How government can advance innovation

Fast Company

4 hours ago

Innovation is a cornerstone of a vibrant economy. Entrepreneurs often get a lot of the credit for big tech breakthroughs and disruptive ideas. But they're not the only ones driving innovation: government can also have a big part to play, according to Massachusetts Gov. Maura Healey.
Since taking office in 2023, Healey has enacted several policies aimed at boosting the economy, from tax cuts to the largest housing investment in state history. Just a few months ago, she announced an economic development project: the Massachusetts AI Hub, which is described as offering the infrastructure, business development resources, and ethical guidance needed to strengthen the state's position as a center of AI innovation.
At the recent Think Conference hosted by IBM, Healey spoke with Stephanie Mehta, CEO and chief content officer of Mansueto Ventures (parent company of Fast Company), about the steps her state has taken to advance collaboration with industry, academia, and entrepreneurs to support advances in AI. Here are four takeaways from the discussion. (Some quotes were edited for clarity and length.)
1. Government support helps big ideas take off.
Bringing innovative ideas to life takes teamwork, and the public and private sectors can be a powerful pair. 'The only way to address the challenges of today, to solve the world's problems, is for government to work directly in partnership with private industry,' Healey said.
Take AI. Healey explained how the technology requires massive computing power and uses enormous amounts of energy. In Massachusetts, Healey saw an opportunity to help make it easier for energy supply to keep pace with the increasing demand from the state's AI industry. She championed legislation to simplify permitting and siting of energy infrastructure, speeding up the process for bringing more energy online.
Healey also believes government can play a pivotal role in helping to support AI entrepreneurs at their earliest stages. To that end, she recently announced a $31 million grant to expand the supply of compute and data capacity for those in the AI sector. In addition, the state's AI Hub is exploring partnerships to create an accelerator program for entrepreneurs developing AI technologies.
2. Progress must be sustainable—and inclusive.
Businesses often consider a range of internal and external stakeholders when making major decisions. But it's up to governments to take the broadest view, crafting policies and making investments that address issues such as climate change and foster greater economic participation, Healey said.
In the case of AI, that involves addressing the technology's environmental impact. The Massachusetts Green High Performance Computing Center, a collaboration between several of the state's public and private universities, provides infrastructure for computationally intensive research. Much of that power comes via renewable energy from solar arrays and a hydroelectric dam, helping to reduce the carbon footprint associated with scaling AI.
Meanwhile, Healey has looked for opportunities to ensure that the benefits of AI are enjoyed by all Massachusetts residents, not just some businesses. She recently assembled a taskforce, including labor officials, who considered what AI adoption will mean through a workforce lens and to offer strategies to manage the potential impacts on the labor market. 'We looked at what we need to do to upskill those who are going to have to participate in what will be an AI economy,' Healey said.
3. Innovative thinking will let organizations maximize their AI investment.
To show how generative AI can make organizations more efficient without leaving workers behind, the Massachusetts government decided to start using the technology itself. To prepare to take the AI plunge, leaders did their research. As part of the InnovateMA program, Healey invited students from Northeastern University to research productive AI use cases in state agencies. For instance, students created generative AI prompts that helped Department of Transportation employees wade through hundreds of pages of rules and regulations to advance transportation infrastructure projects. Tasks that used to take several days could now be completed in minutes, and workers felt more empowered to tackle other projects. 'Our employees loved it,' Healey said.
4. Crisis can be a catalyst for innovation.
When it comes to disruption, Healey said that she draws inspiration from the business world, embracing solutions-oriented strategies that helped her turn crisis into opportunity. Healey looked to leverage assets in Massachusetts to strengthen the state's own investment in innovation when federal government spending was being cut. She immediately reached out to Massachusetts's teaching hospitals, colleges and universities, and private equity investors to determine what the state needed to do to stay competitive globally. Healey expects that by continuing to fund science and research at the state level amid federal cuts, Massachusetts will emerge from the crisis even stronger in these areas.
At the same time, government needs to be a model for thinking beyond the bottom line, she said. 'For the purposes of the creation of a better world, a world where there is an abundance of energy, of housing, of healthcare, of transportation, of economic opportunity and prosperity for every child, it's got to come with a little bit of a broader lens.'