As we reflect on the successes of the 2023-2024 legislative session, MassBio is filled with gratitude and optimism for the future of the life sciences industry in Massachusetts. This past year marked a transformative chapter in our state’s ongoing commitment to fostering innovation, expanding access to cutting-edge healthcare, and strengthening our economy. Thanks to the continued leadership of our elected champions in the House and Senate, and the unwavering support of the Healey-Driscoll Administration, we now have the third iteration of the Life Sciences Initiative (LSI) — a key tool that will enable the future growth and global leadership of Massachusetts’ life sciences ecosystem over the next decade.
One of the most significant outcomes of the 2023-2024 legislative session is the $500 million in capital investments to bolster the Massachusetts Life Sciences Center’s (MLSC) programming included in the LSI. These funds will be directed by the MLSC into critical infrastructure improvements, early-stage investments, and new cross-sector collaborations aimed at building a more resilient and equitable life sciences ecosystem. This monumental investment will fuel the growth of life sciences across the Commonwealth, ensuring that Massachusetts remains the global leader in biopharma, medical devices, diagnostics, and related fields.
In addition to the capital investment, this session’s reauthorization also saw an important increase to the annual Life Sciences Tax Incentive cap — raising it from $30 million to $40 million per year. This change reflects the growing recognition of the power of targeted tax incentives to stimulate industry job creation and attract and retain world-leading companies in Massachusetts.
The Life Sciences Tax Incentive has already proven to be a remarkable success. Since its introduction, it has played a crucial role in attracting life sciences companies to Massachusetts, incentivizing investment, and creating jobs. Since the inception of the program, companies have committed to the creation of more than 18,000 jobs. Today, Massachusetts stands as a beacon of opportunity for those looking to build careers in the rapidly expanding biopharma sector. According to MassBio’s 2024 Industry Snapshot, in 2023 alone, Massachusetts added almost 3,000 net new biopharma jobs, further cementing our position as the top location for life sciences advancement.
Life sciences job growth is not limited to one corner of the state — Suffolk County saw a 19.6% increase in R&D jobs in 2023, and Worcester County saw significant growth in both biomanufacturing (+11.8%) and R&D (+5.2%). But we cannot stop there. As Massachusetts continues to see strong job growth within the life sciences sector, we must ensure that the benefits are felt across the entire Commonwealth, including our Gateway Cities, creating opportunities for communities outside of the usual innovation hubs.
It is important to acknowledge that none of these successes would be possible without the steadfast leadership of our policymakers. MassBio extends a heartfelt thank you to House Speaker Ron Mariano, Senate President Karen Spilka, and Ways and Means Chairs Aaron Michlewitz and Michael Rodrigues for their tireless efforts to advance the Life Sciences Initiative across the finish line before the end of the year. Their continued commitment to the long-term growth of the industry, combined with their recognition of its importance to the state’s economy and public health, has been instrumental in securing these landmark investments and bringing therapies closer to patients in need.
The reauthorization of the Life Sciences Initiative for another 10 years builds on the original 2008 package of infrastructure improvements, early-stage investments, and tax incentives. That first initiative, which created the MLSC, laid the groundwork for the success we see today, and its reauthorization in 2018 built upon that momentum. Now, in the third phase, the emphasis is on advancing our national and international standing by scaling innovation, attracting talent, and encouraging cross-sector collaboration to affect patient outcomes
This long-term vision has made Massachusetts a leader in the global life sciences industry as, again according to MassBio’s 2024 Industry Snapshot, the biopharma sector has grown by 115% since the original LSI passed in 2008. The state’s drug pipeline is second only to California, and Massachusetts is just 900 R&D jobs behind California in total scale. Our state’s biopharma job growth is outpacing that of other major states, such as Pennsylvania, New Jersey, and California, and we’re seeing job creation not only in Greater Boston but also in areas like Worcester and the Merrimack Valley.
As we look ahead, we are presented with a tremendous opportunity to build on these successes through public-private partnerships. Importantly, there is strong alignment between the investments and incentives included in the LSI with MassBio’s Vision 2030, our strategic roadmap for the next five years. This will allow us to work in unison to propel the Commonwealth’s innovation economy to even greater heights. Picture techbio and artificial intelligence accelerating drug discovery and research; and biotech and climatetech working in parallel toward a healthier planet for us all.
Together, we can continue to grow the life sciences ecosystem in Massachusetts and ensure that the jobs, therapies, and innovations of the future are accessible to all communities in our state and beyond. With government, industry, and academia continuing to move forward as one, it is easy to see that the best is yet to come.