Member Perspectives: Making a More Competitive Massachusetts

Paul Matthews
Executive Director, 495/MetroWest (MA) Partnership

While it probably went unnoticed by many citizens of the Commonwealth, the Massachusetts Legislature this year passed the most sweeping economic development reforms in a generation.  The result is better cooperation between regions and the state, better aligned resources, and ultimately, a more competitive Massachusetts.

Spearheaded by Senate President Therese Murray and Senator Karen Spilka, the Chair of the Economic Development and Emerging Technology Committee, this legislation package far exceeds any prior reform efforts.  No state or quasi-public agency went unexamined and many were dramatically changed and streamlined in order to improve efficiency and delivery of services. 

A few of the bill’s most visible highlights include:

• Calling for the preparation of a statewide economic development strategy and strategic plan every four years; 
• Offering small businesses working capital through the new Massachusetts Growth Capital Corporation (born from the merger of Community Development Finance Corporation and the Economic Stabilization Trust);
• Streamlining the state’s marketing efforts by creating the Massachusetts Marketing Partnership;
• Streamlining financing opportunities for our critical health care and educational institutions by merging the Massachusetts Health and Educational Facilities Authority with MassDevelopment;
• Offering consumers a state sales tax holiday in August, and extending tax credits on brownfields and manufacturing;
• Granting limited permitting extensions; 
• Creating a housing development incentive program in Gateway Cities; and
• Providing infrastructure funding by recapitalizing the state’s Growth District Initiative.

Beyond these sweeping changes, one of the most overlooked accomplishments of this bill was to integrate regional and state economic development efforts.  Massachusetts has quietly benefited from a strong tradition of public-private economic development on a regional level, which has leveraged private, philanthropic, and federal resources; linked the public and private sectors; and grown jobs while contributing to state and local revenue.  This legislation recognizes the value of formalizing collaborations between the state and regions to improve efficiency and coordination while maximizing the resources available for economic development.  

By recognizing the importance of competitive, well-aligned regions and formally integrating state and regional economic development, Massachusetts as a whole will be able to compete more effectively for investment and jobs.

Matthews is the Executive Director of the 495/MetroWest Partnership, a regional economic development council that works with thirty-two municipal governments, top employers, and state and federal officials on behalf of the regional economy.  He is a graduate of the ACCE-Ford Foundation Fellowship for Regional Sustainable Development and an active participant in the Alliance for Regional Stewardship.

Resources Spotlight

Ready, Set, Go! Why Business Should Support Early Childhood Education
This new report, produced by the U.S. Chamber’s Institute for a Competitive Workforce with funding from the Pew Charitable Trusts, sheds light on the tremendous impact that early childhood education has on the national economic security and the viability of the American dream.

The Role of Local Elected Officials in Economic Development: 10 Things You Should Know
The publication from the National League of Cities, with help from IEDC, can help you build a stronger partnership with local elected officials on economic development. The guidebook outlines the “top 10 list” of things elected officials should know about economic development in order to be effective leaders.

Collaborate: Leading Regional Innovation Clusters
The third in a series of reports on regional innovation by the Council on Competitiveness, Collaborate asks: why are some regions more successful than others in global competition?  The answer is rarely that some regions are better endowed than others, but some regions are better organized than others.  The lagging regions frequently share an inability to think, plan and act regionally.  

City Vitals
Developed by Portland-based economist Joseph Cortright, in partnership with CEOs for Cities, City Vitals lays out the rationale for four dimensions of success for regions: talent, innovation, connections and distinctiveness.  The study also outlines a new set of 20metrics to measure progress in those four areas.  This report is a quick read and well worth your time.

News and Blogs

Are we there yet?
This Economist cover story from September 16 examines the recession, the pace of recovery and what the government could do to help.  An interesting read for everyone in these uncertain times.

Kentucky Matches SBIR-STTR Awards
At a recent meeting of the Lexington Venture Club, Kentucky Governor Steve Beshear announced $1.8 million in SBIR-STTR awards to seven high-tech companies.  Kentucky has a competitive SBIR-STTR program that matches federal funds received by companies.

Redirecting Traffic in Downtown Richmond
(from the ACCE Policy Clearinghouse Blog)
In an effort to make the downtown a more walkable, drivable and commerce-friendly destination, the city of Richmond, VA is reconfiguring traffic patterns and converting one-way streets into two-way streets.

The Cluster Moment: Getting Real About the Economy
(from The Avenue blog)
Regional clusters—geographic concentrations of interconnected businesses with supporting organizations—are quickly becoming a central part of the economic policy debate in Washington and many state capitals.  In this post, the Brookings Institution's Bruce Katz and Mark Muro explore why and why now.