitiveness Report / Page 60

Utah BHI UTAH Index Overall Rank 6.94 2 Government and fiscal policy subindex 5.39 13 Government and fiscal policy subindex 5.39 13 Workers' compensation premium rates 6.05 8 State and local taxes per capita/income per capita (cur $) 4.04 44 Bond rating: composite 6.57 1 Full-time-equivalent state and local government employees per 5.42 20 Security subindex 4.71 36 Security subindex 4.71 36 Murder index, per 100,000 inhabitants 5.99 8 Crime index, per 100,000 inhabitants 4.52 33 Crime index change 2001-2002, % 3.44 46 Infrastructure subindex 5.53 3 Infrastructure subindex 5.53 3 Households with installed phones, % 6.27 3 High-speed lines by state per 1,000 residents 4.31 38 Air passengers per capita 5.80 6 Average rent of 2 bedroom apartment 5.12 31 Average travel time to work 5.76 12 Electricity prices per million BTU 5.90 5 Human resources subindex 5.89 5 Human resources subindex 5.89 5 Percent of population without health insurance 5.48 20 Rate of nonfederal physicians per 100,000 inhabitants 4.13 44 Percent of population that graduated from high school, persons 5.90 9 25 years and older Percent of students enrolled in degree-granting institutions per 9.17 1 1,000 residents Percent of adults who are in the labor force 5.95 11 Infant mortality rate, deaths per 1,000 live births 6.52 2 Technology subindex 5.78 6 Technology subindex 5.78 6 Academic R&D per $1,000 GSP 6.46 5 NIH support to institutions per capita 5.05 20 Patents per 100,000 inhabitants 5.03 18 Number of S&E graduate students per 100,000 inhabitants 5.77 9 S&E degrees awarded per 100,000 inhabitants 6.61 4 Scientists and engineers/labor force 5.63 14 Percentage of total wage and salary jobs in high technology industries 5.90 11 Business incubation subindex 5.71 3 Business incubation subindex 5.71 3 Total deposits (commercial banks and savings institutions) per 6.17 2 capita Venture capital investment per capita 4.99 18 Employer firm births per 100,000 inhabitants 6.56 5 Percent of labor force that is represented by unions 6.11 7 Minimum wage 5.52 1 Openness subindex 4.94 22 Openness subindex 4.94 22 Incoming FDI per capita, dollars 5.16 6 Percent of population born abroad 4.91 20 Environmental policy subindex 5.22 26 Environmental policy subindex 5.22 26 Greenhouse Gas Emissions (metric tons of carbon equivalent 5.71 13 Toxic release inventory, on-site and off-site, total (new and 4.73 31 per 1,000 sq. miles) original industries), pounds/1,000 sq. miles Metro Area and State Competitiveness Report / Page 61 State Index

ermont BHI VERMONT Index Overall Rank 6.10 8 Government and fiscal policy subindex 5.05 27 Government and fiscal policy subindex 5.05 27 Bond rating: composite 5.75 10 State and local taxes per capita/income per capita (cur $) 4.32 41 Full-time-equivalent state and local government employees per 100 residents 4.52 40 Security subindex 5.66 9 Security subindex 5.66 9 Crime index, per 100,000 inhabitants 6.45 5 The BGA Integrity Index 3.32 49 Crime index change 2001-2002, % 6.90 1 Murder index, per 100,000 inhabitants 5.96 10 Infrastructure subindex 4.75 39 Infrastructure subindex 4.75 39 Households with installed phones, % 6.22 5 High-speed lines by state per 1,000 residents 4.43 37 Average travel time to work 5.59 14 Air passengers per capita 4.42 35 Electricity prices per million BTU 3.44 45 Average rent of 2 bedroom apartment 4.40 40 Human resources subindex 5.93 3 Human resources subindex 5.93 3 Percent of population without health insurance 6.34 2 Percent of students enrolled in degree-granting institutions 4.14 41 Percent of population that graduated from high school, 5.77 11 per 1,000 residents persons 25 years and older Unemployment rate 5.97 11 Percent of adults who are in the labor force 6.05 8 Infant mortality rate, deaths per 1,000 live births 6.04 7 Rate of nonfederal physicians per 100,000 inhabitants 6.63 6 Percentage of students at or above Proficient in mathematics, grade 4 public schools 6.54 2 Technology subindex 5.93 4 Technology subindex 5.93 4 Academic R&D per $1,000 GSP 5.72 14 Number of S&E graduate students per 100,000 inhabitants 4.05 44 NIH support to institutions per capita 5.86 6 Patents per 100,000 inhabitants 6.92 2 S&E degrees awarded per 100,000 inhabitants 7.92 1 Scientists and engineers/labor force 5.33 18 Percentage of total wage and salary jobs in high technology industries 5.73 15 Business incubation subindex 4.53 46 Business incubation subindex 4.53 46 Employer firm births per 100,000 inhabitants 5.40 14 Venture capital investment per capita 4.40 38 IPO 4.20 34 Minimum wage 3.18 43 Openness subindex 5.41 9 Openness subindex 5.41 9 Exports per capita, dollars 7.05 3 Percent of population born abroad 4.28 34 Incoming FDI per capita, dollars 4.90 14 Environmental policy subindex 5.89 4 Environmental policy subindex 5.89 4 Toxic release inventory, on-site and off-site, total (new and 6.03 1 original industries), pounds/1,000 sq. miles Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 5.74 11 State Index Metro Area and State Competitiveness Report / Page 62

Virginia BHI VIRGINIA Index Overall Rank 6.06 9 Government and fiscal policy subindex 5.55 2 Government and fiscal policy subindex 5.55 2 State and local taxes per capita/income per capita (cur $) 5.37 14 Budget surplus, % of GSP 4.96 35 Workers' compensation premium rates 6.28 3 Bond rating: composite 6.57 1 Security subindex 5.08 22 Security subindex 5.08 22 Crime index, per 100,000 inhabitants 5.84 13 Crime index change 2001-2002, % 4.99 33 Murder index, per 100,000 inhabitants 4.74 32 Infrastructure subindex 5.06 21 Infrastructure subindex 5.06 21 High-speed lines by state per 1,000 residents 5.42 18 Average travel time to work 3.98 43 Air passengers per capita 5.12 16 Human resources subindex 5.47 11 Human resources subindex 5.47 11 Percent of population that graduated from high school, persons 5.48 20 Infant mortality rate, deaths per 1,000 live births 4.61 35 25 years and older Unemployment rate 6.45 4 Percent of students enrolled in degree-granting institutions per 5.66 8 1,000 residents Percent of adults who are in the labor force 5.49 16 Rate of nonfederal physicians per 100,000 inhabitants 5.03 19 Percentage of students at or above Proficient in mathematics, grade 4 public schools 5.66 10 Technology subindex 5.45 11 Technology subindex 5.45 11 Number of S&E graduate students per 100,000 inhabitants 5.69 10 Academic R&D per $1,000 GSP 4.05 40 S&E degrees awarded per 100,000 inhabitants 5.59 11 Patents per 100,000 inhabitants 4.43 32 Scientists and engineers/labor force 7.18 2 Percentage of total wage and salary jobs in high technology industries 6.34 6 Business incubation subindex 5.41 7 Business incubation subindex 5.41 7 Total deposits (commercial banks and savings institutions) per 4.96 14 capita Venture capital investment per capita 5.20 13 IPO 5.92 6 Percent of labor force that is represented by unions 5.95 9 Minimum wage 5.52 1 Openness subindex 4.82 28 Openness subindex 4.82 28 Percent of population born abroad 5.26 17 Exports per capita, dollars 4.50 33 Incoming FDI per capita, dollars 4.71 32 Environmental policy subindex 4.90 31 Environmental policy subindex 4.90 31 Greenhouse Gas Emissions (metric tons of carbon 4.96 33 equivalent per 1,000 sq. miles) Metro Area and State Competitiveness Report / Page 63 State Index

Washington BHI WASHINGTON Index Overall Rank 6.81 3 Government and fiscal policy subindex 5.09 23 Government and fiscal policy subindex 5.09 23 Workers' compensation premium rates 6.08 7 Average benefit per first payment for unemployed 3.02 48 Bond rating: composite 5.34 18 Budget surplus, % of GSP 5.76 10 Full-time-equivalent state and local government employees per 100 residents 5.53 15 Security subindex 5.11 21 Security subindex 5.11 21 Murder index, per 100,000 inhabitants 5.61 19 Crime index, per 100,000 inhabitants 3.86 45 The BGA Integrity Index 6.01 11 Crime index change 2001-2002, % 4.95 34 Infrastructure subindex 5.22 14 Infrastructure subindex 5.22 14 Households with installed phones, % 5.35 20 Average travel time to work 4.27 41 High-speed lines by state per 1,000 residents 5.93 11 Average rent of 2 bedroom apartment 4.74 35 Air passengers per capita 5.13 15 Electricity prices per million BTU 5.89 6 Human resources subindex 5.01 26 Human resources subindex 5.01 26 Percent of population that graduated from high school, 5.82 10 Percent of population without health insurance 4.74 31 persons 25 years and older Unemployment rate 3.20 48 Percent of students enrolled in degree-granting institutions 5.17 20 Percent of adults who are in the labor force 4.61 32 per 1,000 residents Infant mortality rate, deaths per 1,000 live births 5.84 10 Rate of nonfederal physicians per 100,000 inhabitants 5.02 20 Percentage of students at or above Proficient in mathematics, grade 4 public schools 5.66 10 Technology subindex 5.66 8 Technology subindex 5.66 8 NIH support to institutions per capita 6.07 3 Number of S&E graduate students per 100,000 inhabitants 4.18 43 Patents per 100,000 inhabitants 5.47 13 S&E degrees awarded per 100,000 inhabitants 4.67 33 Scientists and engineers/labor force 7.21 1 Percentage of total wage and salary jobs in high technology industries 7.14 1 Business incubation subindex 5.57 5 Business incubation subindex 5.57 5 Venture capital investment per capita 5.82 5 Total deposits (commercial banks and savings institutions) 4.69 37 Employer firm births per 100,000 inhabitants 8.00 1 per capita IPO 8.74 1 Percent of labor force that is represented by unions 3.59 45 Minimum wage 2.58 50 Openness subindex 6.15 4 Openness subindex 6.15 4 Exports per capita, dollars 8.27 1 Percent of population born abroad 5.44 14 Environmental policy subindex 5.69 15 Environmental policy subindex 5.69 15 Toxic release inventory, on-site and off-site, total (new and 5.86 12 original industries), pounds/1,000 sq. miles Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 5.52 19 State Index Metro Area and State Competitiveness Report / Page 64

West Virginia BHI WEST VIRGINIA Index Overall Rank 3.58 48 Government and fiscal policy subindex 5.08 25 Government and fiscal policy subindex 5.08 25 Budget surplus, % of GSP 5.91 1 State and local taxes per capita/income per capita (cur $) 4.32 41 Average benefit per first payment for unemployed 5.56 17 Bond rating: composite 4.10 37 Full-time-equivalent state and local government 5.65 10 Security subindex 5.88 2 Security subindex 5.88 2 Crime index, per 100,000 inhabitants 6.47 4 Crime index change 2001-2002, % 5.45 15 Murder index, per 100,000 inhabitants 5.56 20 The BGA Integrity Index 6.04 8 Infrastructure subindex 4.86 34 Infrastructure subindex 4.86 34 Electricity prices per million BTU 5.97 4 High-speed lines by state per 1,000 residents 3.77 44 Average rent of 2 bedroom apartment 5.83 10 Air passengers per capita 4.11 49 Average travel time to work 4.30 40 Human resources subindex 3.97 47 Human resources subindex 3.97 47 Percent of population without health insurance 4.44 34 Percent of population that graduated from high school, persons 3.06 49 25 years and older Unemployment rate 4.54 34 Percent of students enrolled in degree-granting institutions per 4.01 43 1,000 residents Percent of adults who are in the labor force 2.06 50 Percentage of students at or above Proficient in mathematics, grade 4 public schools 3.89 41 Technology subindex 4.09 46 Technology subindex 4.09 46 Academic R&D per $1,000 GSP 3.70 46 NIH support to institutions per capita 4.07 48 Patents per 100,000 inhabitants 4.04 46 Number of S&E graduate students per 100,000 inhabitants 4.57 32 S&E degrees awarded per 100,000 inhabitants 4.23 40 Scientists and engineers/labor force 4.11 40 Percentage of total wage and salary jobs in high technology 3.94 44 industries Business incubation subindex 4.62 43 Business incubation subindex 4.62 43 Minimum wage 5.52 1 Total deposits (commercial banks and savings institutions) per 4.62 41 capita Venture capital investment per capita 4.39 40 Employer firm births per 100,000 inhabitants 4.18 40 IPO 4.20 34 Openness subindex 4.38 45 Openness subindex 4.38 45 Incoming FDI per capita, dollars 4.85 19 Exports per capita, dollars 4.35 38 Percent of population born abroad 3.94 50 Environmental policy subindex 3.91 44 Environmental policy subindex 3.91 44 Toxic release inventory, on-site and off-site, total (new and 3.60 46 original industries), pounds/1,000 sq. miles Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 4.22 42 Metro Area and State Competitiveness Report / Page 65 State Index

isconsin BHI WISCONSIN Index Overall Rank 5.66 13 Government and fiscal policy subindex 4.73 40 Government and fiscal policy subindex 4.73 40 Workers' compensation premium rates 5.33 20 State and local taxes per capita/income per capita (cur $) 3.66 47 Average benefit per first payment for unemployed 5.68 16 Bond rating: composite 4.10 37 Full-time-equivalent state and local government employees per 5.46 18 Budget surplus, % of GSP 4.18 45 Security subindex 5.98 1 Security subindex 5.98 1 Crime index, per 100,000 inhabitants 5.73 15 Murder index, per 100,000 inhabitants 5.69 16 The BGA Integrity Index 7.14 1 Infrastructure subindex 5.33 9 Infrastructure subindex 5.33 9 Households with installed phones, % 5.88 9 Air passengers per capita 4.39 38 Average travel time to work 5.56 15 Electricity prices per million BTU 5.52 17 Human resources subindex 5.39 16 Human resources subindex 5.39 16 Percent of population without health insurance 5.97 9 Percent of population that graduated from high school, persons 5.69 15 25 years and older Percent of adults who are in the labor force 6.31 4 Percentage of students at or above Proficient in mathematics, grade 4 public schools 5.51 15 Technology subindex 5.07 22 Technology subindex 5.07 22 Academic R&D per $1,000 GSP 5.81 12 Percentage of total wage and salary jobs in high 4.15 38 NIH support to institutions per capita 5.10 19 technology industries Patents per 100,000 inhabitants 5.34 14 Number of S&E graduate students per 100,000 inhabitants 5.29 18 Business incubation subindex 4.69 40 Business incubation subindex 4.69 40 Total deposits (commercial banks and savings institutions) 4.96 15 Employer firm births per 100,000 inhabitants 4.17 41 per capita Percent of labor force that is represented by unions 4.32 39 Minimum wage 5.52 1 Openness subindex 4.73 32 Openness subindex 4.73 32 Exports per capita, dollars 5.08 19 Incoming FDI per capita, dollars 4.70 33 Percent of population born abroad 4.40 32 Environmental policy subindex 5.50 21 Environmental policy subindex 5.50 21 State Index Metro Area and State Competitiveness Report / Page 66

