New Mexico is a nationally recognized leader in technology transfer and commercialization, a distinction that is largely attributable to its high concentration of federal laboratories. The state also boasts a strong private technology sector and a top-notch university research sector. The New Mexico Economic Development Department's Science & Technology Division is charged with developing a strong technology-driven private sector throughout the state. A teamwork approach is fostered to maximize financial resources and brainpower and to achieve optimal economic growth and prosperity.

A number of federal laboratories are located in New Mexico. Los Alamos National Laboratory, operated by the University of California for the U.S. Department of Energy, is charged with advancing science and technology for various applications including national security, future energy supplies, and the environment. Sandia National Laboratory, which is part of the Department of Energy, is committed to meeting the nation's defense needs. Phillips Laboratory, headquartered at Kirkland Air Force Base, is a national leader in space research and development. The Albuquerque Seismological Laboratory manages more than 150 seismograph stations in nearly 60 countries, and White Sands Proving Grounds is the largest overland military test range in the country.

The state's higher education research infrastructure includes the University of New Mexico (UNM), New Mexico State University (NMSU), and the New Mexico Institute of Mining and Technology. UNM boasts one of the nation's top biology departments and an excellent medical school. It also includes centers for advanced studies, global environmental technologies, high-technology materials, microengineering ceramics, and noninvasive diagnosis as well as institutes for astrophysics, space nuclear-power studies, meteoritics, and engineering research. The University Center Research Park is located on the south campus. NMSU is a major Southwest research institution for agriculture and science. Among its many assets are the Advanced Manufacturing Center, the Apache Point Observatory, the Center for Atmospheric Sciences, the Computing Research Laboratory, the Electron Microscope Laboratory, the Plant Genetic Engineering Laboratory, and the Border Research Institute, which plays a key role in promoting trade with Mexico. Arrowhead Research Park is located at the south end of campus.

Agriculture, mining, and manufacturing are also key components of the New Mexico economy. Farms and ranches produce numerous agricultural commodities, including fruits, nuts, vegetables, beef, mutton, wool, dairy products, wheat, sorghum, and corn. A wealth of mineral resources, including copper, potash, silver, perlite, and gold, are found there.

The state is also a fine location for manufacturing operations, offering plenty of affordable land, ample energy and utilities to support growth, a state-of-the-art telecommunications infrastructure, and an integrated transportation system. Three interstates transect the state (I-40, I-10, I-25), a network of railroads connects New Mexico with regional and national markets, and Albuquerque and Crawford International airports provide national and international air service. There are two foreign trade zones: one in Albuquerque and one in Rio Rancho. Additionally, the state's freeport law assures that items stored while in interstate commerce are not taxed.