Indicator 4: Output
How Does Massachusetts Perform?
Between 2012 and 2017 output increased in most of the Commonwealth’s Key Sectors with the exceptions of Defense Manufacturing & Instrumentation, Diversified Industrial Manufacturing, and Advanced Materials. Three Key Sectors experienced output growth above 20% from 2012-2017: Software & Communication Services (24.3%), Biopharmaceuticals, Medical Devices & Hardware (25.5%), and Scientific, Technical & Management Services (21.7%). In absolute terms, Software & Communication Services, the largest of the Key Sectors in terms of output, is a clear driver of growth in the economy as its output increased $7.9 billion from 2012-2017.
Massachusetts’ position as a leader in Biopharmaceuticals & Medical Devices has been further strengthened by the relocation of headquarters or major facilities of pharmaceutical companies to the Boston area. There are now over 2,000 establishments in the Biopharmaceuticals, Medical Devices & Hardware industry in Massachusetts.
In per capita output Massachusetts outperforms the LTS average in all Key Sectors except for Advanced Materials. Advanced Materials is the Commonwealth’s smallest sector in terms of output and made up only 2.2% of innovation economy employment in 2017. The largest difference in absolute terms of per capita output is in the Software & Communication Services sector where the state is $2,377 per capita or 168.2% ahead of the LTS average. Financial Services, Healthcare Delivery, and Biopharmaceuticals, Medical Devices & Hardware all are more than $1,500 per capita above the LTS average. Postsecondary Education is 188% higher than the LTS average, the largest difference in percentage terms. Massachusetts ranks highest in per capita output among the LTS in: Biopharmaceuticals & Medical Devices & Hardware; Healthcare Delivery; Postsecondary Education; Scientific, Technical & Management Services; and Software & Communication Services.
Data Source for Indicator 4: U.S. Census Bureau, Moody’s, QCEW