1、 itif.org The State Hamilton Index:Most States Underperform in Advanced Industries MEGHAN OSTERTAG|MAY 2025 Innovation-driven production is key to reclaiming U.S.dominance on the international stage.Yet,all but a few U.S.state economies are less concentrated in advanced industries than the world ave
2、rageand only one is ahead of China.KEY TAKEAWAYS Washington,Virginia,and Indiana rank highest in the 2025 State Hamilton Index,while Wyoming,Louisiana,and Hawaii are the worst performers.Thirty-one states and the District of Columbia underperform in advanced industries.Strengthening these industries
3、 nationwide is critical to economic growth and national security,especially in the face of rising competition from China.Only four states outperform the global average in advanced industries,underscoring the need for all states,including top performers,to focus on building strategic sectors.Most adv
4、anced industries are geographically concentrated in just a few states(e.g.,biotech in Massachusetts and aerospace in Kansas).Targeted growth efforts such as regional technology hubs can reduce national dependence on these states.Strengthening Americas advanced industries will require policies that c
5、ombine federal funding with state-level specializationsuch as technology grant programs similar to the CHIPS Act.China is more specialized in Hamilton industries than are 98 percent of U.S.states.States must stop subsidizing Chinese firms with taxpayer dollars and instead focus on attracting foreign
6、 investment from allied nations.INFORMATION TECHNOLOGY&INNOVATION FOUNDATION|MAY 2025 PAGE 2 CONTENTS Key Takeaways.1 Introduction.4 Methodology.6 Findings.7 Specialization Rankings.7 Industry Profiles.11 IT and Information Services.11 Electrical Equipment.20 Motor Vehicles.35 Machinery and Equipmen