Mass
Jobs
Investment &
Opportunity
“An Act Making One-Time Investments
in Emerging Technologies to Stimulate
Job Creation and Economic Opportunity
Throughout the Commonwealth”
1
Mass
A Global Recession
Jobs
Investment &
Opportunity
Our state and our nation are in the midst of a severe
economic crisis. In the last year, 160,000 people in
Massachusetts have lost their jobs and companies
profits have declined, leading to reduced revenues
for the state and subsequently reduced services.
“…there are now more than two million fewer private sector
jobs than at the start of the current recession. Overcapacity,
corporate scandals, and uncertainty have and will continue
to weigh down the economy.”
-Three Nobel Prize winning economists and over 450 of their colleagues in a
statement released to the National Press Club on 2/10/03
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Why do we need to focus
on economic development?
Mass
Jobs
Investment &
Opportunity
“The legislature and general public focus enormous attention on specific
quality of life issues – prescription drugs, early childhood education,
community policing, and more. These programs are almost totally dependant
on a vibrant, healthy and diverse economy to advance our individual and
collective quality of life.
During these turbulent times in our national and global economy, states, now
more than ever, need to maximize their economic potential and prepare for
future opportunity.
Rapidly developing emerging technologies are our best opportunity to
positively impact our fiscal and economic crises.”
--Assistant Vice Chairman Peter Larkin (D-Pittsfield)
House Committee on Ways and Means
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What can we do to encourage
economic growth?

Jobs
Investment &
Opportunity
Invest in research and development



Mass
Currently, Massachusetts is second in the nation for receipt of
total National Institute of Health grant dollars, and we attract
over $1.9 billion in research and development grants annually.
Research and Development grants foster the creation of small
science and technology-related businesses throughout the
Commonwealth.
Encourage small firms based in technology, health care,
and science research and development—they are the
driving engine of our economy

Of the 500,000 new jobs created during the last decade, 88%
were in firms of 100 or fewer employees. Many of these firms
were in new and emerging technologies.
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What are other states
doing to create jobs?
Mass
Jobs
Investment &
Opportunity
Pennsylvania

The Ben Franklin Initiative supports business assistance and technology development programs at a cost
of about $54 million a year in state operating funds. The state’s total technology-related budget is about
$70 million and they have $480 million in outstanding investments.
New York

New York is currently seeking a $250 million, five-year capital authorization for five highly-touted
Centers of Excellence. The state is also investing $225 million in capital funds over five years to projects
that promote life science development and economic spin-offs at public and private universities
throughout the state. The state also spends approximately $50 million in operating funds to support
regional initiatives in technology and competitiveness.
Ohio

Ohio’s Third Frontier Project is a $1.6 billion public commitment to the state’s high technology sector.
The project includes providing funds to improve research facilities, to recruit world-class researchers and
bring state-of-the-art products to market, to invest in technology and biomedical research, and to finance
targeted industries with high-growth, high-wage potential consistent with regional priorities.
California

California has invested $100 million in its state university system to develop its science programs and
CalPERS, the state’s retirement fund, has invested $500 million in the CalPERS California
Biotechnology Program.
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Jobs
“Massachusetts must get its economy back Investment
&
Opportunity
on track. We can do this by dominating
the national economy in industries that
require a highly educated and skilled workforce. We
are poised to become the next Silicon Valley, and we
must take every step to position ourselves ahead of
states like California, New York, New Jersey, and North
Carolina to make this a reality.
Mass
By investing in our workforce and business environment
we will bring our economy back into prosperity and
once again be a leader in the national and global
economies. We can and must foster the creation of jobs
for all skill levels throughout the Commonwealth.”
-Speaker of the House Thomas M. Finneran
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Six Steps to Statewide
Economic Renewal
Mass
Jobs
Investment &
Opportunity
1.
Capitalize on our state’s already strong industries including
Education and Health Care;
2.
Create a stable and reliable rate of taxation;
3.
Streamline the state’s permitting process and review new state
regulations to assess their financial impact;
4.
Consolidate all economic development functions to create a “onestop shop” for people doing business in the Commonwealth;
5.
Invest $110 million in job creation and economic opportunity
within our state economy’s most promising segment—Emerging
Technologies; and
6.
Inventory economic assets, identify industry clusters, and make
strategic investments to ensure that all of our regional economies
are bolstered.
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We Must Continue to Support
Our State’s Strongest Industries
1 in 5 jobs in
our economy
are in the
Education and
Health Care
sectors.
Mass
Jobs
Investment &
Opportunity
Total Education
and Health
Employment
19%
Source: MA Division of Employment and Training
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Supporting the Health Care
and Education Sectors
Mass
Jobs
Investment &
Opportunity

Massachusetts’ Health Care and Education
sectors bring in nearly $2 billion in federal
research grants.

