Download - Global arena.com growth competitiveness us states benchmark

www.global-arena.com 1 July 10, 2012

www.global-arena.com July 10, 2012 2

Executive Summary

After the economic turbulence overall FDI is back on the rise. Emerging economies such as China are looking for investment opportunities abroad. To capture growth, secure talent supply and reduce risks global corporations reshape their international footprint.

Despite FDI into G20 economies is declining, the USA are with 25% of the FDI total a big and attractive market. On national level the USA is one of the most competitive countries with unique advantages to attract foreign investments. Global-Arena.com’s interactive analysis to the growth competitiveness of the US States on level unveils the big differences in comparative advantages between the 50 States:

•  California, Texas and Massachussets offer most attractive business environments, despite their tax climates

•  Populated States California, Texas, Florida, New York and New Jersey rank top on growth factors, including entrepreneurial activity and international accessibility

•  California, Utah and Massachussets score highest on talent factors: California out performs with its 11 top listed universities and its relatively young and highly educated population

•  Mississippi, Montana and Alabama offer the most attractive governance environment with competitive tax climates, combined with significantly low labour costs


Growth Competitiveness of the USA

•  USA leading nation in many aspects: •  Largest homogenous market (regulation, logistics, etc) •  Home of most leading international corporations (Forbes 500) •  Most top listed universities (Times Higher Education Ranking 2012) •  Leading on consumer trends.

•  USA attracts 25% of worldwide foreign direct investments (UNCTAD, 2011) because of its: •  profitability market expansion opportunities •  preferred destination for doing business •  new product and services development.

•  USA top ranked on many international competitiveness surveys: •  Nr 5 on World Economic Forum Global Competitiveness Report 2011-2012 •  Nr 2 on IMD World Competitiveness Scoreboard 2012 •  Nr 8 on World Economic Forum Global Information Technology Report 2012 •  Nr 2 on Global-Arena.com Global Site Location Ranking 2012


Overall Ranking Growth Competitiveness US States

49%

50%

52%

53%

54%

55%

55%

58%

59%

64%

65%

69%

74%

78%

80%

82%

82%

82%

84%

84%

88%

91%

93%

93%

100%

Pennsylvania

Nebraska

Hawaii

Nevada

Oregon

North Carolina

Georgia

Virginia

Kansas

New Hampshire

Minnesota

Illinois

ConnecKcut

Alaska

Maryland

Colorado

New Jersey

Washington

New York

Arizona

Florida

Utah

Texas

MassachuseVs

California

1%

4%

10%

13%

14%

14%

14%

18%

21%

22%

23%

24%

24%

27%

28%

29%

31%

32%

43%

43%

43%

43%

43%

44%

46%

West Virginia

North Dakota

Oklahoma

Wyoming

Maine

South Carolina

Kentucky

Arkansas

Michigan

Alabama

Mississippi

Ohio

New Mexico

Iowa

Louisiana

Tennessee

Wisconsin

Rhode Island

Idaho

Indiana

South Dakota

Missouri

Delaware

Vermont

Montana


Key Findings

•  California, Texas and Massachussets offer most attractive business environments, despite their less favorable tax climates

•  Biggest populated States California, Texas, Florida, New York and New Jersey rank top on growth factors, including entrepreneurial activity, international accessibility (internet infrastructure and proximity to international airports)

•  California, Utah and Massachussets rank on top for talent factors, in particular California out performs with its 11 top listed universities, its relatively young and highly educated population and above average quality of living

•  Mississippi, Montana and Alabama offer the most attractive governance environments with competitive tax climates, combined with relatively low labour costs

-‐2

0

2

4

6

Economic Growth

Entrepreneurial Ac8vity

Interna8onal Accessibility

Talent Supply

Educa8on Quality

Quality of Life

Governance Quality

Tax Climate

Labour Costs

California

California Average

-‐2 -‐1 0 1 2 3

Economic Growth

Entrepreneurial Ac8vity

Interna8onal Accessibility

Talent Supply

Educa8on Quality

Quality of Life

Governance Quality

Tax Climate

Labour Costs

Florida

Florida Average


Ranking Component: Economic Growth

Data Series Used • US Census Bureau Population Size • US Census Bureau Population change 2012-2030 • GDP per capita

