---
title: "States Must Adapt to Thrive in the ‘New Economy’"
summary: |-
  State economic policies in the 21st Century must go beyond cutting costs to be successful.
date: "2014-06-24"
issues: ["State and Local"]
authors: ["Robert D. Atkinson"]
content_type: "Op-Eds & Contributed Articles"
canonical_url: "https://itif.org/publications/2014/06/24/states-must-adapt-thrive-new-economy/"
---

# States Must Adapt to Thrive in the ‘New Economy’

In today's globalized, high-tech world, the strength of a state's economy is not based simply on having the lowest costs or providing more generous tax breaks. Rather, states that thrive in the "new economy" will need to foster a comprehensive innovation environment that spurs research and development, technology transfer, entrepreneurial development and the creation and retention of a highly skilled workforce.

---
*Source: Information Technology & Innovation Foundation (ITIF)*
*URL: https://itif.org/publications/2014/06/24/states-must-adapt-thrive-new-economy/*