By Eli Chavez – Inno Reporter, Boston Business Journal
Gov. Maura Healey announced the launch of a new $400 million initiative to grow the research and innovation economy in Massachusetts and create thousands of new jobs as federal research funding is being cut under President Donald Trump.
In support of the initiative, Healey is also creating a new nonprofit and advisory commission to support funding and job opportunities.
The new initiative is called the Discovery, Research and Innovation for a Vibrant Economy, or DRIVE, initiative. As part of the initiative, Healey filed legislation proposing $400 million in state funding to “retain world-class talent, preserve and create jobs across industries,” according to a statement.
“This bill is about creating jobs across industries from construction and food services to health care and education,” Governor Healey said in a statement. “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.”
The $400 million will be split in half, with $200 million going towards a multi-year research funding pool housed at MassDevelopment. The other half will be placed in a public higher education bridge funding reserve.
The multi-year research funding pool is intended to support research projects at hospitals, universities and independent research institutions and will be supported from interest on the state’s stabilization fund.
The $200 million for public higher education will be focused on providing public higher education campuses in the state with support for research costs, cross-regional partnerships and joint ventures. The reserve also sets aside funding to preserve and hire positions in research and teaching, which includes graduate, post-doctorate and other early career professionals.
The announcement of the initiative comes at a time when there is increasing uncertainty surrounding federal funding for research and development in the Bay State.
A new report from UMass Donahue Institute’s Economic & Public Policy Research Group found that in fiscal 2024, the state received $8.57 billion in annual federal research and development funding. That funding supports 81,300 jobs, the report says, as well as $7.8 billion of income. It generates more than $16 billion in economic activity.
Federal funding also supports jobs outside of research and development. Two out of every five jobs created from the funding are in sectors like construction, food services, health care, retail and administrative support.
In addition to the DRIVE initiative, the governor is creating the Research Catalyst Fund, a new nonprofit allowing donors to direct funds towards specific institutions, projects or contribute to a shared pool.
The fund will be governed by the Research Opportunity Review Board, which will be responsible for identifying projects that both benefit the public and advance the innovation economy.
Governor Healey also signed an executive order to establish an advisory commission on advancing research and discovery. The commission will focus on providing additional solutions to enhance the state’s research and innovation ecosystems, as well as advance scientific discovery and job creation.