The High Tech Agenda
June 2024
MassVision2050 News & Updates
Whitepaper: MassVision2050 Details a Strategic Blueprint for Making Massachusetts the Global Leader in Applied AI in Healthcare & Life Sciences
As part of MassVision2050, the Council and Boston Consulting Group (BCG)—in collaboration with an advisory council of 13 senior leaders from industry (biotech/biopharma, MedTech, life sciences solutions), hospitals, and academia—examined how artificial intelligence (AI) could impact and strengthen Massachusetts’ leading position in healthcare and life sciences. The initiative is detailed in a comprehensive whitepaper that outlines a strategic blueprint designed to propel the Commonwealth to the forefront of healthcare and life science innovation.
Titled “Becoming the Global Leader in Applied AI for Healthcare & Life Sciences,” the MassVision2050 whitepaper articulates a visionary strategy to establish Massachusetts as the global leader in applied AI for healthcare and life sciences. The strategic framework put forward is designed to operationalize this vision through a concerted effort across public and private sectors, focusing on three programmatic areas:
As part of MassVision2050, the Council and Boston Consulting Group (BCG)—in collaboration with an advisory council of 13 senior leaders from industry (biotech/biopharma, MedTech, life sciences solutions), hospitals, and academia—examined how artificial intelligence (AI) could impact and strengthen Massachusetts’ leading position in healthcare and life sciences. The initiative is detailed in a comprehensive whitepaper that outlines a strategic blueprint designed to propel the Commonwealth to the forefront of healthcare and life science innovation.
Titled “Becoming the Global Leader in Applied AI for Healthcare & Life Sciences,” the MassVision2050 whitepaper articulates a visionary strategy to establish Massachusetts as the global leader in applied AI for healthcare and life sciences. The strategic framework put forward is designed to operationalize this vision through a concerted effort across public and private sectors, focusing on three programmatic areas:
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Advancing Breakthrough Innovation
AI can expedite the development and delivery of healthcare products, making them more accessible and affordable for patients.
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Enhancing Patient Care Delivery
AI applications can improve the quality and accessibility of healthcare services, enhancing patient outcomes and promoting health equity.
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Improving Healthcare System Efficiency
Integrating AI can reduce administrative burdens on healthcare professionals, allowing them to focus more on patient care and reducing burnout.
To achieve this ambition, the whitepaper identifies five ecosystem enablers that support the three programmatic areas. Talent & Workforce and Data are highlighted as two critical near-term priorities.
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Talent & Workforce:
Massachusetts is facing an unusually constrained labor market, which is projected to worsen due to demographic shifts such as the aging population and domestic outmigration. The whitepaper analyzed the current state of the workforce and AI’s impact, finding:
- The Commonwealth is a leader in producing AI talent, with the highest per capita graduates in AI-related fields of any state and the fourth highest overall. However, retention is low, with only ~38% of AI-related graduates staying in the state after graduation, compared to New York, California, and Texas, which each retain more than 80% of AI-related graduates.
- The demand for AI expertise in healthcare and life science roles is growing rapidly, but less than 5% of AI graduates in Massachusetts enter into roles in healthcare and life sciences.
- The rise of AI is expected to reshape occupations in the healthcare and life sciences, which together employ ~16% of the state’s workforce (~607,000 total employees). AI is likely to augment, rather than replace, most occupational activities, and workers will require proactive upskilling in order to adopt AI effectively.
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Data:
High-quality, diverse data is essential for developing AI tools that improve healthcare without perpetuating biases. Health data accounts for nearly one-third of all data generated today, primarily owing to the digitization of health records, the use of intelligent medical devices that produce growing quantities of data, and the surge in user-generated data from wearable technologies and digital health products.
Despite the growing abundance of health data, approximately 97% remains unused. This under-use has delayed the development of health AI tools, and AI projects typically spend ~80% of the project execution time on data handling.
The whitepaper identifies three major barriers to harnessing health data for AI:
- Data Security and Privacy Concerns
- Limited Interoperability
- Unclear Technical Standards
AI presents a once-in-a-generation opportunity to cement Massachusetts’ leadership in healthcare and life sciences. By committing to a wide-ranging and well-funded effort, Massachusetts will help realize the potential of AI to foster medical breakthroughs, improve patient outcomes, and advance health equity.
