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Compromise Produces Solid Legislative Scorecard

Posted by John Regan on Oct 3, 2018 1:30:00 PM

A legislative session marked by grand compromises and outside ballot initiatives gave state lawmakers generally solid grades in the 2017-2018 AIM Legislative Scorecard released today.

Scorecard2AIM publishes the Legislative Scorecard at the end of each two-year Beacon Hill session to ensure that employers know legislators’ records on key economic and public-policy issues, and to recognize lawmakers who understand the importance of a vibrant economy for all residents.

The 2017-2018 legislative session was dominated by a wave of ballot initiatives that forced employers and lawmakers to forge a broad compromise establishing paid family and medical leave, increasing the minimum wage to $15 per hour and eliminating overtime pay for Sunday retail work.

AIM helped to negotiate the compromise because the proposed ballot questions on those issues were dangerous to business and almost certainly would have passed in a year of unprecedented electoral activism.

A separate potential ballot question establishing a surtax on incomes of more than $1 million died in the face of a court challenge lodged by AIM President Richard Lord and four other prominent business leaders.

And employers struggling to provide good health insurance to their employees remained frustrated at having to pay a $200 million annual assessment to close a budget gap in the MassHealth program for low-income people with no prospect of reforms.

Virtually every member of the House of Representatives earned grades of 60 percent or higher. Eight representatives topped the list at 100 percent, while 36 ended the session at 80 percent.

The ratings were based on five roll-call votes dealing with issues ranging from economic development to energy.

In the Senate, 29 of 36 members posted scores of 50 percent or better, with three senators leading the way at 75 percent. Six senators ended the session at 38 percent and three were at 25 percent.

The Senate scores were based upon many of the same issues debated by the House, as well as additional votes on so-called wage theft.

The Legislative Scorecard selects votes that reflect the objectives of The Blueprint for the Next Century, AIM’s long-term plan for economic prosperity in Massachusetts. The plan maintains that only a vibrant, private-sector economy creates opportunity that binds the social, governmental, and economic foundations of our commonwealth.

The Blueprint contains four specific recommendations against which AIM measures public policy issues:

  1. Develop the best system in the world for educating and training workers with the skills
    needed to allow Massachusetts companies to succeed in a rapidly changing global economy.
  2. Support business formation and expansion by creating a uniformly competitive economic
    structure across all industries, geographic regions and populations, rather than picking
    winners and losers. That structure must include a reliable and efficient transportation system.
  3. Establish a world-class state regulatory system that ensures the health and welfare
    of society in a manner that meets the highest standards of efficiency, predictability, transparency and responsiveness.
  4. Moderate the immense long-term burden that health care and energy costs place on
    business growth.

Should the Legislature resume formal sessions before January, AIM may issue an updated Scorecard.

Topics: Massachusetts Legislature, Massachusetts House of Representatives, Massachusetts senate, Charlie Baker

Baker Signs Energy, Non-Compete Bills; Vetoes Patent Trolling

Posted by John Regan on Aug 13, 2018 8:00:00 AM

Governor Charlie Baker last week signed a clean-energy bill and new rules governing the use of non-compete agreements, but vetoed a “patent-trolling” provision that could have prevented companies from protecting their intellectual property.

Baker.2017The energy bill was among 53 pieces of legislation passed in the waning hours of the formal legislative session that Baker signed on Thursday. His actions on non-competes and patent-trolling, both of which were part of a $1.2 billion economic development bill, came on Friday.

AIM supported the energy measure and the compromise bill on non-competes but opposed the patent-trolling language.

“We are grateful to Governor Baker for thoughtful decisions that will benefit both the business community and the larger community,” said Richard C. Lord, President and Chief Executive Officer of Associated Industries of Massachusetts.

AIM had urged Baker to strike the problematic patent-trolling language from the economic development bill.

“The patent-trolling language contained in the bill pending before you is materially different from the compromise language approved by the Joint Committee on Consumer Protection and Professional Licensure committee (S.2432),” Lord wrote to Baker early last week.

“The changed language appeared within the final days of the legislative session and has raised significant concerns from employers who believe it may limit the ability of companies to protect intellectual property.”

AIM supported other portions of the economic-development bill ranging from an apprenticeship tax credit to changes to the Economic Development Incentive Program.

The non-compete language signed by Baker mirrors an agreement that AIM and other business groups reached two years ago with House Speaker Robert DeLeo. The measure limits non-competes to one year and gives employees the opportunity to consult a lawyer when signing a non-compete but does not require companies that compensate employees at the time they sign non-competes to pay them again during the restricted period.

