Dive Brief:
- Analysts at Clean Edge have ranked these ten states as the top places to set up a new clean energy technology firm for 2014:
- California is number one, with Massachusetts, Oregon, Colorado, New York, New Mexico, Washington, Illinois, Vermont and Connecticut making the top ten, in that order.
- Massachusetts would be top of the ranking if just the amount of human, academic, and financial capital available to a new firm were taken into account.
- Although not in the top ten, the index makes note that Michigan and Virginia are (along with Illinois) the only states to have a dedicated Department of Energy research lab and a reputable eco-friendly business MBA available.
Dive Insight:
Interestingly, the index top ten also corresponds fairly closely to the states that have the highest tax rate. This goes against the logic of some that in order to encourage more small business start-ups and more investment in new technology, taxes should be low. Indeed, California and Massachusetts, both states not known for their low tax brackets, had the highest amount of venture capitalism money available for clean energy technology.
The index did not take mere financials into account however. It is based off of the degree of clean energy policy initiatives in a state, as well as whether it has set climate and emissions goals, energy efficiency targets, the right infrastructure to deliver clean energy technology, the educational and research institutions that can encourage the development of technology and a range of other factors.
