Wednesday, February 23, 2011

Here We Go Again?

In case you missed it, the Boston Globe reported on the fact that yet again, taxpayer dollars used to boost the states life sciences industry have been spent, but to little avail. Thus, renewing the debate of how well government does in picking private sector winners and losers.

The good news is, that more than half of the 26 companies that received tax incentives under Governor Patrick’s $1 billion initiative to jumpstart the Commonwealth’s life sciences industry, have created the jobs they promised.

On the other hand, five companies that did not meet their job creating “quota” have already agreed to return the money that they were awarded.

Since these tax credits are competitively awarded after a comprehensive application and thorough review process by Massachusetts Life Science Center, we need to evaluate carefully the track record of picking winners and losers. The silver lining here is, unlike Evergreen Solar, the claw-back provisions for the taxpayer seem to be working far better under this set of tax incentives.

Click here to read the article in its entirety.