The new energy bill authorizes an additional procurement of offshore wind power, increases the renewable portfolio standard that governs the amount of clean energy utilities must purchase, and establishes an energy storage target. The renewable portfolio standard will increase by one percent until the end of 2019, then by two percent each year until the end of 2029. It would then set the state on a track of one-percent increases each year thereafter.

Topics: Charlie Baker, Non-Compete Agreements, Energy, Patent Trolling

AIM Urges Governor to Sign Energy Bill, Parts of Economic Development Bill

Posted by Christopher Geehern on Aug 6, 2018 8:00:00 AM

Associated Industries of Massachusetts on Friday urged Governor Charlie Baker to sign a clean-energy bill and approve portions of a $1.2 billion economic-development bill passed by the Legislature earlier in the week.

State_House_and_One_BeaconIn a letter to the governor, AIM expressed support for key portions of the economic-development bill ranging from an apprenticeship tax credit to imposition of reasonable limits on the use of non-compete agreements. But the largest employer association in the commonwealth urged the governor to strike other elements of the bill, including a “patent-trolling” provision that could prevent companies from protecting their intellectual property.

“The patent trolling language contained in the bill pending before you is materially different from the compromise language approved by the Joint Committee on Consumer Protection and Professional Licensure committee (S.2432),” AIM President and CEO Richard C. Lord wrote to Baker.

“The changed language appeared within the final days of the legislative session and has raised significant concerns from employers who believe it may limit the ability of companies to protect intellectual property.”

The economic-development and energy measures were part of a flurry of activity as the Legislature ended the formal portion of its 2017-2018 session early Wednesday morning. Governor Baker has 10 days to sign the bills, veto them or send back amended language.

The language in the economic-development bill governing use of non-competes mirrors a compromise that AIM and other business groups reached two years ago with House Speaker Robert DeLeo. The measure limits non-competes to one year and gives employees the opportunity to consult a lawyer when signing a non-compete but does not require companies that compensate employees at the time they sign non-competes to pay them again during the restricted period.

AIM fought relentlessly for more than 11 years on behalf the vast majority of Massachusetts employers who wish to preserve the use of non-competes to protect intellectual property. The new bill accomplishes that goal.

The new energy bill authorizes an additional procurement of offshore wind power, increases the renewable portfolio standard that governs the amount of clean energy utilities must purchase, and establishes an energy storage target. The renewable portfolio standard will increase by one percent until the end of 2019, then by two percent each year until the end of 2029. It would then set the state on a track of one-percent increases each year thereafter.

The bill “is a measured approach to public policy. It changes only those programs that need changing without disrupting newly established programs before they have had a chance to work. It will reduce greenhouse-gas emissions in Massachusetts while being considerate of our high electric prices,” Lord wrote in a separate letter to the governor.

Topics: Charlie Baker, Massachusetts Legislature, Energy, Economic Development

Summing Up, Looking Ahead: Challenges Await Employers

Posted by Rick Lord on Jan 2, 2018 8:30:00 AM

The first half of the 2017-2018 legislative session in Massachusetts was dominated by the issue of health-care costs and the role employers should play in helping to close a budget gap in the state Medicaid program.

Exterior.jpgBut larger battles await during 2018 as progressive activists seek to place three questions on the Massachusetts election ballot that would together impede economic growth for a generation. The initiatives would impose an 80 percent surtax on incomes more than $1 million for pass-through businesses, establish a $1.3 billion-per-year paid leave program and increase the minimum wage to $15 per hour.

Associated Industries of Massachusetts worked successfully during 2017 on a range of issues confronting its member employers from every sector of the economy.

The most important achievement was a compromise that transformed a proposed $700 million annual health-care surtax into a two-year, $200 million assessment to close the budget shortfall in the commonwealth’s health-insurance program for low-income people. The assessment increased the Employer Medical Assistance Contribution (EMAC) in a manner that will fall most heavily on companies where employees use MassHealth instead of an employer health plan.

The levy will be partially offset by a two-year Unemployment Insurance rate adjustment that will save employers $335 million over two years versus current rates. AIM was disappointed that lawmakers passed the assessment without making structural reforms to the MassHealth program.

“We believe, however, that the Legislature is committed to resolving the financial problems at MassHealth and employers look forward to working with lawmakers toward that goal in 2018,” said John Regan, Executive Vice President of Government Affairs at AIM.