WYOMING Index Overall Rank 5.69 12 Government and fiscal policy subindex 4.90 34 Government and fiscal policy subindex 4.90 34 State and local taxes per capita/income per capita (cur $) 5.75 7 Full-time-equivalent state and local government employees 1.26 50 Workers' compensation premium rates 5.66 14 Budget surplus, % of GSP 5.91 1 Average benefit per first payment for unemployed 5.87 11 Security subindex 4.95 27 Security subindex 4.95 27 Crime index, per 100,000 inhabitants 5.40 19 Crime index change 2001-2002, % 4.44 37 Murder index, per 100,000 inhabitants 5.62 18 The BGA Integrity Index 4.35 37 Infrastructure subindex 5.26 12 Infrastructure subindex 5.26 12 Households with installed phones, % 5.69 15 High-speed lines by state per 1,000 residents 3.52 46 Average travel time to work 6.41 5 Air passengers per capita 4.32 42 Electricity prices per million BTU 6.24 2 Human resources subindex 5.43 14 Human resources subindex 5.43 14 Percent of population that graduated from high school, 6.30 3 Percent of population without health insurance 4.63 32 persons 25 years and older Percent of students enrolled in degree-granting 4.39 36 Unemployment rate 6.17 7 institutions per 1,000 residents Percent of adults who are in the labor force 6.31 4 Rate of nonfederal physicians per 100,000 inhabitants 3.77 48 Infant mortality rate, deaths per 1,000 live births 5.77 13 Percentage of students at or above Proficient in mathematics, grade 4 public schools 6.10 8 Technology subindex 4.41 39 Technology subindex 4.41 39 Number of S&E graduate students per 100,000 inhabitants 5.31 17 Academic R&D per $1,000 GSP 3.86 43 S&E degrees awarded per 100,000 inhabitants 5.36 17 NIH support to institutions per capita 4.19 45 Patents per 100,000 inhabitants 4.43 33 Scientists and engineers/labor force 4.25 37 Percentage of total wage and salary jobs in high technology industries 3.45 50 Business incubation subindex 5.23 13 Business incubation subindex 5.23 13 Employer firm births per 100,000 inhabitants 6.87 4 Venture capital investment per capita 4.37 49 Percent of labor force that is represented by unions 5.58 20 IPO 4.20 34 Minimum wage 5.52 1 Openness subindex 5.20 17 Openness subindex 5.20 17 Incoming FDI per capita, dollars 7.33 2 Exports per capita, dollars 4.21 41 Percent of population born abroad 4.06 46 Environmental policy subindex 5.85 6 Environmental policy subindex 5.85 6 Toxic release inventory, on-site and off-site, total (new and 5.94 4 original industries), pounds/1,000 sq. miles Greenhouse Gas Emissions (metric tons of carbon equivalent per 1,000 sq. miles) 5.76 10 Metro Area and State Competitiveness Report / Page 67 State Index

Metro Area Indices BHI Metro Area Indexes Metro Area and State Competitiveness Report / Page 68

ALBANY Index Overall Rank 4.90 24 Government and fiscal policy subindex 2.93 49 Government and fiscal policy subindex 2.93 49 Workers' compensation premium rates 4.74 35 Bond rating: S&P/Moody's composite 3.93 40 Average benefit per first payment for unemployed 3.94 40 State bond rating 3.97 43 State and local taxes per capita/income per capita (cur $) 2.25 48 Security subindex 6.10 2 Security subindex 6.10 2 Thefts per 100,000 inhabitants 6.48 4 Crime index change 2001-2002, % 6.08 6 Violent crimes per 100,000 inhabitants 6.08 7 Murders per 100,000 inhabitants 5.76 10 Infrastructure subindex 5.27 11 Infrastructure subindex 5.27 11 High-speed broadband lines per 1,000 residents 6.12 5 Air passengers per capita 4.21 42 Travel time to work 7.31 1 Electricity prices per million BTU 3.15 44 Average 2 bedroom rent 5.58 16 Human resources subindex 6.00 3 Human resources subindex 6.00 3 Percent of population that graduated from high school, 5.81 9 persons 25 years and older Non-federal physicians per 100,000 inhabitants 7.27 2 Percent of adults in the labor force 6.41 4 Unemployment rate 6.19 6 Infant mortality rate, deaths per 1,000 live births 5.88 10 Percent of students enrolled in degree-granting institutions per 1,000 residents 5.38 12 Technology Subindex 4.78 32 Technology Subindex 4.78 32 Number of S&E graduate students per 100,000 6.32 4 New patents issued per 100,000 inhabitants 4.57 34 inhabitants Percentage of computer and engineering jobs 3.35 50 Business incubation subindex 4.67 36 Business incubation subindex 4.67 36 New publicly traded companies 5.00 14 Total deposits (commercial banks and savings 4.58 35 Employer firm births per 100,000 inhabitants 5.20 16 institutions) per capita Forbes Cost of Doing Business Index 5.33 20 Percent of labor force that is represented by unions 2.92 48 Openness subindex 4.43 41 Openness subindex 4.43 41 Percent of population born abroad 4.15 44 Environmental policy subindex 4.60 38 Environmental policy subindex 4.60 38 Toxic release, pounds per sq. mile 5.36 4 High ozone days 3.33 50 Pollution standards index 5.67 10 Metro Area and State Competitiveness Report / Page 69 Metro Area Index

Atlanta BHI ATLANTA Index Overall Rank 5.79 11 Government and fiscal policy subindex 6.09 9 Government and fiscal policy subindex 6.09 9 State bond rating 6.38 4 State and local taxes per capita/income per capita (cur $) 4.91 32 Average benefit per first payment for unemployed 6.43 4 Workers' compensation premium rates 5.52 19 Security subindex 5.04 26 Security subindex 5.04 26 Crime index change 2001-2002, % 5.41 16 Infrastructure subindex 5.26 12 Infrastructure subindex 5.26 12 Air passengers per capita 7.14 3 Travel time to work 3.12 47 Electricity prices per million BTU 5.58 18 High-speed broadband lines per 1,000 residents 5.48 19 Human resources subindex 4.77 38 Human resources subindex 4.77 38 Unemployment rate 6.08 9 Infant mortality rate, deaths per 1,000 live births 3.54 47 Percent of adults in the labor force 5.31 18 Non-federal physicians per 100,000 inhabitants 3.99 47 Percent of population that graduated from high school, persons 25 years and older 5.37 19 Percent of students enrolled in degree-granting institutions per 1,000 residents 3.80 48 Technology Subindex 5.06 18 Technology Subindex 5.06 18 IT employment 6.55 7 NIH support to institutions per capita 4.69 32 Percentage of computer and engineering jobs 5.46 14 New patents issued per 100,000 inhabitants 4.51 38 Academic R&D per $1,000 GSP 5.26 15 Number of S&E graduate students per 100,000 inhabitants 3.88 46 Business incubation subindex 5.23 12 Business incubation subindex 5.23 12 Entrepreneurial Activity Index 6.49 2 Forbes Cost of Doing Business Index 4.28 38 New publicly traded companies 5.29 7 Venture capital investment per capita 5.09 9 Percent of labor force that is represented by unions 5.91 11 Total deposits (commercial banks and savings institutions) per capita 4.82 20 Openness subindex 4.78 21 Openness subindex 4.78 21 Percent of population born abroad 5.01 20 Exports per capita 4.55 34 Environmental policy subindex 5.16 20 Environmental policy subindex 5.16 20 Pollution standards index 5.67 10 Toxic release, pounds per sq. mile 5.00 40 Metro Area Index Metro Area and State Competitiveness Report / Page 70

AUSTIN Index Overall Rank 6.21 7 Government and fiscal policy subindex 5.47 14 Government and fiscal policy subindex 5.47 14 State and local taxes per capita/income per capita (cur $) 6.08 3 Workers' compensation premium rates 4.58 39 Bond rating: S&P/Moody's composite 5.63 14 State bond rating 5.35 17 Security subindex 5.44 14 Security subindex 5.44 14 Murders per 100,000 inhabitants 5.93 6 Violent crimes per 100,000 inhabitants 5.97 9 Infrastructure subindex 4.60 43 Infrastructure subindex 4.60 43 High-speed broadband lines per 1,000 residents 4.38 32 Air passengers per capita 4.49 32 Average 2 bedroom rent 4.10 44 Human resources subindex 4.96 28 Human resources subindex 4.96 28 Percent of adults in the labor force 6.27 6 Percent of students enrolled in degree-granting 4.14 40 Percent of population that graduated from high school, 5.59 13 institutions per 1,000 residents persons 25 years and older Non-federal physicians per 100,000 inhabitants 4.02 43 Unemployment rate 5.66 15 Percent of population without health insurance 3.21 47 Infant mortality rate, deaths per 1,000 live births 5.80 15 Technology Subindex 5.87 4 Technology Subindex 5.87 4 New patents issued per 100,000 inhabitants 9.05 2 Number of S&E graduate students per 100,000 4.69 31 Percentage of computer and engineering jobs 6.93 4 inhabitants IT employment 5.21 14 NIH support to institutions per capita 4.56 35 Business incubation subindex 4.93 24 Business incubation subindex 4.93 24 Entrepreneurial Activity Index 6.38 4 Percent of labor force that is represented by unions 4.66 32 New publicly traded companies 5.95 4 Employer firm births per 100,000 inhabitants 4.28 37 Venture capital investment per capita 4.83 20 Forbes Cost of Doing Business Index 4.30 37 Total deposits (commercial banks and savings institutions) per capita 4.11 46 Openness subindex 6.15 7 Openness subindex 6.15 7 Exports per capita 7.05 2 Percent of population born abroad 5.25 14 Environmental policy subindex 5.29 17 Environmental policy subindex 5.29 17 Toxic release, pounds per sq. mile 5.36 3 Pollution standards index 5.83 3 Metro Area and State Competitiveness Report / Page 71 Metro Area Index

BOSTON Index Overall Rank 6.77 4 Government and fiscal policy subindex 4.52 37 Government and fiscal policy subindex 4.52 37 State and local taxes per capita/income per capita (cur $) 5.71 12 State bond rating 4.72 34 Workers' compensation premium rates 5.71 10 Average benefit per first payment for unemployed 2.22 50 Security subindex 5.93 3 Security subindex 5.93 3 Thefts per 100,000 inhabitants 6.71 2 Murders per 100,000 inhabitants 6.04 4 Violent crimes per 100,000 inhabitants 5.86 10 Infrastructure subindex 4.53 45 Infrastructure subindex 4.53 45 High-speed broadband lines per 1,000 residents 7.26 1 Travel time to work 4.14 42 Electricity prices per million BTU 3.25 43 Average 2 bedroom rent 3.44 47 Human resources subindex 5.93 4 Human resources subindex 5.93 4 Infant mortality rate, deaths per 1,000 live births 6.72 1 Non-federal physicians per 100,000 inhabitants 7.35 1 Percent of population without health insurance 5.99 6 Percent of population that graduated from high school, persons 25 years and older 5.84 8 Unemployment rate 5.56 16 Technology Subindex 6.82 1 Technology Subindex 6.82 1 Academic R&D per $1,000 GSP 7.83 1 New patents issued per 100,000 inhabitants 4.57 33 Number of S&E graduate students per 100,000 inhabitants 8.72 1 NIH support to institutions per capita 7.55 2 Percentage of computer and engineering jobs 6.74 5 IT employment 5.48 12 Business incubation subindex 5.79 5 Business incubation subindex 5.79 5 Venture capital investment per capita 8.30 1 Entrepreneurial Activity Index 3.52 46 Forbes Cost of Doing Business Index 6.80 2 New publicly traded companies 6.05 3 Total deposits (commercial banks and savings institutions) per capita 5.73 6 Employer firm births per 100,000 inhabitants 5.09 20 Openness subindex 5.29 14 Openness subindex 5.29 14 Exports per capita 5.31 10 Percent of population born abroad 5.28 13 Environmental policy subindex 4.74 33 Environmental policy subindex 4.74 33 Toxic release, pounds per sq. mile 5.32 12 Pollution standards index 4.91 31 Metro Area Index Metro Area and State Competitiveness Report / Page 72

Buffalo BHI BUFFALO Index Overall Rank 4.08 43 Government and fiscal policy subindex 2.57 50 Government and fiscal policy subindex 2.57 50 State and local taxes per capita/income per capita (cur $) 2.25 48 Workers' compensation premium rates 4.74 35 Bond rating: S&P/Moody's composite 2.86 50 State bond rating 3.97 43 Average benefit per first payment for unemployed 3.94 40 Security subindex 5.82 5 Security subindex 5.82 5 Crime index change 2001-2002, % 5.82 8 Violent crimes per 100,000 inhabitants 5.58 18 Thefts per 100,000 inhabitants 6.22 7 Murders per 100,000 inhabitants 5.67 12 Infrastructure subindex 5.15 20 Infrastructure subindex 5.15 20 High-speed broadband lines per 1,000 residents 6.12 5 Air passengers per capita 4.23 41 Travel time to work 6.38 3 Electricity prices per million BTU 3.15 44 Average 2 bedroom rent 5.89 10 Human resources subindex 5.31 12 Human resources subindex 5.31 12 Non-federal physicians per 100,000 inhabitants 7.27 2 Unemployment rate 4.40 36 Infant mortality rate, deaths per 1,000 live births 5.88 10 Percent of adults in the labor force 4.13 40 Percent of students enrolled in degree-granting institutions per 1,000 residents 5.38 12 Technology Subindex 4.88 26 Technology Subindex 4.88 26 Number of S&E graduate students per 100,000 inhabitants 6.32 4 IT employment 4.23 37 Percentage of computer and engineering jobs 4.18 41 Business incubation subindex 4.40 49 Business incubation subindex 4.40 49 Total deposits (commercial banks and savings 5.16 16 New publicly traded companies 4.37 43 institutions) per capita Entrepreneurial Activity Index 3.56 45 Employer firm births per 100,000 inhabitants 5.20 16 Percent of labor force that is represented by unions 2.36 49 Forbes Cost of Doing Business Index 5.43 19 Openness subindex 4.48 40 Openness subindex 4.48 40 Percent of population born abroad 4.25 43 Environmental policy subindex 5.03 23 Environmental policy subindex 5.03 23 Pollution standards index 5.75 4 Toxic release, pounds per sq. mile 4.99 42 Metro Area and State Competitiveness Report / Page 73 Metro Area Index

CHARLOTTE Index Overall Rank 5.18 21 Government and fiscal policy subindex 6.45 1 Government and fiscal policy subindex 6.45 1 Bond rating: S&P/Moody's composite 6.27 1 State bond rating 6.09 6 Average benefit per first payment for unemployed 5.96 7 Workers' compensation premium rates 5.72 9 Security subindex 4.59 35 Security subindex 4.59 35 Thefts per 100,000 inhabitants 4.38 38 Violent crimes per 100,000 inhabitants 3.84 43 Infrastructure subindex 5.61 2 Infrastructure subindex 5.61 2 Air passengers per capita 7.14 4 Travel time to work 4.81 33 Average 2 bedroom rent 5.64 15 Electricity prices per million BTU 5.52 19 Human resources subindex 4.42 44 Human resources subindex 4.42 44 Percent of students enrolled in degree-granting institutions per 4.62 32 1,000 residents Percent of population without health insurance 4.70 33 Non-federal physicians per 100,000 inhabitants 4.49 38 Percent of population that graduated from high school, 4.39 39 persons 25 years and older Unemployment rate 3.98 39 Infant mortality rate, deaths per 1,000 live births 3.58 46 Technology Subindex 4.86 27 Technology Subindex 4.86 27 Academic R&D per $1,000 GSP 6.17 9 Percentage of computer and engineering jobs 4.29 36 IT employment 5.12 16 Number of S&E graduate students per 100,000 inhabitants 4.40 37 New patents issued per 100,000 inhabitants 4.83 17 NIH support to institutions per capita 4.31 45 Business incubation subindex 4.66 39 Business incubation subindex 4.66 39 Total deposits (commercial banks and savings 7.35 2 Employer firm births per 100,000 inhabitants 4.61 32 institutions) per capita New publicly traded companies 4.53 37 Venture capital investment per capita 4.87 18 Forbes Cost of Doing Business Index 3.68 45 Entrepreneurial Activity Index 5.47 18 Percent of labor force that is represented by unions 2.07 50 Openness subindex 4.63 31 Openness subindex 4.63 31 Environmental policy subindex 4.86 29 Environmental policy subindex 4.86 29 Pollution standards index 5.35 20 Toxic release, pounds per sq. mile 5.10 31 Metro Area Index Metro Area and State Competitiveness Report / Page 74

hicago BHI CHICAGO Index Overall Rank 3.17 50 Government and fiscal policy subindex 4.43 39 Government and fiscal policy subindex 4.43 39 State bond rating 4.74 33 Bond rating: S&P/Moody's composite 4.57 36 Average benefit per first payment for unemployed 3.60 46 Security subindex 3.60 49 Security subindex 3.60 49 Crime index change 2001-2002, % 5.28 18 Thefts per 100,000 inhabitants 4.45 36 Violent crimes per 100,000 inhabitants 2.87 48 Murders per 100,000 inhabitants 1.81 49 Infrastructure subindex 4.60 41 Infrastructure subindex 4.60 41 Air passengers per capita 5.34 13 High-speed broadband lines per 1,000 residents 4.24 38 Travel time to work 3.11 48 Average 2 bedroom rent 4.89 31 Human resources subindex 4.69 39 Human resources subindex 4.69 39 Non-federal physicians per 100,000 inhabitants 5.06 15 Percent of population that graduated from high school, 4.56 38 Percent of students enrolled in degree-granting 5.34 16 persons 25 years and older institutions per 1,000 residents Infant mortality rate, deaths per 1,000 live births 4.32 39 Unemployment rate 3.67 44 Technology Subindex 4.85 29 Technology Subindex 4.85 29 Number of S&E graduate students per 100,000 inhabitants 5.95 8 Academic R&D per $1,000 GSP 4.52 34 NIH support to institutions per capita 4.70 31 New patents issued per 100,000 inhabitants 4.55 37 Business incubation subindex 4.76 33 Business incubation subindex 4.76 33 Total deposits (commercial banks and savings institutions) 5.58 8 Venture capital investment per capita 4.41 37 per capita Entrepreneurial Activity Index 4.14 38 Forbes Cost of Doing Business Index 5.69 14 Percent of labor force that is represented by unions 4.34 40 New publicly traded companies 4.97 17 Employer firm births per 100,000 inhabitants 4.16 41 Openness subindex 5.27 15 Openness subindex 5.27 15 Percent of population born abroad 5.74 8 Environmental policy subindex 4.81 32 Environmental policy subindex 4.81 32 High ozone days 5.17 16 Pollution standards index 4.68 41 Toxic release, pounds per sq. mile 4.86 45 Metro Area and State Competitiveness Report / Page 75 Metro Area Index

