Beacon Hill Institute’s State Competitiveness Index
Massachusetts has maintained the top position at the Beacon Hill Institute’s State Competitiveness Index (SCI). The state has led in terms of developing its economy and increasing personal income among its residents. It is however true that other states such as Texas are gaining ground and might soon get the top spot. Most of the eight indices used in the analysis showed Massachusetts at the top, although it lagged behind other states on other indices.
The State of Massachusetts has managed to overcome the challenges of the high cost of labor, high housing, and utility costs by developing a strong human capital and openness. The COVID-19 pandemic has, however, revealed an ugly side of Massachusetts, with the state reporting the highest rate of unemployment in the whole country. Massachusetts has managed to be among the few Leading Technology States (LTS) on the top ten states, according to the State Competitiveness Index (SCI). The state of NJ is among the LTS but ranks last in the index, unlike Massachusetts. The situation of NJ can be associated with its poor adherence to government policy and financial discipline. The state has also not put the best infrastructural network as compared to Massachusetts. Generally, Massachusetts has performed well on most of the indices used to measure competitiveness.
In sum, Massachusetts performed well for most of the eight indices used to measure a state’s economic development and the increase of personal income. Strong human capital and openness have played a crucial role in making Massachusetts rank above all the other states. Generally, Massachusetts has remained on top of the index since 2011 and appears to have mastered the art of success. Massachusetts is one of the LTS and has used technology to remain competitive in the country.