AIM also played a key role in hammering out compromise legislation to extend employment protection to pregnant workers in Massachusetts.

The Pregnant Workers Fairness Act requires employers to make reasonable workplace accommodations for pregnant employees — more frequent or longer breaks, temporary transfer to a less strenuous or hazardous position, a modified work schedule, or seating for those whose jobs require extended standing.  AIM opposed early versions of the bill because of concern among employers that the legislation provided an applicant or employee with unlimited power to reject multiple and reasonable offers of accommodation by an employer. The compromise bill addresses that concern.

There was no such compromise in August when the Baker Administration introduced regulations that set specific limits on sources of greenhouse gases, the emissions linked to climate change. State officials indicate that the regulations could increase costs to electric ratepayers by as much as 2 percent. The new rules aim to reduce the state’s carbon emissions 25 percent below 1990 levels by 2020, as required by state law.

The regulations, however, were ultimately unnecessary. The administration could have chosen to work with the Legislature to change the Global Warming Solutions Act to allow alternative ways for the electricity sector to meet these obligations.  The administration instead turned a blind eye to the corrosive impacts that high electric rates are having on struggling Massachusetts companies.

The three potential 2018 ballot questions would represent an unprecedented potential policy crisis for Massachusetts:

  • The constitutional tax amendment would raise from 5.1 percent to 9.1 percent the levy on income of more than $1 million per year, including income generated by subchapter S-corporations, LLPs, LLCs, partnerships, and other pass-through entities. The $1.9 billion tax increase would be paid by roughly 19,500 filers, 80 percent of whom are anticipated to file with some business income.
  • The paid leave question would mandate 16 weeks of paid family leave and 26 weeks of paid medical leave for employees for a total projected cost of $1.3 billion.
  • The minimum wage question would raise the wage from the current $11 per hour in annual $1 per-hour annual increments starting in 2019 until it reaches $15 an hour in 2022. That amounts to a projected increase of 36 percent.

Supporters of the paid-leave and minimum wage questions filed the requisite number of signatures last month to move a step closer to the ballot. Massachusetts lawmakers now have until the end of April to consider and pass the initiatives. Any initiatives that are not adopted must gather and file an additional 10,792 signatures by July 3 to make the 2018 ballot.

The income surtax constitutional amendment qualified for the ballot in 2016. In October, I joined four other prominent business leaders in filing a suit challenging the validity of the proposal, asserting that the amendment is riddled with constitutional flaws and would make the new tax essentially permanent and unchangeable. 

“It is impossible to overstate the potential threat that these three ballot questions pose for Massachusetts employers.  The advocates supporting the questions are well funded and are prepared to spend millions of dollars to get their message across to voters,” Regan said.

The ballot battle will take place just as employers begin to comply with the new Massachusetts Pay Equity Law on July 1, 2018. The law prohibits employers from discriminating based on gender in the payment of wages and other compensation for “comparable” work. Many employers are already undertaking the internal wage studies that provide a safe harbor from litigation under the statute.

Beacon Hill lawmakers will conclude the second year of their two-year session on July 31. The end of formal sessions will kick off an election season that will see Governor Charlie Baker, US Senator Elizabeth Warren and other prominent office holders face re-election challenges.

 

Topics: Massachusetts Legislature, Charlie Baker, Massachusetts employers

Governor, Business Community Reach Compromise on Health Assessment

Posted by Katie Holahan on Jun 20, 2017 2:00:00 PM

The Massachusetts business community has agreed to support a broad compromise plan to stabilize the Massachusetts Medicaid and Unemployment Insurance systems while offseting a two-year employer health-care assessment with savings elsewhere.

Baker.2017.jpgThe complex agreement, developed after months of intensive negotiations between the Baker Administration and the business community, would make structural changes to the MassHealth program to reduce ongoing financial shortfalls in the state/federal insurance program for low-income people. There would also be cost-saving changes to the commercial health-insurance markets, including increased incentives for patients to seek care at high-quality community hospitals.

The plan would use a temporary employer health assessment as “bridge financing” to capitalize the MassHealth program until the long-term reforms are implemented. The assessment would raise $200 million annually through the Employer Medical Assistance Contribution (EMAC) and fall most heavily on companies where employees use MassHealth instead of an employer health plan.

The assessment would be offset by a two-year Unemployment Insurance rate adjustment that would save employers $335 million over two years versus current rates.

The administration announced the agreement today in a letter to the chairs of the Legislature’s Joint Committee on Ways and Means.

