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Methodology
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2024 Fact Packs

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 2019 ($16.4B).
  • 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 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 7th.

Cybersecurity

  • MA attracts the 3rd most cyber VC investment nationally ($4.2B).

Financial Technology

  • FinTech postings declined in MA and U.S. overall, although MA saw a slower decline (-7% in MA vs -10% in U.S.).

Health Technology

  • MA ranks 4th among states for new health tech-related jobs in the U.S. in 2023.

  • 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 143,000 employees creating $47B 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.

Software

  • MA software companies invested $4.4B in R&D in 2021, MA ranks 3rd in software publishing, 4th in data hosting, and 5th in computer systems design industry R&D nationally.

  • There have been ~175 successful exits by software-related startups in the past five years.

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.

Cybersecurity

  • MA attracts the 3rd most cyber VC investment nationally.

Financial Technology

  • Growth of FinTech 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.

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.

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 ~50% 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 (from 7th nationally in 2023 to 16th in 2027, based on planned projects) as specific states make major investments.

Cybersecurity

  • MA ranks 11th 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 11th for venture capital investment in MA over the past five years ($5.3B).

Health Technology

  • MA is experiencing slower growth than peer states in new health tech-related jobs (ranks 11th 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 (12% growth in MA vs 31% growth in the U.S.).

Life Sciences

  • MA's life sciences growth is expected to slow in the coming years (5.3% historical, 2.6% forecasted 10-year growth rate), but is still expected to outpace U.S. growth (2.6% historical, 1.4% forecasted 10-year growth rate).

  • None of the large research universities in MA are in the top 20 for life science research funding.

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 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.

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.

Cybersecurity

  • MA ranks 11th 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.

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.

Semiconductors

  • Both job and GDP growth in the MA semiconductor industry have 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.

Workforce Development as a Strategy to Enable Success:

Artificial Intelligence

  • An estimated 26,000 MA-based workers have AI-related roles or skills, making up nearly 6% of total online AI profiles.

  • MIT, Harvard, and UMass lead MA’s academic R&D in AI-related fields and rank in the top 25 nationally.

Clean Energy & Clean Technology

  • Clean energy and tech account for a very small part of MA employment (0.02%), below the national average (0.05%).

  • MA’s academic R&D in clean energy and tech is led by MIT and Woods Hole Oceanographic Institute, the only institutions ranked in the top 25 nationally (13th and 16th, 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.

Financial Technology

  • ~0.3% of job postings in MA and the U.S. overall are for FinTech-related roles.

  • Between 2019 and 2023, there have been ~100 fewer companies seeking FinTech-related talent.

Health Technology

  • There are ~60 active health tech startups in MA currently.

  • Between 2019 and 2023, over 50 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.

Semiconductors

  • Over 12,000 semiconductor-related degrees (engineering, engineering technicians, physical science) were granted in 2022.

  • MA institutions have ~$26M in active grants for semiconductor-related R&D from the National Science Foundation as of January 2024; MIT and Northeastern rank 16th and 33rd in total funding nationally.

Software

  • MIT invests the most in computer and information sciences R&D among MA’s higher education institutions ($125M in 2022), ranking 4th nationally.

  • MA attracts the 3rd most software-related VC investment capital nationally ($17B).

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).

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.

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.

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.

Learn More

2024 Innovation Sector Fact Packs

In the spring of 2024, data across the key innovation sectors was updated. Click the links below to explore new data and analyses for the sectors.

Artificial Intelligence

2024 Fact Pack

Explore the Data

Clean Energy & Clean Technology

2024 Fact Pack

Explore the Data

Cybersecurity

2024 Fact Pack

Explore the Data

FinTech

2024 Fact Pack

Explore the Data

Health Technology

2024 Fact Pack

Explore the Data

Life Sciences

2024 Fact Pack

Explore the Data

Semiconductors

2024 Fact Pack

Explore the Data

Software

2024 Fact Pack

Explore the Data

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