Utah is second-best when it comes to competitiveness — second, that is, only to Massachusetts.

According to a new report by the Beacon Hill Institute at Boston's Suffolk University, Utah ranks No. 2 among all states in overall business competitiveness.

Utah ranked high in technology, its labor force and infrastructure, pushing the state from a No. 4 ranking in 2003 to this year's second-place finish.

The 2004 rankings are based on several variables, ranging from electricity prices and crime statistics to venture capital investments and science degrees awarded. Each variable was weighted equally under eight separate subindexes, which in turn were averaged to come up with an overall ranking for each state.

David Tuerck, executive director of the institute, said Massachusetts ranked No. 1 in technology and No. 1 in fostering a climate that promotes the creation of new businesses.

"We don't do nearly as well as you do in governmental and fiscal policy," Tuerck said. "To some extent this is still 'Taxachusetts.' Overall, your government policy beats ours substantially."

Other areas boosting Utah's competitiveness (with state rank):

• Percent of students enrolled in degree-granting institutions per 1,000 residents: First.

• Bond rating, derived from a composite of Standard and Poor's and Moody's ratings: First.

• Electricity prices per million BTUs: Fifth.

• Science and engineering degrees awarded per 100,000 inhabitants: Ninth.

• Percentage of total wage and salary jobs in high technology industries: 11th.

• Average travel time to work: 12th.

Variables that fell between one and 20 were considered advantages to a state, while variables between 30 and 50 were disadvantages.

"You do very well in human resources. In technology you're high and in business incubation you're high," Tuerck said. "You're breathing down our necks."

Other states ranking in the top 10 were Washington, Minnesota, Colorado, Nebraska, New Hampshire, Vermont, Virginia and Kansas. The five least-competitive states were Hawaii, Alabama, West Virginia, Louisiana and Mississippi.

States are considered competitive if they have policies and conditions that ensured and sustained a high level of per capita income and continued growth.

Jeff Gochnour, director of the Utah Division of Business and Economic Development, said the report confirms that Utah is a well-managed state and a great place to do business.

"It's significant that it shows that our ranking over the last three years has improved," Gochnour said, referring to Utah's climb from 13th in 2002. "It shows that policies established by the governor's office and the Legislature are making Utah more competitive."