growing massachusetts in challenging times
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Growing Massachusetts in Challenging Times: Macro and Micro Perspectives on Economic Development in the CommonwealthA presentation to the Harvard Business School Association of Boston.TRANSCRIPT
Growing Massachusetts in Challenging Times: Macro and Micro Perspectives on Economic
Development in the Commonwealth
Harvard Business School Association of
Boston
October 7, 2010
Agency Background
Who We Are• Statewide finance and development arm
• Quasi-public authority formed first from the Massachusetts Government Land Bank and the Massachusetts Industrial Finance Agency merger; merger of the Massachusetts Health and Educational Facilities Authority effective October 1
• 185 employees in regional and satellite offices
Where We Are• Boston
• Devens
• Fall River
• Lawrence
• Springfield
• Worcester
What We Do/How We Help• Utilizing tax-exempt bonds; loans and guarantees;
and real-estate planning and development services, MassDevelopment offers customized financing and development solutions focusing on housing, job creation, real-estate development, and urban revitalization.
• Over the last 24 months, MassDevelopment financed or managed 494 projects representing an investment of $4.2 billion in the Massachusetts economy.
Signature Projects: Northampton, Fall River, and Boston
Signature Projects in Devens: BMS, Evergreen Solar, & Transitions
8
Specialty Loan Programs
• Brownfields Redevelopment Fund
• Emerging Technology Fund
• Cultural Facilities Fund
Brownfields Redevelopment Fund• Created in 1998, the
BRF offers up to $100G interest-free financing for site assessment and up to $500G in flexible financing for cleanup loans.
• BRF has financed 496 site assessment and remediation grants/ loans to more than 395 projects in 100 communities.
Emerging Technology Fund• Created in 2004, the
ETF makes loans to encourage creation and expansion of production facilities by emerging technology companies
• ETF has provided $38M to 22 businesses
Cultural Facilities Fund• Since 2007, $37M
investment in 224 capital projects (including these in Gloucester, Pittsfield, and Attleboro) for nonprofit institutions that attract visitors to and create jobs in Massachusetts
• Run in partnership with MA Cultural Council
Massachusetts v. the World, Other States, and Itself over Time
Patents Issued per 10,000 Residents 2008
Massachusetts 5.4Taiwan 2.8Japan 2.6Israel 1.6South Korea 1.6Switzerland 1.5Sweden 1.1
From Massachusetts Technology Collaborative, 2009 Index of the Massachusetts Innovation Economy, p. 35.
2008Germany 1.1Netherlands 0.8France 0.5United Kingdom 0.5Italy 0.2Canada 0.0Australia 0.0
Nonprofit R&D in Millions of 2008 $2002 2007
California 4,798 6,147Massachusetts 4,011 4,662New York 2,909 3,715Pennsylvania 2,373 2,944Maryland 2,440 2,714Illinois 1,519 1,648Minnesota 979 1,083
Nonprofits include universities, hospitals, and research institutions.
From Massachusetts Technology Collaborative, 2009 Index of the Massachusetts Innovation Economy, p. 32.
USG Nonprofit R&D $/Capita (2008 $)2003 2007
Massachusetts 464 449Maryland 339 283Connecticut 154 175Pennsylvania 167 164New York 134 129California 133 127Minnesota 116 117
Nonprofits include universities, hospitals, and research institutions.
From Massachusetts Technology Collaborative, 2009 Index of the Massachusetts Innovation Economy, p. 41.
Tech Licenses and Options Executed1997 2007
Massachusetts 314 533California 386 432New York 303 230Pennsylvania 149 185Maryland 104 172Minnesota 231 145Illinois 66 125New Jersey 70 97
From Massachusetts Technology Collaborative, 2009 Index of the Massachusetts Innovation Economy, p. 36.
Biotechnology Drugs in Development2006 2008
New Jersey 99 164California 125 157Pennsylvania 52 111Massachusetts 61 75Maryland 66 72New York 34 46Illinois 11 16Connecticut 11 8
From Massachusetts Technology Collaborative, 2009 Index of the Massachusetts Innovation Economy, p. 38.
