The High Tech Agenda

State Business Competitiveness, Government News, & Public Policy Updates

Recent data continues to show that Massachusetts is facing sustained competitiveness challenges that directly affect employers’ ability to grow, attract talent, and invest in the Commonwealth. These are structural challenges—not short‑term disruptions—and they require sustained, coordinated leadership.

A March 2026 State Competitiveness Report from the Massachusetts Society of CPAs reinforces trends employers have experienced firsthand. For the fourth consecutive year, the report finds that outmigration remains a concern, with Massachusetts continuing to see a net loss of income to lower‑tax states, particularly among high‑income taxpayers. Notably, 90% of CPAs surveyed say tax policy influences relocation decisions, and nearly 70% report that hiring is more difficult than in prior years, citing talent shortages, rising salary expectations, and burnout. The cost of doing business remains the top concern for employers statewide.

Newly released IRS state‑to‑state migration data provides additional clarity on the magnitude of these trends. Following the passage of the state’s income surtax, nearly 30,000 more people left Massachusetts than moved into the state between 2022 and 2023, ranking among the highest net outmigration totals nationally. While fewer people left than during the prior year, the total loss of Adjusted Gross Income (AGI) increased to an estimated $4.2 billion, up from $3.9 billion the year before, indicating that the departures skewed toward higher‑income households.

These challenges extend beyond individual taxpayers. Workforce volatility in key innovation sectors has also picked up in early 2026, with the Boston Business Journal reporting that 14 Massachusetts life sciences companies announced layoffs affecting at least 745 employees in the first quarter alone. While this represents an improvement from early 2025, it marks a clear increase from late 2025 and highlights continued uncertainty across both startups and large employers. These trends point to ongoing pressure on hiring, investment, and long-term operating decisions.

Comparative data show that these outcomes are not inevitable. A recent Pioneer Institute analysis comparing Massachusetts and North Carolina highlights how differing policy environments can influence economic performance. Between 2020 and 2025, Massachusetts lost approximately 18,000 private‑sector jobs, while North Carolina added nearly 450,000. Had Massachusetts matched North Carolina’s rate of job growth, the Commonwealth would today have hundreds of thousands more private‑sector jobs and substantially higher tax revenues. 

These challenges exist alongside Massachusetts’ enduring strengths in innovation, higher education, and research. At the same time, the data reinforce both the scale of the competitiveness issues facing the Commonwealth and the growing urgency of addressing them. They also underscore the importance of the work underway by the Council to better define these challenges, elevate them in public and policy discussions, and help shape a more credible, data-driven path forward. Sustained, coordinated leadership will be essential to ensuring Massachusetts remains competitive in attracting talent, investment, and long-term economic growth.

The Mass Opportunity Alliance (MOA) plays a critical role in translating the data into broader public understanding and informed policy discussions. 

A recent MOA analysis of IRS migration data found that in 2023, Massachusetts experienced the fourth‑highest net outflow of AGI of any state in the country. States with the strongest inflows of income tended to have lower overall tax burdens, while higher‑tax states—including Massachusetts—saw sustained losses of both people and income. 

This analysis has helped shape broader media and policy conversations, including a March 27, 2026 Wall Street Journal editorial noting that unlike many other states, Massachusetts has not seen a post‑pandemic reversal in outmigration trends, particularly among higher earners.  

By grounding the competitiveness conversation in credible, publicly available data, MOA helps ensure that discussions about Massachusetts’ future are anchored in evidence and focused on practical, long-term solutions. 

The Council and its members are actively engaged in government‑led initiatives focused on key innovation and economic sectors, contributing employer insight and industry perspectives as state leaders address long‑term competitiveness and economic growth.

The Governor’s Competitiveness Council is expected to release initial recommendations later this summer, with a focus on issues central to Massachusetts employers, including tax structure, business climate, and workforce priorities.

With Council President Chris Anderson serving on the Competitiveness Council’s Tax & Business Climate Subcommittee, the Council ensures the perspectives of the innovation economy are well represented in this process. The coming months will be critical as these recommendations take shape and inform future policy discussions.

As Massachusetts advances efforts to support the defense sector, the Council and its members are contributing to the Governor’s Defense Industry Task Force. 

In the Commonwealth, the defense sector’s economic impact is comparable to that of the life sciences industry, supporting more than 130,000 jobs, contributing $15.2 billion in annual labor income, and generating $48.6 billion in annual economic output. 

