Here's an excerpt, reprinted from the State Science and Technology Institute, or SSTI, was worth sharing to give you a sense of what two very respected institutions, the Information Technology and Innovation Foundation and the Kauffman Foundation, are recommending regarding how states approach technology-based economic development going forward. 

While which states top the list in the 2008 edition of the State New Economy Index will capture the attention of the media and therefore the majority of decision makers, the most important contribution of the 2008 Index in the current fiscal environment is its overview and final chapter. The Index, released Nov. 18 by the Information Technology and Innovation Foundation and the Kauffman Foundation, goes beneath and well beyond the results of the 29 indicators to explain the need for fundamental change to how states and regions approach economic development. The final chapter goes a step farther and identifies key strategic shifts required to address the challenges of the New Economy.

As state budgets reel from the fallout of the financial crisis, the authors warn:  "If states are going to meet the economic challenges of the future, they will need to make the promotion of innovation a larger part of their economic development policy framework." 

Based on the report, state legislators would seem well advised to avoid deep budgets cuts affecting those areas required to support and encourage innovation - the fundamental elements of tech-based economic development.

The Index does not mean, however, that the status quo should be maintained for most state economic development strategies - particularly given the current fiscal malaise.