Report on Massachusetts’ Economic Development Strategy and Alignment with Sustainable Development Goals

Introduction: Leadership and Background

Eric Paley has been appointed as the economic development secretary for the Healey administration in Massachusetts. His career trajectory provides a unique perspective on fostering economic growth, rooted in private sector entrepreneurship and venture capital. This background is instrumental in shaping a state economic strategy that aligns with several Sustainable Development Goals (SDGs).

• Entrepreneurial Experience: Paley’s early career included ventures in web development and 3-D imaging for the dental industry (Brontes Technologies), contributing to innovation in health and technology sectors, which aligns with SDG 3 (Good Health and Well-being) and SDG 9 (Industry, Innovation, and Infrastructure).
• Venture Capital Leadership: In 2009, he co-founded Founder Collective, a venture firm providing seed funding to tech startups. The firm’s portfolio, including companies like Uber, SeatGeek, and PillPack, demonstrates a history of supporting innovative business models that drive economic growth and create employment, directly supporting SDG 8 (Decent Work and Economic Growth).

Core Economic Strategy: Fostering Innovation and Sustainable Growth

The administration’s economic development strategy focuses on leveraging the state’s competitive advantages in innovation to ensure long-term, sustainable growth. This approach is deeply connected to fostering a robust and resilient economy as outlined in the SDGs.

Key Initiatives and SDG Alignment

1. Strengthening the Innovative Economy (SDG 9): The successful effort to bring Hasbro’s headquarters to Boston is cited as a key achievement. This move reinforces the state’s position as a global leader in the creative and innovative economy, attracting talent and investment that are crucial for building resilient infrastructure and fostering innovation.
2. Retaining Talent and Research (SDG 8 & SDG 9): The administration is urgently advancing the DRIVE legislation. This initiative is designed to provide critical funding to research labs, preventing the loss of top-tier talent and intellectual property to global competitors. By securing its research and development sector, the state aims to maintain its competitive advantage and promote full and productive employment.
3. Fiscal Policy for Public Value (SDG 11 & SDG 17): The “millionaires tax” is framed as a strategic investment tool. The administration’s position is that the effective use of these revenues must generate a clear return on investment for all citizens. This includes funding projects that directly support the SDGs:
   • Improving transportation infrastructure to create more connected and sustainable communities (SDG 11).
   • Addressing the housing crisis to make the state more affordable and inclusive (SDG 11).

Addressing Urban Challenges: Housing and Affordability

A primary challenge to the state’s competitiveness and quality of life is affordability, particularly in housing. The administration is implementing targeted policies to address this issue in alignment with SDG 11 (Sustainable Cities and Communities).

• Accelerating Housing Development: A key strategy is to significantly reduce the environmental review time for new multifamily housing projects that meet state priorities.
• Incentivizing Sustainable Practices: Developers who commit to building multifamily housing and adhering to the state’s environmental goals will benefit from a fast-tracked review process, potentially cutting approval times from 12 months to one month. This policy directly links the creation of affordable and sustainable housing with climate action objectives (SDG 13).

Strategic Outlook: A Venture Capital Approach to Public Investment

Secretary Paley intends to apply principles from his venture capital career to his public role, particularly in the allocation of limited state resources. This “seed investor” mindset is a practical application of SDG 17 (Partnerships for the Goals).

