Human Capital

The Milken Institute's annual index of Best-Performing Cities shows that technology and energy are the biggest forces behind America's booming metros. This year's best-performing metro area is Austin, Texas. Other cities that scored high included: Provo, Utah (No. 2, up from seventh place last year); San Francisco (No. 3, up from No. 36); San Jose (No. 4, down from No.1) and Salt Lake City (No. 5, up from No. 6). "Some of the leading tech metros were successful despite being high-cost, high regulation locations," says Ross DeVol, chief research officer of the Milken Institute and one of the report's authors. "Cities like San Francisco, San Jose, and Cambridge have developed R&D assets and infrastructure that makes it easier to innovate there than in lower-cost locations." Other cities in the top tier show how the surging U.S. energy sector is lighting up local economies. The shale oil and gas boom thrust nine metros into the Top 25, including Houston, San Antonio and Corpus Christi in Texas, as well as Bakersfield, Calif. In North Dakota, oil production has increased by more than 400 percent in the last five years, helping place both Fargo and Bismarck in the Top 5 small cities. The Best-Performing Cities index shows where jobs are being created and sustained in metros across the U.S. The index includes measures of job, wage, and technology performance to rank the nation's 200 large metropolitan areas and 179 smaller metros. Unlike other "best places" rankings, it does not use quality-of-life metrics, such as commute times or housing costs. In the Institute's index, employment growth is weighted most heavily due to its critical importance to community vitality. Wage and salary growth measures the quality of jobs created and sustained. See our interactive site for data rankings, social media highlights, interactive maps and highlights from the report: Best Performing Cities Index 2013

Speakers: Michael Bennet, U.S. Senator Carlos Gutierrez, Vice Chair, Albright Stonebridge Group; former U.S. Secretary of Commerce Rupert Murdoch, Chairman and CEO, News Corporation Laurene Powell Jobs, Founder and Chair, Emerson Collective Antonio Villaraigosa, Mayor, City of Los Angeles Vivek Wadhwa, Director of Research, Center for Entrepreneurship and Research Commercialization, Duke University; Author, "The Immigrant Exodus" Moderator: Ronald Brownstein, Editorial Director, Atlantic Media. Few issues have been more contentious in the United States, and for a longer time, than immigration. Comprehensive reform, however, appears to be getting close. On one hand, the nation's sizable Latino population is making its presence felt in the economy and the voting booth. Neither party can afford to enter the next election cycle without addressing immigration. On the other, foreigners fill crucial gaps in human capital. The corporate sector wants wider access to the high-skilled global workforce. Moreover, universities are training scientists and engineers who are forced to leave the country because of their immigration status. Our panel of leaders will discuss how policy must evolve to serve the country and the issue's many stakeholders. Is citizenship realistic for the millions of undocumented immigrants who have built lives here? How do we open doors to talent rather than encourage its exodus? Does immigration affect incomes?

Speakers: Bob Bennett, Chief Learning Officer and Vice President, Human Resources, FedEx Express Jim Cochran, Head of Global Recruiting, JPMorgan Chase David Ford, Vice President, Human Resources-North America, Sanofi Jody Greenstone Miller, Founder and CEO, Business Talent Group Sajan Pillai, CEO, UST Global Inc. Moderator: Wei-Li Chong, Executive Vice President, Human Resources, Knowledge Universe. With the U.S. and Asia on the mend, the issue is not so much "Where will the jobs come from?" It's more about "Who will fill them?" There are as many as 3 million unfilled technology jobs in the U.S. and millions more abroad. The outsourcing boom that moved employment to India and China is now reversing as companies bring back manufacturing from Asia to take advantage of low energy prices in the U.S. With opportunities beginning to increase, where will tomorrow's workers come from? How will big companies ensure their workers won't desert them for the next offer that comes along? How can immigration policy be applied most effectively?

Massachusetts is first -- again -- in the Milken Institute's State Technology and Science Index 2012. The index tracks and evaluates every state's tech and science capabilities -- and their success at converting those assets into companies and high-paying jobs. Conducted every two years for the past decade, the index has found Massachusetts performing in first place in every edition. The 2012 State Technology and Science Index looks at 79 unique indicators that are categorized into five major components: research and development inputs, risk capital and entrepreneurial infrastructure, human capital investment, technology and science work force, and technology concentration and dynamism. It is one of the most comprehensive examinations of state technology and science assets ever compiled. The overwhelming trend this year is that technology and science are leading America's economic recovery. Competition at the very top has increased significantly, making it more difficult to break into the top 10. Indeed, the states in the top ten are the same as those in 2010, with only a few changes in rank: The top 10 (with their previous index rankings in 2010): 1. Massachusetts (1) 2. Maryland (2) 3. California (4) 4. Colorado (3) 5. Washington (6) 6. Virginia (8) 7. Utah (5) 8. Delaware (10) 9. Connecticut (9) 10. New Hampshire (7) This index shows the resurgence of the science and tech sectors, and the importance of innovation in state economies. States that are traditionally strong in science and technology have come out of the recession on the backs of those sectors. Movers and shakers: • California is back at number three, though still below its peak in 2002. A comeback in the tech sector played a big role in the Golden State's improved showing. • Virginia leapfrogged two spots to sixth, largely on the strength of its performance in the risk capital category. But Virginia continues to fall in tech concentration and dynamism, a measure of business funding and establishment. • Tennessee was the biggest gainer, jumping from 41st to 35th. The state made major inroads in a number of indicators, most notably, growth in the number of companies receiving venture capital and a huge increase in IPO proceeds. Be sure to check out http://statetechandscience.org/. This site includes a number of features that allow visitors to tailor data according to their particular interests. It also contains an interactive map, videos, and slideshows of the top performing states.

The Milken Institute's annual index of Best-Performing Cities indicates that tech is back, especially in the world's best-known hub of innovation. The United States' best-performing metro area is San Jose, the capital of Silicon Valley. Other cities with strong exposure to technological innovation scored high in the new ranking: Austin, Texas (No. 2, up from fourth place); Raleigh, N.C. (No. 3, up from No. 14); the Washington, D.C., metro (No. 5 from No. 17); and Cambridge, Mass. (No. 8 from No. 12). San Jose-Sunnyvale-Santa Clara, Calif., vaulted 50 spots from last year to No. 1, a position it last held on the index in 2001. San Jose's recovery has spread through the region's economy: For each job added in the tech sector, five jobs are created in other industries. For example, Apple has an estimated 34,000 employees in the metro area but is responsible for another 170,000 jobs in the region. "People expect tech to be one of the most dynamic sectors of the economy, and it was," says Ross DeVol, chief research officer of the Milken Institute and one of the report's authors. "A perhaps less expected highlight of this year's rankings is how the national resurgence in manufacturing is reflected in the greatly improved fortune of local economies, especially in the upper Midwest." Among this year's biggest gainers in large metros is Holland-Grand Haven, Mich., leaping 108 places to No. 40. Other Midwestern hotspots include Minneapolis-St. Paul; Gary, Ind.; Warren, Mich.; and Indianapolis. Each city moved up at least 70 spots in this year's index. The Best-Performing Cities index includes measures of job, wage, and technology performance to rank the nation's 200 large metropolitan areas and 179 smaller metros. Unlike other "best places" rankings, it does not use quality-of-life metrics, such as commute times or housing costs. In the Institute's index, employment growth is weighted most heavily due to its critical importance to community vitality. Wage and salary growth measures the quality of jobs created and sustained.