Growing Massachusetts in Challenging Times:  Macro and Micro Perspectives on Economic Development in the Commonwealth Harv...
Agency Background
Who We Are <ul><li>Statewide finance and development arm </li></ul><ul><li>Quasi-public authority formed first from the Ma...
Where We Are <ul><li>Boston </li></ul><ul><li>Devens </li></ul><ul><li>Fall River </li></ul><ul><li>Lawrence </li></ul><ul...
What We Do/How We Help <ul><li>Utilizing tax-exempt bonds; loans and guarantees; and real-estate planning and development ...
Signature Projects:  Northampton, Fall River, and Boston
Signature Projects in Devens:  BMS, Evergreen Solar, & Transitions
Specialty Loan Programs <ul><li>Brownfields Redevelopment Fund </li></ul><ul><li>Emerging Technology Fund </li></ul><ul><l...
Brownfields Redevelopment Fund <ul><li>Created in 1998, the BRF offers up to $100G interest-free financing for site assess...
Emerging Technology Fund <ul><li>Created in 2004, the ETF makes loans to encourage creation and expansion of  production f...
Cultural Facilities Fund <ul><li>Since 2007, $37M investment in 224 capital projects (including these in Gloucester, Pitts...
Massachusetts v. the World,  Other States, and Itself over Time
Patents Issued per 10,000 Residents  <ul><li>2008 </li></ul><ul><li>Massachusetts 5.4 </li></ul><ul><li>Taiwan 2.8 </li></...
Nonprofit R&D in Millions of 2008 $ <ul><li>2002   2007 </li></ul><ul><li>California 4,798 6,147 </li></ul><ul><li>Massach...
USG Nonprofit R&D $/Capita (2008 $) <ul><li>2003   2007 </li></ul><ul><li>Massachusetts   464 449 </li></ul><ul><li>Maryla...
Tech Licenses and Options Executed <ul><li>1997   2007 </li></ul><ul><li>Massachusetts   314 533 </li></ul><ul><li>Califor...
Biotechnology Drugs in Development <ul><li>2006   2008 </li></ul><ul><li>New Jersey   99 164 </li></ul><ul><li>California ...
SBIR Awards per Capita <ul><li>  2008 </li></ul><ul><li>Massachusetts   $35 </li></ul><ul><li>Maryland $15 </li></ul><ul><...
MA Jobs/Sector:  1990, 2000 & 2009 <ul><li>1990 2000   2009 </li></ul><ul><li>Financial Activities 194,200  231,200  207,5...
Revenues:  FY01 versus FY09 <ul><li>FY01 FY09 change </li></ul><ul><li>Income   12,088 10,577  - 12.5% </li></ul><ul><li>S...
Biggest Get Bigger? Urban Population <ul><li>1990 2000 2009 </li></ul><ul><li>Boston 574,283 589,141 645,169 </li></ul><ul...
Massachusetts Population Ages <ul><li>2000 2006-2008 </li></ul><ul><li>Under 5   397,268 (  6.3%)   382,036 (  5.9%) </li>...
Massachusetts Data Points/Deltas <ul><li>2000 2009 change </li></ul><ul><li>Population 6,349,097 6,593,587  + 3.9% </li></...
Massachusetts’ Economic Future
Factors Affecting Change in … <ul><li>Jobs </li></ul><ul><ul><li>Is the next big breakthrough just around the corner in a ...
Future Opportunities?
Breaking the Route 495 Barrier <ul><li>Time to dispel some myths </li></ul><ul><li>Yes, Virginia, life and commerce exist ...
Worcester <ul><li>City has growing, highly-educated population; air, bus, rail, and road transport options; 60+ cultural i...
Springfield <ul><li>Colleges: </li></ul><ul><ul><li>American International College </li></ul></ul><ul><ul><li>Springfield ...
Pittsfield <ul><li>Urban center of the Berkshires </li></ul><ul><li>Diversified local economy powered by cultural-facility...
<ul><li>800-445-8030  </li></ul><ul><li>www.massdevelopment.com </li></ul><ul><li>twitter.com/MassDev </li></ul>
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Growing Massachusetts in Challenging Times

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Growing Massachusetts in Challenging Times: Macro and Micro Perspectives on Economic Development in the Commonwealth
A presentation to the Harvard Business School Association of Boston.

