Technological innovation is increasingly seen as a key to 21^st century prosperity, and Massachusetts is sustaining its rank as a Leading Technology State while Greater Boston is a center of technological innovation, excelling in research institutes, IPO’s and Venture Capital funding and industry subsets such as robotics, video-gaming, photonics, nanotechnology, telecommunications, mobile technologies, software, cloud computing, and Web 2.0. For example: 

• Massachusetts has one of the world’s largest digital video game development clusters, with 76 companies generating $2 billion in economic activity, according to theMass Technology Leadership Council, and is home to the growing field of digital advertising. 
• Greater Boston ranked as the Milken Institute’s #1 Life Sciences Cluster in 2008 and Massachusetts continues to top all other Leading Technology States on key measures: Small Business Innovation Research Contracts; Patents per Capita; National Institutes of Health Funding; and federal R&D funding for universities and hospitals, according to the Massachusetts Technology Collaborative’s Innovation Economy Index, 2008.

Greater Boston’s leadership is increasingly challenged. For example, Silicon Valley is a constant competitor, most recently for green and clean-tech innovation, and the state of Michigan has offered millions in tax incentives to lure green and clean tech companies.  In recent years, a host of Massachusetts-based green tech companies have moved or expanded to Michigan, including A123 and Evergreen Solar as well as to emerging economies such as China and India.

In Boston, community technology centers, schools and the Boston Public Library (BPL) have grown over the past decade as critical providers of free or affordable access to computer-related technology: 

• Boston has one of the most state-of-the art and well-distributed networks of community technology centers in the nation.  Located in "Greater" Roxbury” the Timothy Smith Fund has created more than 40 community technology centers in Roxbury in partnership with local community-based organizations.
• The Boston Public Schools, through the strategic Linc III plan, has reduced the student :computer ratio to just 3.6.  Laptops for Learning  places new or refurbished laptops in classrooms and the Project Refresh partnership between BPS and Boston’s business community has refurbished 1,200 computers.
• Boston’s Technology Goes Home program has served more than 3,500 families over 9 years in training and home access to computer technology. Documented results include 87% of participants who report increased connection to the community; 92% of parents cite improvement in children’s schoolwork; and 95% of participants reported significantly improved computers skills.
• Use of the main Boston Public Library (BPL) and its 27 neighborhood branches as a source for public Internet and WiFi access has increased dramatically. Internet sessions are up 7% and WiFi sessions up 153% between 2005 and 2008.

The Commonwealth of Massachusetts is increasingly investing in green economy innovation such as the new Wind Technology Testing Center  in Charlestown and the Massachusetts Clean Energy Center  supporting R&D, entrepreneurship, and workforce training in the clean-tech industries.  The Commonwealth’s heath and life sciences economy is being spurred by technological innovation like iRobot’s newly-created healthcare business unit exploring the potential of robotics as an assistive technology to promote wellness and enhance quality of life for seniors and the Healthy Lifespan Institute  formed to research non-pharmaceutical measures that people can take to live longer and healthier lives and to educate people about the aging process

Massachusetts’ tech sector continues to show growth but increasingly in jobs with lower compensation, and recession is also having an impact.  The Mass Tech Collaborative calculates that between 2003 and 2007, innovation economy employment grew in Scientific, Technical & Management jobs (16%), Health Care Delivery (11%), Post-Secondary Education (6%) and Business Services (5%). However, the sectors with the greatest percentage growth are those with among the lowest compensation (in Health Service Delivery, average real annual pay of $52,048 compared to $118,782 in Financial Services).

Boston is challenged to develop a “home grown” STEM workforce given low performance in science and math compared to national and global competitors while few college students are graduating with STEM (Science, Technology, Engineering, Math) degrees.  In 2010, Massachusetts 10^th graders will be required to pass a Science MCAS exam as a requirement for graduation.  However, Boston’s 5^th, 8^th and 10^th graders have continued to show low levels of Proficiency in the standardized science exams.  In 2008, 17% of 5th and 33% of 8^th graders achieved at least the grade-level benchmark of Proficient.  Among Boston’s 10^th graders, about 40% achieved Proficiency in the Technology exam compared to about 30% in Biology, 15% in Physics and less than 10% in Chemistry.  Among Massachusetts high school students, just 15% to 19% intend to pursue a college degree in Science, Technology, Engineering and Math between 2007 and 2009.

Massachusetts and Boston Public Schools are increasing investment in STEM education, and pilot projects are showing success in increasing student achievement. The Boston Science Partnership—driven by BPS, UMass-Boston and Northeastern University—aims to improve science education in Boston from kindergarten through graduate school by training teachers, increasing science education and linking students with support services throughout the education pipeline.  Statewide, MassInsight  has launched the Mass Math and Science Initiative (MMSI)  to increase the availability of and student participation in STEM AP courses in low-income school districts.  While both initiative relatively new, more than 70% of BPS students passed their first MCAS science exam and MMSI participating schools saw a 39% increase in the number of students scoring a 3 or higher on AP exams—more than 11 times the statewide average increase. 

Massachusetts’ technology sector is strengthening its current and building its future workforce through partnerships, associations and collaborations. For example:

• MassNetComms   links network technology companies with investors, customers as well as educational and networking opportunities;
• MomoBoston (MoMo) is a global community of mobile industry visionaries, developers and individuals fostering cooperation and cross-border business development through virtual and live networking events to share ideas, best practices and trends from global markets;
• Boston PostMortem is a network of videogame developers in the Boston area to discuss the business of making and playing computer games; 
• DartBoston is a community of entrepreneurs, students and professionals under 30 helping one another to start businesses; 
• Massachusetts Life Science Center's Internship Challenge Program matches students with internship opportunities, creating 104 paid internship opportunities at 59 life sciences companies and research institutions across Massachusetts;
• Boston-based Women Entrepreneurs in Science and Technology (WEST)  and Girls Get Connected Collaborativeare dedicated to improving education and opportunities for women and girls;
• Boston Area Advanced Technological Education(BATEC)  aims to design a regional and educational workforce development program for IT, andYear Up  provides one-year, intensive training for young adults in areas such as Desktop Support/ IT Help Desk and Web Production.