Colorado is the easiest state in which to conduct Internet business, according to  the results of a new analysis by a trade association.

Colorado ranks first overall in the Ease of Doing Internet Business Index compiled by the Internet Association.

Modeled after the World Bank Ease of Doing Business Index, the Internet Association analysis takes into account the Internet business environment, Internet accessibility, innovation financing and general business governance.

Colorado ranked first for business governance and fourth for Internet business environment, but lower at 10th for innovation financing and 14th for Internet accessibility.

A high Ease of Doing Internet Business score is consistent with growth and productivity in the Internet sector as well as the overall economy. Previous research conducted by the Internet Association found that Colorado has more than 109,000 Internet-related jobs, supporting nearly
$41 billion in economic activity.

“A comprehensive public policy approach is necessary to create robust Internet sectors that propel local economies in all 50 states,” said Michael Beckerman, president and chief executive officer of the Internet Association. “The uneven nature of the most recent economic recovery underscores the need for state leaders to adopt policies that will support a dynamic Internet economy to drive long-term growth.”

Washington ranked second in the index, followed by Utah, Maryland and Massachusetts. Delaware, New Jersey, Connecticut, the District of Columbia and California rounded out the top 10.

“This index can help policymakers foster the next great tech hub in their state,” said Chris Hooton, chief economist of the Internet Association. “It also shows that creating a strong Internet economy requires more than simply recruiting technology companies to your state, but adopting a comprehensive set of policies to jump start long-lasting Internet sector growth.”