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MassVision2050 Innovation Sector Fact Packs

Innovation Sector Fact Packs: Data-Driven Insight & Recommendations

The Innovation Sector Fact Packs are foundational to MassVision2050‘s initiatives. Led by Knowledge Partner McKinsey & Company, the Fact Packs establish a nuanced fact base around opportunities for nine key innovation sectors:

Artificial Intelligence

Blue Technology/Maritime Innovation (Blue Tech)

Clean Energy & Clean Technology

Cybersecurity

Financial Technology (FinTech)

Health Technology (Health Tech)

Life Science Innovation

Semiconductors

Software

The following methodology was used to understand how Massachusetts can become the global leader in each sector:

Macro Trends & Dynamics

  • Market size and share
  • Key players in Massachusetts and the rest of the United States (U.S.)
  • Historical and projected sector performance compared to the entire U.S. and peer states
  • Historical and projected sub-sector performance and growth drivers

Investments in Innovation

  • Top sources of talent and number of new graduates per year
  • Top in-demand occupations within the sector
  • Top in-demand skills requested in related occupations
  • Aggregate job postings and professional profiles that use keywords related to the sector

Talent Supply & Demand

  • Top sources of talent and number of new graduates per year
  • Top in-demand occupations within the sector
  • Top in-demand skills requested in related occupations
  • Aggregate job postings and professional profiles that use keywords related to the sector

With an overarching goal of driving GDP growth within the Commonwealth over the long-term, the findings of this multi-year, multi-stakeholder effort establish where we are already positioned for success, investment opportunities where lagging sectors will benefit from the increased capital infusion, and regulatory/policy support, and strategies to enable success in cultivating a competitive business climate and producing a rich, diverse, and robust pipeline of talent to fuel future growth.

Massachusetts is Positioned for Success:

Artificial Intelligence

  • MA ranks 3rd nationally in attracting AI VC investment since 2016 ($13.4B)
  • MA ranks 4th among states for new AI-related jobs in the U.S. since 2019, making up ~5% of the U.S. total

Artificial Intelligence

  • MA ranks 3rd nationally in attracting AI VC investment since 2016 ($13.4B)
  • MA ranks 4th among states for new AI-related jobs in the U.S. since 2019, making up ~5% of the U.S. total

Clean Energy & Clean Technology

  • MA’s offshore wind power potential is among the highest in the U.S.; MA is positioned to be a major contributor of new offshore capacity over the next three years
  • MA has been among the leading states in large-scale battery expansion over the past five years, currently ranked 4th

Clean Energy & Clean Technology

  • MA’s offshore wind power potential is among the highest in the U.S.; MA is positioned to be a major contributor of new offshore capacity over the next three years
  • MA has been among the leading states in large-scale battery expansion over the past five years, currently ranked 4th

Cybersecurity

  • MA attracts the 3rd most cyber VC investment nationally

Cybersecurity

  • MA attracts the 3rd most cyber VC investment nationally

Financial Technology

  • Growth of financial technology postings in MA was faster than the U.S., leading peers over the past three years

Financial Technology

  • Growth of financial technology postings in MA was faster than the U.S., leading peers over the past three years

Health Technology

  • MA ranks 4th among states for new health tech-related jobs in the U.S. in 2022
  • Several companies headquartered in MA are among the top health tech companies in the U.S. by overall job postings and revenue
  • MA ranks 3rd for health tech-related patents in the U.S. granted over the past five years

Health Technology

  • MA ranks 4th among states for new health tech-related jobs in the U.S. in 2022
  • Several companies headquartered in MA are among the top health tech companies in the U.S. by overall job postings and revenue
  • MA ranks 3rd for health tech-related patents in the U.S. granted over the past five years

Life Sciences

  • MA is home to the 2nd largest life sciences workforce in the country with more than 130,000 employees creating $45B in GDP

Life Sciences

  • MA is home to the 2nd largest life sciences workforce in the country with more than 130,000 employees creating $45B in GDP

Semiconductors

  • MA houses one of the largest semiconductor sectors in the country (ranked 5th)
  • The state has the 3rd highest wages among top states for semiconductor employment

Semiconductors

  • MA houses one of the largest semiconductor sectors in the country (ranked 5th)
  • The state has the 3rd highest wages among top states for semiconductor employment

Software

  • MA software companies invested $3.5B in R&D in 2019, MA ranks 3rd in both software publishing and data hosting, and 4th in computer systems design industry R&D nationally
  • There have been over 100 successful exits by software-related startups in the past five years

Software

  • MA software companies invested $3.5B in R&D in 2019, MA ranks 3rd in both software publishing and data hosting, and 4th in computer systems design industry R&D nationally
  • There have been over 100 successful exits by software-related startups in the past five years

Investment Opportunities:

Artificial Intelligence

  • CA, NY, and WA are the clear national leaders as hubs for AI-leading companies and intellectual property

  • Local employers must compete on a national scale, with MA universities only retaining ~40% of graduates in-state

Artificial Intelligence

  • CA, NY, and WA are the clear national leaders as hubs for AI-leading companies and intellectual property

  • Local employers must compete on a national scale, with MA universities only retaining ~40% of graduates in-state

Clean Energy & Clean Technology

  • MA’s share of total solar capacity is projected to decline as later adopters catch up

  • MA’s share of large-scale battery capacity is projected to decline as specific states make major investments

Clean Energy & Clean Technology

  • MA’s share of total solar capacity is projected to decline as later adopters catch up

