Economic Development

The Massachusetts Innovation Economy

An innovation economy in a nutshell: Wealth is created by integrating information, knowledge and innovation. People are collecting information from one another (networking), building a shared fund of knowledge that each of us individually could not possibly hold (intellectual capital), and coming up with better ways to do things (innovation!).

This innovation economy in Massachusetts is being developed by synchronizing financial, human and intellectual capital. Economic development is all about job creation; that does not change. What has changed are the tools we use to promote economic development: information technology, transfer of knowledge, communication that easily links significant numbers of people, decision support systems, and an understanding of how to harness the creative energy that occurs when people of different industry sectors, professional backgrounds, and cultures interact on an ongoing basis.

The performance of the Massachusetts innovation ecosystem is greatly enhanced by a number of factors, singular to Massachusetts, that increase the capacity for innovation by scientists, engineers, entrepreneurs, and business:

• A concentration, seen in only a very few cities in the world, of established world-class research universities;
• A concentration of hospitals, national laboratories, corporate entities, and small businesses whose core mission is research and development;
• A flow of billions of dollars of government and private funding into Massachusetts every year for research, development, business formation and expansion;
• A concentration of experienced, practiced venture capitalists and angel investors who bring both funding and expertise to new business formation;
• Interaction among individuals and communities involved in research, development, entrepreneurship and business throughout Massachusetts, which is critical to sustain the flow of new ideas and the discovery of new business opportunity.

It is widely held that the region will add over 290,000 new jobs between 2000 and 2030. MetroFuture's perspective (MAPC’s regional plan) holds two broad categories in which to view economic development: establishing the preconditions that support economic growth, and recommending how that growth could be distributed throughout the region.

The most prominent precondition for economic growth is clear and coordinated public policy that supports a well-educated and healthy workforce, diverse housing opportunities, efficient transportation options, strong civic collaboration, and a new generation of support for small business and for sole entrepreneurs.

MAPC brings a regional perspective to municipalities, community-based organizations and research and development organizations engaged in economic development activity. We are linked through our staff to local, regional, state, and federal programs, to program staff and to potential funding sources.

MAPC works with municipalities to promote economic development practices and policies that are driven by the Commonwealth of Massachusetts' Sustainable Development Principles. Municipal perspective that is consistent with smart growth principles will also be consistent with current thinking at federal and state agencies, and private foundations as well.

MAPC is a regional information hub that can inventory commonly-held barriers to economic competitiveness seen in all parts of the region and can facilitate a unified response that allows component parts of the region to speak with authority on how to best mitigate these barriers.

Comprehensive Economic Development Strategy

Annually, in partnership with the Economic Development Administration (EDA), MAPC provides a Comprehensive Economic Development Strategy (CEDS); the CEDS identifies current changes and future trends in the regional economy.

A listing in the CEDS is a required gateway in order for any project to be considered for federal funding through The Public Works and Economic Development Program, one of eight EDA investment programs.

View the 2009 CEDS that was submitted by MAPC to the EDA.

For additional information on economic development, please contact Steve Winter at 617-451-2770, ext. 2067 or at swinter@mapc.org

Economic Development Resources

UMass Donahue Institute's Economic and Public Policy Research unit

The unit published free-standing research reports on economic development and public policy and through MassBenchmarks, a journal on the Massachusetts economy, which is published in cooperation with the Federal Reserve Bank of Boston.

Visit the External Resources on Economic Development page for more resources.

Questions?

Contact Senior Project Manager Steve Winter at 617-451-2770, ext. 2067 or at swinter@mapc.org.