AS PREPARED FOR DELIVERY:
Governor Deval L. Patrick
Hong Kong Financial Services Roundtable
Friday, December 13, 2013
Good morning, ladies and gentlemen, and thank you for joining us this morning and for the warm welcome you have extended to members of our delegation. Coming from Boston, with our depth in financial services, to Hong Kong, one of the great financial centers in the world, presents the marvelous opportunity to share perspectives on the challenges and opportunities before the sector.
As you know, financial services is a very important part of the Massachusetts economy.
The mix of players ranges from local community banks (who serve our small businesses), to venture capital firms (who support a booming innovation economy in such fields as life sciences and high tech), to some of the world’s leading asset managers, mutual funds, insurance companies and commercial banks.
Massachusetts is the birthplace of venture capital and the mutual fund and continues to be a leader in both markets, accounting for more venture capital per capita than any other state and 17% of all U.S. mutual fund assets under management. Three of the top 10 retirement money managers call Boston home, making Massachusetts the number one cluster of market leaders in the country.
The sector employs more than 170,000 people and generates some 10% of the state’s total economic activity
Although there is tremendous diversity within our financial services sector, there is a consistent theme: large and small investors rely on Massachusetts firms for long-term value and wealth creation. In this way, Massachusetts and Hong Kong are highly complementary, and there is much room for mutually beneficial collaboration.
Financial services plays a critical role in our overall strategy for economic growth in Massachusetts. In addition to reducing taxes, simplifying regulation and otherwise cutting business costs, our strategy is to invest strategically in education, innovation and infrastructure.
We invest in education because, with over 300 universities, research institutions and teaching hospitals within a 90-minute drive of downtown Boston, brainpower is our most abundant resource.
We invest in innovation because enabling and encouraging those high growth industries which depend on brainpower is the best way for Massachusetts to take advantage of the knowledge explosion happening in the world economy today. Examples include the life sciences and biotech, clean and alternative energy, robotics, big data, cyber security, digital gaming, and advanced manufacturing.
And finally we invest in infrastructure -- everything from roads, rails and bridges to broadband expansion and health care -- because a modern public infrastructure is a platform for private sector investment and personal ambition.
This has been a successful strategy in Massachusetts on a whole host of measures. In addition to strong economic and job growth, we are first in America in student achievement, entrepreneurial activity, economic competitiveness, health care coverage, clean tech and other high tech investments, energy efficiency, life sciences and biotech, and much more. Our budgets are also balanced and on time, our bond rating is the highest in our history, and our rainy day fund in one of the largest in the country.
Because financial services enables so much of what we are trying to do, we pay close attention to their needs.
We work to assure that our public and private educational institutions are providing the talent they need at every level. We are attentive to striking the right balance in financial regulations between protecting investors and enabling innovation within the sector and consistency with other jurisdictions.
And finally, with respect to financial services and all of the growth industries in Massachusetts, we encourage and assist the leaders to look out. The doors of Massachusetts open to the world, and we are eager to strengthen our existing global relationships and build new ones. With the world in the midst of a knowledge explosion, capital more globalized than ever and talent trying to be as well, it is important for us to collaborate with innovators, inventors and investors around the world.
That's why we are here in Hong Kong -- because we know that if we want to sharpen our edge in the innovation economy, and help to shape the future, we need to partner with you.
So, in that spirit, we thank you again for being here. I look forward to working together.