Press Release  Governor Healey Launches DRIVE Initiative to Create Thousands of Jobs, Grow Research and Innovation Economy

Boston — Governor Maura Healey today announced that she is launching the Discovery, Research and Innovation for a Vibrant Economy (DRIVE) Initiative to grow Massachusetts’s world-renowned research and innovation economy and create thousands of new jobs. As part of DRIVE, Governor Healey will file legislation proposing $400 million in state funding to retain world-class talent, preserve and create jobs across industries, and support a key foundation of the Massachusetts economy.

Massachusetts has long been a global leader in research, innovation and development. In addition to producing lifesaving cures for diseases that impact everyone, this industry is a major driver of the state's economy. A new report by the UMass Donahue Institute’s Economic & Public Policy Research Group analyzed the impact of federal research and development funding in Massachusetts. 

The report found that the $8.57 billion in annual federal research and development funding that Massachusetts receives supports 81,300 jobs, $7.8 billion of income, and generates more than $16 billion in economic activity. The funding also represents a good return on investment. For every dollar invested, the state sees an economic benefit of double that amount. 

Massachusetts is home to one in every 10 jobs in research and development in the United States. Two out of every five of the jobs created by this funding are in sectors outside of research and development, including: construction, food services, health care, retail and administrative support. 

“Massachusetts is the global leader in innovative research and the discovery of lifesaving cures,” said Governor Maura Healey. “Research funding is also foundational to the Massachusetts economy – it's economic infrastructure here. This bill is about creating jobs across industries from construction and food services to health care and education. And in the face of uncertainty from the federal government, this is about protecting one of the things that makes Massachusetts so special – our global leadership in health care and helping families across the world.”

“This is an innovative proposal that demonstrates our administration’s commitment to supporting the game changing scientific and medical research that happens every day in Massachusetts, while creating new jobs and strengthening our economy,” said Lieutenant Governor Kim Driscoll. “With other states and other countries trying to surpass us, and uncertainty at the federal level, it’s more important than ever that we have a Governor who will bring people together – public, private and philanthropic – to deliver the resources our research and innovation sector needs to succeed and maintain our competitive edge.”

The Governor’s legislation proposes $400 million in state funding to leverage private and institutional resources to retain world-class talent, preserve jobs and protect the engines of Massachusetts’ innovation economy. This will include $200 million to a one-time multi-year research funding pool, housed at MassDevelopment. This fund will support research projects at hospitals, universities, and independent research institutions, as well as a one-year fellowship program for early career professionals. It will be paid for using the interest off the state’s stabilization fund. 

The other $200 million will be placed in a public higher education bridge funding reserve, funded by Fair Share surtax revenue. This will provide Massachusetts public higher education campuses support for direct and indirect costs of research, cross-regional partnerships and joint ventures. Additionally, the reserve sets aside funding to preserve and hire positions in research and teaching, including graduate, post doctorate, and other early career professionals. 

This legislation will also broaden the eligible use for federal match funds to further protect Massachusetts from federal cuts that seriously threaten public health, safety or welfare, or the fiscal stability of the state. Included in the new eligible uses is authority to transfer funds to the Health Safety Net Trust Fund to support hospitals and community health centers and ensure care for our most vulnerable residents.

Through MassDevelopment, Governor Healey is also creating a new 501(c)(3) entity, the Research Catalyst Fund, which will serve as a vehicle to accept and distribute philanthropic contributions and matching funds from industry. Donors will be able to direct funds toward particular institutions or projects or contribute to a shared pool, complementing public investments to expand their impact. Together, these funds will be governed by a newly created Research Opportunity Review Board, which will identify and support high-impact projects that benefit the public and advance the state’s innovation economy.

Governor Healey will also sign an Executive Order establishing an Advisory Commission on Advancing Research and Discovery in Massachusetts. This Commission will convene leaders from medical, higher education, and economic development sectors and will be charged with recommending additional solutions to strengthen the research and innovation ecosystem and advance scientific discovery and job creation in Massachusetts.  