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Transcript of "Growing Massachusetts in Challenging Times"

  1. 1. Growing Massachusetts in Challenging Times: Macro and Micro Perspectives on Economic Development in the Commonwealth Harvard Business School Association of Boston October 7, 2010
  2. 2. Agency Background
  3. 3. Who We Are <ul><li>Statewide finance and development arm </li></ul><ul><li>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 </li></ul><ul><li>185 employees in regional and satellite offices </li></ul>
  4. 4. Where We Are <ul><li>Boston </li></ul><ul><li>Devens </li></ul><ul><li>Fall River </li></ul><ul><li>Lawrence </li></ul><ul><li>Springfield </li></ul><ul><li>Worcester </li></ul>
  5. 5. What We Do/How We Help <ul><li>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. </li></ul><ul><li>Over the last 24 months, MassDevelopment financed or managed 494 projects representing an investment of $4.2 billion in the Massachusetts economy. </li></ul>
  6. 6. Signature Projects: Northampton, Fall River, and Boston
  7. 7. Signature Projects in Devens: BMS, Evergreen Solar, & Transitions
  8. 8. Specialty Loan Programs <ul><li>Brownfields Redevelopment Fund </li></ul><ul><li>Emerging Technology Fund </li></ul><ul><li>Cultural Facilities Fund </li></ul>
  9. 9. Brownfields Redevelopment Fund <ul><li>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. </li></ul><ul><li>BRF has financed 496 site assessment and remediation grants/ loans to more than 395 projects in 100 communities. </li></ul>
  10. 10. Emerging Technology Fund <ul><li>Created in 2004, the ETF makes loans to encourage creation and expansion of production facilities by emerging technology companies </li></ul><ul><li>ETF has provided $38M to 22 businesses </li></ul>
  11. 11. Cultural Facilities Fund <ul><li>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 </li></ul><ul><li>Run in partnership with MA Cultural Council </li></ul>
  12. 12. Massachusetts v. the World, Other States, and Itself over Time
  13. 13. Patents Issued per 10,000 Residents <ul><li>2008 </li></ul><ul><li>Massachusetts 5.4 </li></ul><ul><li>Taiwan 2.8 </li></ul><ul><li>Japan 2.6 </li></ul><ul><li>Israel 1.6 </li></ul><ul><li>South Korea 1.6 </li></ul><ul><li>Switzerland 1.5 </li></ul><ul><li>Sweden 1.1 </li></ul>From Massachusetts Technology Collaborative, 2009 Index of the Massachusetts Innovation Economy , p. 35. 2008 Germany 1.1 Netherlands 0.8 France 0.5 United Kingdom 0.5 Italy 0.2 Canada 0.0 Australia 0.0
  14. 14. Nonprofit R&D in Millions of 2008 $ <ul><li>2002 2007 </li></ul><ul><li>California 4,798 6,147 </li></ul><ul><li>Massachusetts 4,011 4,662 </li></ul><ul><li>New York 2,909 3,715 </li></ul><ul><li>Pennsylvania 2,373 2,944 </li></ul><ul><li>Maryland 2,440 2,714 </li></ul><ul><li>Illinois 1,519 1,648 </li></ul><ul><li>Minnesota 979 1,083 </li></ul><ul><li>Nonprofits include universities, hospitals, and research institutions. </li></ul><ul><li>From Massachusetts Technology Collaborative, 2009 Index of the Massachusetts Innovation Economy , p. 32. </li></ul>
  15. 15. USG Nonprofit R&D $/Capita (2008 $) <ul><li>2003 2007 </li></ul><ul><li>Massachusetts 464 449 </li></ul><ul><li>Maryland 339 283 </li></ul><ul><li>Connecticut 154 175 </li></ul><ul><li>Pennsylvania 167 164 </li></ul><ul><li>New York 134 129 </li></ul><ul><li>California 133 127 </li></ul><ul><li>Minnesota 116 117 </li></ul><ul><li>Nonprofits include universities, hospitals, and research institutions. </li></ul><ul><li>From Massachusetts Technology Collaborative, 2009 Index of the Massachusetts Innovation Economy , p. 41. </li></ul>