“The comprehensive plan moderates the employer assessment that was originally proposed in January while offering the opportunity for meaningful structural reforms to the health insurance system and rate relief within the Unemployment Insurance system,” said Richard C. Lord, President and Chief Executive Officer of AIM.

The compromise will require approvals both from the Massachusetts Legislature and from federal officials.

Here are the key elements of the agreement:

MassHealth/Medicaid

  • Moves 140,000 people who are above the federal poverty level out of Masshealth and into the Connector market;
  • Restructures MassHealth coverage for non-disabled adults to look like commercial insurance coverage;
  • Shifts 30,000 MassHealth members from standard MassHealth coverage, which includes coverage for long-term care, into Careplus, which does not;
  • Adds co-pays for MassHealth members;
  • Requires the commonwealth to petition the federal government to re-establish the prohibition against employees who are offered affordable health insurance by an employer from seeking coverage through MassHealth.

Commercial Market Reforms

  • Imposes a five-year moratorium on insurance mandates (requires change to state law);
  • Increases the required premium differential for tiered network plans from the current 14 percent to 28 percent. (requires state law change);
  • Promotes transparency tools for employers and consumers. (requires state law change);
  • Increases access to lower-cost providers by expanding the scope of practice for optometrists, podiatrists and advanced practice registered nurses (APRN) and creating a new mid-level provider - dental therapists. (requires state law change).

Employer Assessment:

  • Applies to employers with six or more employees (both full and part-time);
  • Increases the EMAC contribution rate for all employees, statewide. Additional annual two-tiered assessment on any employees receiving health insurance through public programs.
  • Tier 1 is broad based, raising the current EMAC rate from 0.34 percent to 0.51 percent of annual wages, up to the annual wage cap of $15,000. Applies to all employers currently subject to EMAC; raises the maximum per-employee contribution rate from $51 to $77; state expects to annually collect $75M under this tier;
  • Tier 2 introduces a targeted payment that would require employers to pay an additional 5 percent of annual wages for each non-disabled employee on public coverage, up to the annual wage cap of $15,000; applies to all employers currently subject to EMAC with non-disabled employees on MassHealth (not in premium assistance) or subsidized Connector coverage (ConnectorCare); Tier 2 would result in an annual maximum per employee contribution rate of $750; state expect to collect an estimated $125M in Fiscal Year 2018 under this tier; the estimate is dependent upon the actual number of individuals on public coverage.
  • Waiver applies for anyone receiving insurance through parent, spouse or other household member;
  • Implementation date of January 1, 2018 and a sunset date two years later.

Unemployment Insurance

  • An automatic increase of three levels to schedule F due to take effect on January 1 would be replaced with a one-level jump to schedule D for 2018 and another single increase to schedule E for 2019.

Governor Baker in January proposed to close a $600 million shortfall in MassHealth by levying a $2,000-per-employee fee upon companies at which at least 80 percent of full-time worker equivalents do not take the company’s offer of health insurance, or do not make a minimum contribution of $4,950 annual contribution for each full-time worker. AIM opposed that plan because it would penalize the majority of companies that provide good health insurance to their workers.

Topics: Controlling Health Care Costs, Employer Health Assessment, Charlie Baker

Governor Baker Addresses AIM Annual Meeting

Posted by Christopher Geehern on May 12, 2017 12:19:02 PM

Governor Charlie Baker delivered the keynote address at the 2017 AIM Annual Meeting last week in Boston. The governor reviewed the accomplishments of his administration and ended with a passionate plea for bipartisanship.

Here is his full speech...

Topics: AIM Annual Meeting, Charlie Baker, Massachusetts economy

Governor Makes Case for Bipartisanship

Posted by Christopher Geehern on May 8, 2017 10:11:59 AM

Governor Charlie Baker, speaking one day after a health-care bill once again passed the US House of Representatives without a single vote from the minority party, made a passionate case for bipartisanship in a speech to the AIM Annual Meeting Friday.

Baker.2017.jpg“In the end, you’re not measured by how many things you opposed but how many things you get done,” the governor told more than 850 business leaders gathered at the Westin Boston Waterfront hotel.

“I take tremendous satisfaction from the fact that we get along with people on both sides of the aisle.”

Governor Baker has worked closely throughout his first two years in office with the two top Democrats in the Massachusetts Legislature – House Speaker Robert DeLeo and Senate President Stan Rosenberg – on complex issues ranging from the MBTA and energy policy to the opiate crisis. The bipartisan approach has made the governor the most popular chief executive in the nation, according to polls.