Cincinnati BHI CINCINNATI Index Overall Rank 3.96 46 Government and fiscal policy subindex 5.28 23 Government and fiscal policy subindex 5.28 23 Bond rating: S&P/Moody's composite 5.84 10 State and local taxes per capita/income per capita (cur $) 4.06 43 State bond rating 5.50 16 Security subindex 5.23 19 Security subindex 5.23 19 Violent crimes per 100,000 inhabitants 5.67 15 Thefts per 100,000 inhabitants 5.26 19 Infrastructure subindex 5.32 7 Infrastructure subindex 5.32 7 Average 2 bedroom rent 5.92 6 High-speed broadband lines per 1,000 residents 3.98 44 Air passengers per capita 5.69 8 Electricity prices per million BTU 5.68 14 Travel time to work 5.34 20 Human resources subindex 5.06 23 Human resources subindex 5.06 23 Percent of population without health insurance 5.84 12 Infant mortality rate, deaths per 1,000 live births 4.58 33 Percent of adults in the labor force 5.51 16 Percent of students enrolled in degree-granting 4.39 36 Non-federal physicians per 100,000 inhabitants 4.91 18 institutions per 1,000 residents Unemployment rate 5.24 20 Technology Subindex 4.73 34 Technology Subindex 4.73 34 New patents issued per 100,000 inhabitants 5.42 7 Academic R&D per $1,000 GSP 4.39 38 NIH support to institutions per capita 4.87 20 IT employment 4.15 39 Business incubation subindex 4.56 44 Business incubation subindex 4.56 44 Total deposits (commercial banks and savings 5.30 14 Forbes Cost of Doing Business Index 4.59 31 institutions) per capita Entrepreneurial Activity Index 4.06 39 Venture capital investment per capita 4.37 43 Employer firm births per 100,000 inhabitants 3.78 48 Openness subindex 4.64 30 Openness subindex 4.64 30 Exports per capita 5.26 17 Percent of population born abroad 4.02 49 Environmental policy subindex 1.99 49 Environmental policy subindex 1.99 49 Toxic release, pounds per sq. mile 5.01 38 Pollution standards index 0.50 50 Metro Area Index Metro Area and State Competitiveness Report / Page 76

CLEVELAND Index Overall Rank 4.49 34 Government and fiscal policy subindex 4.78 33 Government and fiscal policy subindex 4.78 33 State bond rating 5.70 11 State and local taxes per capita/income per capita (cur $) 3.82 44 Workers' compensation premium rates 4.97 31 Bond rating: S&P/Moody's composite 4.57 36 Security subindex 6.44 1 Security subindex 6.44 1 Crime index change 2001-2002, % 8.10 1 Violent crimes per 100,000 inhabitants 5.73 13 Thefts per 100,000 inhabitants 6.39 5 Murders per 100,000 inhabitants 5.53 16 Infrastructure subindex 4.96 34 Infrastructure subindex 4.96 34 Travel time to work 5.46 18 Air passengers per capita 4.51 31 High-speed broadband lines per 1,000 residents 4.30 36 Human resources subindex 4.85 32 Human resources subindex 4.85 32 Percent of population without health insurance 5.86 9 Percent of students enrolled in degree-granting 4.42 34 Non-federal physicians per 100,000 inhabitants 5.12 13 institutions per 1,000 residents Unemployment rate 3.98 39 Infant mortality rate, deaths per 1,000 live births 4.30 40 Technology Subindex 4.57 40 Technology Subindex 4.57 40 NIH support to institutions per capita 5.14 12 New patents issued per 100,000 inhabitants 4.60 31 Academic R&D per $1,000 GSP 4.42 36 IT employment 4.15 39 Percentage of computer and engineering jobs 4.21 40 Business incubation subindex 4.67 37 Business incubation subindex 4.67 37 Total deposits (commercial banks and savings 5.37 12 Venture capital investment per capita 4.41 35 institutions) per capita Entrepreneurial Activity Index 4.39 35 Forbes Cost of Doing Business Index 5.81 12 Percent of labor force that is represented by unions 4.49 37 New publicly traded companies 4.46 42 Employer firm births per 100,000 inhabitants 3.76 49 Openness subindex 4.77 22 Openness subindex 4.77 22 Exports per capita 5.25 18 Percent of population born abroad 4.28 38 Environmental policy subindex 4.30 44 Environmental policy subindex 4.30 44 Toxic release, pounds per sq. mile 5.04 36 Pollution standards index 4.44 45 Metro Area and State Competitiveness Report / Page 77 Metro Area Index

Columbus BHI COLUMBUS Index Overall Rank 4.25 38 Government and fiscal policy subindex 5.35 19 Government and fiscal policy subindex 5.35 19 Bond rating: S&P/Moody's composite 6.27 1 State and local taxes per capita/income per capita (cur $) 3.82 44 State bond rating 5.70 11 Workers' compensation premium rates 4.97 31 Security subindex 4.53 37 Security subindex 4.53 37 Crime index change 2001-2002, % 4.58 36 Thefts per 100,000 inhabitants 3.50 45 Infrastructure subindex 5.14 22 Infrastructure subindex 5.14 22 Average 2 bedroom rent 5.91 7 High-speed broadband lines per 1,000 residents 4.30 36 Travel time to work 5.70 12 Air passengers per capita 4.32 37 Human resources subindex 5.23 17 Human resources subindex 5.23 17 Percent of population that graduated from high school, 5.87 7 Percent of students enrolled in degree-granting institutions per 4.42 34 persons 25 years and older 1,000 residents Percent of adults in the labor force 5.80 10 Infant mortality rate, deaths per 1,000 live births 4.30 40 Non-federal physicians per 100,000 inhabitants 5.12 13 Percent of population without health insurance 5.62 16 Unemployment rate 5.45 18 Technology Subindex 5.26 13 Technology Subindex 5.26 13 IT employment 7.26 2 Academic R&D per $1,000 GSP 4.42 36 NIH support to institutions per capita 5.02 14 New patents issued per 100,000 inhabitants 4.93 16 Business incubation subindex 4.64 40 Business incubation subindex 4.64 40 Venture capital investment per capita 4.41 35 New publicly traded companies 4.52 38 Total deposits (commercial banks and savings institutions) per 4.53 39 capita Employer firm births per 100,000 inhabitants 3.76 49 Openness subindex 4.77 22 Openness subindex 4.77 22 Exports per capita 5.25 18 Percent of population born abroad 4.28 38 Environmental policy subindex 3.03 48 Environmental policy subindex 3.03 48 Pollution standards index 2.09 49 Metro Area Index Metro Area and State Competitiveness Report / Page 78

Dallas BHI DALLAS Index Overall Rank 5.37 13 Government and fiscal policy subindex 5.69 12 Government and fiscal policy subindex 5.69 12 Bond rating: S&P/Moody's composite 6.27 1 Workers' compensation premium rates 4.58 39 State and local taxes per capita/income per capita (cur $) 6.08 3 State bond rating 5.35 17 Security subindex 4.44 40 Security subindex 4.44 40 Crime index change 2001-2002, % 4.55 37 Violent crimes per 100,000 inhabitants 4.34 39 Thefts per 100,000 inhabitants 4.06 44 Murders per 100,000 inhabitants 4.80 35 Infrastructure subindex 4.96 33 Infrastructure subindex 4.96 33 Air passengers per capita 5.68 9 High-speed broadband lines per 1,000 residents 4.38 32 Travel time to work 4.31 39 Human resources subindex 4.31 45 Human resources subindex 4.31 45 Percent of adults in the labor force 5.73 12 Unemployment rate 3.98 39 Infant mortality rate, deaths per 1,000 live births 5.80 15 Percent of population that graduated from high school, persons 4.22 40 25 years and older Percent of students enrolled in degree-granting institutions per 4.14 40 1,000 residents Non-federal physicians per 100,000 inhabitants 4.02 43 Percent of population without health insurance 2.26 49 Technology Subindex 5.17 15 Technology Subindex 5.17 15 Percentage of computer and engineering jobs 6.08 8 Number of S&E graduate students per 100,000 inhabitants 4.69 31 IT employment 6.28 9 NIH support to institutions per capita 4.53 37 Business incubation subindex 5.02 20 Business incubation subindex 5.02 20 Percent of labor force that is represented by unions 6.19 4 Employer firm births per 100,000 inhabitants 4.28 37 Entrepreneurial Activity Index 6.05 9 Forbes Cost of Doing Business Index 4.06 40 Venture capital investment per capita 4.83 20 New publicly traded companies 4.92 20 Openness subindex 6.33 5 Openness subindex 6.33 5 Exports per capita 7.05 2 Percent of population born abroad 5.61 9 Environmental policy subindex 4.96 27 Environmental policy subindex 4.96 27 Toxic release, pounds per sq. mile 5.31 14 Pollution standards index 4.91 31 High ozone days 4.75 20 Metro Area and State Competitiveness Report / Page 79 Metro Area Index

Denver BHI DENVER Index Overall Rank 6.59 5 Government and fiscal policy subindex 5.09 31 Government and fiscal policy subindex 5.09 31 Bond rating: S&P/Moody's composite 5.84 10 Average benefit per first payment for unemployed 4.29 38 State and local taxes per capita/income per capita (cur $) 5.69 13 State bond rating 4.31 40 Security subindex 5.16 20 Security subindex 5.16 20 Murders per 100,000 inhabitants 5.50 17 Crime index change 2001-2002, % 4.55 37 Violent crimes per 100,000 inhabitants 5.81 12 Infrastructure subindex 5.32 6 Infrastructure subindex 5.32 6 Air passengers per capita 6.74 5 Travel time to work 4.83 32 Electricity prices per million BTU 5.75 9 Average 2 bedroom rent 4.55 38 Human resources subindex 5.29 14 Human resources subindex 5.29 14 Percent of population that graduated from high school, 6.09 5 Non-federal physicians per 100,000 inhabitants 4.65 34 persons 25 years and older Percent of population without health insurance 4.64 36 Infant mortality rate, deaths per 1,000 live births 5.88 10 Percent of students enrolled in degree-granting institutions per 1,000 residents 5.27 18 Percent of adults in the labor force 5.29 19 Unemployment rate 5.24 20 Technology Subindex 5.53 9 Technology Subindex 5.53 9 Number of S&E graduate students per 100,000 inhabitants 6.25 7 New patents issued per 100,000 inhabitants 4.55 35 Percentage of computer and engineering jobs 6.13 7 NIH support to institutions per capita 4.41 40 IT employment 6.55 7 Academic R&D per $1,000 GSP 5.25 16 Business incubation subindex 5.69 6 Business incubation subindex 5.69 6 Employer firm births per 100,000 inhabitants 7.28 2 Total deposits (commercial banks and savings 4.55 37 New publicly traded companies 5.63 5 institutions) per capita Venture capital investment per capita 5.78 7 Entrepreneurial Activity Index 6.09 7 Percent of labor force that is represented by unions 5.62 17 Openness subindex 4.55 37 Openness subindex 4.55 37 Percent of population born abroad 5.06 19 Exports per capita 4.04 46 Environmental policy subindex 6.06 10 Environmental policy subindex 6.06 10 Toxic release, pounds per sq. mile 5.34 9 High ozone days 6.25 9 Metro Area Index Metro Area and State Competitiveness Report / Page 80

Detroit BHI DETROIT Index Overall Rank 4.11 42 Government and fiscal policy subindex 4.91 32 Government and fiscal policy subindex 4.91 32 State bond rating 5.70 11 State and local taxes per capita/income per capita (cur $) 4.81 36 Workers' compensation premium rates 5.59 15 Bond rating: S&P/Moody's composite 3.50 44 Security subindex 4.96 29 Security subindex 4.96 29 Crime index change 2001-2002, % 5.80 9 Violent crimes per 100,000 inhabitants 4.39 38 Thefts per 100,000 inhabitants 5.59 16 Murders per 100,000 inhabitants 4.05 45 Infrastructure subindex 4.84 38 Infrastructure subindex 4.84 38 Air passengers per capita 4.98 20 High-speed broadband lines per 1,000 residents 4.22 39 Travel time to work 4.77 34 Human resources subindex 4.80 36 Human resources subindex 4.80 36 Percent of students enrolled in degree-granting 5.55 8 Infant mortality rate, deaths per 1,000 live births 4.05 42 institutions per 1,000 residents Unemployment rate 3.24 49 Non-federal physicians per 100,000 inhabitants 5.15 11 Percent of adults in the labor force 5.29 20 Technology Subindex 4.95 24 Technology Subindex 4.95 24 Percentage of computer and engineering jobs 6.13 6 NIH support to institutions per capita 4.47 38 Academic R&D per $1,000 GSP 5.45 12 IT employment 4.15 39 Number of S&E graduate students per 100,000 inhabitants 5.18 16 New patents issued per 100,000 inhabitants 4.30 50 Business incubation subindex 4.66 38 Business incubation subindex 4.66 38 Forbes Cost of Doing Business Index 6.05 9 Total deposits (commercial banks and savings institutions) per 4.57 36 capita New publicly traded companies 4.47 41 Employer firm births per 100,000 inhabitants 4.05 43 Percent of labor force that is represented by unions 3.92 45 Venture capital investment per capita 4.32 46 Openness subindex 5.24 17 Openness subindex 5.24 17 Exports per capita 5.90 8 Environmental policy subindex 4.57 40 Environmental policy subindex 4.57 40 Toxic release, pounds per sq. mile 4.64 47 Metro Area and State Competitiveness Report / Page 81 Metro Area Index

GRAND RAPIDS Index Overall Rank 5.32 15 Government and fiscal policy subindex 5.48 13 Government and fiscal policy subindex 5.48 13 State bond rating 5.70 11 State and local taxes per capita/income per capita (cur $) 4.81 36 Workers' compensation premium rates 5.59 15 Security subindex 5.65 10 Security subindex 5.65 10 Murders per 100,000 inhabitants 6.14 1 Thefts per 100,000 inhabitants 5.85 12 Violent crimes per 100,000 inhabitants 5.73 14 Infrastructure subindex 5.21 16 Infrastructure subindex 5.21 16 Travel time to work 6.52 2 High-speed broadband lines per 1,000 residents 4.22 39 Average 2 bedroom rent 5.98 4 Air passengers per capita 4.00 47 Human resources subindex 5.34 11 Human resources subindex 5.34 11 Percent of adults in the labor force 7.45 1 Unemployment rate 3.77 42 Percent of students enrolled in degree-granting institutions per 5.55 8 Infant mortality rate, deaths per 1,000 live births 4.05 42 1,000 residents Percent of population without health insurance 5.86 9 Non-federal physicians per 100,000 inhabitants 5.15 11 Percent of population that graduated from high school, persons 25 years and older 5.54 15 Technology Subindex 4.69 36 Technology Subindex 4.69 36 New patents issued per 100,000 inhabitants 5.13 10 Percentage of computer and engineering jobs 4.36 33 Academic R&D per $1,000 GSP 5.45 12 NIH support to institutions per capita 4.30 48 Number of S&E graduate students per 100,000 inhabitants 5.18 16 IT employment 3.70 50 Business incubation subindex 4.56 45 Business incubation subindex 4.56 45 Forbes Cost of Doing Business Index 5.91 10 Entrepreneurial Activity Index 4.79 31 Percent of labor force that is represented by unions 4.51 36 Employer firm births per 100,000 inhabitants 4.05 43 New publicly traded companies 4.37 43 Venture capital investment per capita 4.32 46 Total deposits (commercial banks and savings institutions) per capita 3.93 48 Openness subindex 5.12 18 Openness subindex 5.12 18 Exports per capita 5.90 8 Percent of population born abroad 4.35 35 Environmental policy subindex 5.31 15 Environmental policy subindex 5.31 15 Toxic release, pounds per sq. mile 5.31 13 Pollution standards index 5.91 2 Metro Area Index Metro Area and State Competitiveness Report / Page 82

