Following an analysis of economic conditions, this paper examines actions that can be taken by state governments to stimulate the economy. The only action that results in a significant near-term effect is to accelerate spending on physical infrastructure that has already been identified as needed.

Innovation—introducing something new—in the 21st century mostly derives from technological advances. Innovation drives the modern economy, leading to gains in productivity and prosperity. In this edition of Indicator Insight, author Tom Rex discusses innovation in Arizona in terms of human capital, financial capital, and high-technology employment.