March 2006
Volume 29, Number 2
March 2006
MHTC, MassDTI Host Successful Event on Future of Combat;
MHTC BioPharma Initiative Works to Support Life Sciences Cluster
On February 6, 2006, the Massachusetts High Technology Council and the Massachusetts Defense Technology Initiative cosponsored the New England “Best of Industry Regional Conference” for the Future Combat System program at Textron Systems in Wilmington. FCS is a transformative program for the Army that is working to deliver the next generation of war fighting technology directly to the soldier in the field. The goal of the New England conference—the last of nine such conferences conducted around the nation—was to connect area suppliers and create a better understanding of and support for
FCS among the region’s political, civic and media leaders.
FCS is a $125-plus billion program that will have a significant impact on the Massachusetts and New England economy. By 2014, 26 Massachusetts companies are projected to receive more than $6.8 billion in contracts through the FCS program. The lead FCS partners from Massachusetts are Textron Systems, Dynamics Research and iRobot, all of which served as sponsors of the event. But other Massachusetts companies- some not viewed as tradition defense firms – are key contributors to FCS as well, including Mathworks and PTC.
NE Conference Viewed as Top Success
The New England event was the most successful of the nine FCS regional conferences held across the country. More than 110 people attended the event including representatives from 36 supplier firms – more than at any other conference. In addition to the direct participation of keynote speaker Congressman Marty Meehan and Massachusetts Economic Development Secretary Ranch Kimball, seven staff members attended from the Governor’s and congressional offices including staff for Senators Kennedy and Kerry, as well as Representatives Meehan, Markey, Tierney and Olver. With half of the Massachusetts congressional delegation participating in the event it was the best showing of any FCS event.
An interactive media demonstration event, featuring hardware and displays from iRobot, Boeing, Textron and the Natick Soldier Systems Center, was held prior to the main conference and generated expansive coverage in the regional press. Positive stories on FCS ran in the Boston Globe, the Providence Journal, the Lowell Sun, the MetroWest Daily News, Fox 25 News and other Massachusetts media outlets. The result was a very positive exposure for the FCS program and many of the local partners. To view these stories, please visit the news page of the MassDTI website at www.massdti.com.
Meehan Calls for Focus on Education, Technology
In his keynote speech, Congressman Meehan called for the development of a state economic development strategy that reinforces and enhances our strong workforce, premiere education and research facilities and diverse technology economy. “No substitute exists for a broad, expanding, real-growth investment in basic and applied research,” said Meehan. “Here in Massachusetts, we should continue to develop a clear strategy that ties education with industry, and technology.”
Meehan also praised the work of the Council and MassDTI in leading last year’s successful strategy to preserve Hanscom Air Force Base and the US Army Solider Systems Center through the federal base closing process. He also vowed to work with MassDTI in its continuing efforts to support the state’s defense technology cluster.
The FCS Conference highlighted the evolving mission of MassDTI to keep the Massachusetts defense community at the forefront of Pentagon initiatives and to promote growth opportunities for regional businesses. For more information on MassDTI, please contact Executive Director Alan Macdonald at 781.890.0088.
Biopharma Initiative in Full Swing
Since its creation in 1977, biotechnology and pharmaceutical firms have been an integral part of the membership and agenda of the Council. Over the years, the Council has taken a leading role in advocating for policies and programs that support the state’s world-class life sciences sectors in the context of our diverse technology economy. The Council’s accomplishments include the passage of the state’s research and development tax credit and staving off government-imposed pharmaceutical price controls.
In 2005, the Council formalized its longstanding commitment to its life sciences members by creating the BioPharma Initiative, an action-oriented group working to develop and implement an aggressive public policy and outreach agenda for biotechnology and pharmaceutical employers. Through the BioPharma Initiative, the Council will continue to be a consistent, vocal and effective supporter of the state’s life sciences cluster.
Threats to Life Sciences Progress
Through the BioPharma Initiative, the Council has fought against language in the pending health care bill that would severely hinder the growth of the state’s biopharma sector. The anti-life sciences language includes provisions to place government price controls and duplicative marketing restrictions on local employers. In his letter to the Health Care Conference Committee, Chris Anderson wrote: “The anti-competitive provisions will cost Massachusetts jobs and make our state less economically competitive. Anyone who supports these provisions cannot claim they have the best interests of our state’s life sciences employers or health care system as their goal.”
Mass. High Tech Council members participating in the BioPharma Initiative include the following leading life sciences employers:
Abbott Laboratories
AstraZeneca
Biogen Idec
Cubist Pharmaceuticals
EPIX Pharmaceuticals
Genzyme Corporation
GlaxoSmithKline
Pfizer Inc.
