Press Release  Governor Healey Promotes Major Initiatives in Life Sciences, Climatetech, Applied AI

Somerville — SOMERVILLE – Today, Governor Maura T. Healey detailed major new proposals to make Massachusetts a global hub for life sciences, climatetech and applied artificial intelligence (AI).  

She announced that she is reauthorizing the Life Sciences Initiative to build on the success of the program that has made Massachusetts a global leader in this critical industry. She also announced that she is applying this proven model to a new Climatetech Initiative, which will position Massachusetts to compete on the global stage in this emerging industry.  

Governor Healey announced the filing at Form Energy, an American energy storage technology and manufacturing company, alongside Cabinet members, elected officials, industry leaders, and community members.  

The initiatives will be included in the administration’s upcoming economic development bill, titled the Mass Leads Act. This bill is also expected to propose investments in the Community One Stop for Growth, rural communities, advanced manufacturing, robotics, tourism, the creative economy and small businesses. It will also build on the momentum of the state's CHIPS + Science wins by making targeted investments in advanced manufacturing and robotics. Governor Healey previously announced that the bill will include $100 million to create an Applied AI Hub in Massachusetts. 

Informed by the 2023 economic development plan, the initiatives in this bill will seek to advance the Healey-Driscoll administration’s core principles of competitiveness, affordability, and equity across all regions and for all residents in Massachusetts.  

“The Mass Leads Act will take our proven, homegrown model of the Life Science Initiative to the next level to continue leading the world in attracting innovative businesses to our state and developing life-saving medicines. We’ll also stake our claim in burgeoning industries like climatetech and artificial intelligence to make clear that Massachusetts competes to win,” said Governor Healey. “This is a transformative opportunity to strengthen our state’s economy while also supporting our businesses, workforce and communities, and we look forward to working with our Legislative partners to get it done.” 

“The Mass Leads Act improves on what we already know works in Massachusetts – the Life Sciences Initiative – and applies those lessons to exciting new industries like climatetech and artificial intelligence,” said Lieutenant Governor Kim Driscoll. “These proposals reflect the realities of the economy of today and tomorrow, and position Massachusetts to compete at every turn to bring results home to our communities.” 

“Our administration is making strategic investments to propel our state forward, particularly amidst heightened national competition in the life sciences and climatetech sectors,” said Secretary of Economic Development Yvonne Hao. “The Mass Leads Act outlines a bold, long-term strategy that is needed in order for Massachusetts to compete and win. The goal remains to make Massachusetts the best place for people to start and grow their careers, and the best place for companies to start and scale. With the right tools at our disposal, Team Massachusetts is expanding opportunities, breaking barriers in health equity and pursuing the next fronter in the life sciences, and driving climate change progress while creating jobs.”  

‘We’ve seen firsthand the impact investments like these can make to position Massachusetts as a national and global leader in industries like the life sciences. By keeping our foot on the gas and expanding on proven strategies to put a marker down in climatetech, the Mass Leads Act will allow us to keep our competitive edge and grow the types of jobs and businesses that will pay dividends for our students, residents and the state for generations to come,” said Administration and Finance Secretary Matthew J. Gorzkowicz. 

“With the Mass Leads Act, we have an opportunity to design and manufacture the solutions to climate change in our own backyard,” said Energy and Environmental Affairs Secretary Rebecca Tepper. “This would be a gamechanger for the climatetech industry. We have an opportunity to give our residents the ability to work in and learn about emerging technologies that will be critical in reducing emissions and building resilience to climate change.” 

Climatetech 

Governor Healey is proposing a $1 billion, 10-year climatetech initiative to make Massachusetts the climate innovation lab for the world. The initiative would create jobs, support technology development and infrastructure to reduce emissions, and promote resilience locally. Massachusetts would be well positioned as a global leader in climatetech. The funds and programs would help companies start and scale in Massachusetts, creating well paying jobs across the state. The initiative has three core parts: 

1. Capital Funding: The bill would provide significant capital resources to MassCEC for the first time. Bond authorizations can support research and development, innovation, manufacturing, commercialization, and the deployment of climatetech technologies, including offshore wind, across Massachusetts. 

2. Tax Incentives: The bill would authorize funding for tax incentives, which will help ensure the state is competitive in attracting and retaining these businesses. The initiative proposes to establish a new Climatetech Tax Incentive Program to enable the state to invest in climatetech companies, expand employment opportunities and support research and development. The bill also seeks to continue implementation of the newly created Offshore Wind Tax Credit and proposes some strategic changes to further grow the program. 

