Stories of Technology, Innovation, & Entrepreneurship in the Southeast

Massachusetts Governor Maura Healey has announced the launch of the Discovery, Research, and Innovation for a Vibrant Economy (DRIVE) Initiative to grow Massachusetts’s world-renowned research and innovation economy and create thousands of new jobs. As part of DRIVE, she will file legislation proposing $400 million in state funding to retain world-class talent, preserve and create jobs across industries, and support a key foundation of the Massachusetts economy.

Massachusetts has long been a global leader in research, innovation, and development. In addition to producing lifesaving cures for diseases that impact everyone, this industry is a major driver of the state’s economy. A new report by the University of Massachusetts Donahue Institute’s Economic & Public Policy Research Group analyzed the impact of federal research and development funding in Massachusetts.

The report found that the $8.57 billion in annual federal research and development funding that Massachusetts receives supports 81,300 jobs, $7.8 billion of income, and generates more than $16 billion in economic activity. The funding also represents a good return on investment. For every dollar invested, the state sees an economic benefit of double that amount.

Massachusetts is home to one in every 10 jobs in research and development in the United States. Two out of every five of the jobs created by this funding are in sectors outside of research and development, including: construction, food services, health care, retail, and administrative support.

“Massachusetts is the global leader in innovative research and the discovery of lifesaving cures,” said Governor Healey. “Research funding is also foundational to the Massachusetts economy – it’s economic infrastructure here. This bill is about creating jobs across industries from construction and food services to health care and education. And in the face of uncertainty from the federal government, this is about protecting one of the things that makes Massachusetts so special – our global leadership in health care and helping families across the world.”

The Governor’s legislation proposes $400 million in state funding to leverage private and institutional resources to retain world-class talent, preserve jobs, and protect the engines of Massachusetts’ innovation economy. This will include $200 million to a one-time multi-year research funding pool, housed at MassDevelopment. This fund will support research projects at hospitals, universities, and independent research institutions, as well as a one-year fellowship program for early-career professionals. It will be paid for using the interest off the state’s stabilization fund.

The other $200 million will be placed in a public higher education bridge funding reserve, funded by Fair Share surtax revenue. This will provide Massachusetts public higher education campuses support for direct and indirect costs of research, cross-regional partnerships, and joint ventures. Additionally, the reserve sets aside funding to preserve and hire positions in research and teaching, including graduate, postdoctoral, and other early-career professionals.

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