The Industrial Revolution began in New England 150 years ago, but the new economic revolution that emerged in the late 1980's, guided by technology and globalization, seemed to be passing us by.

What a difference a decade makes. Today, 34 percent of Massachusetts workers are managers, professionals, and technicians, and New Hampshire has the highest concentration of high-technology workers in the nation, both signs of genuine vigor in the emerging knowledge economy.

In New Hampshire, 16 percent of employment comes from companies known as "gazelles," and 15 percent of the gross product comes from high-tech companies. And in the technology corridors around Route 128 and Route 495, 35 percent of Massachusetts businesses are "dot-coms."

Recently, the Progressive Policy Institute, the think tank affiliated with the Democratic Leadership Council that develops and advocates policy strategies for the new economy, released "The State New Economy Index" ranking Massachusetts first in the nation, or furthest along the path to the new economy. New Hampshire ranked eighth. New Hampshire ranks first and Massachusetts third in the percentage of jobs in the high-tech industry. Massachusetts is first and New Hampshire fourth in the amount of venture capital invested. New Hampshire is fifth and Massachusetts eighth in the percentage of our residents online. Both of our states are leaders in manufacturing exports, the education level of our work force, and the number of new patents issued.

Our citizens have benefitted greatly from the new economy. Unemployment rates are below the national average of 4.1 percent, and per-capita income has grown faster than the national average. Massachusetts and New Hampshire have learned from the mistakes of the ‘80s. But the question remains: How do we foster continued success in this new economy? In answering that, our public and private sectors have not looked for short-term solutions. Instead, we have worked to ensure that everyone is involved and that no one is left behind.

For example, the uneven growth of the high-tech economy has created imbalances between those regions with access to high-speed telecommunications and those without. In Massachusetts, we have created the Berkshire Connect initiative in western Massachusetts to address this problem. It is fast becoming a national model of how to make high-speed, affordable Internet connections available to rural an previously underserved communities. Today, through the efforts of Massachusetts business and political leaders, the cost of T-1 lines for long distance, video conferences, and data transmission are being cut in half. This public-private partnership has spurred further economic development and created new jobs.

New Hampshire is now acting on legislation that will focus its economic development agency on expanding the state’s telecommunications infrastructure to ensure that all parts of the Granite State have access to technologies of the new economy. In addition in New Hampshire, we have already launched distance learning initiatives for higher education, as well as for primary and secondary education, and new video conferencing centers in all parts of the state to allow businesses, communities, and schools to take advantage of this new way of communicating and learning.

This weekend in Boston we are co-hosting a forum with the Democratic Leadership Council entitled "Winning in the New Economy: Massachusetts and New Hampshire." Change is constant, and the only permanent recipe for success is continuous innovation. We understand that a new economy requires new approaches to governing and public policy. Our states should continue to foster university/industry partnerships to better commercialize technology, provide better retraining and skills development for dislocated workers, expand access to learning, improve our K-12 public school system, embrace innovation, and promote e-commerce.

Through innovative strategies we have created new partnerships between communities, businesses, families, schools, and volunteer groups. Our forum will highlight these and other successes while bringing together leaders from business, academia, and government to develop the next generation of public policies needed to keep Massachusetts and New Hampshire ahead of the high-tech curve.

There is a new economic revolution underway, and New England is in the lead once again.