3. Operating Funding: This ten-year strategy underscores the critical importance of annual operating support through the state budget process for MassCEC, which is instrumental in fostering the climatetech industry and training a clean energy workforce. Operating funds will enable MassCEC to deploy stable programming and initiatives to reach areas that capital programs and tax incentives aren’t able to reach. This includes workforce development initiatives, internships, strategic partnerships, and operations. 

“The Mass Leads Act represents a historic investment that will move us significantly towards our goal to be the climate innovation lab for the world,” said Massachusetts Clean Energy Center CEO Dr. Emily Reichert. “These funds would empower MassCEC to significantly expand our work to make Massachusetts be THE place where climatetech companies want to grow and thrive, creating high-quality jobs here in the Commonwealth. The funds would also help us expand our nation-leading position in offshore wind through additional investment in world-class port infrastructure. Governor Healey and Lieutenant Governor Driscoll understand that our climate challenge offers us a profound economic opportunity to create tens of thousands of good jobs, revitalize local economies and lead the country in climate solutions.” 

"We are excited about the investment the Healey-Driscoll administration is making in companies like ours that are part of the growing energy innovation ecosystem in Massachusetts. Form Energy was founded in 2017 and started scaling up in Somerville with a team of less than 10. Today, our two locations in Somerville employ more than 225 scientists, chemists, engineers, and lab technicians and occupy 155,000 rentable square feet of lab and office space,” said Ted Wiley, Co-founder, President, and Chief Operating Officer of Form Energy. “We are grateful to the administration, legislature, and local delegation for their leadership and hard work to elevate Massachusetts as the global leader in climatetechnology. We look forward to continuing to grow and innovate in Somerville and to building Form Energy battery systems in the Commonwealth.” 

More information can be found in the climatetech issue brief. 

Life Sciences 

The bill also proposes reauthorizing the Life Sciences Initiative at $1 billion for 10 years to position Massachusetts to lengthen its lead as the global leader in the life sciences. Last year, Massachusetts was chosen by the federal Advanced Research Projects Agency for Health (ARPA-H), an agency within the National Institutes of Health, to host its Investor Catalyst Hub, demonstrating the effectiveness of the state’s investments in the life sciences. 

This long-term commitment will position Massachusetts to win more investment in the industry, develop more life-saving cures, and create more jobs. It will build on the success of prior authorizations while making adjustments to account for present-day challenges and opportunities. The initiative has three core parts: 

1. Capital: The Massachusetts Life Sciences Center will embrace a model that encourages multi-institution, cross-sector collaboration among key industries, such as biotechnology, manufacturing, medical technology, higher education, and healthcare. Through this realignment, the state will be better able to pursue health equity ventures, research and development, and capital eligible initiatives to support the ecosystem. 

2. Tax Incentives: The Life Sciences Tax Incentive Program has proven successful in incentivizing the creation of jobs in the industry. This bill proposes to increase the statutory cap for life sciences tax incentives to create more capacity in the future and extends the program to 2033 to demonstrate the state’s commitment for the next decade. This will further enhance a valuable business development tool to attract and retain companies in Massachusetts.   

3. Operating: This new strategy also projects annual appropriations for workforce development programming and other strategic initiatives, including support for early-stage companies. Notably, this component of the strategy incorporates an expansion of Pathmaker, a key component of the Healey-Driscoll Administration’s MassTalent Initiative, to scale career training programs for in-demand job opportunities within the industry.   

In addition to competitiveness and innovation, equity will be elevated as a priority for the Healey-Driscoll Administration under the new initiative, including creating better workforce pathways into careers in the industry and improving health outcomes for residents in Massachusetts.  

“The Life Sciences Initiative has helped catalyze transformational opportunities for Massachusetts residents and patients around the world alongside impactful public-private partnerships benefiting communities across Massachusetts,” said Massachusetts Life Sciences Center Acting CEO & Vice President of Economic Development and Partnerships Jeanne LeClair. “Our Commonwealth’s leadership in the life sciences is no accident and not guaranteed with fierce competition both national and globally. What remains a key separating factor for our preeminence is the powerful engagement of our elected and civic leaders and the unique ecosystem of collaboration between industry, education, non-profit, and government.” 

“As the largest life sciences employer in the state, Takeda applauds the initiatives outlined by Governor Healey as part of the Mass Leads Act, including the reauthorization of the Massachusetts Life Sciences Initiative and the Massachusetts Life Sciences Center,” said Julie Kim, President, U.S. Business Unit and U.S. Country Head, Takeda and a member of the Governor’s Economic Development Planning Council. “We are fortunate that in Massachusetts, government and industry work together as “collective entrepreneurs” to lead in emerging industries and tackle complex issues that help enhance our competitive advantage and benefit the health and wellbeing of patients around the world.” 