SBIR Awards per Capita 2008
Massachusetts $35Maryland $15Virginia $15California $10Connecticut $ 8Pennsylvania $ 6Minnesota $ 6New Jersey $ 5
From Massachusetts Technology Collaborative, 2009 Index of the Massachusetts Innovation Economy, p. 37.
MA Jobs/Sector: 1990, 2000 & 20091990 2000 2009
Financial Activities 194,200 231,200 207,500Manufacturing 465,800 406,000 253,300Leisure & Hospitality 231,900 278,100 293,000Retail Trade 332,200 365,100 326,400Government 403,300 434,800 438,000Prof. & Bus. Services 332,900 504,700 455,000Trade, Trans., Utilities 550,500 601,700 528,800 Education/Health 464,800 549,100 654,900Total Non-Farm 2.9M 3.4M 3.1M
Revenues: FY01 versus FY09FY01 FY09 change
Income 12,088 10,577 - 12.5%Sales 4,585 3,869 - 15.6%Corporate 1,154 2,099 +81.9%Other * 2,594 1,714 - 54.7%Total 20,421 18,259 - 10.6%
* Includes alcohol, cigarette, gas, and hotel
• Raw data come from the Massachusetts Taxpayers Foundation
• Revenues are adjusted for inflation and displayed in millions of dollars
Biggest Get Bigger? Urban Population1990 2000 2009
Boston 574,283 589,141 645,169Lawrence 70,207 72,043 70,579New Bedford 99,922 93,768 91,053Pittsfield 48,622 45,793 42,424Springfield 156,983 152,082 155,580Worcester 169,759 172,648 182,882Massachusetts 6.0M 6.3M 6.6M
• Population figures from the U.S. Census Bureau.
Massachusetts Population Ages
2000 2006-2008
Under 5 397,268 ( 6.3%) 382,036 ( 5.9%)
18+ 4,849,033 (76.4%) 5,032,597 (77.8%)
65+ 860,162 (13.5%) 862,493 (13.3%)
• Population figures from the U.S. Census Bureau.
Massachusetts Data Points/Deltas2000 2009 change
Population 6,349,097 6,593,587 + 3.9%Jobs 3,370,500 3,137,600 - 6.9%Housing Units 2,625,071 2,748,321 + 4.7%
• Population figures from the U.S. Census Bureau.• As on slide 18, jobs data seasonally adjusted from the
Massachusetts Executive Office of Labor and Workforce Development from December 2000 and December 2009.
• Housing units from the U.S. Census Bureau from July 1, 2000 and July 1, 2009.
Massachusetts’ Economic Future
Factors Affecting Change in …
• Jobs– Is the next big breakthrough just around the corner in a
targeted industry like the green economy and/or in something unanticipated?
• Revenues– Increase in sales tax rate …– … but what happens if Question 3 is enacted into law?
• Population– Federal redistricting following the 2010 elections lurking
Future Opportunities?
Breaking the Route 495 Barrier• Time to dispel some myths
• Yes, Virginia, life and commerce exist beyond 495
• Countless economic-development opportunities
• Three examples:– Worcester– Springfield– Pittsfield
Worcester
• City has growing, highly-educated population; air, bus, rail, and road transport options; 60+ cultural institutions; strong higher-ed institutions; & available space for leading industries such as biotechnology.
• 65 MDFA transactions over last five years representing $671.3 million of investment
• 83.7% high-school graduate or higher; 10.8% unemployment in August
Springfield• Colleges:
– American International College– Springfield College– Springfield Technical
Community College– Western New England College
• Drive times to:– Albany: 90 minutes– Boston: 90 minutes– New York City: 3 hours
• 38 MDFA projects over last five years representing $207.6M investment
• 76.5% high-school graduate or higher & 13.3% unemployment in August
Pittsfield
• Urban center of the Berkshires• Diversified local economy powered by cultural-
facility investments in Colonial Theatre (upper right), Berkshire Museum, & Barrington Stage Company
• William Stanley Business Park: 52 acres redeveloped into a campus-style office park
• 19 MDFA projects over last 5 years representing $21.5 million investment
• 88.8% high-school graduate or higher; 8.4% unemployment
