Indicator 4: Output
How Does Massachusetts Perform?
Between 2011 and 2016 output increased in all of the Commonwealth’s Key Sectors with the exception of Diversified Industrial Manufacturing. Four Key Sectors experienced output growth above 15% from 2011-2016: Biopharmaceuticals & Medical Devices (21.7%), Software and Communications Services (19.3%), Scientific, Technical, and Management Services (16.8%), and Financial Services (15.3%). In absolute terms, Software & Communications Services, the largest of the Key Sectors in terms of output, is a clear driver of growth in the economy as its output increased by $6.8 billion from 2011-2016.
Massachusetts’ position as a leader in Biopharmaceuticals & Medical Devices has been further strengthened by the relocation of the headquarters or major R&D facilities of several pharmaceutical companies to the Boston area. There are now almost 1,900 establishments in the Biopharmaceuticals and Medical Devices 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 2016. Massachusetts fares well in comparison to the LTS in most sectors in per capita terms. The largest difference in absolute terms is in the Software & Communications Services sector where the state is $2,628 per capita or 73.7% ahead of the LTS average. The Financial Services and Healthcare Delivery Sector are also roughly $2,000 per capita ahead of the LTS average. Postsecondary Education is 207% higher than the LTS average, the largest difference in percentage terms. Massachusetts ranks highest in per capita output, among the LTS States, in Software & Communications Services; Scientific, Technical & Management Services; Biopharmaceuticals, Medical Devices & Hardware; Postsecondary Education, and Healthcare Delivery.