Analysis • California offers of all States the most favourable economic growth potential because of its on average high GDP per capita, population size and forecasted population growth • Populated States such as Texas, Florida, New York and New Jersey show comparable features • Arizona is expected to have the highest population growth

70%

71%

71%

78%

82%

82%

84%

84%

85%

90%

91%

92%

98%

98%

100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Illinois

New Hampshire

Minnesota

Nevada

ConnecKcut

Washington

Virginia

MassachuseVs

Arizona

Maryland

New Jersey

New York

Florida

Texas

California

Top 15 States


Ranking Component: Entrepreneurial Activity

Data Series Used • Kauffman Foundation Entrepreneurial Index • US States Patent Office number of patents granted per capita

Analysis • Arizona shows the highest entrepreneurial activity of all States • California combines a significantly high rate of entrepreneurial activity with significantly high figures on patents granted per capita. 58%

62%

63%

65%

68%

68%

69%

71%

73%

79%

83%

90%

96%

97%

100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Maine

ConnecKcut

Kentucky

Georgia

Vermont

Idaho

Nevada

Alaska

Missouri

Florida

Colorado

New York

Arizona

Texas

California

Top 15 States

www.global-arena.com July 10, 2012

8

Ranking Component: International Accessibility

Data Series Used • US Department of Transportation Total nr. of international flights of international airports • Pandonetworks average download speed (kilobytes per second)

Analysis • California ranks on top as it comes down to international accessibility because of its highest number of international flights from its three international airports, despite the fact that it scores average on download speed • Rhode Island, New Jersey and Massachussets rank on top of highest quality internet connections. 69%

74%

80%

84%

88%

90%

91%

91%

92%

95%

95%

95%

96%

96%

97%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

North Carolina

Colorado

Washington

Delaware

Pennsylvania

Rhode Island

Georgia

Texas

Maryland

Florida

Illinois

New Jersey

MassachuseVs

New York

California

Top 15 States


Ranking Component: Talent Supply

Data Series Used • US Institute of Education % of population over 25 with a graduate or professional degree • US Census Bureau % of population under age of 18

Analysis • With the largest % of population under age of 18 it are Utah and Texas how rank on top of talent supply • Massachussets, California and Maryland outperform on highest educated population

70%

71%

77%

79%

80%

81%

81%

86%

88%

88%

89%

91%

93%

98%

100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Arizona

Kansas

New Jersey

California

Illinois

Georgia

New York

Texas

Alaska

Virginia

Colorado

ConnecKcut

MassachuseVs

Maryland

Utah

Top 15 States


Ranking Component: Education Quality

Data Series Used • American Institute of Physics scores of students on math, science and reading tests • Times Higher Education number of top listed US universities in global top 200 ranking • Times Higher Education total score of listed universities in global top 200 ranking

Analysis • With its 11 top listed universities it is California that significantly scores highest on education quality, followed by Massachussets, New York and Illinois Students in New Jersey, New Hampshire and Massachussets score best on math, science and reading tests

63%

63%

64%

70%

70%

72%

72%

74%

75%

77%

84%

88%

100%

100%

100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Florida

North Carolina

Texas

New Hampshire

New Jersey

Georgia

Minnesota

Virginia

Maryland

Indiana

Pennsylvania

Illinois

New York

MassachuseVs

California

Top 15 States


Ranking Component: Quality of Life

Data Series Used • Gallup Health Well Being Index (e.g. life evaluation, basic access, work environment, etc.)

Analysis • Gallup Health’s Well Being Index indicates Hawaii and North Dakota as the best places to live with respect to life evaluation, basic access and work environment. • States such as Minnesota, Utah and Alaska also rank high on quality of life.

70%

70%

74%

76%

77%

81%

84%

85%

87%

87%

93%

93%

94%

98%

98%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

MassachuseVs

Virginia

Maryland

Vermont

South Dakota

Montana

New Hampshire

Nebraska

Colorado

Kansas

Alaska

Utah

Minnesota

North Dakota

Hawaii

Top 15 States


Ranking Component: Governance Quality

Data Series Used • State Integrity Investigation Corruption Risk Index (e.g. Public Access to information, Executive Accountability, Political Financing, etc.)

