The new economy hypothesis identifies the southern and western parts of the
United States as important source points for industrial creativity that ca
n rival the northeast. This study shows that this viewpoint, based on paten
t activity, is warranted. Regional technology production in the country is
being helped by the presence of professional, skilled labor, rather than ma
nufacturing and related activities as in times past. While the northeast or
midwest now operate in a much more competitive inventive spatial system, a
nd are being outperformed technologically by California, Texas, and Florida
combined, all regions of the country are patenting inventions more than ev
er before.