BOSTON, MA--(Marketwired - May 17, 2016) - The Mass Technology Leadership Council(MassTLC) issued its annual State of the Technology Economy report today, confirming the high tech sector's position as one of the state's strongest economic engines. In its third annual review, the report underscores that the Massachusetts high tech sector is directly or indirectly responsible for 35 percent of all jobs in the state, 46 percent of the state's total payroll, and 31 percent of the state's gross state product.
When ranked against peer states nationally, the economic strength of Massachusetts' high tech sector is affirmed. The state is first for concentration of jobs and talent, first in technology manufacturing, second in technology services, and fourth both in terms of tech firms and tech jobs added. Yet there is work to be done.
In 2010, MassTLC issued the 2020 Challenge, to add 100,000 net new high tech jobs to the Massachusetts economy during the coming decade. At that time, MassTLC found that reaching the goal would add an additional $8.8 billion in incremental wages, an additional 163,000 incremental non-tech jobs, an additional $8.2 billion in non-tech wages, and an estimated $50-$75 billion in incremental shareholder wealth.
In the five years since, the state has seen tech employment grow by more than 34,000 jobs -- one-third of the goal. As it turns out, however, the problem isn't in creating new positions, but in finding the talent to fill the need. In 2015 there were more than 123,000 tech job postings in Massachusetts. For every graduate with a bachelor's degree in computing and mathematics, there are 17 job openings within the technology and computer science fields.
"Our region has a responsibility to take a leadership position in training and retaining a workforce with 21st Century skills, especially among women and underserved minorities, in order to meet the tech community's critical need for talent," said MassTLC President and CEO Tom Hopcroft. "Furthermore, we must continue to tell our many success stories and boast of our state's numerous competitive advantages. That's how GE was convinced to move here, and that is what is needed in order to attract and retain the most talented innovators if we are to expect more companies to start, stay and relocate to Massachusetts and put down deep roots."
The report specifically focuses on healthcare tech; smart, connected machines and devices; and security. It also highlights many of high technology's most exciting growth sectors, such as artificial intelligence, clean tech, consumer tech, education tech, and financial tech.
"The state of our high technology sector is strong, and the future is bright on every front from education to cutting-edge research, from start-ups to high-growth midsize companies, and from transformational innovators to mature market leaders, but we still have a lot of work to do," said Mohamad Ali, CEO of Carbonite, and former Chairman of the MassTLC Board of Trustees. "In order for Massachusetts to strengthen its leadership position, we must remain diligently focused on the challenges ahead to grow and retain the talent that will allow us to remain vibrant and adaptive."
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About The Mass Technology Leadership Council, Inc.
With more than 500 member companies, the Mass Technology Leadership Council (MassTLC) is the region's leading technology association and the premier network for tech executives, entrepreneurs, investors and policy leaders. MassTLC's purpose is to accelerate innovation by connecting people from across the technology landscape, providing access to industry-leading content and ideas and offering a platform for visibility for member companies and their interests. More at www.masstlc.org