The defense industry in Massachusetts makes up a big enough chunk of the state’s economy that Eric Paley, who started in September as Gov. Maura Healey’s economic development chief, said he was “blown away” when he started looking into the numbers.
Paley listed off some of those numbers Monday, as state officials announced a new initiative aimed at boosting the defense sector and supporting companies that work on military-related technologies.
It’s a $50 billion dollar industry, he said, accounting for over 7% of the state’s economy and almost 140,000 jobs.
“We’re going on offense on defense,” Paley said. “We really want to put a spotlight on this sector. We want to make it an economic development priority for the state.”
Gov. Maura Healey convened defense sector leaders at the State House to announce the launch of the state’s new SHIELD initiative — Massachusetts Strategic Hub for Innovation, Exchange and Leadership in Defense.
A key first step for the new initiative is a major funding announcement. Healey said Massachusetts is investing $47 million in the defense sector’s growth. The money comes from a variety of sources, including state and federal dollars.
More than half of the funding is a commitment to help research and development organization Draper build a new facility in Lowell focused on microelectronics and advanced chip technology.
CEO Jerry Wohletz said Draper’s Cambridge headquarters helped revitalize Kendall Square. He said a similar transformation could be possible in Lowell, where the new building is part of a broader economic development project known as the Lowell Innovation Network Corridor.
“The $25 million is more than an investment in a building,” Wohletz said. “It’s an investment in cultivating talent that leads to the creation of new jobs in highly skilled markets, trained locally in our universities, college, and trade schools.”
State officials are working with Draper and the city of Lowell to finalize the structure of the $25 million investment, which they say will likely include a mix of state bonds and local tax incentives.
Healey says research institutions, like Draper, MIT Lincoln Labs, and major companies such as MITRE Corporation have been leaders in defense technology for years, and new startups in fields like AI, cybersecurity and quantum technology also want to contribute to defense needs.
“We want to work together, we want to continue these investments in bigger and stronger ways, looking to keep America secure for another 250 years,” she said.
