Massachusetts Governor Proposes $400 Million Research Initiative, Citing Double Economic Return

Boston, Massachusetts – Governor Maura Healey has launched a new "Discovery, Research and Innovation for a Vibrant Economy" (DRIVE) initiative, proposing $400 million in state funding to bolster Massachusetts' research and innovation economy. The announcement underscores the significant economic impact of research investment, with the Governor stating that "For every dollar invested in research, Massachusetts doubles its economic impact."

The initiative comes as the state aims to counteract federal funding uncertainties and maintain its global leadership in scientific discovery and innovation. Governor Healey emphasized the broad benefits, noting that research funding is "economic infrastructure here," creating jobs across diverse industries, from construction and food services to healthcare and education.

A recent report by the UMass Donahue Institute's Economic & Public Policy Research Group supports this assertion, finding that the $8.57 billion in annual federal research and development funding received by Massachusetts generates over $16 billion in economic activity, supports 81,300 jobs, and contributes $7.8 billion in income. The report highlights that for every dollar invested, the state sees nearly double the economic benefit.

The proposed $400 million legislation is divided into two key components. Approximately $200 million will establish a multi-year research funding pool, managed by MassDevelopment, to support projects at hospitals, universities, and independent research institutions. This fund will be financed by interest generated from the state's stabilization fund.

The remaining $200 million will create a public higher education bridge funding reserve. This portion, funded by revenue from the state's Fair Share surtax (a 4% tax on incomes over $1 million), will provide public higher education campuses with support for direct and indirect research costs, cross-regional partnerships, and the preservation and hiring of research and teaching positions.

The DRIVE initiative has garnered widespread support from academic, industry, and labor leaders. University of Massachusetts President Marty Meehan stated that the initiative "will protect Massachusetts’ world-renowned research and innovation economy and ensure we continue to attract and retain the best and brightest talent." Leaders from institutions like MIT, Northeastern University, Boston University, and Mass General Brigham also lauded the proposal, recognizing its critical role in sustaining the Commonwealth's innovation ecosystem amidst federal funding challenges.