Study Ranks Maryland High in Promoting Digital Companies, Start-Ups

Montgomery County will provide tax rebates of up to $12 million to customers of ByteGrid, a Silver Spring-based operator of datacenters nationwide. The economic development grant is intended to keep Montgomery County competitive in the battle with other states that also offer data center incentives.

The announcement may be just one of the many reasons a new study by the Information Technology and Innovation Foundation gives Maryland high marks for fostering a globally competitive, knowledge-based economy. The 2014 State New Economy Index praised Maryland for the state’s high concentration of skilled workers and entrepreneurial climate.

The study used 25 criteria spread across five key categories “Knowledge Jobs,” “Globalization,” “Economic Dynamism,” “The Digital Economy,” and “Innovation Capacity” to compare states’ readiness for the New Economy. Specific benchmarks included technology jobs, inventor patents, venture capital, investment in research and development, and initial public offerings.

Maryland finished third in “Knowledge Jobs,” fifth in “Innovation Capacity,” and fourth in the “Fast Growing Firms” firms listed in the “Inc. 500” and “Technology Fast 500.” Federal and state government helped Maryland achieve a second place rating for “Non-industry research and development. The state scored fifth in the nation overall.

Maryland’s state government has provided capital for early-stage venture funding and held two national contests for startups. It has also helped universities commercialize their research and offered tax credits to cybersecurity firms. Maryland companies have also led in private investment. A MoneyTree report produced by PricewaterhouseCoopers and the National Venture Capital Association with Thomson Reuters data ranked the state fifth in the country in venture capital raised by businesses in the state.

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