2024 Innovation Sector Fact Pack Data Updates
MassVision2050 continues to be anchored by critical data that measures our innovation economy. In collaboration with Knowledge Partner McKinsey & Company, we recently released updated data and analyses covering market size, talent needs, and growth prospects across eight key sectors crucial to Massachusetts’ success over the next 20-30 years. These sectors include Artificial Intelligence, Clean Energy & Clean Technology, Cybersecurity, FinTech, Health Technology, Life Sciences, Semiconductors, and Software. Updated annually, the Fact Packs aim to establish Massachusetts as a global leader in these sectors.
The methodology used to compile the Fact Packs involves analyzing macro trends and dynamics, investments in innovation, and talent supply and demand. The data highlights Massachusetts’ strengths, such as ranking third nationally in AI venture capital investment and having a significant life sciences workforce contributing to the state’s GDP. The Fact Packs also identify areas for improvement and investment opportunities, such as the need to produce more graduates to meet the demand in tech occupations and the projected decline in Massachusetts’ share of solar and large-scale battery capacity.
These Fact Packs serve as a strategic tool to drive long-term GDP growth within the Commonwealth by identifying successful sectors, potential investment opportunities, and strategies to cultivate a competitive business climate and robust talent pipeline.
Click here to view and download each Innovation Sector Fact Pack.
Stay tuned for key highlights on Massachusetts’ innovation sectors that we’ll be sharing in the coming weeks!
MassVision2050 & the Governor’s Economic Development Strategy
Massachusetts Economic Development Secretary, Yvonne Hao, again emphasized the alignment between the Healey-Driscoll Administration’s Economic Development Plan and MassVision2050 during a MassVision2050 discussion on June 4. Hosted by McKinsey & Company, MassVision2050: Shaping Economic Development in Massachusetts also featured BCG Managing Director & Senior Partner, Val Panier, Ph.D., who presented the MassVision2050 whitepaper, Becoming the Global Leader in Applied AI for Healthcare & Life Sciences, publicly for the first time, and McKinsey Partner John Chartier, who provided a preview of the 2024 Innovation Sector Fact Pack data updates.
Originally filed by Governor Healey in March, the economic development bill has begun to advance in the Legislature, with the House taking up the bill for debate this week. This bill contains several provisions that align with the ideas being generated under MassVision2050 and discussed during the June 4 event.
CIOs & CISOs Gather for Inaugural MassVision2050 Cybersecurity Meeting
On June 11, CIOs, CISOs, and other senior executives responsible for information security gathered for the inaugural MassVision2050 CIO Cybersecurity Community (CCC) meeting, hosted by PTC. The meeting, which focused on “Incident Response Best Practice and Cyber Resilience,” marked the beginning of a vital series of off-the-record cybersecurity discussions.
Participants engaged in sessions exploring critical topics, such as proactive incident response strategies and enhancing organizational cyber resilience. Keynote remarks from Robert Lee, CEO and Co-Founder of Dragon, Inc., provided valuable insights into emerging cyber threats and strategic responses.
Recognizing the critical need to enhance our cybersecurity posture amidst the rising global cybercrime landscape, participants fostered discussions on cyber resilience and ways to combat cyber threats.
Our next two meetings will take place in the fall, presenting a two-part series focused on “AI and Cybersecurity: Exploring the Offensive and Defensive Opportunities.” Specific locations and times will be announced as soon as practical.
CIOs, CISOs, and CTOs—we invite you to reach out to Council President Chris Anderson to explore how you can be part of future discussions to share expertise and benefit from your colleagues’ insights and best practices that enhance cybersecurity capabilities.
MassVision2050 Cybersecurity Community Meets with Legislators to Discuss Cybersecurity & Data Privacy Bills
On June 13, members of the MassVision2050 CIO Cybersecurity Community Core Team met with the Chairs of the Legislature’s Joint Committee on Advanced Information Technology, the Internet and Cybersecurity to discuss proposed legislation that would establish state rules around cybersecurity and data privacy. Participants in the briefing had an opportunity to share their perspective and feedback on these proposals with the legislators.
Financial Innovation & Research Center’s AI Focus
During the Spring 2024 Board Meeting, the Directors were briefed on the progress of the Financial Innovation & Research Center (FIRC) by its Executive Director, Sumedh Mehta. FIRC is set to produce original Applied AI research aimed at enhancing business efficiency and return on investment. Since AI is a rapidly evolving technology with substantial economic implications, generating cutting-edge applied research will position FIRC with an IP-edge that will help shape business applications, influence policy, and benefit society through AI literacy programs for the future workforce.