The Task Force is focused on developing a more coordinated, statewide approach to strengthening the defense sector, with particular attention to job creation, talent development, technology transition, and long‑term economic growth tied to national security priorities. As part of this engagement, the Council hosted a member briefing in March to discuss the Task Force’s charge and the broader defense landscape, reflecting growing interest among employers in the sector’s role within Massachusetts’ innovation economy. 

As this work continues, the Task Force represents an important government‑led effort to align economic development strategies, workforce needs, and federal opportunities in a rapidly evolving national security environment, while ensuring that employer perspectives help inform ongoing discussions.

MHTC News & Updates

The second session of the MassVision2050 AI Leadership Initiative took place on April 7, featuring Red Hat President and CEO Matt Hicks. CEOs and senior executives from Council member organizations joined Matt for a candid, peer-to-peer discussion where he shared how he is personally leading the implementation of AI across his organization and what other leaders must do to succeed.

Drawing on Red Hat’s experience at the intersection of enterprise technology and open innovation, the conversation highlighted the importance of strong foundations in infrastructure, governance, and talent as organizations scale AI‑enabled capabilities.

A summary of key takeaways and insights from the discussion is available upon request to Council members. Members can contact Jenny Enfield at je***@**tc.org to obtain a copy.

The next AI Leadership Initiative session will take place in the fall, hosted by Bullhorn. Additional details and formal invitations will be distributed in the coming months.

The MassVision2050 Cybersecurity Community will host its next member‑only program on May 13, focused on Cyber Risk, Resilience, and Governance in the Age of AI. As cyber threats grow in scale, complexity, and financial impact, and increasingly intersect with enterprise AI strategies, the program is designed to support informed, cross‑functional leadership discussions.

Co-hosted by Goodwin Procter and WTW, this member-only session will bring together CIOs, CISOs, and senior executives for an in-depth discussion on two critical leadership challenges: quantifying cyber risk and establishing effective AI governance. The program will conclude with a networking reception, providing an opportunity for peer exchange and continued discussion.

Members have already received the formal invitation with the registration link. Those interested in attending may contact Jenny Enfield to request the RSVP link or to obtain additional information about the program.

Work continues on the Skills & Talent Intelligence Capability, an effort under the MassVision2050 Engaged Workforce workstream. Developed in collaboration with MITRE, the project is focused on equipping employers with clearer insight into workforce dynamics, skills demand, and talent availability to support hiring strategy, workforce planning, and long-term talent pipeline development.

As development progresses, the initiative is transitioning from prototype to a scaled capability housed at Bentley University.

An overview of the project’s objectives, structure, and anticipated applications will be shared with members at the Council’s 2026 Annual Meeting, providing important context for how this capability will support employer decision-making and broader competitiveness efforts across the innovation economy.

Members interested in getting involved should contact Council President Chris Anderson at ch***@**tc.org for more information.

The Council’s 2026 Annual Meeting will bring together senior executives, partners, and stakeholders for a cocktail reception and candid exchange focused on the Council’s competitiveness agenda and MassVision2050 priorities. The program will include a dedicated update on the Skills & Talent Intelligence Capability, along with broader discussion of talent, innovation, and economic growth challenges shaping Massachusetts’ future. 

As the Commonwealth navigates a shifting economic and policy landscape, the June 2 Annual Meeting will provide an opportunity to reflect on progress to date, share momentum across priority initiatives, and discuss next steps in strengthening Massachusetts’ long-term economic foundation. 

Registration is now open, and members are encouraged to register early. 

Contact ***@**tc.org” target=”_blank” rel=”noopener”>Jenny Enfield with any questions related to registration or sponsorships. 

Support the MassVision2050 Mission

Advancing Massachusetts’ long-term economic competitiveness, innovation capacity, and workforce strength requires sustained leadership—and meaningful investment. The Massachusetts High Technology Council’s work to advance the MassVision2050 agenda is made possible through the engagement and financial support of our members and partners.

Organizations can support the Council’s mission through several avenues, including charitable contributions to the MassVision Foundation, support for the Mass Opportunity Alliance, and sponsorship of MassVision2050 initiatives. These investments directly enable rigorous, data-driven policy analysis, cross-sector collaboration, and scalable initiatives that strengthen the Commonwealth’s innovation economy and expand opportunity statewide.

We are grateful for the continued leadership of our members and welcome conversations with organizations interested in deepening their partnership with the Council and advancing a shared vision for Massachusetts’ future.

To confirm your support or explore the funding approach that best aligns with your goals, please contact Council President Chris Anderson at ch***@**tc.org.