These grants allow new ideas, largely in the area
of emerging technologies, to become reality.

By supporting and encouraging these industries,
we are setting the groundwork for future
economic prosperity.
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Science and Technology
Education Study Commission
Mass
Jobs
Investment &
Opportunity
The Special Commission on Science and Technology Education will consist of
government, business, science, technology, and education representatives. They will
investigate ways in which Massachusetts can continue to foster a specialized science
and technology workforce to support the demands of the industry. Studying the
state’s public university, college, and community college systems, they will
investigate ways to establish job training programs specifically geared toward
creating manufacturing, science and technology employment opportunities.
“Massachusetts’ highly educated workforce is one of its
greatest assets. We need to find a way to further utilize this
strength by teaching students of all ages the necessary skills
to further advance their own economic potential through
careers in science and technology.”
--Chairman Brian Dempsey (D-Haverhill)
House Committee on Science and Technology
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Mass
We Need to Reauthorize the
Investment Tax Credit at 3%
Jobs
Investment &
Opportunity
The ITC brings in more money than it costs the state.
Since
its inception in
Massachusetts, the ITC has
aided companies by
offsetting higher production
costs and encouraging firms
to invest in facilities and
equipment.
As
State
Revenues as
a result of
the ITC
A
m
o
u
n
t
i
n
D
o
l
l
a
r
s
Cost of the
ITC
companies become more
productive, they create more
jobs that pay good wages at
all levels.
$1
$10,000,001
$20,000,001
$30,000,001
$40,000,001
Source: MA DOR
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What has the ITC done for
Massachusetts?
Mass
Jobs
Investment &
Opportunity
In the last 5 years, the ITC has
 Created over 9,000 new jobs.

Retained over 17,000 jobs, many of which are in
manufacturing and pay, on average, $59,000 annually.
Massachusetts needs job growth
now more than ever.
By reauthorizing the ITC at 3% permanently, Massachusetts
will sustain the growth of the past five years while giving
businesses the security they need to make investment
decisions in a weak economy.
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We Must Streamline
Permitting and Review New
State Regulations
Mass
Jobs
Investment &
Opportunity
“We need to put people back to work in Massachusetts. To do this, we
must be vigilant to ensure that government regulations do not needlessly
prevent our businesses from creating jobs.”
--Chairman Michael J. Rodrigues (D-Westport)
House Committee on Commerce and Labor
Any
new regulation proposed by a state agency must be
accompanied by a regulatory impact statement which
details both the purpose and the financial impact of the
regulation.
A
permitting ombudsman will be created to guide new
businesses through the state permitting process and
serve as the main contact for new and expanding
businesses on permitting and zoning issues.
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All of Massachusetts’ Economic
Development Functions Should be
Consolidated into One Department
Mass
Jobs
Investment &
Opportunity
This
will reduce duplication of efforts, save money, and ensure
streamlining of the regulatory, licensing, and permitting processes.
They
will also greatly simplify the process of developing and
expanding businesses within the Commonwealth.
Executive Secretary of Economic Development
(Policy & Administration)
Department of
Economic Development
Department of
Consumer Affairs
Department of
Workforce
Development
Department of Labor
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We Need to Invest in
Emerging Technologies
Mass
Jobs
Investment &
Opportunity
The Seven Industries that Make Up the Emerging Technologies Are:
Biotechnology
National defense and security
Advanced Materials
Medical devices
Pharmaceuticals
Information technology
Environmental technologies/renewable energy
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Why Emerging
Technologies?

Mass
Jobs
Investment &
Opportunity
In the last two years, Massachusetts has lost over 160,000 jobs,
while our state’s emerging technology industries have added 37,454
jobs in the last year alone.

A $110 million state investment in these industries will leverage
several times this amount in private investment. This will infuse at
least $500 million into these sectors.

The Biotechnology industry estimates that by 2010, with a cooperative
state atmosphere, they can create 100,000 jobs which pay on average
$73,200 each. This will create an additional $320 million in state
income tax revenue alone.