More information can be found in the Life Sciences issue brief. 

Statements of Support 

Somerville Mayor Katjana Ballantyne

"The Mass Leads Act is exactly what we need to position the Commonwealth on the global stage for the most important tech of the coming century, and for climate tech it is a vital game changer that will drive forward urgently needed climate solutions. And, of course, it’s good for Massachusetts residents directly. If passed, it will create good jobs and grow our economy, which may sound abstract. But new jobs and new revenues are how we improve our life quality. It’s how we pay for the solutions that tackle our biggest challenges like affordable housing or advance our top priorities like quality education. Progress is all interconnected, and the Mass Leads Act is designed to deliver that progress.” 

Casey Bowers, Executive Director, Environmental League of Massachusetts Action Fund 

“This is a transformative opportunity to solidify Massachusetts as a global leader in climatetech. This legislation addresses our greatest threat, the climate crisis, and drives economic growth. We can make Massachusetts the best place to start, staff, and scale companies that solve environmental challenges. Our state now has the opportunity to strengthen our economy, build a broad and diverse climate workforce, and accelerate our transition to a clean energy future.” 

Kendalle Burlin O’Connell, Chief Executive Officer and President, MassBio 

“Massachusetts is the greatest place in the world for the life sciences research and development that improves lives worldwide. With this new Life Sciences Initiative, Governor Healey is making a play to remain at the top and ensure that the institutions making the discoveries, the companies bringing new therapies to patients, and the talented people working in the labs and offices can continue to be successful here in Massachusetts. I applaud Governor Healey and her administration for continuing Massachusetts’ legacy of supporting this industry and having the vision to file a bold and modern bill for today’s challenges and tomorrow’s opportunities. We look forward to working with the Administration to support entrepreneurs, enhance the state’s biomanufacturing capabilities, ensure access to healthcare for all residents, and much more.”  

Brian Johnson, President, Massachusetts Medical Device Industry Council 

“When it comes to life sciences, there is no mission accomplished. Staying on the cutting edge of curing disease, alleviating pain, and improving lives requires long-term structural investment, the kind that only the state can provide. With this reauthorization, the Healey-Driscoll Administration has proven that they understand the need to re-invest in this community of healers and innovators and the importance of this industry to the Commonwealth. On behalf of the more than 500 companies, which make up the Massachusetts medtech ecosystem, and the thousands of women and men working in this space to develop and build the next generation of medical technology, I applaud them for this effort. MassMEDIC is proud to work alongside our colleagues in healthcare and government to make sure that the Commonwealth stays the global leader in life sciences.” 

Jon Weaver, President and CEO, Massachusetts Biomedical Initiatives 

“Central Massachusetts is competing to become a global biomanufacturing hub, and we’re grateful to the Healey-Driscoll Administration for partnering with regions across the Commonwealth to secure the tools we need to compete in emerging marketplace. The Massachusetts Life Sciences Center is an invaluable partner to the life sciences ecosystem. Further support and revitalization of their mission will translate into greater opportunities throughout the Commonwealth for entrepreneurship and companies of all sizes to become world leaders.” 

Kevin Knoblock, President and CEO, Greentown Labs  

"This bill demonstrates Governor Healey's commitment to making Massachusetts the climate innovation center of the world. As the largest climatetech startup incubator that proudly calls Massachusetts home, we know this additional investment will not only spur more climatetech innovation, but also help climatetech startups grow, thrive, and stay here in the Commonwealth—creating jobs, making products, and catalyzing economic development across our great state. We've seen the phenomenal impact state funding had on the life sciences industry years ago, and given the urgency of the climate crisis there's never been a better time for this kind of investment in our clean energy future." 

Brooke Thomson, President & CEO, Associated Industries of Massachusetts (AIM)  

“The Healey Administration’s economic development plan is unique in its determination to grow the Massachusetts economy as a whole – We will not simply invent new medicines but will make them here; we will not just create new climatetechnologies but will deploy them here; we will not just push the boundaries of artificial intelligence but will determine the most innovative ways to use it. The administration is addressing the bedrock issues that will determine the future of the Massachusetts economy and our businesses large and small – housing, transportation, childcare, talent retention and acquisition – while acknowledging the need to support the industries in which the commonwealth holds a competitive advantage.” 

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