Results of a study released by a Massachusetts-based research group are raising eyebrows for ranking the Bay State first in competitiveness, despite its deep government debt and rising numbers of college graduates fleeing the state.

A panel of government and business leaders discussed Massachusetts’ ranking in the eighth annual Beacon Hill Institute Competitiveness Report at Suffolk University Wednesday. BHI is a nonpartisan economics research organization at Suffolk University.

The study ranked Massachusetts first out of all 50 states in competitiveness, or a state’s ability to attract and retain business and to provide a high standard of living for its residents.

Although Massachusetts also ranked high in technology and security, it was in the bottom 10 for infrastructure and in the bottom 20 for government and fiscal policy.

‘The truth is, we have big problems and we’d better start thinking big,’ said Governor Deval Patrick, who sat on the panel.

Massachusetts Executive Office of Housing and Economic Development Undersecretary Greg Bialecki said that although Massachusetts is strong in entrepreneurship, the state legislature needs to continue to focus on attracting businesses to the area.

‘The primary thing we’re trying to do is figure out how do we demonstrate to the world that we are in fact competitive, that we want the business,’ Bialecki said.

BHI senior economist Jonathan Haughton worried that Massachusetts’ high budget deficit, high housing costs and high minimum wage could price Massachusetts out of the labor market.

Patrick said though the ranking is good news, state government needs to focus on its long-term goals, and that the current economic situation offers a chance for the state to focus on what is really important to Massachusetts residents.

‘We ought to seize the opportunity of scarcity,’ he said.

Haughton agreed that Massachusetts can make further progress.

‘Do not be complacent,’ he said. ‘Do not rest on your laurels.’

Associated Industries of Massachusetts Executive Vice President of Government Affairs John Regan said government needs to do more for business.

‘Business confidence in Massachusetts has never been lower,’ Regansaid.

OatSystems, Inc. CEO Michael George credited the private sector with Massachusetts’ competitiveness, while the government was responsible for the state’s weak performance in other categories.

Massachusetts educational facilities draw in great thinkers, but immigration policy forces some’ international students to leave the U.S. post-graduation, when their student visas expire, George said. These young, well-educated people could be the key to improving business and innovation, but bureaucracy keeps them from making Massachusetts their home.

‘Our business suffers the most from our immigration laws and our taxes,’ George said.

Massachusetts’ position within the top two slots since BHI began the annual report in 2001 has led to speculation of bias within the local research group, speakers said. However, BHI Executive Director David Teurk said the results of the report are fair because as a research organization, BHI’s job is to find the truth and inspire debate.

‘We are in the business of complaining,’ Teurk said.