Can you say dynasty? According to a study by the Kauffman Foundation, Massachusetts is the number one state in the nation’s movement toward a global, innovation-based new economy for the fifth straight time. The study which was released today to coincide with Global Entrepreneurship Week, uses 26 indicators to assess each state based upon these five key categories; knowledge jobs, globalization, economic dynamism, transformation to a digital economy, and technological innovation capacity.

Massachusetts has continued to top the list due to it’s plethora of software and biotech firms, along with an incredible higher education system including schools like Harvard, MIT, and Babson. Second through fifth in the list was Washington, Maryland, New Jersey and Connecticut respectfully. And barely making the top 10 this year was California at 7 and New York at 10.

“In this century, the global economy has shifted,” said Robert Litan, vice president of Research & Policy at the Kauffman Foundation. “A mix of highly productive and innovative New Economy firms is necessary for an economy to prosper. The United States is lagging, and that lack of innovation-based vitality has contributed to our continuing recession. States need to concentrate on achieving New Economy success factors and providing the entrepreneurial resources and access that are critical to boosting competitiveness within the global marketplace.”

Higher ranking states tend to have an abundance of high-tech firms, and high concentration of managers, professionals, and college educated residents. The lower ranking states tend to rely on natural resources or manufacturing, and to depend on low costs rather than innovation to gain advantage.

Check out the map below with the rankings: