February 2006
Volume 29, Number 1
February 26
The Massachusetts High Technology Council held its Annual Meeting on January 25, 2006 at the Burlington Marriott with Governor Mitt Romney as keynote speaker. The meeting also featured the election of the Council's 33 directors as well as the transition of Council leadership from Paul Gudonis, President of FIRST, to John Bertucci, Executive Chairman of MKS Instruments, who will serve as the Council's 15th Chairman.
Romney: Council a Great Partner
In Romney's fourth Annual Meeting address in as many years, he praised the Council for its work in making Massachusetts more competitive. In particular, he touted the Council's successful leadership in the preservation of Hanscom Air Force Base and the U.S. Army Soldier Systems Center through the federal 2005 Base Realignment and Closure (BRAC) round. Romney underscored how important this victory was to the state's economy: “The defense technology future is linked to the future of Massachusetts” he said.
Romney discussed his 2006 agenda which includes a strong focus on reforming the state's public education system, specifically improving math and science instruction. He warned that without changes in the nation's education delivery system and a renewed push to invest in technology, the United States risks further eroding its competitive advantages.
“Unless we change things in this country we could end up being the France of the 21st century,” said Romney. “We need to invest a lot more money in technology.”
He also highlighted other initiatives that he worked on with the Council, including the prevention of a retroactive capital gains tax and the push for a market-based health care reform plan.
Bertucci Becomes Council’s 15th Chairman
Council members elected new officers, including John Bertucci, Executive Chairman of MKS Instruments as Chairman of the Council. Bertucci served the past two years as Vice Chairman. Bertucci is joined by a new Vice Chairman, Mike Astrue, interim CEO of EPIX Pharmaceuticals, and a new Treasurer, James Regan, Chairman, President and CEO of Dynamics Research Corp. Paul Gauron, a senior partner at Goodwin Procter, continues as the Council's Secretary.
Bertucci served as Chairman and CEO of MKS Instruments from 1995 to 2005, and was named President in 1974. Bertucci is a member of the Board of Trustees of Carnegie Mellon University, his alma mater. MKS Instruments is a leading worldwide provider of process control solutions for advanced manufacturing processes such as semiconductor device manufacturing; thin-film manufacturing for flat panel displays, data storage media, architectural glass and electro-optical products; and technology for medical imaging equipment.
Bertucci said he anticipates a very active 2006 on the public policy front especially with the gubernatorial election in November. He also plans to work to make Massachusetts more cost competitive, which will encourage Massachusetts-based companies with multiple national and international locations to expand here. The high cost of “health insurance and unemployment insurance are burdens on our operations that don't exist in other states or other countries,” Bertucci told the Lowell Sun.
Gudonis Recognized for Leadership
Outgoing Council Chairman Paul Gudonis was recognized for his leadership during his two years at the Council's helm. Gudonis began his term as Centra Software’s CEO before moving to FIRST, a non-profit with a mission to inspire young people to pursue education and careers in science and technology. Gudonis oversaw many critical Council achievements as Chairman, including the 2005 BRAC victory, the prevention of a retroactive capital gains tax and the creation of the Council's member health care program with Harvard Pilgrim Health Care.
“Paul is energetic and innovative, and his leadership led to some of the Council's greatest victories in its near 30-year history,” said Bertucci. “I am confident that Paul will make a difference in getting more students interested in math and science careers at FIRST.”
CEO Survey Predicts Job Growth, Weaker Climate
The results of the Council's 2006 CEO Technology Business Climate Survey point to a positive year for job creation in the state's diverse technology economy. But it also indicates that a growing number of technology leaders are increasingly concerned about the state's business climate.
“State leaders - Governor Romney in particular - have made progress in recent years to make Massachusetts more competitive, but there are still a number of challenges that have us concerned about the future,” said Bertucci. “Even with a very successful 2005 for the Council, the anti-competitive impact of a potential health care tax, the high cost of housing, and a broken unemployment insurance system are all barriers to a more robust business climate.”
Bertucci noted that for the second straight year a majority of CEOs planned to grow their workforce in 2006. The survey revealed that 55 percent of participating CEOs expect job expansion this year, a three percent increase from 2005. Only seven percent anticipate their company to reduce workforce.
The survey also revealed:
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70 percent view Massachusetts as a good or outstanding place to run a high tech company, down from 84 percent in each of the last two years;
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79 percent believe the state's technology economy is improving or holding steady, down from 96 percent last year;
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20 percent say the climate is improving, down from 38 percent last year; and
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21 percent say the climate is worsening, up from four percent in 2005
2006 Public Policy Agenda Unveiled
The annual survey also helps set the Council's public policy agenda this year. Top priorities for technology employers include:
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Continue to develop and implement a statewide tech-based economic development plan;
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Maintain/enhance competitive business and personal tax climate;
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Reform the state's K-12 education system, including developing a 21st century system for recruiting, retaining and training math and science teachers;
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Strengthen the University of Massachusetts as a world-class public higher education system;
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Oppose a health care payroll tax and reduce medical costs through the use of technology, cost and quality transparency and medical malpractice reform; and
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Work with local communities to initiate housing development.
For the first time, the results of the survey will be tied to an online assessment tool that will measure state leaders' support for the technology agenda. The tool, called MassTrack, will debut this spring. For complete survey results visit www.mhtc.org.
Romney Names Anderson to Board of Education
On January 17, Romney named Council President Christopher Anderson to the nine-member state Board of Education, which is charged with implementing K-12 education policy for Massachusetts.
“As a leader in the high tech community, Chris Anderson brings an important perspective to the board because he understands the need for excellence in math and science,” said Romney in the announcement for Anderson's appointment.
“He cares deeply about young people, and I know he will make a difference.”
Anderson's new position ties in well with ongoing efforts of the Council and its CEO leadership to press for changes to the state's education delivery system.
“There is a real sense of urgency among technology employers that the state's public schools continue to improve so we can compete in a rapidly changing global economy,” said Anderson. “I appreciate this opportunity to serve the Commonwealth and I look forward to working with legislators, teachers, administrators and parents to help Massachusetts public schools - and students - rank among the best in the world.”
Council, Harvard Pilgrim Host Forum on Technology and Health Care
The Council and Harvard Pilgrim Health Care on January 17 brought together health care experts on trends in technology from the perspective of a health care provider, insurer and employer. The event, “Technology's Impact on Health Care Costs”, drew more than 150 technology executives and featured a panel discussion on how technology influences health care costs and shapes the high tech business environment. The panel included: Delia Vetter - Director of Benefits, Employee Services and Programs, EMC Corporation; Roberta Herman, MD - Chief Medical Officer and Senior Vice President, HPHC; and John Halamka MD, MS - CIO of Harvard Medical School, and Beth Israel Deaconess Medical Center. Halamka was recently charged by President George W. Bush with standardizing the nation's health care data systems.
Charles Baker, President and CEO of Harvard Pilgrim, then spoke on the need for transparency and its impact on health care cost and quality. Baker indicated that transparency language in the pending health care reform bill was the only provision that will reduce costs for the state's health care system.
Harvard Pilgrim and the Massachusetts High Technology Council recently formed an exclusive partnership to offer Council members with more than 51 employees health insurance discounts from Harvard Pilgrim's portfolio of health plans at lower cost premiums. For more information on the “High Tech High Touch Health Plan,” please visit www.harvardpilgrim.org/hphchightech.
Logan to China Direct Flight Set to Become Reality
In January the Massachusetts Port Authority, which operates Logan Airport, announced an agreement with Chinese-based Hainan Airlines for a non-stop, direct flight route between Boston and China, most likely to the technology hub of Shanghai. The Chinese government had allowed Hainan Airlines - China's fourth largest carrier - to offer service to only one United States airport.
MassPort's CEO, Craig Coy, told the Boston Globe on January 3: “It is going to connect Boston and New England directly, for the first time via air, to China. The economy's growth is centered not only in the United States, but in China. We want to connect the best New England has to offer with China.”
The Council was active in helping state and local officials attract Hainan Airlines to Boston, with members writing letters of support on behalf of New England's largest airport. Not only will the new route improve access to the China market for Massachusetts technology employers, but it better connects China to New England's premier technology cluster - particularly its research universities and hospitals.
SAVE THE DATE
Chairman’s Dinner 2006
Wednesday, May 31
The State Room
60 State Street
Boston, Massachusetts
Featuring Keynote Speaker
Richard A. Clarke
Chairman of Good Harbor Consulting and Former White House Advisor for counterterrorism and cybersecurity
For additional information on this event, please visit www.mhtc.org.
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