  16. 16. Tech Licenses and Options Executed <ul><li>1997 2007 </li></ul><ul><li>Massachusetts 314 533 </li></ul><ul><li>California 386 432 </li></ul><ul><li>New York 303 230 </li></ul><ul><li>Pennsylvania 149 185 </li></ul><ul><li>Maryland 104 172 </li></ul><ul><li>Minnesota 231 145 </li></ul><ul><li>Illinois 66 125 </li></ul><ul><li>New Jersey 70 97 </li></ul><ul><li>From Massachusetts Technology Collaborative, 2009 Index of the Massachusetts Innovation Economy , p. 36. </li></ul>
  17. 17. Biotechnology Drugs in Development <ul><li>2006 2008 </li></ul><ul><li>New Jersey 99 164 </li></ul><ul><li>California 125 157 </li></ul><ul><li>Pennsylvania 52 111 </li></ul><ul><li>Massachusetts 61 75 </li></ul><ul><li>Maryland 66 72 </li></ul><ul><li>New York 34 46 </li></ul><ul><li>Illinois 11 16 </li></ul><ul><li>Connecticut 11 8 </li></ul><ul><li>From Massachusetts Technology Collaborative, 2009 Index of the Massachusetts Innovation Economy , p. 38. </li></ul>
  18. 18. SBIR Awards per Capita <ul><li> 2008 </li></ul><ul><li>Massachusetts $35 </li></ul><ul><li>Maryland $15 </li></ul><ul><li>Virginia $15 </li></ul><ul><li>California $10 </li></ul><ul><li>Connecticut $ 8 </li></ul><ul><li>Pennsylvania $ 6 </li></ul><ul><li>Minnesota $ 6 </li></ul><ul><li>New Jersey $ 5 </li></ul><ul><li>From Massachusetts Technology Collaborative, 2009 Index of the Massachusetts Innovation Economy , p. 37. </li></ul>
  19. 19. MA Jobs/Sector: 1990, 2000 & 2009 <ul><li>1990 2000 2009 </li></ul><ul><li>Financial Activities 194,200 231,200 207,500 </li></ul><ul><li>Manufacturing 465,800 406,000 253,300 </li></ul><ul><li>Leisure & Hospitality 231,900 278,100 293,000 </li></ul><ul><li>Retail Trade 332,200 365,100 326,400 </li></ul><ul><li>Government 403,300 434,800 438,000 </li></ul><ul><li>Prof. & Bus. Services 332,900 504,700 455,000 </li></ul><ul><li>Trade, Trans., Utilities 550,500 601,700 528,800 </li></ul><ul><li>Education/Health 464,800 549,100 654,900 </li></ul><ul><li>Total Non-Farm 2.9M 3.4M 3.1M </li></ul>
  20. 20. Revenues: FY01 versus FY09 <ul><li>FY01 FY09 change </li></ul><ul><li>Income 12,088 10,577 - 12.5% </li></ul><ul><li>Sales 4,585 3,869 - 15.6% </li></ul><ul><li>Corporate 1,154 2,099 +81.9% </li></ul><ul><li>Other * 2,594 1,714 - 54.7% </li></ul><ul><li>Total 20,421 18,259 - 10.6% </li></ul><ul><li>* Includes alcohol, cigarette, gas, and hotel </li></ul><ul><li>Raw data come from the Massachusetts Taxpayers Foundation </li></ul><ul><li>Revenues are adjusted for inflation and displayed in millions of dollars </li></ul>
  21. 21. Biggest Get Bigger? Urban Population <ul><li>1990 2000 2009 </li></ul><ul><li>Boston 574,283 589,141 645,169 </li></ul><ul><li>Lawrence 70,207 72,043 70,579 </li></ul><ul><li>New Bedford 99,922 93,768 91,053 </li></ul><ul><li>Pittsfield 48,622 45,793 42,424 </li></ul><ul><li>Springfield 156,983 152,082 155,580 </li></ul><ul><li>Worcester 169,759 172,648 182,882 </li></ul><ul><li>Massachusetts 6.0M 6.3M 6.6M </li></ul><ul><li>Population figures from the U.S. Census Bureau. </li></ul>