GREENSBORO Index Overall Rank 5.26 19 Government and fiscal policy subindex 6.28 5 Government and fiscal policy subindex 6.28 5 Bond rating: S&P/Moody's composite 6.06 7 State bond rating 6.04 7 Average benefit per first payment for unemployed 5.84 8 Workers' compensation premium rates 5.67 12 Security subindex 5.37 16 Security subindex 5.37 16 Crime index change 2001-2002, % 6.10 5 Thefts per 100,000 inhabitants 4.72 31 Violent crimes per 100,000 inhabitants 5.52 19 Infrastructure subindex 5.36 5 Infrastructure subindex 5.36 5 Travel time to work 6.03 7 Air passengers per capita 4.29 38 Average 2 bedroom rent 5.88 11 High-speed broadband lines per 1,000 residents 5.12 20 Electricity prices per million BTU 5.47 20 Human resources subindex 4.46 43 Human resources subindex 4.46 43 Percent of population without health insurance 4.81 32 Non-federal physicians per 100,000 inhabitants 4.54 36 Percent of population that graduated from high school, 3.86 44 persons 25 years and older Infant mortality rate, deaths per 1,000 live births 3.63 44 Technology Subindex 4.69 35 Technology Subindex 4.69 35 Academic R&D per $1,000 GSP 6.35 5 Number of S&E graduate students per 100,000 inhabitants 4.60 35 New patents issued per 100,000 inhabitants 5.05 14 NIH support to institutions per capita 4.34 43 IT employment 4.06 44 Percentage of computer and engineering jobs 3.75 48 Business incubation subindex 4.69 35 Business incubation subindex 4.69 35 Percent of labor force that is represented by unions 6.28 3 Forbes Cost of Doing Business Index 3.51 48 Venture capital investment per capita 4.98 12 Total deposits (commercial banks and savings institutions) per capita 3.68 50 Openness subindex 4.51 39 Openness subindex 4.51 39 Exports per capita 4.60 31 Environmental policy subindex 4.98 26 Environmental policy subindex 4.98 26 Toxic release, pounds per sq. mile 5.30 17 Pollution standards index 5.35 20 Metro Area and State Competitiveness Report / Page 83 Metro Area Index

artford BHI HARTFORD Index Overall Rank 5.20 20 Government and fiscal policy subindex 4.67 34 Government and fiscal policy subindex 4.67 34 Bond rating: S&P/Moody's composite 5.84 10 Workers' compensation premium rates 4.96 33 State bond rating 4.66 35 State and local taxes per capita/income per capita (cur $) 4.51 39 Average benefit per first payment for unemployed 4.03 39 Security subindex 5.80 6 Security subindex 5.80 6 Crime index change 2001-2002, % 5.19 19 Violent crimes per 100,000 inhabitants 6.16 5 Thefts per 100,000 inhabitants 5.99 10 Murders per 100,000 inhabitants 5.86 9 Infrastructure subindex 5.13 23 Infrastructure subindex 5.13 23 High-speed broadband lines per 1,000 residents 6.66 2 Electricity prices per million BTU 4.09 40 Travel time to work 5.78 11 Average 2 bedroom rent 4.43 41 Human resources subindex 5.27 15 Human resources subindex 5.27 15 Non-federal physicians per 100,000 inhabitants 6.71 7 Unemployment rate 4.72 32 Percent of population without health insurance 5.97 8 Percent of adults in the labor force 4.66 32 Infant mortality rate, deaths per 1,000 live births 5.63 20 Percent of students enrolled in degree-granting institutions per 1,000 residents 3.92 46 Technology Subindex 5.40 11 Technology Subindex 5.40 11 Number of S&E graduate students per 100,000 inhabitants 6.87 2 IT employment 4.06 44 NIH support to institutions per capita 6.23 3 Percentage of computer and engineering jobs 5.79 10 Business incubation subindex 4.70 34 Business incubation subindex 4.70 34 Forbes Cost of Doing Business Index 6.08 8 Percent of labor force that is represented by unions 4.67 31 Venture capital investment per capita 4.94 14 New publicly traded companies 4.66 31 Total deposits (commercial banks and savings institutions) 5.24 15 Employer firm births per 100,000 inhabitants 4.35 35 per capita Entrepreneurial Activity Index 2.98 50 Openness subindex 5.00 19 Openness subindex 5.00 19 Environmental policy subindex 4.61 37 Environmental policy subindex 4.61 37 Pollution standards index 4.91 31 Metro Area Index Metro Area and State Competitiveness Report / Page 84

HOUSTON Index Overall Rank 4.53 33 Government and fiscal policy subindex 5.26 26 Government and fiscal policy subindex 5.26 26 State and local taxes per capita/income per capita (cur $) 6.08 3 Workers' compensation premium rates 4.58 39 State bond rating 5.35 17 Security subindex 4.23 45 Security subindex 4.23 45 Crime index change 2001-2002, % 3.94 42 Violent crimes per 100,000 inhabitants 3.79 45 Thefts per 100,000 inhabitants 4.54 34 Murders per 100,000 inhabitants 4.66 40 Infrastructure subindex 4.82 40 Infrastructure subindex 4.82 40 Air passengers per capita 5.20 16 High-speed broadband lines per 1,000 residents 4.38 32 Average 2 bedroom rent 5.53 19 Travel time to work 3.88 43 Human resources subindex 3.94 48 Human resources subindex 3.94 48 Infant mortality rate, deaths per 1,000 live births 5.80 15 Percent of adults in the labor force 4.33 37 Percent of students enrolled in degree-granting institutions per 4.14 40 1,000 residents Unemployment rate 3.77 42 Non-federal physicians per 100,000 inhabitants 4.02 43 Percent of population that graduated from high school, persons 3.25 47 25 years and older Percent of population without health insurance 2.26 49 Technology Subindex 4.79 31 Technology Subindex 4.79 31 New patents issued per 100,000 inhabitants 5.06 13 Number of S&E graduate students per 100,000 inhabitants 4.69 31 NIH support to institutions per capita 4.99 15 IT employment 4.06 44 Percentage of computer and engineering jobs 5.15 19 Business incubation subindex 5.04 18 Business incubation subindex 5.04 18 Percent of labor force that is represented by unions 6.19 4 Forbes Cost of Doing Business Index 4.37 35 Entrepreneurial Activity Index 5.84 12 Employer firm births per 100,000 inhabitants 4.28 37 New publicly traded companies 4.98 15 Venture capital investment per capita 4.83 20 Openness subindex 6.60 2 Openness subindex 6.60 2 Exports per capita 7.05 2 Percent of population born abroad 6.15 6 Environmental policy subindex 4.73 34 Environmental policy subindex 4.73 34 Pollution standards index 5.55 15 Toxic release, pounds per sq. mile 4.67 46 Metro Area and State Competitiveness Report / Page 85 Metro Area Index

ndianapolis BHI INDIANAPOLIS Index Overall Rank 4.39 36 Government and fiscal policy subindex 6.34 3 Government and fiscal policy subindex 6.34 3 Workers' compensation premium rates 6.45 1 State and local taxes per capita/income per capita (cur $) 4.81 36 Bond rating: S&P/Moody's composite 6.27 1 State bond rating 5.70 11 Average benefit per first payment for unemployed 5.76 11 Security subindex 4.52 39 Security subindex 4.52 39 Thefts per 100,000 inhabitants 5.39 18 Violent crimes per 100,000 inhabitants 4.90 31 Murders per 100,000 inhabitants 4.82 34 Crime index change 2001-2002, % 2.96 49 Infrastructure subindex 5.04 27 Infrastructure subindex 5.04 27 Electricity prices per million BTU 6.08 4 Air passengers per capita 4.40 34 Average 2 bedroom rent 5.90 8 High-speed broadband lines per 1,000 residents 3.29 49 Travel time to work 5.51 14 Human resources subindex 4.88 31 Human resources subindex 4.88 31 Percent of adults in the labor force 5.40 17 Infant mortality rate, deaths per 1,000 live births 4.46 36 Percent of population that graduated from high school, 5.37 19 Percent of students enrolled in degree-granting institutions per 4.24 38 persons 25 years and older 1,000 residents Unemployment rate 5.35 19 Non-federal physicians per 100,000 inhabitants 4.05 41 Technology Subindex 4.68 37 Technology Subindex 4.68 37 New patents issued per 100,000 inhabitants 5.12 12 Percentage of computer and engineering jobs 4.34 34 IT employment 4.15 39 Business incubation subindex 4.44 47 Business incubation subindex 4.44 47 Forbes Cost of Doing Business Index 4.52 33 New publicly traded companies 4.53 36 Entrepreneurial Activity Index 4.03 40 Total deposits (commercial banks and savings institutions) per 4.37 41 capita Employer firm births per 100,000 inhabitants 4.03 45 Venture capital investment per capita 4.29 48 Openness subindex 4.71 27 Openness subindex 4.71 27 Exports per capita 5.30 14 Percent of population born abroad 4.12 45 Environmental policy subindex 4.59 39 Environmental policy subindex 4.59 39 Pollution standards index 4.87 37 Metro Area Index Metro Area and State Competitiveness Report / Page 86

JACKSONVILLE Index Overall Rank 4.71 28 Government and fiscal policy subindex 5.29 21 Government and fiscal policy subindex 5.29 21 State and local taxes per capita/income per capita (cur $) 5.98 7 Workers' compensation premium rates 3.41 43 Average benefit per first payment for unemployed 5.70 12 Bond rating: S&P/Moody's composite 5.42 17 State bond rating 5.35 17 Security subindex 4.33 42 Security subindex 4.33 42 Crime index change 2001-2002, % 4.70 35 Violent crimes per 100,000 inhabitants 3.83 44 Thefts per 100,000 inhabitants 4.26 41 Murders per 100,000 inhabitants 4.54 42 Infrastructure subindex 5.10 24 Infrastructure subindex 5.10 24 High-speed broadband lines per 1,000 residents 6.05 12 Electricity prices per million BTU 4.98 33 Travel time to work 4.73 35 Air passengers per capita 4.37 36 Human resources subindex 4.80 37 Human resources subindex 4.80 37 Unemployment rate 5.24 20 Percent of population without health insurance 4.68 35 Percent of adults in the labor force 4.34 36 Technology Subindex 4.28 46 Technology Subindex 4.28 46 Percentage of computer and engineering jobs 4.62 31 IT employment 4.50 31 Number of S&E graduate students per 100,000 inhabitants 3.98 41 NIH support to institutions per capita 4.35 42 Academic R&D per $1,000 GSP 3.58 46 Business incubation subindex 5.23 13 Business incubation subindex 5.23 13 Employer firm births per 100,000 inhabitants 6.30 6 Venture capital investment per capita 4.39 38 Entrepreneurial Activity Index 6.09 7 New publicly traded companies 4.37 43 Total deposits (commercial banks and savings institutions) per 4.83 19 capita Percent of labor force that is represented by unions 5.55 19 Openness subindex 4.27 44 Openness subindex 4.27 44 Exports per capita 4.16 41 Percent of population born abroad 4.38 33 Environmental policy subindex 6.68 2 Environmental policy subindex 6.68 2 Pollution standards index 5.95 1 Toxic release, pounds per sq. mile 5.07 32 High ozone days 6.90 5 Metro Area and State Competitiveness Report / Page 87 Metro Area Index

ansas City BHI KANSAS CITY Index Overall Rank 5.85 10 Government and fiscal policy subindex 5.94 11 Government and fiscal policy subindex 5.94 11 State bond rating 6.11 5 Workers' compensation premium rates 5.67 11 Security subindex 5.07 25 Security subindex 5.07 25 Crime index change 2001-2002, % 5.80 10 Thefts per 100,000 inhabitants 4.41 37 Infrastructure subindex 5.28 10 Infrastructure subindex 5.28 10 Travel time to work 5.78 10 High-speed broadband lines per 1,000 residents 4.44 31 Average 2 bedroom rent 5.79 13 Electricity prices per million BTU 5.71 13 Human resources subindex 5.47 7 Human resources subindex 5.47 7 Percent of adults in the labor force 6.81 3 Unemployment rate 4.61 33 Percent of population that graduated from high school, 6.12 4 Infant mortality rate, deaths per 1,000 live births 4.55 34 persons 25 years and older Non-federal physicians per 100,000 inhabitants 4.63 35 Percent of population without health insurance 6.01 5 Percent of students enrolled in degree-granting institutions per 1,000 residents 5.58 7 Technology Subindex 5.37 12 Technology Subindex 5.37 12 IT employment 7.17 3 NIH support to institutions per capita 4.37 41 Academic R&D per $1,000 GSP 5.49 11 New patents issued per 100,000 inhabitants 4.41 46 Number of S&E graduate students per 100,000 inhabitants 5.43 13 Percentage of computer and engineering jobs 5.32 16 Business incubation subindex 4.77 32 Business incubation subindex 4.77 32 New publicly traded companies 4.94 19 Venture capital investment per capita 4.44 33 Percent of labor force that is represented by unions 5.34 20 Entrepreneurial Activity Index 4.68 33 Forbes Cost of Doing Business Index 4.42 34 Openness subindex 4.19 47 Openness subindex 4.19 47 Exports per capita 4.12 45 Percent of population born abroad 4.26 40 Environmental policy subindex 5.49 12 Environmental policy subindex 5.49 12 High ozone days 5.52 12 Metro Area Index Metro Area and State Competitiveness Report / Page 88

Las Vegas BHI LAS VEGAS Index Overall Rank 4.59 29 Government and fiscal policy subindex 5.23 27 Government and fiscal policy subindex 5.23 27 Average benefit per first payment for unemployed 5.53 17 Workers' compensation premium rates 4.85 34 Security subindex 4.34 41 Security subindex 4.34 41 Violent crimes per 100,000 inhabitants 4.59 36 Murders per 100,000 inhabitants 4.30 44 Crime index change 2001-2002, % 3.39 48 Infrastructure subindex 5.79 1 Infrastructure subindex 5.79 1 Air passengers per capita 8.33 1 Average 2 bedroom rent 4.57 37 High-speed broadband lines per 1,000 residents 5.70 16 Electricity prices per million BTU 4.89 38 Travel time to work 5.49 17 Human resources subindex 4.49 42 Human resources subindex 4.49 42 Unemployment rate 6.29 5 Percent of students enrolled in degree-granting 4.17 39 Infant mortality rate, deaths per 1,000 live births 5.97 9 institutions per 1,000 residents Percent of population that graduated from high school, 4.03 43 persons 25 years and older Percent of population without health insurance 3.54 45 Percent of adults in the labor force 3.91 45 Non-federal physicians per 100,000 inhabitants 3.51 50 Technology Subindex 3.65 50 Technology Subindex 3.65 50 Percentage of computer and engineering jobs 3.37 49 IT employment 3.79 49 Academic R&D per $1,000 GSP 2.83 50 NIH support to institutions per capita 4.29 50 Number of S&E graduate students per 100,000 inhabitants 2.94 50 Business incubation subindex 5.15 17 Business incubation subindex 5.15 17 Entrepreneurial Activity Index 6.52 1 Percent of labor force that is represented by unions 4.20 43 Employer firm births per 100,000 inhabitants 6.60 4 Venture capital investment per capita 4.27 49 Total deposits (commercial banks and savings institutions) per capita 4.98 17 Openness subindex 4.71 26 Openness subindex 4.71 26 Percent of population born abroad 5.81 7 Exports per capita 3.62 49 Environmental policy subindex 5.58 11 Environmental policy subindex 5.58 11 Toxic release, pounds per sq. mile 5.36 2 High ozone days 5.37 14 Metro Area and State Competitiveness Report / Page 89 Metro Area Index

