State Expected to Be Leader in ‘New Economy’

Despite the state’s weak public schools and high housing costs, California will be one of the nation’s leaders in the “new economy” for years to come, a new study predicts. The study, by the Santa Monica-based Milken Institute think tank, ranked California No. 2 among the 50 states in its ability to benefit from the new economy. Massachusetts came in first and Connecticut was third, followed by Colorado and Washington. California’s high ranking stemmed partly from its ample venture capital, high number of patents issued, exports and large number of business start-ups. Ross DeVol, Milken’s director of regional studies, warned that California will not continue to prosper in the long term unless its public schools are improved. “California is well positioned to be at the forefront of the new economy, but it can’t be complacent,” he said.