  • MA’s share of large-scale battery capacity is projected to decline as specific states make major investments

Cybersecurity

  • MA ranks 14th amongst leading states in the cybersecurity workforce
  • Cyber hubs are centered around established tech ecosystems (CA and NY) and government cybersecurity hubs (DC, VA, and MD)

Cybersecurity

  • MA ranks 14th amongst leading states in the cybersecurity workforce

  • Cyber hubs are centered around established tech ecosystems (CA and NY) and government cybersecurity hubs (DC, VA, and MD)

Financial Technology

  • CA and NY lead in FinTech investment nationally
  • FinTech ranks 17th for venture capital investment in MA over the past five years

Financial Technology

  • CA and NY lead in FinTech investment nationally
  • FinTech ranks 17th for venture capital investment in MA over the past five years

Health Technology

  • MA is experiencing slower growth than peer states in new health tech-related jobs. Job posting in the U.S. grew at a faster rate than in MA

Health Technology

  • MA is experiencing slower growth than peer states in new health tech-related jobs. Job posting in the U.S. grew at a faster rate than in MA

Life Sciences

  • Life sciences growth is expected to lag the U.S. average in the coming years, a sharp reversal from the trend over the past decade
  • None of the large research universities in MA are in the top 20 for life science research funding

Life Sciences

  • Life sciences growth is expected to lag the U.S. average in the coming years, a sharp reversal from the trend over the past decade
  • None of the large research universities in MA are in the top 20 for life science research funding

Semiconductors

  • Both job and GDP growth in the MA semiconductor industry has trailed the U.S.

  • MA does not produce enough graduates to fill open roles in many of the top in-demand occupations in the semiconductor industry

Semiconductors

  • Both job and GDP growth in the MA semiconductor industry has trailed the U.S.

  • MA does not produce enough graduates to fill open roles in many of the top in-demand occupations in the semiconductor industry

Software

  • MA does not produce enough graduates to fill open roles in most tech occupations, local employers must also compete on a national scale

Software

  • MA does not produce enough graduates to fill open roles in most tech occupations, local employers must also compete on a national scale

Workforce Development as a Strategy to Enable Success:

Artificial Intelligence

  • An estimated 14,000 MA-based workers have AI-related roles or skills, making up nearly 5% of total online AI profiles

  • MIT, Harvard, and UMass lead MA’s academic R&D in AI-related fields and rank in the top 20 nationally

Artificial Intelligence

  • An estimated 14,000 MA-based workers have AI-related roles or skills, making up nearly 5% of total online AI profiles

  • MIT, Harvard, and UMass lead MA’s academic R&D in AI-related fields and rank in the top 20 nationally

Clean Energy & Clean Technology

  • Clean energy and tech account for a very small part of MA employment (0.02%), below the national average

  • MA’s academic R&D in clean energy and tech is led by MIT and Northeastern, the only institutions ranked in the top 25 nationally (7th and 21st, respectively)

Clean Energy & Clean Technology

  • Clean energy and tech account for a very small part of MA employment (0.02%), below the national average

  • MA’s academic R&D in clean energy and tech is led by MIT and Northeastern, the only institutions ranked in the top 25 nationally (7th and 21st, respectively)

Cybersecurity

  • MA ranks 10th amongst U.S. states for new cyber-related jobs; while demand has outstripped the availability of talent, MA is one of just two states among the top 10 that produce nearly as many new graduates with relevant skills as are demanded by industry

Cybersecurity

  • MA ranks 10th amongst U.S. states for new cyber-related jobs; while demand has outstripped the availability of talent, MA is one of just two states among the top 10 that produce nearly as many new graduates with relevant skills as are demanded by industry

Financial Technology

  • ~0.6% of job postings in MA and the U.S. overall are for FinTech-related roles

  • Since 2019, ~300 new companies have been seeking FinTech-related talent

Financial Technology

  • ~0.6% of job postings in MA and the U.S. overall are for FinTech-related roles

  • Since 2019, ~300 new companies have been seeking FinTech-related talent

Health Technology

  • There are ~100 active health tech startups in MA currently

  • Since 2019, over 200 new companies have been seeking health tech-related talent

Health Technology

  • There are ~100 active health tech startups in MA currently

  • Since 2019, over 200 new companies have been seeking health tech-related talent

Life Sciences

  • There is a large life sciences talent pipeline within MA, but the number of graduates annually is not sufficient to meet local demand for talent

Life Sciences

  • There is a large life sciences talent pipeline within MA, but the number of graduates annually is not sufficient to meet local demand for talent

Semiconductors

  • ~12,000 semiconductor-related degrees (engineering, engineering technicians, physical science) were granted in 2020

  • MA institutions have ~$66M in active grants for semiconductor-related R&D from the National Science Foundation as of August 2022; BU and MIT rank 2nd and 8th nationally

Semiconductors

  • ~12,000 semiconductor-related degrees (engineering, engineering technicians, physical science) were granted in 2020

  • MA institutions have ~$66M in active grants for semiconductor-related R&D from the National Science Foundation as of August 2022; BU and MIT rank 2nd and 8th nationally

Software

  • MIT invests the most in computer and information sciences R&D among MA’s higher education institutions ($112M in 2020), ranking 6th nationally

  • MA attracts the 3rd most software-related VC investment capital nationally

Software

  • MIT invests the most in computer and information sciences R&D among MA’s higher education institutions ($112M in 2020), ranking 6th nationally

  • MA attracts the 3rd most software-related VC investment capital nationally

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