Los Angeles BHI LOS ANGELES Index Overall Rank 4.04 44 Government and fiscal policy subindex 3.45 45 Government and fiscal policy subindex 3.45 45 Bond rating: S&P/Moody's composite 5.42 17 Average benefit per first payment for unemployed 4.67 34 Workers' compensation premium rates 2.70 48 State bond rating 2.58 48 Security subindex 4.58 36 Security subindex 4.58 36 Thefts per 100,000 inhabitants 6.06 8 Violent crimes per 100,000 inhabitants 3.58 46 Murders per 100,000 inhabitants 3.86 46 Infrastructure subindex 4.25 48 Infrastructure subindex 4.25 48 High-speed broadband lines per 1,000 residents 6.09 8 Air passengers per capita 4.38 35 Travel time to work 3.80 45 Average 2 bedroom rent 3.89 45 Electricity prices per million BTU 3.07 48 Human resources subindex 4.62 41 Human resources subindex 4.62 41 Percent of students enrolled in degree-granting 6.95 2 Percent of adults in the labor force 4.52 35 institutions per 1,000 residents Percent of population without health insurance 4.33 42 Infant mortality rate, deaths per 1,000 live births 6.22 4 Unemployment rate 3.24 49 Percent of population that graduated from high school, persons 25 years and older 2.30 50 Technology Subindex 5.17 16 Technology Subindex 5.17 16 IT employment 6.90 4 NIH support to institutions per capita 4.62 33 Academic R&D per $1,000 GSP 5.19 17 New patents issued per 100,000 inhabitants 4.44 43 Number of S&E graduate students per 100,000 inhabitants 5.17 18 Business incubation subindex 5.49 8 Business incubation subindex 5.49 8 Venture capital investment per capita 7.58 2 Total deposits (commercial banks and savings 4.59 34 Forbes Cost of Doing Business Index 6.75 4 institutions) per capita Employer firm births per 100,000 inhabitants 5.25 12 Entrepreneurial Activity Index 4.64 34 Openness subindex 6.48 4 Openness subindex 6.48 4 Exports per capita 5.30 11 Percent of population born abroad 7.66 2 Environmental policy subindex 4.83 30 Environmental policy subindex 4.83 30 Toxic release, pounds per sq. mile 5.34 10 Pollution standards index 4.64 42 High ozone days 4.77 19 Metro Area Index Metro Area and State Competitiveness Report / Page 90

LOUISVILLE Index Overall Rank 4.36 37 Government and fiscal policy subindex 5.27 25 Government and fiscal policy subindex 5.27 25 Average benefit per first payment for unemployed 5.79 10 State bond rating 4.86 32 State and local taxes per capita/income per capita (cur $) 4.88 35 Security subindex 4.80 31 Security subindex 4.80 31 Murders per 100,000 inhabitants 5.01 31 Crime index change 2001-2002, % 3.86 44 Infrastructure subindex 5.15 21 Infrastructure subindex 5.15 21 Average 2 bedroom rent 6.36 1 Air passengers per capita 4.09 44 Electricity prices per million BTU 6.48 1 High-speed broadband lines per 1,000 residents 2.90 50 Travel time to work 5.90 9 Human resources subindex 5.06 25 Human resources subindex 5.06 25 Percent of adults in the labor force 6.40 5 Percent of population that graduated from high school, 4.62 37 Percent of population without health insurance 5.39 19 persons 25 years and older Percent of students enrolled in degree-granting institutions per 4.26 37 1,000 residents Non-federal physicians per 100,000 inhabitants 4.15 40 Technology Subindex 4.40 44 Technology Subindex 4.40 44 New patents issued per 100,000 inhabitants 5.04 15 NIH support to institutions per capita 4.55 36 IT employment 4.23 37 Academic R&D per $1,000 GSP 4.32 40 Number of S&E graduate students per 100,000 inhabitants 4.12 40 Percentage of computer and engineering jobs 4.17 42 Business incubation subindex 4.35 50 Business incubation subindex 4.35 50 Total deposits (commercial banks and savings institutions) per 4.62 32 capita New publicly traded companies 4.62 32 Employer firm births per 100,000 inhabitants 3.85 47 Forbes Cost of Doing Business Index 3.39 49 Venture capital investment per capita 4.23 50 Openness subindex 4.65 29 Openness subindex 4.65 29 Exports per capita 5.26 15 Percent of population born abroad 4.03 48 Environmental policy subindex 4.53 41 Environmental policy subindex 4.53 41 Toxic release, pounds per sq. mile 4.97 43 Pollution standards index 4.91 31 Metro Area and State Competitiveness Report / Page 91 Metro Area Index

MEMPHIS Index Overall Rank 3.39 48 Government and fiscal policy subindex 6.23 8 Government and fiscal policy subindex 6.23 8 State and local taxes per capita/income per capita (cur $) 6.19 2 State bond rating 4.95 31 Workers' compensation premium rates 5.59 17 Bond rating: S&P/Moody's composite 5.42 17 Average benefit per first payment for unemployed 6.54 1 Security subindex 3.21 50 Security subindex 3.21 50 Crime index change 2001-2002, % 4.77 32 Murders per 100,000 inhabitants 3.11 48 Violent crimes per 100,000 inhabitants 1.99 50 Thefts per 100,000 inhabitants 2.97 50 Infrastructure subindex 5.22 15 Infrastructure subindex 5.22 15 Average 2 bedroom rent 5.95 5 High-speed broadband lines per 1,000 residents 3.62 47 Electricity prices per million BTU 5.88 7 Air passengers per capita 5.33 14 Human resources subindex 4.26 47 Human resources subindex 4.26 47 Non-federal physicians per 100,000 inhabitants 4.47 39 Percent of population that graduated from high school, persons 4.20 41 25 years and older Percent of adults in the labor force 4.13 41 Percent of students enrolled in degree-granting institutions per 3.84 47 1,000 residents Infant mortality rate, deaths per 1,000 live births 3.25 49 Technology Subindex 4.22 48 Technology Subindex 4.22 48 NIH support to institutions per capita 4.97 16 Academic R&D per $1,000 GSP 4.20 42 Percentage of computer and engineering jobs 3.91 47 IT employment 3.88 47 Number of S&E graduate students per 100,000 inhabitants 3.77 49 Business incubation subindex 4.85 30 Business incubation subindex 4.85 30 Total deposits (commercial banks and savings 5.34 13 New publicly traded companies 4.61 33 institutions) per capita Venture capital investment per capita 4.38 42 Percent of labor force that is represented by unions 5.62 17 Forbes Cost of Doing Business Index 3.77 44 Openness subindex 4.35 43 Openness subindex 4.35 43 Exports per capita 4.59 33 Percent of population born abroad 4.11 46 Environmental policy subindex 4.25 46 Environmental policy subindex 4.25 46 Pollution standards index 4.24 46 Metro Area Index Metro Area and State Competitiveness Report / Page 92

MIAMI Index Overall Rank 4.56 32 Government and fiscal policy subindex 4.57 35 Government and fiscal policy subindex 4.57 35 State and local taxes per capita/income per capita (cur $) 5.98 7 Workers' compensation premium rates 3.41 43 Average benefit per first payment for unemployed 5.70 12 Bond rating: S&P/Moody's composite 3.29 45 State bond rating 5.35 17 Security subindex 4.09 48 Security subindex 4.09 48 Crime index change 2001-2002, % 5.68 13 Murders per 100,000 inhabitants 4.59 41 Thefts per 100,000 inhabitants 3.23 47 Violent crimes per 100,000 inhabitants 2.85 49 Infrastructure subindex 4.84 37 Infrastructure subindex 4.84 37 High-speed broadband lines per 1,000 residents 6.05 12 Electricity prices per million BTU 4.98 33 Average 2 bedroom rent 4.67 35 Travel time to work 3.85 44 Human resources subindex 3.86 50 Human resources subindex 3.86 50 Percent of population without health insurance 3.23 46 Unemployment rate 3.56 47 Percent of adults in the labor force 3.60 47 Percent of population that graduated from high school, persons 25 years and older 2.55 49 Technology Subindex 4.22 49 Technology Subindex 4.22 49 IT employment 5.04 17 Academic R&D per $1,000 GSP 3.58 46 NIH support to institutions per capita 4.32 44 New patents issued per 100,000 inhabitants 4.46 42 Number of S&E graduate students per 100,000 inhabitants 3.98 41 Percentage of computer and engineering jobs 3.94 46 Business incubation subindex 5.52 7 Business incubation subindex 5.52 7 Employer firm births per 100,000 inhabitants 6.30 6 Venture capital investment per capita 4.39 38 Total deposits (commercial banks and savings institutions) per 5.62 7 capita Entrepreneurial Activity Index 5.93 11 Percent of labor force that is represented by unions 5.91 11 New publicly traded companies 5.01 13 Forbes Cost of Doing Business Index 5.50 17 Openness subindex 6.50 3 Openness subindex 6.50 3 Percent of population born abroad 8.85 1 Exports per capita 4.16 41 Environmental policy subindex 6.55 3 Environmental policy subindex 6.55 3 Toxic release, pounds per sq. mile 5.35 8 Pollution standards index 5.75 4 High ozone days 6.60 8 Metro Area and State Competitiveness Report / Page 93 Metro Area Index

MILWAUKEE Index Overall Rank 4.90 25 Government and fiscal policy subindex 5.10 30 Government and fiscal policy subindex 5.10 30 Average benefit per first payment for unemployed 6.21 6 State bond rating 4.31 40 Workers' compensation premium rates 5.62 14 State and local taxes per capita/income per capita (cur $) 3.73 46 Bond rating: S&P/Moody's composite 5.42 17 Security subindex 4.99 28 Security subindex 4.99 28 Crime index change 2001-2002, % 4.78 31 Murders per 100,000 inhabitants 4.85 33 Infrastructure subindex 5.17 17 Infrastructure subindex 5.17 17 Travel time to work 6.05 6 Air passengers per capita 4.26 39 Electricity prices per million BTU 5.72 11 Human resources subindex 5.07 22 Human resources subindex 5.07 22 Percent of adults in the labor force 5.77 11 Percent of students enrolled in degree-granting 4.54 33 Percent of population without health insurance 5.78 14 institutions per 1,000 residents Percent of population that graduated from high 5.45 18 Non-federal physicians per 100,000 inhabitants 4.66 33 school, persons 25 years and older Unemployment rate 4.51 35 Technology Subindex 5.05 19 Technology Subindex 5.05 19 Academic R&D per $1,000 GSP 6.32 8 New patents issued per 100,000 inhabitants 4.55 36 Business incubation subindex 4.58 43 Business incubation subindex 4.58 43 Total deposits (commercial banks and savings 5.52 9 Entrepreneurial Activity Index 4.28 36 institutions) per capita New publicly traded companies 4.52 39 Percent of labor force that is represented by unions 4.34 40 Employer firm births per 100,000 inhabitants 4.14 42 Venture capital investment per capita 4.35 44 Openness subindex 4.57 33 Openness subindex 4.57 33 Percent of population born abroad 4.37 34 Environmental policy subindex 5.44 13 Environmental policy subindex 5.44 13 Pollution standards index 5.67 10 Toxic release, pounds per sq. mile 5.03 37 High ozone days 5.09 17 Metro Area Index Metro Area and State Competitiveness Report / Page 94

MINNEAPOLIS Index Overall Rank 6.53 6 Government and fiscal policy subindex 5.15 29 Government and fiscal policy subindex 5.15 29 Bond rating: S&P/Moody's composite 6.06 7 State and local taxes per capita/income per capita (cur $) 4.39 40 State bond rating 5.99 9 Average benefit per first payment for unemployed 3.75 45 Security subindex 5.67 8 Security subindex 5.67 8 Violent crimes per 100,000 inhabitants 6.29 3 Murders per 100,000 inhabitants 5.93 6 Thefts per 100,000 inhabitants 5.49 17 Infrastructure subindex 5.28 9 Infrastructure subindex 5.28 9 Air passengers per capita 5.70 7 Average 2 bedroom rent 4.59 36 Electricity prices per million BTU 5.74 10 Travel time to work 5.49 15 Human resources subindex 6.20 1 Human resources subindex 6.20 1 Percent of population without health insurance 6.86 1 Percent of population that graduated from high school, 7.21 1 persons 25 years and older Percent of adults in the labor force 6.87 2 Infant mortality rate, deaths per 1,000 live births 6.25 3 Unemployment rate 6.19 6 Non-federal physicians per 100,000 inhabitants 4.95 16 Technology Subindex 4.85 28 Technology Subindex 4.85 28 Percentage of computer and engineering jobs 5.52 12 Academic R&D per $1,000 GSP 4.27 41 New patents issued per 100,000 inhabitants 4.79 20 IT employment 4.95 20 Business incubation subindex 4.95 23 Business incubation subindex 4.95 23 Venture capital investment per capita 4.98 11 Percent of labor force that is represented by unions 4.63 33 New publicly traded companies 4.98 16 Forbes Cost of Doing Business Index 5.48 18 Openness subindex 4.74 24 Openness subindex 4.74 24 Environmental policy subindex 6.39 4 Environmental policy subindex 6.39 4 High ozone days 6.75 7 Pollution standards index 5.47 18 Metro Area and State Competitiveness Report / Page 95 Metro Area Index

NASHVILLE Index Overall Rank 4.96 23 Government and fiscal policy subindex 6.31 4 Government and fiscal policy subindex 6.31 4 State and local taxes per capita/income per capita (cur $) 6.47 1 Average benefit per first payment for unemployed 6.47 3 Bond rating: S&P/Moody's composite 5.42 17 Workers' compensation premium rates 5.54 18 Security subindex 4.74 32 Security subindex 4.74 32 Crime index change 2001-2002, % 5.86 7 Thefts per 100,000 inhabitants 4.61 32 Violent crimes per 100,000 inhabitants 3.37 47 Infrastructure subindex 5.10 25 Infrastructure subindex 5.10 25 Electricity prices per million BTU 5.93 6 High-speed broadband lines per 1,000 residents 4.03 43 Average 2 bedroom rent 5.89 9 Travel time to work 4.90 31 Human resources subindex 4.82 35 Human resources subindex 4.82 35 Percent of population without health insurance 5.58 17 Non-federal physicians per 100,000 inhabitants 4.72 31 Unemployment rate 6.61 2 Percent of population that graduated from high school, 4.64 36 persons 25 years and older Infant mortality rate, deaths per 1000 live births 3.46 48 Percent of students enrolled in degree-granting institutions per 1,000 residents 3.77 50 Technology Subindex 4.54 41 Technology Subindex 4.54 41 NIH support to institutions per capita 5.64 6 New patents issued per 100,000 inhabitants 4.46 41 IT employment 5.30 13 Academic R&D per $1,000 GSP 3.96 43 Percentage of computer and engineering jobs 4.05 44 Number of S&E graduate students per 100,000 inhabitants 3.83 47 Business incubation subindex 4.86 29 Business incubation subindex 4.86 29 Percent of labor force that is represented by unions 5.75 15 Venture capital investment per capita 4.42 34 Entrepreneurial Activity Index 5.40 20 Forbes Cost of Doing Business Index 3.82 43 Openness subindex 4.56 35 Openness subindex 4.56 35 Percent of population born abroad 4.29 37 Environmental policy subindex 4.98 24 Environmental policy subindex 4.98 24 High ozone days 4.84 18 Metro Area Index Metro Area and State Competitiveness Report / Page 96