“This legislation will strengthen institutions that are essential to both our state’s economy and our reputation as a national leader in education, health care, and scientific research,” said Administration and Finance Secretary Matthew J. Gorzkowicz. “By deploying Fair Share revenue and repurposing resources from our Federal Match Fund to support our innovation sector, the investments proposed in this bill are responsible, strategic, and designed to deliver maximum benefits to all of Massachusetts.”

“This proposal is a critical investment in the Massachusetts economy and scientific discovery,” said Director of Federal Funds and Infrastructure Quentin Palfrey. “By leveraging both public and private investment, the Governor's proposal will enable vital research and innovation to solve some of humanity's greatest challenges, all while preserving and creating new jobs here in Massachusetts.”

Statements of Support

Marty Meehan, President, University of Massachusetts: 
“Thank you to Governor Healey and the entire Healey-Driscoll Administration for this unprecedented and innovative proposal. Today is an important and historic day for Massachusetts and its future. Our research engine fuels over 81,000 jobs and generates nearly $16 billion in economic activity here in the Commonwealth. By standing up for research, innovation, and jobs, this initiative will protect Massachusetts’ world-renowned research and innovation economy and ensure we continue to attract and retain the best and brightest talent.”

Michael Collins, Chancellor, UMass Chan Medical School: 
“The Governor’s proposed legislation to provide critical bridge funding for research both reflects and reinforces the commonwealth’s steadfast commitment to sustaining the promise of scientific discovery and the careers of researchers who devote their lives to generating new knowledge in furtherance of human health. In moments of uncertainty, it is essential that we protect the integrity of Massachusetts’ renowned biomedical research ecosystem, which contributes immensely to our nation’s research enterprise. We are profoundly grateful to Governor Healey and her administration for their leadership in recognizing the urgent need to support research and innovation in the commonwealth, and we look forward to working with the legislature to assure passage of this timely initiative. Undoubtedly, this investment will help retain exceptional talent, support ongoing critical research, and reinvigorate UMass Chan’s commitment to advancing the health and well-being of the communities we are privileged to serve.”

Frank Callahan, President, Massachusetts Building Trades Unions: 
“The Building Trades applaud Governor Healey’s forward thinking approach to directing funding towards research at institutions of higher education. This not only fosters valuable research and white coat jobs – it also promotes good jobs for blue collar workers like construction trades who will build the research facilities.” 

Joseph E. Aoun, President, Northeastern University: 
“University research fosters the creation of new knowledge, drives regional economies, and is vital to prepare the next generation of innovators. I commend Governor Healey and her team for their commitment to ensuring Massachusetts remains a global leader in cutting-edge research. By working together, we can continue to advance the frontiers of discovery and develop solutions to the world’s most pressing challenges.”  

Sally Kornbluth, President, Massachusetts Institute of Technology:  
“With the DRIVE Initiative, Governor Healey provides a welcome endorsement of the Commonwealth’s ‘eds-and meds’ ecosystem, which benefits all of us in Massachusetts. And of course, advances that spring from our universities, hospitals and laboratories benefit all Americans; if we see these institutions diminished or compromised, all Americans stand to lose. At MIT, our work is crucial to America’s economic strength, global scientific leadership, and national security. Though no other source can replace federal funding for sheer scale, I applaud the Governor’s announcement of a new advisory commission to find ways to sustain the Commonwealth’s leadership in research, education and innovation for decades to come.”  

Melissa Gilliam, President, Boston University: 
“At Boston University, our research and teaching focuses on service, solutions, and improving lives. This initiative is the latest example of Governor Healey’s commitment to ensuring that our scientists and scholars can continue to conduct research that has a positive impact on the people of Massachusetts, and beyond.”

