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72 Doing Business in Connecticut | 2015 SPONSORED REPORT Ready for Growth Connecticut Poised to Dominate in the New Economy C onnecticut is uniquely positioned to thrive in the global knowledge economy. According to the 2014 Information Technology and Innovation Founda- tion's New Economy Index, the Nut- meg State ranks eighth in the country for states ready for growth in the new economy. That ranking is based on progress states have made in five areas: knowl- edge jobs, globalization, economic dynamism, digital economy, and in- novation capacity. Top of the Food Chain What has put Connecticut in a position to take part in the national economic resurgence? Many factors, including a high concentration of world-class domestic and foreign-owned companies. "Our companies tend to be at the top of the food chain — the highest of the high end — when it comes to manufacturing, financial services, and research and develop- ment," says Pete Gioia, economist for the Connecticut Business and In- dustry Association, the state's largest business organization. "Such companies depend on inno- vation and productivity gains, so they place a high value on a well-educated, productive workforce and the quality of a state's colleges and universities— areas in which Connecticut has tradi- tionally excelled." A Legacy of Innovation and Productivity Innovation has always been one of Connecticut's hallmarks — Bloomberg ranked the state as the 4th most inno- vative market in the country in 2013 — and today, that legacy continues through a vibrant network of small and large companies driving advances in Connecticut's key economic base industries, including: • Manufacturing • Bioscience • Aerospace • Medical technology • Financial services • Insurance • Healthcare Home to numerous businesses on the cutting edge of technology and in- novation, Connecticut is ranked fifth in the country for private R&D investment per capita — twice the national aver- age. In addition, the state is seventh in the U.S. for patents issued, with 33% more patents than the national aver- age, and seventh in venture capital deals per million residents. (2015 Connecticut Economic Review) Manufacturing Prowess A critical part of Connecticut's leadership role in the new economy is its manufacturing sector, which looks very different today than it did in generations past. Over many years, a dramatic transformation occurred that made the state's manufacturers more so- phisticated, productive, innovative, and agile. Today, significant global changes are presenting new economic op- portunities to states that are able to successfully combine a skilled work- force, R&D capability, and tech-driven manufacturing production. Connecticut is ready to take ad- vantage of those opportunities. Number five in the U.S. for science and engineering doctorates in the workforce (National Science Founda- tion), ninth on the Milken Institute's 2014 State Technology and Science Index, and fifth in global productiv- ity, Connecticut is a manufacturing powerhouse. "Connecticut has a tremendous concentration of highly capable, high- tech manufacturing operations," says Gioia. "You find pockets of fairly small companies that have niche products and are the worldwide technological leaders in those products." The impact of that manufactur- ing prowess on the state's economy is enormous. According to the latest data from the National Association of Manu- facturers, U.S. Bureau of Economic Analysis, and the U.S. Census Bureau, Connecticut boasts 4,152 manufac- turing establishments that export $15.35 billion in products and employ 164,200 workers with an average an- nual compensation of $95,671. According to the state Depart- ment of Revenue Services, Connecticut manufacturers paid $129 million in corporate taxes in 2012, along with $184 million in sales and use taxes. Perhaps most impressive is Con- necticut manufacturing's tremendous multiplier effects. Each manufacturing job in Con- necticut creates 1.5 to 4 additional