1
Investment
Mass
Jobs
Opportunity

• An Act Making One-Time Investments in Emerging
  Technologies to Stimulate Job Creation and
  Economic Opportunity Throughout the Commonwealth

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A Global Recession
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?
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?

• Invest in research and development
• 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 developmentthey
  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?

• 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 states 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
• Ohios Third Frontier Project is a 1.6 billion
  public commitment to the states 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 states retirement fund, has
  invested 500 million in the CalPERS California
  Biotechnology Program.

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Massachusetts must get its economy back 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.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

• Capitalize on our states already strong
  industries including Education and Health Care
• Create a stable and reliable rate of taxation
• Streamline the states permitting process and
  review new state regulations to assess their
  financial impact
• Consolidate all economic development functions to
  create a one-stop shop for people doing
  business in the Commonwealth
• Invest 110 million in job creation and economic
  opportunity within our state economys most
  promising segmentEmerging Technologies and
• 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 States Strongest
Industries
1 in 5 jobs in our economy are in the Education
and Health Care sectors.
Source MA Division of Employment and Training
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Supporting the Health Care and Education Sectors

• 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
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 states 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. --Chai
rman Brian Dempsey (D-Haverhill) House Committee
on Science and Technology
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We Need to Reauthorize the Investment Tax Credit
at 3
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 companies become more productive, they create
  more jobs that pay good wages at all levels.

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What has the ITC done for Massachusetts?

• 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
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

• 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.

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We Need to Invest in Emerging Technologies
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?

• In the last two years, Massachusetts has lost
  over 160,000 jobs, while our states 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
In order to implement the funding portion of
MassJobs, the House looked to the states 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 Corporations Economic Stabilization
  Trust 2 million

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The John Adams Innovation Enterprise
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 worlds
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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MassDevelopment
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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MassDevelopment
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
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 infrastructuremaking
  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
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
The Massachusetts Technology Collaborative is the
states 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
Mitchell Adams, Executive Director
Executive CommitteeDr. 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 CorporationDr. 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
455Dr. 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
The Massachusetts Technology Development
Corporation (MTDC) is a state-sponsored 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 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
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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Conclusion
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.