Vertex Pharmaceuticals
Wyeth
For more information on the Council’s BioPharma Initiative, please contact Council Vice President Cort Boulanger at cort@mhtc.org.
Romney Unveils Massachusetts Business Connect
The Council and MassDTI were also key contributors to the development of the Massachusetts Business Connect program, which was unveiled by Governor Mitt Romney and Economic Development Secretary Ranch Kimball on February 21, 2006. The program is a way to create an atmosphere for collaboration that will lead to job growth and business opportunities for Massachusetts employers.
Said Kimball: “Today we stop playing defense and start playing offense,” in regard to job growth and economic strategy.
According to Kimball’s office, the two Massachusetts Business Connect goals are:
-
Connecting major, industry-leading firms with Bay State companies and research universities to create new deals and investment opportunities; and
-
Connecting industry-leading firms with Massachusetts resources to solve short and long-term economic development concerns such as closing workforce skill gaps, helping companies and industry sectors expand within the state and marketing regional advantages.
The Council and MassDTI worked to identify companies that would participate in Mass Business Connect, including Council members BAE Systems, Dynamics Research, Lockheed Martin Sippican and Textron Systems. Kimball recognized the Council’s and MassDTI’s support for Mass. Business Connect at the February 21 press conference held at the Boston Federal Reserve Bank.
To learn more about Mass Business Connect visit www.mass.gov/BizConnect.
Health Care Tax Still in Play
As of the writing of this issue of High Tech News, Romney cautioned that Mass. Business Connect would only be successful if the state also reduces other barriers to growth and avoids bad policies that will make Massachusetts less competitive. In particular, he warned of the damage the House’s health care payroll tax would cause with the state’s economic recovery.
The acrimony over the method to fund the state’s ambitious health care reform plan reached a fever pitch over February vacation week, with the public debate becoming pointed and somewhat personal. Numerous attempts to provide a compromise to the bill have fallen short.
Romney, Travaglini Stand Up for Competitive Economy
The Council has been working as part of a coalition of business group, led by Associated Industries of Massachusetts, in opposition of the payroll tax. While Governor Romney and the state Senate, led by Senate President Robert Travaglini, have stood strong against the mandate, leaders in the House of Representatives are not backing off this anti-competitive proposal.
Its been highlighted in the media that the failure to come to a health care compromise means Massachusetts risks losing nearly $400 million in federal funding through a Medicaid matching grant deal negotiated by Romney and Senator Edward Kennedy. But another potential detrimental effect of the gridlock is the delay in bringing cost and quality transparency to the state’s health care system. Currently, consumers of health care services have no viable access to cost and quality data – making it near impossible for them to make informed consumer decisions.
Why should a patient travel to Boston for a routine procedure when his or her hometown hospital performs that procedure with the same quality and for less money than at a better known facility downtown? Language in each of the House, Senate and Governor’s bills would create a system for transparency. The Council is working to ensure that the transparency provision will not get lost in the midst of debate over the payroll tax issue.
As Harvard Pilgrim Health Care CEO Charlie Baker pointed out at the Council-sponsored event on technology in health care in January, the transparency provision is the only element of the health care reform bill that will reduce health care costs throughout the system. Once sunshine is allowed to reach all corners of the health care system, the publicly available information will create a more competitive marketplace and, ultimately, change consumer behavior to bring down health care costs without sacrificing quality.
Universal Health Care Ballot Question Looms
In November 2006, Massachusetts voters will decide whether or not the state should create a Government-run universal health care system. The language of the ballot question is an even more drastic and broad version of the House payroll tax and would have a detrimental effect on the state’s health care system and economy. The presence of the ballot question should put more pressure on state leaders to agree on a sensible plan for health care reform that increases access for the uninsured while protecting the state’s economic progress.
Duke Health Care Plan Redux?
Showing that the years have not enhanced his understanding of economic issues, former Governor Michael Dukakis has endorsed multiple versions of the payroll tax, including a reprise his infamous “head count” tax from 1988. At that time Dukakis was the Democratic frontrunner for President, and needed a high profile issue to tout on the national campaign trail. While his Universal Health Care plan passed the Legislature, the program was never implemented thanks to the leadership of former Governor William Weld with the support of the Council and other business groups.
In response to statements that a new payroll tax would harm the state economy, Dukakis recently told the State House News Service: “Are you really going to drive Wal-Mart out of town?” he said. “What, are you going to go to New Hampshire to buy a hammer?”
|