NEW ORLEANS Index Overall Rank 3.37 49 Government and fiscal policy subindex 4.35 40 Government and fiscal policy subindex 4.35 40 Average benefit per first payment for unemployed 6.49 2 Workers' compensation premium rates 4.68 38 Bond rating: S&P/Moody's composite 3.29 45 State bond rating 3.62 46 Security subindex 4.18 47 Security subindex 4.18 47 Crime index change 2001-2002, % 6.84 2 Violent crimes per 100,000 inhabitants 4.26 40 Murders per 100,000 inhabitants 0.90 50 Infrastructure subindex 4.91 36 Infrastructure subindex 4.91 36 Air passengers per capita 5.00 19 High-speed broadband lines per 1,000 residents 4.10 41 Average 2 bedroom rent 5.51 20 Travel time to work 4.63 37 Human resources subindex 3.88 49 Human resources subindex 3.88 49 Non-federal physicians per 100,000 inhabitants 4.79 19 Percent of population without health insurance 3.81 44 Percent of students enrolled in degree-granting 5.08 20 Percent of population that graduated from high school, 3.61 45 institutions per 1,000 residents persons 25 years and older Percent of adults in the labor force 2.52 50 Infant mortality rate, deaths per 1,000 live births 2.55 50 Technology Subindex 4.46 43 Technology Subindex 4.46 43 NIH support to institutions per capita 4.88 19 Academic R&D per $1,000 GSP 4.74 33 Percentage of computer and engineering jobs 4.06 43 New patents issued per 100,000 inhabitants 4.41 47 IT employment 3.88 47 Business incubation subindex 4.40 48 Business incubation subindex 4.40 48 Percent of labor force that is represented by unions 5.65 16 Total deposits (commercial banks and savings institutions) 4.62 33 per capita Forbes Cost of Doing Business Index 3.97 41 New publicly traded companies 4.37 43 Entrepreneurial Activity Index 3.74 44 Employer firm births per 100,000 inhabitants 3.91 46 Openness subindex 5.50 12 Openness subindex 5.50 12 Exports per capita 6.69 6 Percent of population born abroad 4.30 36 Environmental policy subindex 5.38 14 Environmental policy subindex 5.38 14 High ozone days 5.30 15 Toxic release, pounds per sq. mile 4.92 44 Pollution standards index 5.47 18 Metro Area and State Competitiveness Report / Page 97 Metro Area Index

NEW YORK Index Overall Rank 3.72 47 Government and fiscal policy subindex 3.36 47 Government and fiscal policy subindex 3.36 47 Average benefit per first payment for unemployed 3.56 47 Bond rating: S&P/Moody's composite 4.14 38 State and local taxes per capita/income per capita (cur $) 3.24 47 State bond rating 4.14 42 Security subindex 5.85 4 Security subindex 5.85 4 Crime index change 2001-2002, % 6.50 4 Thefts per 100,000 inhabitants 6.86 1 Infrastructure subindex 3.86 50 Infrastructure subindex 3.86 50 High-speed broadband lines per 1,000 residents 6.34 4 Air passengers per capita 4.05 46 Average 2 bedroom rent 3.20 48 Electricity prices per million BTU 3.55 41 Travel time to work 2.18 50 Human resources subindex 4.85 33 Human resources subindex 4.85 33 Infant mortality rate, deaths per 1,000 live births 5.68 19 Percent of population that graduated from high school, 4.09 42 Non-federal physicians per 100,000 inhabitants 6.86 6 persons 25 years and older Unemployment rate 3.67 44 Percent of adults in the labor force 3.49 48 Technology Subindex 5.03 20 Technology Subindex 5.03 20 IT employment 6.64 6 Percentage of computer and engineering jobs 4.24 38 Number of S&E graduate students per 100,000 inhabitants 5.80 9 Academic R&D per $1,000 GSP 4.32 39 New patents issued per 100,000 inhabitants 4.43 45 Business incubation subindex 5.19 14 Business incubation subindex 5.19 14 Forbes Cost of Doing Business Index 6.82 1 Entrepreneurial Activity Index 4.03 40 Total deposits (commercial banks and savings institutions) per 6.68 3 Percent of labor force that is represented by unions 3.63 46 capita New publicly traded companies 5.13 9 Employer firm births per 100,000 inhabitants 5.20 15 Venture capital investment per capita 4.84 19 Openness subindex 5.76 10 Openness subindex 5.76 10 Percent of population born abroad 6.82 4 Environmental policy subindex 4.52 42 Environmental policy subindex 4.52 42 Toxic release, pounds per sq. mile 5.27 18 Pollution standards index 4.60 43 Metro Area Index Metro Area and State Competitiveness Report / Page 98

NORFOLK Index Overall Rank 4.80 27 Government and fiscal policy subindex 6.24 7 Government and fiscal policy subindex 6.24 7 Workers' compensation premium rates 6.31 3 State bond rating 6.39 3 State and local taxes per capita/income per capita (cur $) 5.49 18 Average benefit per first payment for unemployed 5.53 18 Security subindex 4.61 34 Security subindex 4.61 34 Thefts per 100,000 inhabitants 5.18 20 Crime index change 2001-2002, % 2.70 50 Infrastructure subindex 5.03 29 Infrastructure subindex 5.03 29 Electricity prices per million BTU 5.67 16 Air passengers per capita 3.92 49 Travel time to work 5.49 16 Human resources subindex 5.00 27 Human resources subindex 5.00 27 Unemployment rate 5.98 11 Infant mortality rate, deaths per 1,000 live births 4.37 38 Percent of students enrolled in degree-granting institutions per 1,000 residents 5.46 11 Percent of adults in the labor force 3.02 49 Percent of population without health insurance 5.84 12 Percent of population that graduated from high school, persons 5.56 14 25 years and older Technology Subindex 4.64 38 Technology Subindex 4.64 38 Number of S&E graduate students per 100,000 inhabitants 5.61 12 IT employment 4.32 34 Percentage of computer and engineering jobs 5.23 18 NIH support to institutions per capita 4.43 39 Academic R&D per $1,000 GSP 3.89 44 New patents issued per 100,000 inhabitants 4.38 49 Business incubation subindex 4.87 28 Business incubation subindex 4.87 28 Percent of labor force that is represented by unions 6.10 7 Forbes Cost of Doing Business Index 4.33 36 Venture capital investment per capita 4.90 15 New publicly traded companies 4.37 43 Entrepreneurial Activity Index 5.40 20 Total deposits (commercial banks and savings institutions) per capita 4.01 47 Openness subindex 4.21 45 Openness subindex 4.21 45 Exports per capita 4.16 38 Percent of population born abroad 4.26 40 Environmental policy subindex 5.16 19 Environmental policy subindex 5.16 19 Pollution standards index 5.75 4 Metro Area and State Competitiveness Report / Page 99 Metro Area Index

OKLAHOMA CITY Index Overall Rank 4.41 35 Government and fiscal policy subindex 5.45 16 Government and fiscal policy subindex 5.45 16 State and local taxes per capita/income per capita (cur $) 5.69 13 State bond rating 4.66 35 Bond rating: S&P/Moody's composite 5.42 17 Average benefit per first payment for unemployed 5.52 19 Security subindex 4.19 46 Security subindex 4.19 46 Murders per 100,000 inhabitants 5.55 14 Violent crimes per 100,000 inhabitants 4.18 41 Crime index change 2001-2002, % 3.65 45 Thefts per 100,000 inhabitants 3.36 46 Infrastructure subindex 5.23 14 Infrastructure subindex 5.23 14 Average 2 bedroom rent 6.19 2 High-speed broadband lines per 1,000 residents 4.08 42 Travel time to work 6.12 5 Air passengers per capita 4.07 45 Electricity prices per million BTU 5.71 12 Human resources subindex 4.64 40 Human resources subindex 4.64 40 Unemployment rate 6.08 9 Percent of adults in the labor force 4.31 39 Percent of population without health insurance 4.33 42 Percent of students enrolled in degree-granting institutions per 4.11 44 1,000 residents Non-federal physicians per 100,000 inhabitants 3.77 49 Technology Subindex 4.50 42 Technology Subindex 4.50 42 New patents issued per 100,000 inhabitants 4.58 32 Academic R&D per $1,000 GSP 4.49 35 Percentage of computer and engineering jobs 4.31 35 Number of S&E graduate students per 100,000 inhabitants 4.14 39 Business incubation subindex 4.60 41 Business incubation subindex 4.60 41 New publicly traded companies 5.24 8 Entrepreneurial Activity Index 4.71 32 Percent of labor force that is represented by unions 5.76 13 Employer firm births per 100,000 inhabitants 4.43 34 Total deposits (commercial banks and savings institutions) per 4.38 40 capita Venture capital investment per capita 4.33 45 Forbes Cost of Doing Business Index 3.32 50 Openness subindex 3.95 50 Openness subindex 3.95 50 Exports per capita 3.47 50 Environmental policy subindex 6.20 7 Environmental policy subindex 6.20 7 Pollution standards index 5.75 4 Toxic release, pounds per sq. mile 5.35 7 High ozone days 5.99 11 Metro Area Index Metro Area and State Competitiveness Report / Page 100

ORLANDO Index Overall Rank 5.30 16 Government and fiscal policy subindex 5.29 21 Government and fiscal policy subindex 5.29 21 State and local taxes per capita/income per capita (cur $) 5.98 7 Workers' compensation premium rates 3.41 43 Average benefit per first payment for unemployed 5.70 12 Bond rating: S&P/Moody's composite 5.42 17 State bond rating 5.35 17 Security subindex 5.15 21 Security subindex 5.15 21 Crime index change 2001-2002, % 5.78 11 Violent crimes per 100,000 inhabitants 4.89 32 Murders per 100,000 inhabitants 5.57 13 Thefts per 100,000 inhabitants 4.35 40 Infrastructure subindex 5.41 4 Infrastructure subindex 5.41 4 Air passengers per capita 6.72 6 Travel time to work 4.53 38 High-speed broadband lines per 1,000 residents 6.05 12 Average 2 bedroom rent 4.77 33 Electricity prices per million BTU 4.98 33 Human resources subindex 5.06 24 Human resources subindex 5.06 24 Percent of adults in the labor force 5.95 8 Percent of population without health insurance 4.48 37 Unemployment rate 5.87 13 Technology Subindex 4.35 45 Technology Subindex 4.35 45 New patents issued per 100,000 inhabitants 4.80 19 Number of S&E graduate students per 100,000 inhabitants 3.98 41 Academic R&D per $1,000 GSP 3.58 46 NIH support to institutions per capita 4.30 47 Business incubation subindex 5.33 10 Business incubation subindex 5.33 10 Entrepreneurial Activity Index 6.45 3 Total deposits (commercial banks and savings institutions) 4.54 38 Employer firm births per 100,000 inhabitants 6.30 6 per capita Percent of labor force that is represented by unions 5.96 9 Venture capital investment per capita 4.39 38 New publicly traded companies 4.37 43 Openness subindex 4.69 28 Openness subindex 4.69 28 Percent of population born abroad 5.23 15 Exports per capita 4.16 41 Environmental policy subindex 5.15 21 Environmental policy subindex 5.15 21 High ozone days 6.81 6 Pollution standards index 3.48 47 Toxic release, pounds per sq. mile 5.00 39 Metro Area and State Competitiveness Report / Page 101 Metro Area Index

PHILADELPHIA Index Overall Rank 4.03 45 Government and fiscal policy subindex 4.18 41 Government and fiscal policy subindex 4.18 41 State and local taxes per capita/income per capita (cur $) 5.45 19 Average benefit per first payment for unemployed 3.77 44 Bond rating: S&P/Moody's composite 3.07 49 Security subindex 5.63 12 Security subindex 5.63 12 Crime index change 2001-2002, % 6.51 3 Violent crimes per 100,000 inhabitants 4.88 33 Thefts per 100,000 inhabitants 6.34 6 Murders per 100,000 inhabitants 4.80 35 Infrastructure subindex 4.56 44 Infrastructure subindex 4.56 44 Electricity prices per million BTU 4.76 39 Average 2 bedroom rent 4.43 40 Travel time to work 4.18 41 Human resources subindex 4.95 29 Human resources subindex 4.95 29 Percent of population without health insurance 6.03 4 Infant mortality rate, deaths per 1,000 live births 4.59 32 Non-federal physicians per 100,000 inhabitants 6.03 9 Percent of population that graduated from high school, 4.78 33 persons 25 years and older Percent of adults in the labor force 4.32 38 Percent of students enrolled in degree-granting institutions per 1,000 residents 4.05 45 Technology Subindex 5.01 22 Technology Subindex 5.01 22 Academic R&D per $1,000 GSP 5.36 14 New patents issued per 100,000 inhabitants 4.47 39 NIH support to institutions per capita 5.74 5 Business incubation subindex 5.01 21 Business incubation subindex 5.01 21 Total deposits (commercial banks and savings 6.44 4 Percent of labor force that is represented by unions 4.34 40 institutions) per capita Entrepreneurial Activity Index 3.45 47 Forbes Cost of Doing Business Index 6.13 7 New publicly traded companies 5.03 11 Openness subindex 4.41 42 Openness subindex 4.41 42 Exports per capita 4.24 37 Environmental policy subindex 4.73 35 Environmental policy subindex 4.73 35 Toxic release, pounds per sq. mile 5.07 33 Metro Area Index Metro Area and State Competitiveness Report / Page 102

Phoenix BHI PHOENIX Index Overall Rank 4.58 30 Government and fiscal policy subindex 5.98 10 Government and fiscal policy subindex 5.98 10 Workers' compensation premium rates 6.20 5 State and local taxes per capita/income per capita (cur $) 4.90 33 Average benefit per first payment for unemployed 6.33 5 State bond rating 4.66 35 Bond rating: S&P/Moody's composite 5.84 10 Security subindex 4.30 44 Security subindex 4.30 44 Violent crimes per 100,000 inhabitants 5.84 11 Murders per 100,000 inhabitants 4.70 38 Crime index change 2001-2002, % 3.62 46 Thefts per 100,000 inhabitants 3.03 49 Infrastructure subindex 5.02 31 Infrastructure subindex 5.02 31 Air passengers per capita 5.63 10 Average 2 bedroom rent 4.69 34 Travel time to work 4.72 36 Human resources subindex 4.82 34 Human resources subindex 4.82 34 Unemployment rate 5.77 14 Percent of population that graduated from high school, 4.78 33 Percent of students enrolled in degree-granting 5.25 19 persons 25 years and older institutions per 1,000 residents Non-federal physicians per 100,000 inhabitants 4.05 42 Percent of adults in the labor force 3.89 46 Technology Subindex 4.63 39 Technology Subindex 4.63 39 IT employment 4.41 33 Number of S&E graduate students per 100,000 inhabitants 4.25 38 NIH support to institutions per capita 4.30 49 Business incubation subindex 5.04 19 Business incubation subindex 5.04 19 Entrepreneurial Activity Index 6.27 5 Venture capital investment per capita 4.54 32 Percent of labor force that is represented by unions 5.96 9 Employer firm births per 100,000 inhabitants 4.29 36 Total deposits (commercial banks and savings institutions) per capita 4.35 42 Openness subindex 5.27 16 Openness subindex 5.27 16 Percent of population born abroad 5.50 11 Exports per capita 5.05 20 Environmental policy subindex 4.26 45 Environmental policy subindex 4.26 45 Pollution standards index 4.91 31 Toxic release, pounds per sq. mile 4.51 48 Metro Area and State Competitiveness Report / Page 103 Metro Area Index

PITTSBURGH Index Overall Rank 4.20 40 Government and fiscal policy subindex 4.46 38 Government and fiscal policy subindex 4.46 38 State and local taxes per capita/income per capita (cur $) 5.49 16 Bond rating: S&P/Moody's composite 3.71 41 Average benefit per first payment for unemployed 3.90 43 Security subindex 5.65 9 Security subindex 5.65 9 Thefts per 100,000 inhabitants 6.69 3 Crime index change 2001-2002, % 4.40 40 Violent crimes per 100,000 inhabitants 6.01 8 Murders per 100,000 inhabitants 5.48 18 Infrastructure subindex 4.94 35 Infrastructure subindex 4.94 35 Average 2 bedroom rent 5.81 12 Electricity prices per million BTU 4.89 37 Air passengers per capita 5.09 17 High-speed broadband lines per 1,000 residents 3.91 46 Human resources subindex 5.16 18 Human resources subindex 5.16 18 Percent of population without health insurance 6.20 3 Percent of adults in the labor force 4.68 31 Non-federal physicians per 100,000 inhabitants 6.12 8 Percent of students enrolled in degree-granting 3.80 49 Percent of population that graduated from high school, persons 25 years and older 5.67 11 institutions per 1,000 residents Technology Subindex 5.16 17 Technology Subindex 5.16 17 Academic R&D per $1,000 GSP 6.35 5 IT employment 4.50 31 NIH support to institutions per capita 5.52 8 Percentage of computer and engineering jobs 4.50 32 New patents issued per 100,000 inhabitants 4.82 18 Number of S&E graduate students per 100,000 inhabitants 5.24 15 Business incubation subindex 4.59 42 Business incubation subindex 4.59 42 Total deposits (commercial banks and savings institutions) 5.38 11 Employer firm births per 100,000 inhabitants 4.45 33 per capita New publicly traded companies 4.60 34 Forbes Cost of Doing Business Index 5.60 16 Percent of labor force that is represented by unions 4.49 37 Entrepreneurial Activity Index 3.02 49 Openness subindex 4.02 49 Openness subindex 4.02 49 Exports per capita 4.01 47 Percent of population born abroad 4.02 49 Environmental policy subindex 4.44 43 Environmental policy subindex 4.44 43 Toxic release, pounds per sq. mile 4.46 49 Metro Area Index Metro Area and State Competitiveness Report / Page 104

