CNBC Says Massachusetts is 5th Best State for Business; Texas Nabs 1st

A  CNBC Special Report ranks the 50 states seeking to answer the question, "what states are the best places to do business?" Texas came in first, and Massachusetts, which is of particular interest to many readers of this blog, came in 5th.

PBLN member Jim Matheson is a partner with Cambridge's Flagship
 Ventures, a firm at the heart of the investor community that earned
 Massachusetts high marks from CNBC for "access to capital"

For the Commonwealth of Massachusetts, this high ranking runs contrary to lots of the rhetoric and to some extent, mythology about taxes and regulation in the state as well as the high cost of living. The data gathered on Massachusetts for the study placed Massachusetts 5th among the 50 states, up from 8th last year. The state was ranked #1 on Education and #2 for Access to Capital as well as #3 in Technology and Innovation. On its face, this ranking has to reflect something positive about the economy in Massachusetts and the breadth of categories that scored high suggests something is worth really examining. Coming in the middle of a heated election cycle this high profile accolade is sure to generate media attention and a wide range of reactions. Governor Deval Patrick's predictable enthusiasm has already been questioned by his Republican opponent Charlie Baker who raised doubts about the high ranking, pointing out that Massachusetts was ranked 39th in "Cost of Doing Business." 

CNBC added to the debate by pointing out Massachusetts had a wide range of rankings scattered around the 1 to 50 scale of states. Governor Patrick's response reflected a long-term, holistic vision of what is "good for business" when he said (quoted in the Boston Herald) “The business people make their decision on a range of factors, it’s not just one. It’s not just taxes, it’s not just the cost of doing business, it’s not just infrastructure, it’s not just regulation. It’s a blend of all those things.” 

Massachusetts Governor Deval Patrick addresses
the PBLN Fall 2009 Summit at the JFK Library in Boston

Still it will be important for all candidates for Governor to address the full range of categories that is laid out in this convenient, provocative ranking, and cost of doing business has to be taken seriously. Good thing they are all invited to PBLN's October 8th Candidates Forum, which will take place during our 2010 Summit on Business Leadership and Public Policy at Bentley University in Waltham, Massachusetts. More surely to come on deconstructing this survey. Please share your own comments here as well. Including your thoughts on how next door Rhode Island wound up ranked 49th!

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