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MAY 2006

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COMPETITIVENESS AWARD


How to Compete

   Among the 10 criteria used in the indexing system are four per- capita measures. These help ensure that all states – the heavily populated, such as California, and the less-populated, such as North Dakota – have the same shot at competing for the award. The criteria used are:
   • Total new and expanded facilities per 1 million population in 2005;
   • Total capital investment in new and expanded facilities per 1 million population in 2005;
   • Total new jobs created at new and expanded facilities per 1 million population in 2005;
   • Total actual number of new and expanded facilities in 2005;
   • Percentage growth in new and expanded facilities from 2004 to 2005;
   • Three-year growth change (from 2002 to 2005) in new and expanded facilities;
   • Ranking in Site Selection's annual business climate survey;
   • Number of top 100 metros in the annual ranking of top metros;
   • Number of top 100 small towns in the annual ranking of small towns; and
   • Number of 100- plus- job projects per one million population in 2005.

   States must rank in the top 20 of a given category in order to be a candidate in that field. The top 20 states in each category are given points according to their rank, with the top state getting the most points. The competing states' total points are then added together for a final score. The top 10 states are listed in the box.
   How does a state commerce department or economic development office make it into the top 20 in the first place? That's where the competition lies – in applying the right resources to the right initiatives so that the right projects end up in the right places. Only then can a state compete effectively with the other 49 by having those projects reflected in the New Plant numbers as specified in the index.

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