  22. 22. Massachusetts Population Ages <ul><li>2000 2006-2008 </li></ul><ul><li>Under 5 397,268 ( 6.3%) 382,036 ( 5.9%) </li></ul><ul><li>18+ 4,849,033 (76.4%) 5,032,597 (77.8%) </li></ul><ul><li>65+ 860,162 (13.5%) 862,493 (13.3%) </li></ul><ul><li>Population figures from the U.S. Census Bureau. </li></ul>
  23. 23. Massachusetts Data Points/Deltas <ul><li>2000 2009 change </li></ul><ul><li>Population 6,349,097 6,593,587 + 3.9% </li></ul><ul><li>Jobs 3,370,500 3,137,600 - 6.9% </li></ul><ul><li>Housing Units 2,625,071 2,748,321 + 4.7% </li></ul><ul><li>Population figures from the U.S. Census Bureau. </li></ul><ul><li>As on slide 18, jobs data seasonally adjusted from the Massachusetts Executive Office of Labor and Workforce Development from December 2000 and December 2009. </li></ul><ul><li>Housing units from the U.S. Census Bureau from July 1, 2000 and July 1, 2009. </li></ul>
  24. 24. Massachusetts’ Economic Future
  25. 25. Factors Affecting Change in … <ul><li>Jobs </li></ul><ul><ul><li>Is the next big breakthrough just around the corner in a targeted industry like the green economy and/or in something unanticipated? </li></ul></ul><ul><li>Revenues </li></ul><ul><ul><li>Increase in sales tax rate … </li></ul></ul><ul><ul><li>… but what happens if Question 3 is enacted into law? </li></ul></ul><ul><li>Population </li></ul><ul><ul><li>Federal redistricting following the 2010 elections lurking </li></ul></ul>
  26. 26. Future Opportunities?
  27. 27. Breaking the Route 495 Barrier <ul><li>Time to dispel some myths </li></ul><ul><li>Yes, Virginia, life and commerce exist beyond 495 </li></ul><ul><li>Countless economic-development opportunities </li></ul><ul><li>Three examples: </li></ul><ul><ul><li>Worcester </li></ul></ul><ul><ul><li>Springfield </li></ul></ul><ul><ul><li>Pittsfield </li></ul></ul>
  28. 28. Worcester <ul><li>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. </li></ul><ul><li>65 MDFA transactions over last five years representing $671.3 million of investment </li></ul><ul><li>83.7% high-school graduate or higher; 10.8% unemployment in August </li></ul>
  29. 29. Springfield <ul><li>Colleges: </li></ul><ul><ul><li>American International College </li></ul></ul><ul><ul><li>Springfield College </li></ul></ul><ul><ul><li>Springfield Technical Community College </li></ul></ul><ul><ul><li>Western New England College </li></ul></ul><ul><li>Drive times to: </li></ul><ul><ul><li>Albany: 90 minutes </li></ul></ul><ul><ul><li>Boston: 90 minutes </li></ul></ul><ul><ul><li>New York City: 3 hours </li></ul></ul><ul><li>38 MDFA projects over last five years representing $207.6M investment </li></ul><ul><li>76.5% high-school graduate or higher & 13.3% unemployment in August </li></ul>
  30. 30. Pittsfield <ul><li>Urban center of the Berkshires </li></ul><ul><li>Diversified local economy powered by cultural-facility investments in Colonial Theatre (upper right), Berkshire Museum, & Barrington Stage Company </li></ul><ul><li>William Stanley Business Park: 52 acres redeveloped into a campus-style office park </li></ul><ul><li>19 MDFA projects over last 5 years representing $21.5 million investment </li></ul><ul><li>88.8% high-school graduate or higher; 8.4% unemployment </li></ul>
  31. 31. <ul><li>800-445-8030 </li></ul><ul><li>www.massdevelopment.com </li></ul><ul><li>twitter.com/MassDev </li></ul>
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