STEMatch Receives State Grant; Seeks Employer Partners for COMPETE
On June 26, it was announced that Council partner STEMatch is a recipient of the Senator Kenneth J. Donnelly Workforce Success Grants, which are funded by the Executive Office of Labor and Workforce Development and administered by Commonwealth Corporation through the state’s Workforce Competitiveness Trust Fund. With this grant, STEMatch will provide training and placement services to 130 unemployed and underemployed participants for Computer and Information Analyst, Computer Support Specialist, Software and Web Developer, Programmer, and Tester positions.
STEMatch is seeking employer partners who are interested in accessing a currently untapped, majority/minority pool of qualified technical talent to partner for COMPETE, an innovative business-defined program that helps companies fill hard-to-hire tech jobs and expand the diversity of their workforce. This company-school collaboration provides the work skills training, mentoring, and internship experience to 1–2-year college students required for them to succeed in entry-level software development, cybersecurity, IT support, and electronics/electrical engineering jobs. COMPETE will be expanding to support lab technician and AI/Data Science roles in 2025.
If your company is interested in partnering with STEMatch, please contact STEMatch Founder Chris Zannetos.
State Government News & Public Policy Updates
New MassCPAs Report: High-Income Earners & Businesses are Leaving the State at an Alarming Rate
In its 2024 Public Policy and State Competitiveness Report, the Massachusetts Society of Certified Public Accountants (MassCPAs) underscores a troubling trend the Council has been bringing attention to: high-income earners and businesses are leaving the state at alarming rates, driven in part by the newly enacted millionaires’ tax. The report reveals that two-thirds of accounting professionals surveyed have had at least one high-income client relocate out of state in the past year alone. A staggering 90% of respondents indicate that their high-income clients are contemplating similar moves within the next year, marking an 8% increase from the previous year’s findings.
The millionaires’ tax emerges as a significant catalyst influencing these relocation decisions, with 64% of respondents citing it as one of the primary reasons behind their clients’ decisions to move. This exodus poses substantial implications for Massachusetts, not only in terms of immediate state revenue impacts but also for long-term economic vitality and job creation.
The report builds upon a study conducted in 2023, revealing a worsening situation that demands immediate attention from policymakers. As more affluent individuals and businesses consider leaving the state, the potential ramifications extend beyond tax revenues, impacting investment patterns and employment opportunities within Massachusetts.
The findings from the 2024 report highlight a critical need for strategic interventions to address these concerning trends and stabilize the state’s economic landscape amidst ongoing fiscal challenges.
Key Findings from the 2024 MassCPAs Report Include:
- Two-thirds of accounting professionals surveyed reported that at least one of their high-income clients relocated out of state in the last year.
- Many high-income residents are seriously considering a move, with 90% of respondents indicating their clients are considering leaving in the next year. This has increased by 8% in just one calendar year, from 82% of individuals surveyed in 2023.
- The millionaires’ tax is a significant factor in relocation decisions, with 64% of respondents reporting it as one of the reasons their clients are moving.
- Businesses are also feeling the squeeze, with 22% of respondents indicating their business clients are considering leaving or shifting growth away from Massachusetts.
November 2024 MCAS Ballot Question
In April, the Special Legislative Committee responsible for reviewing each of the proposed ballot questions for the upcoming November elections released its report on the initiative that would eliminate the use of the MCAS exam as a high school graduation requirement. The Committee’s report underscored the same issues that the Council, along with other opponents of the ballot question, have emphasized regarding the removal of a uniform statewide educational benchmark in exchange for over 300 disparate local standards. As this proposal advances to the November ballot, the Council will continue its work to defeat this ballot measure.
Dedicated to Growth…Committed to Action
Our tagline, “Dedicated to Growth…Committed to Action” highlights a distinctive quality of our members that sets us apart in the Massachusetts business landscape. As an organization, we don’t merely advocate for progress; we actively drive it. Our commitment lies in tangible results, collaborative initiatives, and unwavering support of the tech-driven economy in Massachusetts. Through principled leadership and strategic action, we drive growth, innovation, and prosperity for our members and the Commonwealth.
In 2024, almost every business is a tech/innovation-driven business and should find a “fit” within our membership. Yet not every business leader is “committed to action.” The Council welcomes senior executive leaders with principled leadership qualities to build on our decades-long positive leadership.
If you are not currently a member of the Council and are interested in strengthening our impact by joining the team to help advance our agenda to create and protect a strong and competitive Massachusetts, contact Council President Chris Anderson.