NEW INDEX: Internet Association Scores States On Ease Of Doing Internet Business

HOOTON: “This index can help policymakers foster the next great tech hub in their state.”

Washington, D.C. – Internet Association today released a new report that finds Colorado is the easiest state to start and grow an internet business. This new index measures and ranks each state on its ease of doing internet business, finding highly ranked states have fostered a strong internet sector and a stronger local economy overall. Modeled on the World Bank’s Ease of Doing Business index, the report underscores the need to adopt a wide range of policies to drive economic growth in all 50 states.

“A comprehensive public policy approach is necessary to create robust internet sectors that propel local economies in all 50 states,” said Michael Beckerman, President and CEO of Internet Association. “The uneven nature of the most recent economic recovery underscores the need for state leaders to adopt policies that will support a dynamic internet economy to drive long-term growth.”

As policymakers seek solutions to revive business dynamism across the country, the report highlights the pivotal role the internet can play in growing struggling economies. Entitled “Ease Of Doing Internet Business,” the index (EDIB) identifies the core ingredients necessary for a strong internet economy, providing a roadmap for policymakers in states across the country looking to boost local economic growth.

Key findings are:

• Colorado is top state in the country for ease of doing internet business with Washington, Utah, Maryland, and Massachusetts rounding out the top five. Colorado earned the top spot due to its friendly regulatory environment, highly-skilled workforce, and availability of financing for internet businesses, among other factors. The next four made it to the top due to high marks on access to high quality internet. California cracked the top ten list thanks to a high score in innovation financing, overcoming its less friendly regulatory environment.
• Access to high quality internet is the main driver of state scores. There is a large discrepancy in internet access between top-performing states and lagging states. In this category, Washington, Utah, and Connecticut topped the list, ranked first and tied second respectively.
• A high EDIB score can help states overcome other barriers to starting a business, such as high costs or an unfriendly regulatory environment, showing the importance of policies that support internet businesses. In particular, the need for access to high quality internet has resulted in firms ignoring higher costs and burdensome regulatory environments when entering new markets.

“This index can help policymakers foster the next great tech hub in their state,” said Internet Association’s Chief Economist Dr. Chris Hooton. “It also shows that creating a strong internet economy requires more than simply recruiting technology companies to your state, but adopting a comprehensive set of policies to jumpstart long-lasting internet sector growth.”

To read the full report, click here.

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