| People in central Puget Sound are among the best educated in the country. On a per capita basis, the region ranks number one in industry spending for research and development. And the region also has a thriving arts community.
That’s some of the good news according to a new economic report card issued at the Prosperity Partnership’s annual luncheon that for the first time tracks the performance of the region’s economy with five other similar U.S. regions.
The report also highlights areas where the region needs improvement. Washington State lags in the production of bachelor’s degrees, suggesting that new, good-paying jobs could go elsewhere or be filled by non-residents. In terms of business climate, Washington has one of the highest business tax shares in the country, which is particularly hard on small businesses and startup companies.
“These new findings show that the Puget Sound region has many assets and also some serious challenges. There is not going to be a silver bullet or quick fix. By working together around one economic strategy — year in and year out — we are making our region more competitive,” said Prosperity Partnership director Bob Drewel.
A few of the highlights of the report include:
Washington leads the nation in employing people with bachelor’s degrees, but our university system is 36th in the nation in graduating students with bachelor’s degrees.
Technology and innovation are key drivers in the development of new businesses and jobs. While California ranked first for total R&D expenditures, Washington led in per capita industry R&D dollars at $1,504 — more than twice the national average.
Washington is among the 10 states with the largest share of their taxes being paid by businesses. The state’s B&O tax is hard on small businesses and startup companies.
Business “churn” is the sum of business start-ups and closures as a percentage of all firms. A high churn rate correlates with high regional economic growth, job creation, and innovation. Washington has the highest business churn rate in the nation, a sign of a positive entrepreneurial environment and market dynamism.
The report is titled, 2006 Puget Sound Regional Competitiveness Indicators. A copy of the report is available online at prosperitypartnership.org, or contact the PSRC Information Center at (206) 464-7532 or infoctr@psrc.org. | 