The core challenge is to use finite public funds to achieve significant milestones that attract larger-scale private capital. By acting as a strategic early-stage investor, the state can de-risk projects and catalyze private sector investment in key areas of economic development, ensuring that public resources are leveraged for maximum impact on sustainable growth. This approach is critical in navigating the current climate of business uncertainty and national economic headwinds.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 8: Decent Work and Economic Growth
   • The article’s central theme is the economic development of Massachusetts. Eric Paley’s role as economic development secretary is to “help the Massachusetts economy more broadly.” The discussion revolves around fostering a competitive business environment, supporting startups through venture capital, and creating a “value proposition” for citizens and companies, all of which are core to promoting sustained, inclusive, and sustainable economic growth.
2. SDG 9: Industry, Innovation and Infrastructure
   • The article heavily emphasizes innovation and infrastructure. It highlights Paley’s background in funding tech startups and the state’s reputation as “one of the most innovative economies in the world.” Furthermore, it mentions specific investments in infrastructure, such as fixing “transportation infrastructure,” and policies like the DRIVE legislation aimed at retaining research talent and labs, which directly support building resilient infrastructure and fostering innovation.
3. SDG 11: Sustainable Cities and Communities
   • The article directly addresses the challenge of housing affordability, a key component of making cities inclusive, safe, resilient, and sustainable. Paley states, “The primary place we feel that is in housing,” and details government initiatives to “drive hard on housing” by fast-tracking the development of “new multifamily housing units” to make Massachusetts more affordable.
4. SDG 17: Partnerships for the Goals
   • The article exemplifies the partnership between the public and private sectors. Paley’s transition from a private venture capitalist to a public servant embodies this collaboration. His strategy to use limited state resources as a “seed investor” to “attract capital elsewhere” is a clear model of a public-private partnership aimed at achieving economic development goals.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation.
   • The focus on providing “early-stage capital, or seed funding, to tech startups” and celebrating Massachusetts as “one of the most innovative economies in the world” directly aligns with this target of fostering innovation and technological upgrading to boost economic productivity.
2. Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation.
   • Paley’s work, both in his previous role at Founder Collective and his current government position, is centered on supporting entrepreneurship and innovation. The state’s strategy to act as a “seed investor” is a development-oriented policy designed to encourage the growth of startups.
3. Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure… to support economic development and human well-being.
   • The article mentions that revenue from the “millionaires tax” is being invested in “fixing our transportation infrastructure,” which is a direct reference to developing quality infrastructure to support the state’s economy.
4. Target 9.3: Increase the access of small-scale industrial and other enterprises… to financial services, including affordable credit.
   • The article’s discussion of providing “early-stage capital, or seed funding, to tech startups” is directly related to increasing the access of small enterprises to financial services, enabling them to grow and innovate.
5. Target 11.1: By 2030, ensure access for all to adequate, safe and affordable housing.
   • The article explicitly identifies the lack of affordability as a major challenge, particularly in housing. The government’s plan to “drive hard on housing” and support the construction of “new multifamily housing units” is a direct effort to address this target.
6. Target 17.17: Encourage and promote effective public, public-private and civil society partnerships.
   • The entire narrative of a venture capitalist joining the government to apply private sector strategies (“think like seed investors”) to public economic development is a case study for this target. The goal is to use public funds to leverage and attract private investment, demonstrating an effective public-private partnership.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Amount of seed funding invested in startups:
   • The article discusses Founder Collective’s role in providing “early-stage capital, or seed funding.” The amount of such funding is a direct indicator of support for entrepreneurship and innovation (Targets 8.3, 9.3).
2. Number and success of innovative companies:
   • The mention of successful companies like Uber, SeatGeek, and PillPack, as well as the attraction of Hasbro’s headquarters, serves as a qualitative indicator of a thriving innovative economy (Target 8.2).
3. Public investment in research and development:
   • The DRIVE legislation is described as providing “research money.” The amount of this funding would be an indicator of government support for innovation and talent retention.
4. Housing development approval time:
   • The article explicitly mentions a goal to “cut the process down from 12 months to one month” for the environmental review of new multifamily housing. This is a clear, measurable indicator of progress towards increasing the housing supply (Target 11.1).
5. Private capital attracted by public investment:
   • Paley’s strategy is for the state to act as a “seed investor” to “attract capital elsewhere.” The ratio of private investment leveraged per dollar of public investment would be a key indicator of the success of this public-private partnership strategy (Target 17.17).

Summary Table of SDGs, Targets, and Indicators

Source: bostonglobe.com