The IT Industry: Hub of Massachusetts Technology Economy
Tech, education and state government leaders recently come together to form the Massachusetts Tech Hub Collaborative. The goal of the Collaborative is to improve the competitiveness of the technology sector and enhance the state's economy by nurturing the spirit of innovation and entrepreneurship, building the talent pipeline, and mentoring young entrepreneurs.
As part of this work, Verizon and other key members collaborated with the University of Massachusetts Donahue Institute to commission a study on the industry's impact on the state?s economy. "The IT Industry: Hub of the Massachusetts Technology Economy,"underscores how the Massachusetts IT industry plays a central, catalytic role in the state's innovation economy, with findings that show the sector is the state's second largest knowledge-intensive industry cluster (behind health care) and is home to 10,300 firms with more than 178,000 workers. The IT industry directly expended $65 billion in Massachusetts in 2008, a figure that is comparable in scale to nearly 18 percent of state GDP. Linkages to the health care, life sciences, financial services, defense, and energy sectors are catalyzing new opportunities for growth, demonstrating the importance of this sector as a vehicle for innovation and economic growth.
The study clearly demonstrates that that the Commonwealth's IT industry has grown well beyond its roots, creating a strong and competitive technology hub in Massachusetts that facilitates growth in emerging arenas. Emerging sectors in robotics, digital media, digital gaming and mobile communications are transforming established markets, opening new business and job growth opportunities in arenas enabled by digital technology, such as cloud computing.