“I’ve learned a lot from people I don’t agree with,” said Governor Baker, who said his entire staff prides itself on listening to ideas from throughout the ideological spectrum.

The governor’s speech highlighted an Annual Meeting celebration that featured presentation of 2017 AIM Vision Awards to Fidelity Investments, Bright Horizons Family Solutions and Woods Hole Oceanographic Institution. AIM also presented the John Gould Education and Workforce Development Award to Tech Foundry of Springfield.

Governor Baker highlighted several bipartisan initiatives he said have been cornerstones of his administration:

  • Strengthening communities, including a $300 million funding increase for k-12 education, development of a second-generation MCAS test, $800 million for local roads and bridges and an initiative under which cities and towns can share best governing and management practices.
  • Economic growth, including a broad regulatory review, a multi-million-dollar investment in vocational/technical schools, streamlining of mass transit systems and an energy bill that maintains costs while reducing the commonwealth’s carbon footprint.
  • Improved efficiency, including reduced wait times at the Registry of Motor Vehicles and an overhaul of the Health Insurance Connector Authority, which broke down several years ago as residents were attempting to buy insurance.

Bipartisan cooperation, the governor said, was one of the primary reasons that General Electric Company chose to locate its corporate headquarters in Boston. The company has often cited the collaboration between the Republican Baker and Boston Mayor Marty Walsh, a Democrat, as a factor in its decision to move from Connecticut.

Governor Baker praised the work done by AIM to represent the interests of employers in public-policy debates.

He praised the association for its willingness to “speak candidly and straight about issues it cares about.”

Topics: Charlie Baker, AIM Annual Meeting, Massachusetts

Proposed Assessment Will Hurt Employers Who Provide Health Insurance

Posted by Rick Lord on Jan 26, 2017 3:00:40 PM

Governor Charlie Baker yesterday described his proposal for a $300 million health assessment on employers as an attempt “to wrestle with the fact that a huge portion of people who are working full-time are either not taking coverage that's available through their employer and going on MassHealth, or are working for people who aren't offering them coverage at all, and going on MassHealth."

health_care.jpgHe added, according to State House News Service, that “the centerpiece of this budget really is a smart and common-sense approach to address the problem of costs being shifted from private sector employers for their employees onto state government."

Set aside for the moment the questionable premise of rampant cost shifting in a commonwealth where 76 percent of employers offer health insurance compared to 55 percent in the rest of the country.

The important point is that the governor’s sweeping proposal goes far beyond targeting employers who offer no health insurance, and instead penalizes employers who already offer high-quality insurance coverage to their employees.

It appears that money, not fairness, is driving the new fair-share assessment.

The administration plan would impose a $2,000-per-employee fee upon companies at which at least 80 percent of full-time worker equivalents do not take the company’s offer of health insurance, and that do not make a minimum contribution of $4,950 annual contribution for each full-time worker. If 70 percent of a company’s employees accept company health insurance, the company would be assessed $2,000 per employee for the number of employees represented by the 10 percent difference.

The employer assessment, which would bring an estimated $300 million into state coffers, represents a revival of the so-called fair share contribution plan that was a linchpin of the 2006 universal health care law in Massachusetts before it was repealed to make way for the federal Affordable Care Act. The state employer mandate was repealed in 2013 as lawmakers and former Gov. Deval Patrick worked to bring Massachusetts into compliance with federal health-care reform.

AIM asked multiple employers of varying sizes to determine whether they would be subject to an assessment under the governor’s plan. Every one of the companies, from small manufacturers to international financial institutions to corner retailers, reported that they would face assessments. Most fell short of the 80 percent threshold because of employees using spousal health plans or because of the calculation of full-time equivalent employees.

“There is widespread concern among responsible employers that they are being dragged into an assessment intended for companies that provide no health coverage,” said Katie Holahan, Vice President of Government Affairs at AIM.

Holahan said AIM has developed an online calculator that will allow employers to determine how much they might owe under the governor’s proposal.

AIM opposes the employer assessment because the growing shortfall at Masshealth, which provides health insurance to 1.9 million low-income Massachusetts residents, is attributable solely to problems arising from the federal Affordable Care Act (ACA), a law that may well be repealed by the time Massachusetts solves its Medicaid problems. 

ACA made access to health insurance an entitlement based on expanded income eligibility.  Under the Massachusetts health care reform law of 2006, employees who were offered employer-sponsored health insurance were ineligible for MassHealth.  The ACA reversed that policy and allowed employees to decline employer coverage and still seek insurance through MassHealth.

