Bay State must battle for tech talent

BYLINE: By JAY FITZGERALD

Massachusetts' dwindling share of the nation's scientific talent pool could be its economic Achilles' heel in coming years, according to a new report to be released today.

The Massachusetts Technology Collaborative, in its annual report on the state's technology sectors, paints a picture of still strong and vibrant high-tech, biotech and health-care institutions - despite severe economic hits in recent years.

The state still nabs its share of venture capital funds and federal research-and-development grants. The state also is tops when it comes to patents issued to area companies and institutions.

But the state's population is stagnant and younger people are moving away due to high costs - all while Massachusetts' economy is producing new jobs at a slower pace than the rest of the nation, the report said.

Perhaps most worrying is that Massachusetts colleges and universities are not growing as fast as institutions in other states, such as California, Connecticut, Illinois, New York and Virginia, the report says.

Fewer students here means fewer are staying after their school years to work or create companies, the report said.

``We're not generating bodies for growth,'' said Patricia Flynn, an economics and management professor at Bentley College in Waltham.

Flynn, chairwoman of the collaborative's advisory committee, said Massachusetts has to find a better way to attract and keep talented workers here.

Part of the problem is the cost of living in Massachusetts, such as high housing costs, she said.

But part of the problem is simply that global competition is intensifying. Fewer Chinese and Indian students are coming to America - and many of those that do attend school here return home afterward to their countries' booming economies, she said.

There are huge pluses to the state's economy, the report found.

Between 2001 and 2006, the state's exports of biotech and medical-device equipment soared to $15 billion from $5 billion.

``But the concern is that this type of vitality is not leading to jobs growth,'' said Pat Larkin, director of the collaborative's Technology Innovation Institute.

California last year saw a 1.7 percent increase in life-sciences jobs, while Minnesota experienced a 4.3 percent jump. Jobs in Massachusetts' life-sciences sector decreased by 0.1 percent, he noted.

All technology sectors in Massachusetts face similar challenges, said Larkin.