Todd Golub, Director, Broad Institute: 
“Massachusetts has long been on the cutting edge of life sciences, whether it’s sequencing the human genome, developing life-saving treatments with advanced gene editing, or pushing the boundaries of what’s possible in cancer care. This is where the next generation of creative thinkers come to learn, build connections, and push their ideas forward. Longstanding bipartisan support for education, science, and innovation in the Commonwealth have made this possible. This initiative is another way for Massachusetts - the hub for innovation in the life sciences - to continue to lead the world, attract talent, and create great jobs while improving human health everywhere.”

Benjamin L. Ebert, MD, PhD, President and CEO, Dana-Farber Cancer Institute:  
“Dana-Farber Cancer Institute enthusiastically supports the state’s investment in the research economy. We salute the Governor’s leadership recognizing the unique and unparalleled ecosystem for biomedical research in Massachusetts that benefits patients everywhere and helps drive our local economy.”

Kevin B. Churchwell, MD, CEO, Boston Children's: 
"At Boston Children's, we're proud to be part of Team Massachusetts, the ecosystem that makes our state a global epicenter of discovery and innovation. We're grateful to Governor Healey and everyone moving DRIVE forward, working to secure the future of research and innovation in Massachusetts, and the promise of what that work can bring to the world."

Kevin Tabb, MD, President and CEO, Beth Israel Lahey Health:
“This investment sends an affirming message to our scientific and medical communities, underscoring the importance of the pioneering research done in Massachusetts, which impacts innumerable people in this state, throughout the country and around the world. I thank Governor Healey for putting forward this innovative proposal.”

Anne Klibanksi, MD, President and CEO, Mass General Brigham:
“Mass General Brigham is proud to partner with the Healey-Driscoll Administration to maintain Massachusetts’s legacy as a hub of research that brings life-saving breakthroughs to healthcare. We’re thankful for the support towards our mission of providing high quality care to our patients, teaching the next generation of medical professionals, and preserving our legacy of creating tomorrow’s cures today through innovative research.”

Christopher A. Viehbacher, President and CEO, Biogen:
“Massachusetts has always been a global hub for breakthrough science – and Governor Healey’s DRIVE initiative ensures we stay that way. Research goes beyond discovering solutions to the world’s most pressing issues; it’s an engine for jobs and long-term economic strength. This investment sends a clear signal: Massachusetts is committed to shaping the next generation of scientific leaders and forging the future of scientific discovery.”

Yet-Ming Chiang, Professor, MIT; Cofounder and Chief Scientist, Form Energy, Sublime Systems, and 24M Technologies: 
“Massachusetts’ innovation ecosystem – from basic research to company building to societal impact – has long been the envy of the world. To continue to do what we do best, the ecosystem itself needs injections of innovation. That’s what I believe Governor Healey’s DRIVE Initiative will do for Massachusetts and our country.”

Jay Ash, President and CEO, Massachusetts Competitive Partnership:  
“Our research and development sector plays a critical role in Massachusetts’ economy and competitiveness. It creates lifesaving discoveries and innovations while supporting thousands of jobs and local businesses. I’m grateful to Governor Healey for her leadership in standing up to support this industry and grow our economy.”

Kendalle Burlin O’Connell, CEO and President, MassBio: 
“Massachusetts, more than anywhere in the world, is the place where early scientific research leads to life-changing medicines and public-private collaboration is the essential catalyst to the Commonwealth’s success economically and in the lab. The work being done in academic and hospital labs is advanced toward patients in need by our local biotech companies. We applaud the Healey-Driscoll administration for this multifaceted initiative to counter uncertainty and play to our strengths.”

Jon Hurst, President & CEO of the Retailers Association of Massachusetts: 
“In a very similar way that the important state tax cuts targeting working families and employers will create more disposable income and spending in our communities, so will state investment into key sectors help boost our consumers, and the small businesses which serve them. The Retailers Association of Massachusetts applauds the Healey-Driscoll Administration’s economic efforts, and we look forward to additional important efforts to raise small business sales, and to lower the costs of living and costs of doing business in the Commonwealth.”