The addition of $320 million in state income tax revenue will allow
Massachusetts to further invest in the health care, education, and
public safety of its residents, making our state a more desirable place
to live, study, work, and raise a family.
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A Statewide Investment in the
Economic Development of
Emerging Technologies
Mass
Jobs
Investment &
Opportunity
In order to implement the funding portion of MassJobs, the House looked to the
state’s already successful and prudently managed public trusts.
These quasi-public agencies have a strong record of working with businesses
and community leaders throughout the state. By developing jobs and the
economy, they have proven the value of strong competition for scarce public
resources and set a high bar for companies seeking public funding.
A $110 Million Investment:
Massachusetts’ Development Finance Agency (MassDevelopment)


Emerging Technology Fund: $55 million
Massachusetts Brownfield Redevelopment Fund: $8 million
Massachusetts Technology Collaborative


The John Adams Innovation Enterprise: $15 million
The Massachusetts Research Center Matching Fund: $25 million
Massachusetts Technology Development Corporation: $5 million
Commonwealth Corporation’s Economic Stabilization Trust: $2 million
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The John Adams
Innovation Enterprise
Mass
Jobs
Investment &
Opportunity
The John Adams Innovation Enterprise honors John Adams’ innovative thought
and public commitment to the betterment of our state and nation by establishing
a statewide network of regional support for the encouragement of technological
advances, the new frontier of the 21st century. Adams is responsible for two of
the world’s oldest living government structures through his writing of the
Massachusetts’ Constitution, which later served as a guide to the United States’
Constitution, setting the structure for our nation as we know it today.
The Innovation Enterprise Will:
Promote
scientific research and technology development in all of Massachusetts’
regions;
Drive new economic growth throughout the state through the types of public
investments in the formation of core technologies; and
 Administer the Massachusetts Research Center Matching
Fund which will attract federal research support and private
sector investment for industry-university academic research
centers.
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Mass
MassDevelopment
Jobs
Investment &
Opportunity
MassDevelopment provides the financial tools and real estate expertise needed
to stimulate economic growth across the state of Massachusetts by working
with businesses, community leaders and elected officials to address blighted
areas, help create jobs, and other overarching issues that impact economic
development
In the last five years, MassDevelopment has helped create nearly 30,000 jobs,
and has financed $6.5 billion in projects across the state of Massachusetts. Last
year, it financed a record $1.7 billion in projects, and began fiscal year 2003 on
strong footing with a full pipeline.
MassDevelopment
was formed in 1995 by the informal merger of the
Government Land Bank and the Massachusetts Industrial Finance Agency.
The quasi-governmental agency was formally created by legislation in 1998.
Its role and responsibilities are laid out in Chapter 23G of the Massachusetts
General Laws.
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Mass
MassDevelopment
Jobs
Investment &
Opportunity
Board of Directors
Robert L. Beal, Chairman, President, The Beal Companies
David F. Squire, Vice Chair, Trustee and Former Vice President, Brandeis University
Lisa M. Campoli, Executive Vice President, Meredith & Grew, Inc.
Dix Davis, Vice President, Allmerica Financial, Retired
Christopher F. Egan, President, Carruth Capital, LLC
Robert Fox, President, Bradford Development Corporation
Robert E. Gray III, President, Gray Media
Eric Kriss, Secretary, Executive Office for Administration and Finance
Benaree Pratt Wiley, President/CEO, The Partnership
Barbara B. Berke, Director, Department of Economic Development
Michael Hogan, President and CEO
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The Emerging
Technology Fund
Mass
Jobs
Investment &
Opportunity
The current ETF was created in 1998 to stimulate increased
financing for manufacturing and related facilities for
emerging technology companies and to provide match
funding for federal and foundation grants for advanced research
and development of emerging technologies .
An
investment in the ETF will leverage a minimum of four times its amount
in private capital.
ETF
investments can be targeted specifically on technology-based, physical
infrastructure—making for a permanent development and manufacturing
presence in Massachusetts.
An
increase in Development and Manufacturing operations will bring
thousands of well paying jobs to Massachusetts.
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Massachusetts Brownfields
Redevelopment Fund
Mass
Jobs
Investment &
Opportunity
The Brownfields Redevelopment Fund was established under MassDevelopment
on August 5, 1998 as part of the "Brownfields Act", which established new
incentives to encourage parties to clean up and redevelop contaminated property
