3.3 Economic Strength and Resilience

From clipper ships to textiles to razor blades to wisdom, insight, advice and management, Boston has a long history of innovation and export, and in recent decades, the local economy has grown more diverse. Like a well-balanced portfolio, Boston’s industry mix ensures robust growth in periods of strong economic growth—and greater stability when the economy slows.  The health care and education sectors connected to the region’s “rooted institutions” and are not as volatile during downturns as construction and financial services. The region also benefits from a reserve of intellectual capital and innovation capacity that attract new revenue even in hard economic times as well as from some of the brightest talent in the world--many of them recent graduates who choose to stay to join premier local institutions or to start new companies. A diverse nonprofit sector, information technology (IT), medical research, bio-information technology all contribute significantly to resilience. However, globalization, outsourcing and off-shoring, as well as industry consolidation, could undermine Greater Boston’s economic equanimity.