James E. Rooney, President and CEO, Greater Boston Chamber of Commerce:
"Thank you to the Healey-Driscoll administration for proposing the DRIVE initiative, demonstrating the Commonwealth’s continued commitment to the success of our talented workforce, research institutions, and knowledge economy. Investing in our state's research strengths is how we maintain our momentum by creating jobs and meaningful economic activity, strengthening our competitive edge so that we remain the world's leader in innovation. We look forward to partnering with policymakers on this initiative."

Brooke Thomson, President and CEO, Associated Industries of Massachusetts: 
“The DRIVE Initiative represents the sort of creativity that Massachusetts needs to remain a global leader in research and innovation during a time of uncertainty. The proposal would use state funding to leverage private investment to create jobs and accelerate the research that provides billions of dollars in economic benefit to Massachusetts. The 3,400 member companies of AIM are also pleased that the newly formed Advisory Commission on Advancing Research and Discovery in Massachusetts will review additional strategies to advance scientific discovery and job creation in Massachusetts.”

J.D. Chesloff, President and CEO, Massachusetts Business Roundtable:  
“Massachusetts is an innovation based, research based, talent based economy that is fueled in large part by a decades long partnership with the federal government. That partnership has led to global leadership in some of the state’s foundational industries, such as higher education, health care, life sciences and clean energy. With uncertainty surrounding the future of that partnership, the state must think differently about how to maintain its leadership and support the transformative innovations that are developed here. Today’s proposal by the Healey-Driscoll Administration is a bold statement about the state’s intention to continue to lead, to innovate, and to attract and retain the best talent in the world.”

Brian Johnson, President, MassMEDIC: 
“MassMEDIC welcomes and emphatically supports the Healey Administration’s initiative to protect our innovation economy. For decades, public investment in Massachusetts research institutions has driven R&D. Our state’s commitment to responsibly translating research into tools, therapies, and treatments that impact people across the globe is what makes Massachusetts the worldwide leader in medical technology and life sciences. We cannot afford to lose ground and cede innovation to our global competitors. This plan will help keep the Commonwealth at the forefront, continue to foster great job growth, and ensure patients around the world benefit from this critical work.”

Max Page, President, Massachusetts Teachers Association: 
“The federal administration is waging a war on our universities that threatens life-saving and world-improving research, as well as the Commonwealth’s leadership in academic research and innovation. UMass Amherst alone has lost $30 million in federal research funding this year; it is likely that this coming year will bring even more cuts. The vast majority of those research dollars went to pay for the outstanding faculty, staff, graduate students and post-doctoral students who do research that is crucial to the health and welfare of our nation. There are other threatened cuts, including federal funding for the TRIO programs which help underprivileged students, often first-generation college students, succeed. The MTA applauds the Healey administration for using revenue from the Fair Share Amendment to protect the invaluable research and academic work taking place at public colleges and universities. We are proud to have played a significant role through our Raise Up Massachusetts coalition to pass Fair Share, which is exceeding expectations and thereby making this kind of funding for public education, in preK through public higher education, possible.”

Navjeet Bal, President and CEO, MassDevelopment: 
“MassDevelopment is pleased to partner with the Healey-Driscoll Administration in this important initiative, and our team stands ready to help facilitate public and private investment into critical research projects across Massachusetts as proposed by the legislation. With innovation at the heart of our state’s economy, taking steps to strengthen our research sector will have crossover benefits for a wide range of industries and serve to bolster our overall economic competitiveness.”

Charlie Hipwood, CEO and President, MassVentures: 
“Research and academic spinouts create lifechanging technologies as well as new industries, businesses, and jobs. These initiatives are critical for advancing and commercializing research and innovation.”

Kirk Taylor, MD, President and CEO, Massachusetts Life Sciences Center: 
“Massachusetts is the best place in the world for the life sciences because of our government’s continued support and partnership. Today’s announcement is another example of the leadership that is needed now more than ever. DRIVE has the potential to leverage and amplify the very best of our ecosystem to create jobs and provide for patients nationally and globally.” 

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