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Study: Massachusetts sees impactful economic lift from research and development

The Old Chapel at UMass Amherst.
Courtesy
The Old Chapel at UMass Amherst.

With federal cuts to the research and development sector a possibility, a recent study from UMass Amherst said that area has a huge impact on the Massachusetts economy.

The study found the state is home to one of every 10 research and development jobs nationally. And the impact of that adds up quickly.

"It's about $8.6 billion that comes into the state, that money supports something in the order of over 46,000 jobs directly," said Rod Motamedi, UMass Donahue Institute assistant director of Economic and Public Policy Research.

He said with the spin off effect, the economic impact for Massachusetts nearly doubles to over $16 billion and 81,000 jobs. Motamedi added if the federal reductions do take place, the research sector and the state's economy figure to take a big hit.

"For every $1 million that's cut, we're losing something like 9-10 jobs, so that adds up pretty quick," he said.

Other sectors who benefit from the research economy include real estate and construction, food and beverage as well as administrative and support services.

Motamedi also pointed out beyond the potential for economic loss, there’s also the loss of the research and innovation itself, which could be critical in finding cures for disease or other breakthroughs.

On Thursday, the same day as the study was released, Governor Maura Healey announced legislation to provide $400 million for the research sector--to help offset some potential federal cuts.

“Massachusetts is the global leader in innovative research and the discovery of lifesaving cures,” Healey said in a press release. “Research funding is also foundational to the Massachusetts economy – it's economic infrastructure here. This bill is about creating jobs across industries from construction and food services to health care and education.”

Half of the money Healey proposes to use would fund a one-time, multi-year research pool intended for hospitals, universities and other institutions. The other half, funded through the state’s surtax on incomes over $1 million, would help bolster research at the state’s public universities.

Adam joined NEPM as a freelance reporter and fill-in operations assistant during the summer of 2011. For more than 15 years, Adam has had a number stops throughout his broadcast career, including as a news reporter and anchor, sports host and play-by-play announcer as well as a producer and technician.
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