Can Connecticut be in Several Places at the Same Time?

Yes, according to several recent studies ranking states according to different economic factors. For example, one study ranks Connecticut fifth with respect to innovation while another ranks it 47th with respect to business tax climate. A third study gives Connecticut mixed grades—it ranked us fifth with respect to workforce, but below the top 10 with respect to entrepreneurship, infrastructure, taxes and regulations, and other factors.

So, what gives? Obviously each study looks at different factors, and these factors reflect the authors’ theories about what makes an economy tick.

• The Kaufman Foundation focuses on jobs in information technology, exporting, business start-ups, use of digital technology, and capacity for research and development (The 2010 New Economy Index: Benchmarking Economic Transformation in the States).
• The Tax Foundation focuses on business taxes because “companies will locate where they have the greatest competitive advantage” (Background Paper: 2011 State Business Tax Climate Index).
• Like the Kaufman Foundation, the U.S. Chamber of Commerce and the National Chamber Foundation see innovation and entrepreneurship as key to creating jobs, but measure the capacity to do so differently. They also rank states according to separate measures, which explains why Connecticut scores high on some and low on others (Enterprising States: Creating Jobs, Economic Development, and Prosperity in Challenging Times).