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

Governor Maura Healey wants to welcome everyone to MA. (Photo by Chutze Chou)

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

Nation-leading strategy will protect and advance innovative research, discovery of lifesaving cures and jobs amid federal cuts 

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.”