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Archive for November, 2008

2008 State New Economy Index Released by ITIF and the Kauffman Foundation

Five states—Massachusetts, Washington, Maryland, Delaware and New Jersey—are leading the United States’ transformation into a global, entrepreneurial and knowledge- and innovation-based New Economy, according to The 2008 State New Economy Index, released this week by the Ewing Marion Kauffman Foundation and the Information Technology and Innovation Foundation (ITIF).

Robert Litan, vice president of Research & Policy at the Kauffman Foundation, noted in releasing the report that, “The New Economy is creating profound, irreversible changes in the U.S. economic structure at a pace we would not have imagined even a decade ago. Innovators in the United States—and worldwide—are increasingly investing in resources to compete based on this new reality.”

Mississippi and West Virginia ranked lowest among the states in making the transition to the New Economy. The other lowest-scoring states include, in reverse order, Arkansas, Alabama and Wyoming.

Regionally, the New Economy has taken the strongest hold in the Northeast, mid-Atlantic, Mountain West and Pacific regions; 14 of the top 20 states are in these four regions. In contrast, 16 of the 20 lowest-ranking states are in the Midwest, Great Plains and Southern regions.

The State New Economy Index measures

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Digital Quality of Life

While new gadgets like the iPhone and the ever-shrinking iPod still elicit amazement and appreciation among the general public, most do not recognize the true impact that the IT revolution has had and continues to have on our daily lives. In 2007, Rob Atkinson and Andrew McKay documented in the report Digital Prosperity: Understanding the Economic Benefits of the Information Technology Revolution how IT, since the mid-1990s, has been the principal driver of increased economic growth not only in the United States but also in many other nations. However, IT is also at the core of dramatic improvements in the quality of life for individuals around the world. In a new report from ITIF, Digital Quality of Life: Understanding the Personal and Social Benefits of the IT Revolution, Rob Atkinson and I show how IT is the key enabler of many, if not most, of today’s key innovations and improvements in our lives and society, from better education and health care, to a cleaner and more energy-efficient environment, to safer and more secure communities and nations.

With input from experts across multiple disciplines, we compiled a representative,

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Which Obamanomics?

Regardless of your political affiliation and how you feel about the election results, you will probably agree that yesterday was truly a historic day for the nation, electing for the first time an African-American president.

As Senator Obama prepares for the task of governing the nation, a key question is what kind of economic policy will characterize his administration. The last time a Democrat was elected to the White House the answer was anything but clear. For when Bill Clinton took office there were three competing economic camps, each vying to get their views heard and policies adopted.

The Rubinomics camp (named after then National Economic Council Director, and later Treasury Secretary, Robert Rubin) advocated fiscal discipline as the core of Clintonomics. Public investment – and certainly public spending – was to be put on hold.

The liberal neo-Keynesian camp (personified best by the views of Labor Secretary Robert Reich) was more focused on policies to directly help workers, such as universal health insurance, better unemployment insurance policies, and higher minimum wages.

Finally, the innovation economics camp (personified best perhaps by Ira Magaziner, who initially led the failed health care

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