Wisconsin Ranked 16th in Credible State Competitiveness Study; Ranking Too High For Mention by WMC?

For several years the Beacon Hill Institute (BHI) at Suffolk University in Boston has complied its State Competitiveness Report. 

BHI's Competitiveness Report attempts to identify the qualities that allow some areas to excel in income generation and the qualities that prohibit other areas from attaining the same level of competitiveness.  This question quickly leads on to others:  How can these qualities be measured?  What standard should be used to determine whether a state is competitive or not?  Indeed, why is it even interesting to measure competitiveness?

Critical points:

Wisconsin ranks a lofty 16th in this report in 2005.

In 2002, the year Jim Doyle was elected governor, Wisconsin ranked 25th.

I examined the WMC website, but can find no record of their reporting these findings among the plethora of studies that cite to demonstrate that Wisconsin is in economic ruin.

BHI is affiliated with a  reputable academic institution and it appears their studies, while a bit too conservative for my taste, in terms of  their selection of indicators, does solid academic work.

The authors use eight measurements to evaluate the competitiveness of the fifty states: government and fiscal policies, security, infrastructure, human resources, technology, business incubation, openness, and environmental policy.

Wisconsin ranked relatively high on security (public safety), technology (University R&D), AND human resources.  The Badger state did poorly in openness, government and fiscal policy, and business incubation.

Openness measures how well the state is connected to the rest of the world.  That would include the state's overseas exports and its percentage of foreign born population.  (Can some one contact F. James Sensenbrenner?)

Government and fiscal policy include levels of taxation but that category heavily emphasizes: ...financial discipline  (as evidenced, for instance, by high state and municipal bond ratings and budget surpluses).  One of the tragic legacies of Republican rule in Wisconsin dating back to the 1990's was to crash Wisconsin's economic ship on the rocks.  Despite the boom times they failed to provide for budget surpluses that could be carried over from year to year in a 'rainy day fund.'  That of course, led to Wisconsin getting horrible bond ratings.

What is most interesting is their recognition of human resources and environmental qualities in evaluating the economic worthiness of a state. Human resources includes skilled labor that is readily available and not too expensive, combined with a widespread commitment to education, training, and health care... Environmental policy recognizes the need for a balanced policy, not too heavy handed, but also measures the release of air pollutants and toxic emissions.