Analysis • New Jersey, Connecticut and Washington rank on top of offering the most attractive environment when it comes to governance quality. These States score best on the corruption risk assessment by the State Integrity Investigation

66%

70%

74%

74%

74%

78%

78%

81%

87%

89%

91%

93%

95%

98%

98%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Missouri

Oregon

Hawaii

Illinois

MassachuseVs

Kansas

Rhode Island

Tennessee

Iowa

Mississippi

Nebraska

California

Washington

ConnecKcut

New Jersey

Top 15 States


Ranking Component: Tax Climate

Data Series Used • Tax Foundation

• Corporate Tax Rate • Employee Tax Rate • Sales Tax Rate • Unemployment Insurance Tax Rate • Property Tax Rate

Analysis •  With regards to the tax climate States such as Wyoming, South Dakota, Nevada, Alaska, Montana and Florida offer the most attractive business environment: most of them don’t charge employee taxes and far below average corporate and property taxes. 69%

72%

73%

74%

79%

82%

82%

87%

89%

92%

94%

95%

96%

96%

97%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Washington

Arizona

Alabama

Oklahoma

Oregon

Missouri

Indiana

Utah

Delaware

Florida

Montana

Alaska

Nevada

South Dakota

Wyoming

Top 15 States


Ranking Component: Labour Costs

Data Series Used • US Department of Commerce:

• average wage per job • % change in wage and salary disbursements

Analysis •  On average labour costs are significantly lower in the less populated States, with the lowest costs in Mississippi, Idaho, Maine and Montana

72%

73%

73%

73%

75%

77%

78%

87%

89%

89%

89%

91%

91%

95%

96%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Kentucky

Iowa

Kansas

Nebraska

Missouri

South Carolina

Vermont

Arkansas

Alabama

New Mexico

South Dakota

Montana

Maine

Idaho

Mississippi

Top 15 States


Have a look yourself

Looking for high growth locations with a secure talent supply and a low cost business environment in the USA?

Click here to visit the interactive analysis and adjust the sliders and find out where you can capture growth


Appendices •  About Global-Arena.com •  Data sources


Global-Arena.com Global-Arena.com is the leading secure online matching platform that brings together companies, investors and business locations worldwide. Using a unique scientific algorithm and objective and independent data sources Global-Arena.com is able to: •  Analyse and compare attractiveness of business locations in support of its clients growth strategies; •  Provide understandings of economic statistics, trends and forecasts of global business environments, complemented with tools for analytics, visualisation and scenario analysis; •  Search and analyse growth, expansion and relocation, opportunities worldwide

With it’s Go-Global Solutions Enterprise Location Planning and Economic Development Planning Global-Arena.com provides companies and governments an integrated 360-degree view and comparative advantages analysis of the Market, Business Environment and Talent supply.

To learn more about how Global-Arena.com’s can support your site selection processes, visit our website www.global-arena.com or contact:

Peter Storm CEO [email protected] www.global-arena.com


Data Sources used per Location Factor Growth Factors Sources Talent Factors Sources Governance

Factors Sources

Economic Growth US Census Bureau • Popula8on Size • Popula8on change 2012-‐2030 • GDP per capita

Talent Supply US Census • % popula8on under age of 18 US Ins8tute of Educa8on • % of popula8on over 25 with a graduate or professional degree

Corrup8on State Integrity Inves8ga8on Corrup8on Risk

Entrepreneurial Ac8vity Kauffman Founda8on • Entrepreneurial Index US Department of Trade • Nr of patents granted per capita

Educa8on Quality Times Higher Educa8on • Nr of top 200 listed universi8es • Total score of listed universi8es American Ins8tute of Physics • Score of students on math, science and readings tests

Tax Climate Tax Founda8on • Corporate Tax Rate • Sales Tax Rate • Property Tax Rate • Employee Tax Rate • Unemployment Insurance Tax

Interna8onal Accessibility Pandonetworks • Internet download speed (kilobytes per second) • US Department of Transporta8on • Total nr of interna8onal from interna8onal airports

Quality of Life Gallup Health Well Being Index

Labour Costs US Department of Commerce •  Average wage per

job •  % change in wage

and salary disbursements

Download - Global arena.com growth competitiveness us states benchmark

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