Monday, May 12, 2008
Frank Conte, Communications
Hub of Competition and Excellence: Boston Remains Highly Competitive;
Ranks Second in BHI's Latest Metro Index
For the second consecutive year, the Boston metropolitan
area ranked second in a measure of interstate economic competitiveness
as developed by the Beacon Hill Institute at Suffolk University.
In the latest Metro Area Competitiveness Report released
today, Boston is second to Salt Lake City.
Institute defines competitiveness as the policies and
conditions that ensure and sustain a high level of per capita
income and its continued growth. The report assigns
38 variables to eight categories government and fiscal
policy, security, infrastructure, human resources, technology,
business incubation, openness, and environmental policy
and combines these eight measures into a single competitiveness
index.Boston is still a very competitive metropolitan
area, said David G. Tuerck, BHI Executive Director.
continued emphasis on the regions fiscal woes detracts
from our understanding of the economic fundamentals, which
remain as strong as ever, he said. Boston continues
to benefit from the high quality of its labor force, its strength
in high-tech and its role as a financial center.Boston
scores well on the BHI index based on its position in technology,
business incubation and human resources. For the five indicators
comprising the technology sub-index, for example, Boston once
again was in the top ten for all five measures. The depth
of these strengths more than offset areas in which the region
traditionally performs poorly for example, infrastructure
(electricity prices and travel-time to work) and government
policy (unemployment benefits and cost of doing business).
Denver, Portland OR, Washington, Seattle, Virginia Beach,
Minneapolis, San Jose, and Providence rounded out the top
10 this year.
metro areas used in the report are defined by the United States
Census Bureau as Metropolitan Statistical Areas (MSA). Memphis,
Birmingham, Detroit, New Orleans, and Riverside (California)
rank at the bottom of the index this year.
these five urban areas were to raise their competitiveness
index score currently 3.3 to the national mean
of 5, they could expect to boost their income levels by $3,400
annually, or almost ten percent, according to the reports
authors. To do this, these low-performing metro areas
could emulate Salt Lake City, Boston, and Denver by raising
their levels of education and human capital, where their performance
is currently dismal, says Professor Jonathan Haughton,
co-author of the report.
Release with rankings (PDF)
out how your metro region ranks on the BHI index
05/13/2008 9:49 AM
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