Finneran Outlines Plan for High-Tech

Speaker Tom Finneran yesterday announced three new initiatives to encourage job growth and help the economy get back on track:

1) Reauthorize the 3% investment tax credit. 2) Establish an emerging technology fund. 3) Consolidate all economic development functions of the state into one Secretariat.

Speaker of the House, Tom Finneran "Where will the next Silicon Valley occur in the United States of America?" asked Finneran. He said he wants it to be right here in Massachusetts. Speaking before the Worcester Young Businessmen's Association at Mechanics Hall, Finneran said the House will take advantage of the low interest rate environ-ment to refinance some of the Common-wealth's debt in order to provide a $100 million dollar capital infusion of "seed money" for the most promising emerging technologies, medical research and higher education.

"Seedlings need to be nurtured. Nurturing has to occur now," said Finneran. He said seedlings need only a few basic things: Access to capital, coordination of permitting and policies that are oriented toward investment and growth.

Finneran said that money which would normally be going to the bankers will instead be spent as low interest loans and grants to help attract greater private investment in the physical infrastructure of "industrial clusters" such as biotechnology, pharmaceuticals, medical devices, plastics, new defense and security, environmental and renewable energy technologies and information technology.

The money would be distributed in a manner that is directly correlated to companies' ability to create and retain jobs.

"While Massachusetts has lost over 160,000 jobs, these industries have added 37,454 jobs in the last year alone," said Finneran.

"Our health care industry, emerging technologies and higher education system will fuel our economic engine to recovery," he said.

Replies to Questions about Manufacturing

MassNews asked Finneran if this would help manufacturers, who have lost 17% of their jobs in Massachusetts over the past two years.

"Manufacturing is in decline all across the country," said Finneran. "Some people attribute it to NAFTA, other people aren't quite sure what the causes are, and in Massachusetts it is part of a frustrating decline. We've seen it. We don't like it and we are hopeful that some of what we talked about today will actually lead to a different outcome or a different situation.

"It might not be manufacturing in the old sense of shoes, textiles, GE and the like where you have the huge, huge assembly lines, but I'm told that a lot of the companies within these emerging technologies like to have their production as close as possible in a geographic sense to their research and development.

"So we are reasonably hopeful, I'm not going to say with specific confidence, that more positive things will happen on the manufacturing front."

According to Finneran, by investing in physical infrastructure as opposed to product development, we ensure that our investment in these industries remains in Massachusetts. That is because manufacturing facilities related to emerging technologies almost always undergo a multi-million dollar licensing process by the FDA, and therefore, once established, they tend to remain occupied. Even if a product fails, the facility is targeted for reuse within the industry because it is already licensed.

Finneran appears to be heeding an urgent call from policy organizations such as Mass. Insight, The Massachusetts High technology Council and the Associated Industries of Massachusetts for a new technology based economic strategy to counter strategic investments by competitor states despite their own budgetary problems.

Finneran's initiative to reauthorize the 3% Investment Tax Credit is something Governor Mitt Romney also supports. Manufacturers and business leaders are calling for renewal of the credit to help offset higher production costs here in Massachusetts and to encourage investment in new facilities and equipment.

The Speaker also plans to consolidate into one Secretariat all economic functions of the Commonwealth to reduce duplication of effort, save money, and ensure streamlining of the permitting process in order to simplify the process of developing and expanding businesses within the Commonwealth.