Portland BHI PORTLAND Index Overall Rank 6.81 3 Government and fiscal policy subindex 5.41 17 Government and fiscal policy subindex 5.41 17 Bond rating: S&P/Moody's composite 6.06 7 State bond rating 4.51 38 Workers' compensation premium rates 5.85 8 Average benefit per first payment for unemployed 4.41 37 State and local taxes per capita/income per capita (cur $) 5.38 20 Security subindex 5.64 11 Security subindex 5.64 11 Violent crimes per 100,000 inhabitants 6.33 1 Thefts per 100,000 inhabitants 4.51 35 Murders per 100,000 inhabitants 6.14 1 Crime index change 2001-2002, % 5.58 14 Infrastructure subindex 5.31 8 Infrastructure subindex 5.31 8 Electricity prices per million BTU 6.04 5 High-speed broadband lines per 1,000 residents 5.53 18 Human resources subindex 5.26 16 Human resources subindex 5.26 16 Percent of population that graduated from high school, 5.98 6 Non-federal physicians per 100,000 inhabitants 4.71 32 persons 25 years and older Unemployment rate 3.35 48 Infant mortality rate, deaths per 1,000 live births 6.15 8 Percent of adults in the labor force 5.84 9 Percent of students enrolled in degree-granting institutions per 5.36 15 1,000 residents Percent of population without health insurance 5.43 18 Technology Subindex 5.01 21 Technology Subindex 5.01 21 New patents issued per 100,000 inhabitants 5.82 5 Number of S&E graduate students per 100,000 inhabitants 3.95 45 Percentage of computer and engineering jobs 5.62 11 NIH support to institutions per capita 4.88 18 Business incubation subindex 4.91 26 Business incubation subindex 4.91 26 Employer firm births per 100,000 inhabitants 6.51 5 Percent of labor force that is represented by unions 4.63 33 New publicly traded companies 5.05 10 Total deposits (commercial banks and savings institutions) 4.25 44 Venture capital investment per capita 4.88 17 per capita Entrepreneurial Activity Index 5.44 19 Forbes Cost of Doing Business Index 3.61 46 Openness subindex 5.57 11 Openness subindex 5.57 11 Exports per capita 6.04 7 Percent of population born abroad 5.10 18 Environmental policy subindex 6.21 5 Environmental policy subindex 6.21 5 High ozone days 7.07 3 Pollution standards index 4.79 38 Toxic release, pounds per sq. mile 5.26 20 Metro Area and State Competitiveness Report / Page 105 Metro Area Index

rovidence BHI PROVIDENCE Index Overall Rank 5.27 18 Government and fiscal policy subindex 3.73 42 Government and fiscal policy subindex 3.73 42 Bond rating: S&P/Moody's composite 4.14 38 State bond rating 4.43 39 State and local taxes per capita/income per capita (cur $) 4.35 41 Average benefit per first payment for unemployed 3.29 48 Security subindex 5.52 13 Security subindex 5.52 13 Murders per 100,000 inhabitants 5.74 11 Thefts per 100,000 inhabitants 5.84 13 Infrastructure subindex 4.82 39 Infrastructure subindex 4.82 39 High-speed broadband lines per 1,000 residents 6.43 3 Average 2 bedroom rent 4.38 42 Travel time to work 5.68 13 Electricity prices per million BTU 3.43 42 Air passengers per capita 4.17 43 Human resources subindex 5.05 26 Human resources subindex 5.05 26 Non-federal physicians per 100,000 inhabitants 6.99 5 Unemployment rate 4.30 37 Percent of students enrolled in degree-granting institutions 5.66 6 Percent of adults in the labor force 3.95 44 per 1,000 residents Percent of population that graduated from high school, 3.14 48 Percent of population without health insurance 5.74 15 persons 25 years and older Technology Subindex 5.18 14 Technology Subindex 5.18 14 Academic R&D per $1,000 GSP 6.71 3 IT employment 4.32 34 Number of S&E graduate students per 100,000 inhabitants 6.66 3 Percentage of computer and engineering jobs 3.95 45 Business incubation subindex 4.92 25 Business incubation subindex 4.92 25 Venture capital investment per capita 6.17 6 Entrepreneurial Activity Index 3.30 48 Total deposits (commercial banks and savings institutions) per 4.89 18 capita Employer firm births per 100,000 inhabitants 5.16 19 New publicly traded companies 5.03 12 Openness subindex 4.81 20 Openness subindex 4.81 20 Percent of population born abroad 5.23 15 Exports per capita 4.38 36 Environmental policy subindex 6.11 8 Environmental policy subindex 6.11 8 High ozone days 7.15 1 Pollution standards index 4.60 43 Metro Area Index Metro Area and State Competitiveness Report / Page 106

RALEIGH Index Overall Rank 6.91 2 Government and fiscal policy subindex 6.35 2 Government and fiscal policy subindex 6.35 2 Bond rating: S&P/Moody's composite 6.27 1 State bond rating 6.04 7 Average benefit per first payment for unemployed 5.84 8 Workers' compensation premium rates 5.67 12 Security subindex 5.31 18 Security subindex 5.31 18 Crime index change 2001-2002, % 5.76 12 Violent crimes per 100,000 inhabitants 5.44 20 Infrastructure subindex 5.25 13 Infrastructure subindex 5.25 13 Air passengers per capita 5.61 11 Average 2 bedroom rent 4.89 32 High-speed broadband lines per 1,000 residents 5.12 20 Electricity prices per million BTU 5.47 20 Human resources subindex 4.88 30 Human resources subindex 4.88 30 Unemployment rate 6.50 3 Percent of adults in the labor force 4.60 33 Percent of population that graduated from high 5.76 10 Non-federal physicians per 100,000 inhabitants 4.54 36 school, persons 25 years and older Percent of population without health insurance 4.44 38 Infant mortality rate, deaths per 1,000 live births 3.63 44 Technology Subindex 6.72 2 Technology Subindex 6.72 2 NIH support to institutions per capita 10.00 1 Number of S&E graduate students per 100,000 inhabitants 4.60 35 New patents issued per 100,000 inhabitants 6.68 3 Percentage of computer and engineering jobs 7.10 3 Academic R&D per $1,000 GSP 6.35 5 IT employment 5.57 11 Business incubation subindex 4.88 27 Business incubation subindex 4.88 27 Percent of labor force that is represented by unions 6.56 1 Forbes Cost of Doing Business Index 3.53 47 Venture capital investment per capita 4.98 12 Total deposits (commercial banks and savings institutions) 3.90 49 Entrepreneurial Activity Index 5.80 13 per capita Openness subindex 4.73 25 Openness subindex 4.73 25 Exports per capita 4.60 31 Environmental policy subindex 5.24 18 Environmental policy subindex 5.24 18 Toxic release, pounds per sq. mile 5.36 6 Pollution standards index 5.75 4 Metro Area and State Competitiveness Report / Page 107 Metro Area Index

RICHMOND Index Overall Rank 5.28 17 Government and fiscal policy subindex 6.25 6 Government and fiscal policy subindex 6.25 6 State bond rating 6.39 1 Workers' compensation premium rates 6.32 2 State and local taxes per capita/income per capita (cur $) 5.49 16 Average benefit per first payment for unemployed 5.52 20 Security subindex 5.09 24 Security subindex 5.09 24 Violent crimes per 100,000 inhabitants 6.32 2 Murders per 100,000 inhabitants 3.83 47 Infrastructure subindex 5.06 26 Infrastructure subindex 5.06 26 Electricity prices per million BTU 5.67 15 Air passengers per capita 3.90 50 Travel time to work 5.42 19 Human resources subindex 5.10 21 Human resources subindex 5.10 21 Percent of students enrolled in degree-granting institutions per 5.47 10 Infant mortality rate, deaths per 1,000 live births 4.38 37 1,000 residents Unemployment rate 5.98 11 Non-federal physicians per 100,000 inhabitants 4.79 20 Technology Subindex 4.84 30 Technology Subindex 4.84 30 New patents issued per 100,000 inhabitants 5.73 6 IT employment 4.15 39 Number of S&E graduate students per 100,000 inhabitants 5.62 11 Academic R&D per $1,000 GSP 3.86 45 Business incubation subindex 5.15 16 Business incubation subindex 5.15 16 Total deposits (commercial banks and savings institutions) 6.26 5 Forbes Cost of Doing Business Index 4.54 32 per capita New publicly traded companies 4.37 43 Percent of labor force that is represented by unions 6.02 8 Venture capital investment per capita 4.90 16 Openness subindex 4.21 46 Openness subindex 4.21 46 Exports per capita 4.16 39 Percent of population born abroad 4.26 40 Environmental policy subindex 4.81 31 Environmental policy subindex 4.81 31 Toxic release, pounds per sq. mile 5.06 34 Metro Area Index Metro Area and State Competitiveness Report / Page 108

ROCHESTER Index Overall Rank 4.90 26 Government and fiscal policy subindex 3.21 48 Government and fiscal policy subindex 3.21 48 State and local taxes per capita/income per capita (cur $) 2.25 48 Workers' compensation premium rates 4.74 35 Bond rating: S&P/Moody's composite 4.78 35 State bond rating 3.97 43 Average benefit per first payment for unemployed 3.94 40 Security subindex 5.37 17 Security subindex 5.37 17 Thefts per 100,000 inhabitants 5.94 11 Crime index change 2001-2002, % 4.71 34 Murders per 100,000 inhabitants 5.55 14 Infrastructure subindex 5.03 30 Infrastructure subindex 5.03 30 High-speed broadband lines per 1,000 residents 6.12 5 Electricity prices per million BTU 3.15 44 Travel time to work 6.35 4 Air passengers per capita 3.94 48 Average 2 bedroom rent 5.57 17 Human resources subindex 5.39 8 Human resources subindex 5.39 8 Non-federal physicians per 100,000 inhabitants 7.27 2 Unemployment rate 3.67 44 Infant mortality rate, deaths per 1,000 live births 5.88 10 Percent of students enrolled in degree-granting institutions per 5.38 12 1,000 residents Percent of population that graduated from high school, persons 25 years and older 5.48 17 Technology Subindex 5.99 3 Technology Subindex 5.99 3 New patents issued per 100,000 inhabitants 9.50 1 Number of S&E graduate students per 100,000 inhabitants 6.32 4 NIH support to institutions per capita 5.33 10 Percentage of computer and engineering jobs 5.15 20 Business incubation subindex 4.78 31 Business incubation subindex 4.78 31 Forbes Cost of Doing Business Index 5.74 13 Entrepreneurial Activity Index 3.96 42 Employer firm births per 100,000 inhabitants 5.20 16 Total deposits (commercial banks and savings institutions) per capita 4.23 45 Openness subindex 4.57 34 Openness subindex 4.57 34 Environmental policy subindex 5.05 22 Environmental policy subindex 5.05 22 Toxic release, pounds per sq. mile 5.26 19 Pollution standards index 5.51 16 Metro Area and State Competitiveness Report / Page 109 Metro Area Index

acramento BHI SACRAMENTO Index Overall Rank 4.57 31 Government and fiscal policy subindex 3.49 44 Government and fiscal policy subindex 3.49 44 Bond rating: S&P/Moody's composite 5.42 17 Average benefit per first payment for unemployed 4.69 33 Workers' compensation premium rates 2.74 47 State bond rating 2.63 47 Security subindex 5.11 23 Security subindex 5.11 23 Violent crimes per 100,000 inhabitants 6.24 4 Crime index change 2001-2002, % 3.88 43 Murders per 100,000 inhabitants 5.41 19 Infrastructure subindex 4.60 42 Infrastructure subindex 4.60 42 High-speed broadband lines per 1,000 residents 6.08 11 Air passengers per capita 4.42 33 Average 2 bedroom rent 4.34 43 Electricity prices per million BTU 3.11 47 Human resources subindex 5.31 13 Human resources subindex 5.31 13 Percent of students enrolled in degree-granting 6.89 5 Percent of adults in the labor force 4.57 34 institutions per 1,000 residents Percent of population without health insurance 4.41 39 Infant mortality rate, deaths per 1,000 live births 6.21 7 Percent of population that graduated from high school, persons 25 years and older 5.54 15 Technology Subindex 4.97 23 Technology Subindex 4.97 23 Percentage of computer and engineering jobs 5.52 13 New patents issued per 100,000 inhabitants 4.47 40 Academic R&D per $1,000 GSP 5.14 20 Business incubation subindex 5.34 9 Business incubation subindex 5.34 9 Venture capital investment per capita 7.51 5 New publicly traded companies 4.50 40 Forbes Cost of Doing Business Index 6.63 5 Total deposits (commercial banks and savings 4.31 43 Employer firm births per 100,000 inhabitants 5.27 11 institutions) per capita Entrepreneurial Activity Index 5.65 16 Percent of labor force that is represented by unions 3.49 47 Openness subindex 5.41 13 Openness subindex 5.41 13 Exports per capita 5.26 16 Percent of population born abroad 5.55 10 Environmental policy subindex 5.30 16 Environmental policy subindex 5.30 16 Toxic release, pounds per sq. mile 5.36 1 Pollution standards index 5.59 13 Metro Area Index Metro Area and State Competitiveness Report / Page 110

alt Lake City BHI SALT LAKE CITY Index Overall Rank 6.19 8 Government and fiscal policy subindex 5.27 24 Government and fiscal policy subindex 5.27 24 State bond rating 6.39 1 Bond rating: S&P/Moody's composite 3.71 41 Workers' compensation premium rates 6.16 7 State and local taxes per capita/income per capita (cur $) 4.12 42 Security subindex 5.01 27 Security subindex 5.01 27 Murders per 100,000 inhabitants 6.09 3 Violent crimes per 100,000 inhabitants 4.67 35 Crime index change 2001-2002, % 5.14 20 Thefts per 100,000 inhabitants 4.14 43 Infrastructure subindex 5.49 3 Infrastructure subindex 5.49 3 Air passengers per capita 7.45 2 High-speed broadband lines per 1,000 residents 3.39 48 Electricity prices per million BTU 6.12 2 Average 2 bedroom rent 5.55 18 Human resources subindex 6.03 2 Human resources subindex 6.03 2 Percent of population without health insurance 5.35 20 Non-federal physicians per 100,000 inhabitants 3.85 48 Percent of population that graduated from high school, persons 6.34 3 25 years and older Unemployment rate 5.24 20 Percent of students enrolled in degree-granting institutions per 9.01 1 1,000 residents Percent of adults in the labor force 5.68 13 Infant mortality rate, deaths per 1,000 live births 6.72 2 Technology Subindex 5.61 7 Technology Subindex 5.61 7 Academic R&D per $1,000 GSP 7.23 2 NIH support to institutions per capita 5.29 11 New patents issued per 100,000 inhabitants 5.13 11 Number of S&E graduate students per 100,000 inhabitants 5.73 10 Percentage of computer and engineering jobs 5.25 17 IT employment 5.04 17 Business incubation subindex 5.91 3 Business incubation subindex 5.91 3 Total deposits (commercial banks and savings institutions) per 9.79 1 Forbes Cost of Doing Business Index 3.87 42 capita Employer firm births per 100,000 inhabitants 6.82 3 Percent of labor force that is represented by unions 5.76 13 Entrepreneurial Activity Index 5.65 16 Openness subindex 4.61 32 Openness subindex 4.61 32 Exports per capita 4.43 35 Environmental policy subindex 1.64 50 Environmental policy subindex 1.64 50 Toxic release, pounds per sq. mile 0.00 50 Pollution standards index 4.91 31 Metro Area and State Competitiveness Report / Page 111 Metro Area Index