in Massachusetts. (M.G.L. Ch.23G, Section 29A)
This $30 million fund has awarded site assessments or brownfield cleanup loans
to over 322 separate projects across the Commonwealth. Currently, almost
$24 million of the fund is active.
This fund targets viable redevelopment projects that will deliver significant
economic benefits, including job growth and increasing the housing supply .
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Massachusetts Technology
Collaborative
Mass
Jobs
Investment &
Opportunity
The Massachusetts Technology Collaborative is the state’s
development agency for renewable energy and the innovation
economy, which is responsible for one-quarter of all jobs in the
state.
They work with cutting-edge companies to create new jobs and
stimulate economic activity in communities throughout the
Commonwealth while bringing together leaders from industry,
academia, and government to advance technology-based
solutions that lead to economic growth and a cleaner
environment in Massachusetts.
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Massachusetts Technology
Collaborative
Mass
Jobs
Investment &
Opportunity
Mitchell Adams, Executive Director
Executive Committee
Dr. Karl Weiss, Board Chairperson, MTC; Professor Emeritus, Northeastern University
Lawrence J. Reilly, Board Vice-Chairperson, MTC; Senior Vice President, General Counsel and Secretary, National Grid USA
Barbara Berke, Director, Department of Economic Development, Commonwealth of Massachusetts
David D. Fleming, Group Senior Vice President, Genzyme Corporation
Dr. Paul C. Martin, John H. Van Vleck Professor of Pure and Applied Physics, Dean for Research and Information Technology, Harvard University
Board Members
The Honorable William M. Bulger, President, University of Massachusetts
Patrick Carney, Executive Vice President, Members Plus Credit Union
Dr. Aram V. Chobanian, Provost, Medical School Campus; Dean, School of Medicine, Boston University
Michael J. Cronin, President and CEO, Cognition Corporation
Dr. Priscilla Douglas, PHDouglas & Associates
Thomas A. Farrington, President and CEO, Farrington Associates, Inc.
Dr. Patricia M. Flynn, Trustee Professor of Economics and Management, Bentley College
Debra Germaine, Senior Partner, International Technology Practice, Heidrick & Struggles
Judith I. Gill, Chancellor, Massachusetts Board Higher Education
C. Jeffrey Grogan, Partner, Monitor Group, LP
Alain J. Hanover, Managing Director and CEO, Navigator Technology Ventures
Eric A. Kriss, Secretary of the Massachusetts Executive Office for Administration and Finance
Gloria C. Larson, Partner, Foley Hoag LLP
Paul Wesley Nakazawa, President, Nakazawa Consultants; Lecturer in Architecture, Harvard University, Graduate School of Design
Dr. Lindsay Norman, President, Massachusetts Bay Community College
William H. O'Rourke, Business Manager, International Brotherhood of Electrical Workers, Local Union 455
Dr. Joan Y. Reede, Dean for Diversity and Community Partnership, Harvard Medical School
Dr. Krishna Vedula, Dean, Francis College of Engineering, UMass, Lowell
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Massachusetts Technology
Development Corporation
Mass
Jobs
Investment &
Opportunity
The Massachusetts Technology Development Corporation (MTDC) is a statesponsored venture capital company that focuses on providing capital to fund
economic development in the Commonwealth.
In the past 20 years, it has demonstrated a 17% rate of return on investments, and
the Commonwealth receives 20% of any net gain that its investments yield.
MTDC Cumulative Investments
1980-June 2001
MTDC is currently developing the
Commonwealth Fund III, a $25
million capital fund targeting
emerging technology development,
in which they are expected to invest
$1 million and solicit an additional
$24 million from other parties.
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Massachusetts Technology
Development Corporation
Mass
Jobs
Investment &
Opportunity
Board of Directors
Paul J. Severino, Chairman, MTDC's Board of Directors, Private Investor
Frank B. Manning, Vice Chairman, MTDC's Board of Directors, President, Zoom
Telephonics, Inc.
Drew J. Hannah, Treasurer of the Corporation (MTDC), President, Parker Guitars,
Inc. and Fishman Transducers, Inc.
Dr. Ellen R. Frank, Stratex Group
Leonard L. Lewin, Gadsby Hannah, LLP
David I. Lewis, Information Technology Consultant
Elizabeth P. Powell, Chairman of the Board, Diamond Machining Technology, Inc.
Barbara Berke, Director, Department of Economic Development
Eric Kriss, Secretary of the Executive Office for Administration and Finance
The Honorable William M. Bulger, President, University of Massachusetts
Robert J. Crowley, President of MTDC
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Mass
Conclusion
Jobs
Investment &
Opportunity
We are in the midst of a global economic crisis,
but we must find local solutions to prepare our
state for economic and fiscal recovery.
Through wise investment and regulatory overhaul,
emerging technologies can help bring the entire
Massachusetts economy back into prosperity,
providing our families financial security and giving
the state the revenues necessary to fully fund the
programs and services upon which we all rely.
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