Colo. 2nd in science, tech investment State surpasses California in Milken study (Washington ranked sixth, Utah ninth, Oregon 23rd, Montana 34th, Wyoming 38th and Nevada 42nd. )

A new study ranked Colorado above California for its science and technology investments and predicted that the Rocky Mountain state will be a national leader with more higher-paying jobs down the road.

By Jennifer Beauprez
Denver Post Business Writer

Colorado ranked No. 2 in Milken’s Science & Technology Index, shocking the mother of technology, California, which landed at No. 3. It was followed by Maryland, Virginia and Washington state.

Massachusetts earned the top spot.

http://www.milkeninstitute.org/poe.cfm?point=nst

Milken, a nonprofit economic think tank, based its research on 73 various indexes – from new business formation and university research to high-tech patents.

The group has released other tech-related indexes in the past, but none looked at science as well as technology.

The study, however, comes less than a week after The Denver Post reported that the state had one of the nation’s lowest job growth rates, primarily due to fallout in the tech and telecom sectors.

"It’s true that Colorado has been hit very hard by the downturn," said Ross DeVol, director of regional studies at the Milken Institute. "But don’t lose track of the long-term just because there was a bad year or two. The state will be be better off."

Colorado ranks no lower than fifth in Milken’s five major categories, including research and development; venture capital and new business growth; the size of the high-tech workforce; the number of science and engineering students; and the overall economic activity of high-tech.

"It shows the breadth and depth of science and technology in the state," DeVol said.

Although the term New Economy has been under siege in recent months, DeVol said those states with investments in high-tech will, in the long-run, end up with higher-paying jobs and a better quality of life.

In particular, investments in science and technology – from higher education to research and development – are the crucial factors in deciding the fates of regional economies.

California Gov. Gray Davis and TechNet Ventures commissioned the Milken Institute to do the study to determine how California compared with other states.

"This tries to measure which states are making long-term investments," said DeVol. "It provides a benchmark to see where states are."

Despite its No. 3 spot, California has not lost its high-tech reverence. The October issue of Business 2.0 released its list of the top 100 fastest-growing tech companies, and only one Colorado high-tech company, SpectraLink of Boulder, made the list; 39 California companies appeared there.

Yet the Rocky Mountain state has done a better job turning out science and engineering graduates, a key reason why Milken ranked it higher overall than California.

Colorado ranks fifth for the number of science and engineering degrees awarded compared with California, which ranked 13th.

Colorado also has slightly more young people, ages 25 to 34, pursuing high-tech master’s or doctoral degrees – 1.42 percent of that age group in Colorado compared with 1.18 percent farther West.

California has offset its lack of home-grown talent by importing smart people from abroad, DeVol said.

"If California doesn’t bring more Latinos into the field, it’s going to hurt them in the long-term," DeVol said. "Overall, Colorado has done a much better job."

So far, Colorado also is doing well in terms of research and development.

The Milken study puts the Centennial State first for National Science Foundation research money per capita; ninth for both academic and federal research dollars; and 10th for corporate research dollars.

Business leaders are increasingly looking to university research for the second wind of innovation in Colorado’s high-tech sector.

The University of Colorado, for instance, has recently dedicated more money and staff to selling patented ideas and encouraging scientists to start companies.

"The ultimate success rate will be which states are translating those into commercially viable companies," DeVol said.

The Milken report may not mean much to the thousands of Colorado tech executives who are out of work.

But it will be important to economic development leaders, said Cathy Ewing, president of the Colorado Software & Internet Association.

"To everyone who is trying to attract companies, keep companies and help those started get funding, it’s extremely relevant," Ewing said.

"Someone needs to be looking from 35,000 feet. That’s what (the Milken Institute) is doing."

http://www.denverpost.com/Stories/0,1413,36%257E33%257E863661%257E,00.html