MassVision2050 Innovation Sector Fact Packs
Innovation Sector Fact Packs: Data-Driven Insights & 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.
Data Highlights: Innovation Sector Fact Packs
Massachusetts is Positioned for Success:
Artificial Intelligence
- MA ranks 3rd nationally in attracting AI VC investment since 2020 ($22.2B).
- MA ranks 5th among states for new AI-related jobs in the U.S., 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 larger contributor of new offshore capacity in the next 5 years (expected to increase to 27th nationally in wind capacity from its current ranking, 36th).
- MA has been among the leading states in large-scale battery expansion over the past five years, currently ranked 7th.
Cybersecurity
- MA attracts the 3rd most cybersecurity VC investment nationally (4.8B).
FinTech
- Financial technology postings decline in MA and U.S. overall, although MA saw a slower decline (-18% in MA vs -26% in US)
Health Tech
- MA ranks 6th among states for health tech-related job postings in the U.S. in 2025.
- Several companies headquartered in MA are among the top health tech companies in the U.S. by overall job postings and revenue.
- MA ranks 2nd 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 145,000 employees creating $53B in GDP.
Semiconductors
- MA houses one of the largest semiconductor sectors in the country (ranked 5th).
- The state has the 5th highest wages among top states for semiconductor employment.
Software
- MA software companies invested $6.4B in R&D in 2022, MA ranks 3rd in software publishing, 4th in data hosting, and 4th in computer systems design industry R&D nationally.
- There have been ~145 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.
Clean Energy & Clean Technology
- MA’s share of total solar capacity is projected to decline as later adopters catch up.
- MA was an early mover into utility-scale battery investments and currently ranking 7th in the US for total energy storage capacity installed, however, moving forward, growth in MA is projected to trail the US as certain states (TX, CA, AZ, NV) make major investments in storage capacity.
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)
FinTech
- CA and NY lead in FinTech investment nationally, MA ranks 5th.
- FinTech is the 14th ranked vertical for venture capital investment in MA over the past five years ($4.7B).
Health Tech
- MA is experiencing slower growth than peer states in new health tech-related jobs (ranks 10th in growth among the top 15 states by number of job postings). Job posting in the U.S. grew at a faster rate than in MA (47% growth in MA vs 79% growth in US).
Life Sciences
- MA’s Life sciences growth is expected to slow in the coming years (4.6% historical, 1.5% forecasted 10-year growth rate) but is still expected to outpace US growth (2.4% historical, 1.0% forecasted 10-year growth rate).
- Harvard ranks 2nd nationally in Biological Sciences R&D expenditures, but of the large research universities in MA are in the top 20 for Health Sciences R&D expenditures.
Semiconductors
- MA’s semiconductor growth has been on an upward trajectory since 2020, though both job and GDP growth in the industry have trailed that of the U.S.
- MA does not produce enough graduates to fill open roles in some of the top in-demand engineering occupations in the semiconductor industry.
Software
- Although MA ranks 7th nationally in software workforce, projected job growth lags peers in the top 10 (leaders in growth are TX at 3.3% and Colorado at 3.0% CAGR 2024-2029).
Workforce Development as a Strategy to Enable Success:
Artificial Intelligence
- An estimated 68K MA-based workers have AI-related roles or skills, making up nearly 5% of total online AI profiles.
- MIT, Harvard, and Northeastern lead MA’s academic R&D in AI-related fields.
Clean Energy & Clean Technology
- Clean energy and tech account for a very small part of MA employment (0.03%), below the national average (0.06%).
Cybersecurity
- MA ranks 10th amongst U.S. states for cyber-related job openings; MA produces sufficient talent to fill top Cybersecurity-related roles.
FinTech
- ~0.4% of job postings in MA and the U.S. overall are for FinTech- related roles.
- Since 2021, there has been an increase in employers competing for FinTech talent in MA (from 326 to 383 employers).
Health Tech
- There are ~53 early-stage startups active in MA currently.
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, particularly in roles that require a PhD.
Semiconductors
- Over 12.5K semiconductor-related degrees (engineering, engineering technicians, physical science) were granted in 2023.
- MA institutions have ~$370M in active grants for semiconductor- related R&D from the National Science Foundation as of August 2025.
Software
- MIT invests the most in computer and information sciences R&D among MA’s higher education institutions ($120M in 2023), ranking 5th nationally.
- MA attracts the 3rd most software-related VC investment capital nationally ($18B).
2025 Innovation Sector Fact Packs
At the end of 2025, data across the key innovation sectors was updated. Click the links below to explore new data and analyses for the sectors.
Artificial Intelligence
2025 Fact Pack
Cybersecurity
2025 Fact Pack
FinTech
2025 Fact Pack
Health Tech
2025 Fact Pack
Life Sciences
2025 Fact Pack
Semiconductors
2025 Fact Pack
Software
2025 Fact Pack
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