California unfriendly environment for established firms
A survey of CEO executives by Chief Executive magazine concludes that California is the worst state in the US to run a business. The final tally does not give the weights that generate the ranking, however, according to these sub-rankings “access to capital” and “technology” and innovation (California is #1) have very little weight.
The lack of importance of these two measures is likely a sample selection problem: the magazine surveyed established firms. Such firms likely already have access to capital (i.e. good credit ratings) and in-house technology that generates revenue. In fact, the sub-rankings confirm why the majority non-established firms — entrepreneurial companies — start in California.
(hattip: GigaOm)