San Antonio BHI SAN ANTONIO Index Overall Rank 5.58 12 Government and fiscal policy subindex 5.47 14 Government and fiscal policy subindex 5.47 14 State and local taxes per capita/income per capita (cur $) 6.08 3 Workers' compensation premium rates 4.58 39 Bond rating: S&P/Moody's composite 5.63 14 State bond rating 5.35 17 Security subindex 4.32 43 Security subindex 4.32 43 Violent crimes per 100,000 inhabitants 5.63 16 Murders per 100,000 inhabitants 4.92 32 Crime index change 2001-2002, % 3.54 47 Thefts per 100,000 inhabitants 3.20 48 Infrastructure subindex 5.16 19 Infrastructure subindex 5.16 19 Average 2 bedroom rent 6.15 3 High-speed broadband lines per 1,000 residents 4.38 32 Travel time to work 5.94 8 Air passengers per capita 4.24 40 Human resources subindex 4.26 46 Human resources subindex 4.26 46 Infant mortality rate, deaths per 1,000 live births 5.80 15 Percent of students enrolled in degree-granting institutions per 4.14 40 1,000 residents Percent of adults in the labor force 4.03 43 Non-federal physicians per 100,000 inhabitants 4.02 43 Percent of population that graduated from high school, persons 3.50 46 25 years and older Percent of population without health insurance 3.21 47 Technology Subindex 4.75 33 Technology Subindex 4.75 33 IT employment 5.21 14 Number of S&E graduate students per 100,000 inhabitants 4.69 31 NIH support to institutions per capita 4.91 17 Percentage of computer and engineering jobs 4.23 39 Business incubation subindex 4.96 22 Business incubation subindex 4.96 22 Percent of labor force that is represented by unions 6.39 2 Employer firm births per 100,000 inhabitants 4.28 37 Entrepreneurial Activity Index 5.98 10 Forbes Cost of Doing Business Index 4.13 39 Venture capital investment per capita 4.83 20 New publicly traded companies 4.37 43 Openness subindex 6.03 8 Openness subindex 6.03 8 Exports per capita 7.05 2 Environmental policy subindex 6.85 1 Environmental policy subindex 6.85 1 Toxic release, pounds per sq. mile 5.31 15 Pollution standards index 5.75 4 High ozone days 7.15 1 Metro Area Index Metro Area and State Competitiveness Report / Page 112

SAN DIEGO Index Overall Rank 5.35 14 Government and fiscal policy subindex 3.52 43 Government and fiscal policy subindex 3.52 43 Bond rating: S&P/Moody's composite 5.63 14 Average benefit per first payment for unemployed 4.67 34 Workers' compensation premium rates 2.70 48 State bond rating 2.58 48 Security subindex 5.73 7 Security subindex 5.73 7 Crime index change 2001-2002, % 5.35 17 Violent crimes per 100,000 inhabitants 5.60 17 Thefts per 100,000 inhabitants 6.03 9 Murders per 100,000 inhabitants 5.93 6 Infrastructure subindex 4.42 46 Infrastructure subindex 4.42 46 High-speed broadband lines per 1,000 residents 6.09 8 Electricity prices per million BTU 3.07 48 Average 2 bedroom rent 3.06 49 Human resources subindex 5.36 10 Human resources subindex 5.36 10 Percent of students enrolled in degree-granting institutions 6.95 2 Percent of population without health insurance 4.41 39 per 1,000 residents Percent of adults in the labor force 4.06 42 Infant mortality rate, deaths per 1,000 live births 6.22 4 Unemployment rate 6.19 6 Technology Subindex 5.42 10 Technology Subindex 5.42 10 Academic R&D per $1,000 GSP 5.19 17 NIH support to institutions per capita 5.61 7 New patents issued per 100,000 inhabitants 6.12 4 Number of S&E graduate students per 100,000 inhabitants 5.17 18 Percentage of computer and engineering jobs 5.38 15 IT employment 5.04 17 Business incubation subindex 5.81 4 Business incubation subindex 5.81 4 Venture capital investment per capita 7.58 2 Total deposits (commercial banks and savings 4.67 31 Forbes Cost of Doing Business Index 6.77 3 institutions) per capita New publicly traded companies 5.53 6 Employer firm births per 100,000 inhabitants 5.25 12 Entrepreneurial Activity Index 5.80 13 Openness subindex 5.87 9 Openness subindex 5.87 9 Exports per capita 5.30 11 Percent of population born abroad 6.45 5 Environmental policy subindex 4.69 36 Environmental policy subindex 4.69 36 Toxic release, pounds per sq. mile 5.36 5 Pollution standards index 4.79 38 Metro Area and State Competitiveness Report / Page 113 Metro Area Index

SAN FRANCISCO Index Overall Rank 6.03 9 Government and fiscal policy subindex 3.37 46 Government and fiscal policy subindex 3.37 46 Average benefit per first payment for unemployed 4.67 34 Workers' compensation premium rates 2.70 48 State bond rating 2.58 48 Security subindex 5.44 15 Security subindex 5.44 15 Violent crimes per 100,000 inhabitants 6.09 6 Crime index change 2001-2002, % 4.45 39 Thefts per 100,000 inhabitants 5.81 14 Murders per 100,000 inhabitants 5.41 19 Infrastructure subindex 4.00 49 Infrastructure subindex 4.00 49 High-speed broadband lines per 1,000 residents 6.09 8 Electricity prices per million BTU 3.07 48 Air passengers per capita 5.01 18 Average 2 bedroom rent 0.83 50 Human resources subindex 5.55 6 Human resources subindex 5.55 6 Percent of students enrolled in degree-granting institutions per 6.95 2 Percent of population without health insurance 4.41 39 1,000 residents Infant mortality rate, deaths per 1,000 live births 6.22 4 Percent of adults in the labor force 5.60 14 Unemployment rate 5.56 16 Technology Subindex 5.60 8 Technology Subindex 5.60 8 Academic R&D per $1,000 GSP 5.19 17 NIH support to institutions per capita 5.11 13 New patents issued per 100,000 inhabitants 5.36 8 Number of S&E graduate students per 100,000 inhabitants 5.17 18 Percentage of computer and engineering jobs 6.03 9 IT employment 6.73 5 Business incubation subindex 6.18 2 Business incubation subindex 6.18 2 New publicly traded companies 9.81 1 Percent of labor force that is represented by unions 4.63 33 Venture capital investment per capita 7.58 2 Entrepreneurial Activity Index 4.24 37 Forbes Cost of Doing Business Index 6.32 6 Total deposits (commercial banks and savings institutions) per capita 5.41 10 Employer firm births per 100,000 inhabitants 5.25 12 Openness subindex 6.23 6 Openness subindex 6.23 6 Exports per capita 5.30 11 Percent of population born abroad 7.16 3 Environmental policy subindex 6.10 9 Environmental policy subindex 6.10 9 Toxic release, pounds per sq. mile 5.31 16 Pollution standards index 5.59 13 High ozone days 6.03 10 Metro Area Index Metro Area and State Competitiveness Report / Page 114

SEATTLE Index Overall Rank 7.80 1 Government and fiscal policy subindex 5.21 28 Government and fiscal policy subindex 5.21 28 Bond rating: S&P/Moody's composite 6.27 1 State and local taxes per capita/income per capita (cur $) 4.90 33 Workers' compensation premium rates 6.18 6 Average benefit per first payment for unemployed 2.93 49 State bond rating 5.35 17 Security subindex 5.14 22 Security subindex 5.14 22 Murders per 100,000 inhabitants 5.95 5 Violent crimes per 100,000 inhabitants 4.75 34 Crime index change 2001-2002, % 5.50 15 Thefts per 100,000 inhabitants 4.37 39 Infrastructure subindex 5.04 28 Infrastructure subindex 5.04 28 Electricity prices per million BTU 6.10 3 Average 2 bedroom rent 4.51 39 Air passengers per capita 5.29 15 Travel time to work 3.62 46 High-speed broadband lines per 1,000 residents 5.65 17 Human resources subindex 5.37 9 Human resources subindex 5.37 9 Percent of population that graduated from high school, 6.90 2 Unemployment rate 4.09 38 persons 25 years and older Percent of population without health insurance 5.86 9 Infant mortality rate, deaths per 1,000 live births 5.88 10 Technology Subindex 5.79 5 Technology Subindex 5.79 5 IT employment 7.44 1 Number of S&E graduate students per 100,000 inhabitants 3.77 48 Percentage of computer and engineering jobs 7.36 2 NIH support to institutions per capita 5.92 4 New patents issued per 100,000 inhabitants 5.15 9 Business incubation subindex 6.26 1 Business incubation subindex 6.26 1 Employer firm births per 100,000 inhabitants 8.43 1 Percent of labor force that is represented by unions 4.20 43 New publicly traded companies 9.10 2 Entrepreneurial Activity Index 6.12 6 Venture capital investment per capita 5.43 8 Forbes Cost of Doing Business Index 5.86 11 Openness subindex 6.66 1 Openness subindex 6.66 1 Exports per capita 8.12 1 Percent of population born abroad 5.19 17 Environmental policy subindex 6.21 6 Environmental policy subindex 6.21 6 High ozone days 7.02 4 Pollution standards index 4.75 40 Toxic release, pounds per sq. mile 5.33 11 Metro Area and State Competitiveness Report / Page 115 Metro Area Index

t Louis BHI ST. LOUIS Index Overall Rank 4.19 41 Government and fiscal policy subindex 5.31 20 Government and fiscal policy subindex 5.31 20 State bond rating 5.97 10 Bond rating: S&P/Moody's composite 3.71 41 State and local taxes per capita/income per capita (cur $) 5.49 15 Workers' compensation premium rates 5.38 20 Security subindex 4.53 38 Security subindex 4.53 38 Thefts per 100,000 inhabitants 4.56 33 Murders per 100,000 inhabitants 4.75 37 Violent crimes per 100,000 inhabitants 3.93 42 Infrastructure subindex 5.01 32 Infrastructure subindex 5.01 32 Air passengers per capita 5.47 12 High-speed broadband lines per 1,000 residents 3.94 45 Average 2 bedroom rent 5.76 14 Travel time to work 4.24 40 Electricity prices per million BTU 5.65 17 Human resources subindex 5.10 20 Human resources subindex 5.10 20 Percent of population without health insurance 5.99 6 Unemployment rate 4.61 33 Percent of adults in the labor force 5.53 15 Infant mortality rate, deaths per 1,000 live births 4.49 35 Non-federal physicians per 100,000 inhabitants 4.94 17 Technology Subindex 4.94 25 Technology Subindex 4.94 25 Academic R&D per $1,000 GSP 5.50 10 IT employment 4.32 34 NIH support to institutions per capita 5.42 9 Business incubation subindex 4.54 46 Business incubation subindex 4.54 46 Venture capital investment per capita 4.55 31 Employer firm births per 100,000 inhabitants 4.62 31 Percent of labor force that is represented by unions 4.49 37 Entrepreneurial Activity Index 3.88 43 Openness subindex 4.12 48 Openness subindex 4.12 48 Exports per capita 4.16 40 Percent of population born abroad 4.08 47 Environmental policy subindex 4.98 25 Environmental policy subindex 4.98 25 Pollution standards index 5.51 16 Toxic release, pounds per sq. mile 5.00 41 Metro Area Index Metro Area and State Competitiveness Report / Page 116

TAMPA Index Overall Rank 4.21 39 Government and fiscal policy subindex 4.57 35 Government and fiscal policy subindex 4.57 35 State and local taxes per capita/income per capita (cur $) 5.98 7 Workers' compensation premium rates 3.41 43 Average benefit per first payment for unemployed 5.70 12 Bond rating: S&P/Moody's composite 3.29 45 State bond rating 5.35 17 Security subindex 4.89 30 Security subindex 4.89 30 Crime index change 2001-2002, % 4.73 33 Thefts per 100,000 inhabitants 4.23 42 Infrastructure subindex 5.17 18 Infrastructure subindex 5.17 18 High-speed broadband lines per 1,000 residents 6.05 12 Electricity prices per million BTU 4.98 33 Human resources subindex 5.16 19 Human resources subindex 5.16 19 Unemployment rate 6.40 4 Percent of population without health insurance 4.70 33 Percent of adults in the labor force 6.25 7 Percent of population that graduated from high school, persons 25 years and older 4.67 35 Technology Subindex 4.25 47 Technology Subindex 4.25 47 IT employment 4.95 20 Academic R&D per $1,000 GSP 3.58 46 NIH support to institutions per capita 4.31 46 New patents issued per 100,000 inhabitants 4.40 48 Number of S&E graduate students per 100,000 inhabitants 3.98 41 Percentage of computer and engineering jobs 4.28 37 Business incubation subindex 5.31 11 Business incubation subindex 5.31 11 Employer firm births per 100,000 inhabitants 6.30 6 New publicly traded companies 4.60 34 Percent of labor force that is represented by unions 6.16 6 Venture capital investment per capita 4.39 38 Entrepreneurial Activity Index 5.73 15 Openness subindex 4.55 36 Openness subindex 4.55 36 Exports per capita 4.16 41 Environmental policy subindex 3.77 47 Environmental policy subindex 3.77 47 High ozone days 5.41 13 Toxic release, pounds per sq. mile 5.05 35 Pollution standards index 2.45 48 Metro Area and State Competitiveness Report / Page 117 Metro Area Index

WASHINGTON Index Overall Rank 5.05 22 Government and fiscal policy subindex 5.40 18 Government and fiscal policy subindex 5.40 18 Workers' compensation premium rates 6.21 4 Bond rating: S&P/Moody's composite 3.29 45 State and local taxes per capita/income per capita (cur $) 5.88 11 Average benefit per first payment for unemployed 5.65 16 Security subindex 4.69 33 Security subindex 4.69 33 Thefts per 100,000 inhabitants 5.59 15 Violent crimes per 100,000 inhabitants 4.50 37 Crime index change 2001-2002, % 4.32 41 Murders per 100,000 inhabitants 4.35 43 Infrastructure subindex 4.40 47 Infrastructure subindex 4.40 47 Electricity prices per million BTU 5.75 8 Average 2 bedroom rent 3.57 46 Travel time to work 2.89 49 Human resources subindex 5.68 5 Human resources subindex 5.68 5 Unemployment rate 7.03 1 Infant mortality rate, deaths per 1,000 live births 4.60 31 Percent of population without health insurance 6.30 2 Non-federal physicians per 100,000 inhabitants 5.83 10 Percent of population that graduated from high school, persons 25 years and older 5.62 12 Percent of students enrolled in degree-granting institutions per 1,000 residents 5.34 17 Technology Subindex 5.76 6 Technology Subindex 5.76 6 Percentage of computer and engineering jobs 7.62 1 NIH support to institutions per capita 4.59 34 Academic R&D per $1,000 GSP 6.68 4 New patents issued per 100,000 inhabitants 4.44 44 IT employment 5.84 10 Number of S&E graduate students per 100,000 inhabitants 5.41 14 Business incubation subindex 5.18 15 Business incubation subindex 5.18 15 Venture capital investment per capita 5.03 10 Employer firm births per 100,000 inhabitants 5.30 10 Forbes Cost of Doing Business Index 5.67 15 New publicly traded companies 4.96 18 Percent of labor force that is represented by unions 5.34 20 Openness subindex 4.53 38 Openness subindex 4.53 38 Percent of population born abroad 5.34 12 Exports per capita 3.71 48 Environmental policy subindex 4.87 28 Environmental policy subindex 4.87 28 Metro Area Index Metro Area and State Competitiveness Report / Page 118

About the Beacon Hill Institute Founded in 1991, BHI is an independent, nonpartisan economic research organization, located within Suffolk University in Boston, that applies a market-clearing approach to the analysis of tax, fiscal and regulatory issues. In addition to analyzing tax policy, we study issues including education spending, charitable tax incentives, universal health care, tort reform and economic competitiveness. BHI develops innovative solutions and applies economic analysis to public-policy issues affecting the states and the nation. About the Authors Jonathan Haughton is Senior Economist at the Beacon Hill Institute and Assistant Professor of Economics at Suffolk University. He holds a doctorate in economics from Harvard University and has published widely in refereed journals on economic development and taxation. Cagdas Sirin is a Research Assistant at the Beacon Hill Institute. He holds a bachelor of science in Statistics from Metu University, Ankara, Turkey. He is currently enrolled in the PhD program in Economics at Suffolk University. Acknowledgements The Beacon Hill Institute would like to gratefully acknowledge the assistance of BHI Staff John Barrett, Christopher Boyd and Rebecca Moryl for coordination; Frank Conte for print and web design; Sorin Codreanu for web programming; and researchers Ceren Altincekic, Tim Arimtage and Christine Donehue. 2004 by the Beacon Hill Institute for Public Policy Research at Suffolk University ISBN 1-866320-26-8 Beacon Hill Institute at Suffolk University 8 Ashburton Place Boston, MA 02108 Phone: 617-573-8750; Fax: 617-720-4272; e-mail: bhi@beaconhill.org; web:www.beaconhill.org Metro Area and State Competitiveness Report / Page 119

Metro Area and State Competitiveness Report / Page 120