The change created a migration of newly-eligible individuals from their employer-sponsored insurance to MassHealth, substantially increasing the commonwealth’s financial burden.  ACA made it an economically rational choice for eligible residents.

As MassHealth enrollment grows, the commonwealth experiences the reality that employers have faced for years - the high cost of health care coverage in this state threatens the underpinnings of the state economy.  This challenging moment underscores the fact that policymakers have concentrated too heavily on access issues instead of controlling the cost of health insurance, and now face a renewed imperative to lower costs for everyone in Massachusetts.

AIM looks forward to working with the administration and the Legislature to find a fair solution to the commonwealth’s challenging health-care financing issues.

Topics: Health Insurance, Health Care Costs, Charlie Baker

Infographic: The Governor's Proposed Health Assessment

Posted by Katie Holahan on Jan 25, 2017 4:21:34 PM

The Baker Administration filed a budget proposal today that, as expected, would impose a $2,000-per-employee tax on some employers to close a deficit in MassHealth. AIM opposes the assessment as unfairly burdening employers for a problem they did not create.

Which employers will be subject to the assessment? Here is an infographic that summarizes the administration proposal. AIM is developing a calculator that will allow employers to determine exactly what their costs will be under the new assessment.

If you have any feedback or questions about this proposal, please contact Katie Holahan at keh@aimnet.org or 617.262.1180.

Fair Share 2017.jpg

 

Topics: Health Care Costs, Health Insurance, Charlie Baker

Trade Mission Cements Economic Ties with Israel

Posted by Kristen Rupert on Dec 22, 2016 11:03:34 AM

Editor's note - Kristen Rupert, Executive Director of the AIM International Business Council, traveled to Israel earlier this month as part of Governor Charlie Baker's trade mission.

Governor Charlie Baker’s recent trade mission to Israel took place at a propitious time for US-Israel relations.

Gov.Baker.Israel.jpgThe first two (of an order of 50) F-35 fighter jets were delivered by the US to Israel while the Massachusetts trade delegation was participating in meetings in Tel Aviv.  These state-of-the-art, manufactured-in-the-US, stealth aircraft were flown from the US to an Israeli airbase in the Negev where they were greeted by Israel Prime Minister Benjamin Netanyahu, US Defense Secretary Ash Carter, US Ambassador to Israel Daniel Shapiro, and a large crowd of US and Israeli military personnel.

Against this backdrop of goodwill between the US and Israel, Massachusetts executives spent four days in panel discussions, informational briefings and networking sessions with Israeli counterparts in the digital health and cybersecurity sectors.  A few examples:

Two panels on cybersecurity, featuring chief security, tech and information officers from Harvard, the Federal Reserve, Raytheon, IBM, Akamai and Beth Israel Deaconess, addressed the challenges of staying ahead of the “bad guys.”  Lessons learned: think of cybersecurity as an investment and not a cost for your company, continue to add security features for log-ins and data access, and communicate regularly to employees—nearly all of whom carry a mobile device—about the critical importance of protecting company and personal data.

On research and innovation, Governor Baker and Israel’s Chief Scientist spoke at a half-day session, convened by GE, about complementary strengths in Massachusetts and Israel.  Both leaders spoke about the value of collaboration among government, private industry, and universities.  Massachusetts is historically strong in technology and our defense legacy is helping us grow a cybersecurity ecosystem.  Israel spends more per capita on research and development than any country in the world and the government funds start-ups in all industries at all stages.  Both Israel and Massachusetts have strong talent pools from which to hire—yet both are struggling with the need for additional skilled workers.

Governor Baker stressed the “powerful possibilities” of collaboration between the Bay State and Israel.  Strong ties already exist.  Many Israeli doctors and health-care researchers trained or practiced in Massachusetts.  More than 200 Israeli-founded companies are thriving in the Boston area.  Thrice-weekly non-stop flights between Boston and Tel Aviv already carry university professors, students on internships, private industry leaders, medical professionals and government officials.

Several Memoranda of Understanding focused on cybersecurity and technology were signed by Massachusetts government officials and their Israeli counterparts during the trip.  Now back home, trade mission delegates are already talking about how to launch and nurture additional collaborations and encourage Israeli start-ups to come to Boston.

Governor Baker said it best when he invited company founders to consider Massachusetts “your home away from home.”  Certainly the recent trade mission reinforced the strong desire by Israelis and Bay Staters to work even more closely together over the next few years.    

Topics: Charlie Baker, International Trade, AIM International Business Council

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