“Brain Drain” in Science & Tech Hits Massachusetts

Concerns over academics and researchers fleeing Massachusetts have dominated recent headlines. The Boston Globe attributed a recent wave of “brain drain” to federal funding cuts that have taken place over the last year. 

Massachusetts has a long history of growth in science, research, and technology, and the state has made efforts to support businesses and employees in these industries. This includes tax incentive programs like the Massachusetts Life Sciences Center (MSLC), and recent legislation like the Mass Leads Act funding for various innovation, technology, and artificial intelligence initiatives. Last month, the Governor also announced a partnership with Google to provide free artificial intelligence training courses to Massachusetts residents for free. Another proposal, the Discovery, Research and Innovation for a Vibrant Economy (DRIVE) Initiative, seeks to boost state research funding if taken up by the legislature.

It’s a huge industry for our state, but new data shows signs of strain. We have been losing jobs in the science and tech industries long before recent federal changes — industries which have historically been key drivers of economic growth that are starting to slow down. It’s a red flag for the future of competitiveness in the Commonwealth.

Science and Technology Job Growth is Slowing

The latest data from the Bureau of Labor Statistics shows the Commonwealth’s professional, scientific, and technical services sector job growth has been declining. In fact, the state reached peak job growth in fall 2022, and since then the number of jobs has steadily declined by roughly -3.9%.

For years, Massachusetts’ science and tech industry job growth soared past the national average. Starting last summer, we fell below the national rate of growth for the first time in over a decade. 

It’s not just the number of jobs that is falling – the science and tech share of the Commonwealth’s private sector workforce is also shrinking. That means jobs in the industry are declining faster than the rest of the private sector.

The size of the Commonwealth’s professional, scientific, and technical services industry compared to the total private workforce has shrunk roughly -3.8% since 2022. This trend diverges from the rest of the country: nationally, the share of total jobs found in the industry has held steady since COVID – as total jobs have grown, so have science and tech sector jobs.

Competitor States See Growth in Science, Tech Industries 

While Massachusetts has lost professional, scientific, and technical services industry jobs in recent years, its competitor states are gaining in these areas.

North Carolina is home to the UNC Raleigh-Durham campus and a booming “Research Triangle” region.  Texas has seen an influx of tech companies such as Tesla, Oracle, and OpenAI, triggering the Austin area to be dubbed the “Silicon Hills” region. Both states’ science and tech jobs are thriving. New Hampshire is also seeing growth in this industry while the Commonwealth’s tech jobs slow.

Since Massachusetts peaked in science and tech industry employment in September 2022 – and since declined – these competitors have ramped up job growth in this area. In this time frame, North Carolina gained 10%, New Hampshire gained 4.4%, and Texas gained 4.2% industry employment.

Competitor states have seen job growth in this industry outpace their overall private sector growth, and seen the science and tech industry become a larger part of their economies. Since 2022, North Carolina’s industry share of the total state workforce grew 6.8%, New Hampshire’s grew 4.2%, and Texas’ grew 3.1%. 

What’s Pushing Tech Jobs Out of State?

There are a variety of factors reshaping the tech industry. Federal funding changes affecting local universities may contribute to academics and research staff leaving the state, and could potentially impact the talent pool in Massachusetts that drives these science and tech industries. However, the data is clear that Massachusetts’ tech workforce has been on the decline for years – not just in response to recent federal cuts.

Various research and technology firms have recently announced moves out or investments in locations outside of the Commonwealth. Competitor states like New Hampshire, North Carolina, or Texas pose significantly lower barriers to doing business for companies, and boast a lower cost of living for employees. 

Last year, CNBC ranked Massachusetts in the bottom ten states in the nation for lack of business friendliness, high cost of doing business, and cost of living. Massachusetts has significantly higher tax burdens for both businesses and employees, with one in three residents surveyed by a Suffolk University/Boston Globe poll saying they were considering leaving the state last year, citing high housing costs and high taxes. 

Compare that to our competitor states: North Carolina and Texas were rated as the two best states for doing business; New Hampshire received high marks for business friendliness and lower cost of living than Massachusetts.

Conclusion

Not all hope is lost. Massachusetts still has one of the top ten largest professional, scientific, and technical services industries in the country, based on employment. It also makes up a significant share of our state’s workforce and economy, and powers many life-saving discoveries and technologies that lead the nation and the world. The Milken Institute has ranked the Commonwealth as the number one state in its Science and Technology Index for over a decade. 

While the state has continued to support the industry via tax incentives and funding, Massachusetts’ less-friendly business environment and high cost of living are proving to be significant barriers to the growth of one of our state’s key sectors. But the science and tech industries remain a cornerstone of our state, and are too important to give up on.

To retain top talent and job opportunities, policymakers should focus on ways to lower costs and make Massachusetts a place both companies and their employees want to invest in. We must turn the tide and ensure our state is a beacon of innovation for years to come.