New Jersey Economy & Cost of Living
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 Although New Jersey is the 5th smallest state in size, it ranks 9th in population and has the highest population density of any U.S. state. This is due in part to a strong economy based on industry, transportation, and recreation as well as its proximity to New York City and Philadelphia.
Historically, manufacturing has been the driving force behind New Jersey's economy, most notably, chemicals, machinery, printed materials, electronic equipment, and processed foods. New Jersey is also home to oil refineries that process oil brought by pipelines from Texas and Oklahoma. The heavy industrial past of New Jersey gave it a strong economic foundation, but also left behind the largest inventory of Superfund sites in the U.S., and industrial clean-up is of continuing importance. Agriculture also plays a substantial role in New Jersey's economy with more agricultural income per acre than any other state. Cranberries and blueberries are grown in the south, while potatoes, corn, hay, peaches, and vegetables are grown in the fertile north. Dairy products, eggs, and poultry also contribute to New Jersey's agricultural revenues. Other important industries include finance, warehousing, retail, services, and tourism.
Recent declines in the manufacturing industry as well as the development of land once used for agriculture have opened the door for high-technology, knowledge-based industries such as biotechnology and telecommunications to drive the state's economy. These fast-growing industries boast the highest paying jobs, with a median compensation package for the biotech industry of $83,000. The overall impact of biotechnology on New Jersey's economy is estimated to be $3.1 billion per year and is likely to grow if the state is successful in attracting more biotechnology companies to the area.
Several economic indicators show clear signs that the move towards high-tech driven economy has been successful. According to the Progressive Policy Institute’s 2002 The State New Economy Index, New Jersey ranked 6th overall, based on 21 measures designed to assess the state's progress in adapting to the new economy. New Jersey also ranked 4th in innovation capacity, 6th in number of high-tech jobs per capita, 3rd in patents, and 4th in individual investment in research and development.
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