Innovation Critical for Continued MA Rebound, MTC Index Finds

The high tech economy of Massachusetts is emerging from the recent recession with its fundamental strengths in science, technology and entrepreneurship in good shape, according to the Executive Index of the Massachusetts Innovation Economy. Significant innovation in the state’s industries, however, is necessary to make up for the jobs lost since 2000, the index states.

Prepared annually by the Massachusetts Technology Collaborative (MTC), the 32-page index shows that while the state’s fundamental strengths are in place, its competitive position as an innovator cannot be taken for granted. The index argues Massachusetts must look for new ways to enhance and improve its climate for innovation, given the accelerating national and international competition in research and development.

“The most recent recession and recovery is not as severe as 10 years ago, but leaves Massachusetts in a similar predicament – industries which had been the fastest growing and quickest to hire have taken the hardest fall, leaving some of the state’s most highly qualified workers out of work,” said MTC Executive Director Mitchell Adams. “These industries will not just pick up where they left off in 2000. We need the kind of radical innovations from Massachusetts entrepreneurs that fueled rapid growth and economic opportunity in the 1990s.”

“The message of the 2003 Index is clear: We in Massachusetts must actively bolster the state's comparative strengths in R&D, innovation, venture capital and education, or risk becoming an ‘also ran’ in the global innovation economy,” said Dr. Patricia Flynn, trustee professor of economics and management, Bentley College, and chairperson of the index advisory committee.

The 2003 Index is part of a new MTC Innovation Outlook Series that consists of several reports that focus on emerging technologies and processes that will influence the state's economy. The index has a reduced number of indicators from earlier years, tracking nine industry clusters and 15 economic indicators to benchmark the state’s strengths and weaknesses against six leading technology states — California, Colorado, Connecticut, Minnesota, New Jersey and New York. These indicators are considered by MTC to be most aligned with the innovation process and resources that support it.

Executive Index of the Massachusetts Innovation Economy is available at: http://www.mtpc.org/2003index/index_2003.pdf