From here, it looks good

The electoral tide that swept Democrats back into power in Boston and Washington could provide the catalyst to tackle some of Massachusetts' toughest economic challenges, from housing to education to transportation, business leaders said yesterday.

With Democrats winning control of the governor's office for the first time in 16 years, and of the US House of Representatives after 12 years, business leaders said they expect economic policy to tackle a broad array of issues, rather than focus on tax cuts, the favorite tool of Republicans.

Already, Associated Industries of Massachusetts, the state's largest employer group, is calling on Governor-elect Deval Patrick to convene representatives from business, labor, academia, and the public to devise a long-term plan to address threats to the state's competitiveness, such as high housing costs and skill shortages.

It would be the first such plan since the early days of William Weld's administration, according to AIM.

In particular, the lack of affordable housing -- it's seen as hurting young families, increasing business costs, and driving young, skilled workers out of state -- has brought activist Democrats and the business community together as few other issues have.

"We think there's a lot of agreement on where we have to go," said Brian Gilmore, AIM spokesman. "The governor-elect ran as a consensus builder, and we think he could help get us there."

At the same time, Democratic control of the House will put Massachusetts' all-Democratic delegation in position to support the economic agenda as they assume chairmanships of committees and subcommittees that oversee defense, homeland security, technology, financial services, and other areas important to the state's economy.

For example, long-languishing proposals to expand affordable housing could get a new push when US Representative Barney Frank of Newton becomes chairman of the Financial Services Committee.

One such proposal would use regional median prices instead of national averages to determine eligibility for federal home-buying assistance.

Using national standards, many modestly priced homes in Massachusetts are improperly categorized as high-end homes, cutting off otherwise deserving home buyers from receiving federal assistance.

Democratic gains in the Senate, regardless of whether control in that chamber also shifts to Democrats, will add to the clout of the state's Democratic senators. For example, one bill that stalled in the Republican-dominated Congress, but which now has a good chance of becoming law, is the immigration bill sponsored by senators Edward M. Kennedy and John McCain, Republican of Arizona, analysts said.

Massachusetts, which attracts top technical talent from around the world, depends heavily on immigrants to fuel its labor force and support its innovation economy. Among its provisions, the bill would increase the number of visas for highly skilled technical workers and allow foreign graduate students to stay longer in the United States after completing advanced degrees.

"All of our delegation support the innovation agenda," said James Brett, president of the New England Council, which lobbies for the region in Washington. "They understand the importance of a competitive economy, and that it means jobs."

To be sure, business interests still have concerns about Democrats, who have not always been friendly to them.

In Massachusetts, with both the governor's office and the Legislature in Democratic hands, business leaders said they worry that one-party government could spur new, onerous regulations.

Nationally, businesses worry that Democrats, closely allied with labor, will adopt protectionist trade policies, which can raise costs and make it harder to gain entry to foreign markets.

The shift in political power comes as the Massachusetts economy is gaining momentum after suffering a deep recession and rebounding only slowly for much of the past few years. Over the past few months, job growth has accelerated to match the national average, and the state economy has expanded twice as fast as the nation's, according to recent economic data.

Governor Mitt Romney, who took office in the midst of the recession, spent much of the first part of his term grappling with a huge shortfall in the state budget, leading to a late start on a broader economic agenda. Under Romney, the state put in place programs to spur growth in biotechnology and technology industries; expedite permitting; and make it easier for businesses to expand in Massachusetts.

Still, many business leaders complained that Romney at first didn't understand the Massachusetts economy, as illustrated by his campaign pledge to lure out-of-state businesses here. Ultimately, the state depends on entrepreneurs and homegrown businesses to prosper, and its long-term success will depend on policies aimed at improving the business climate by controlling costs, improving transportation and other infrastructure, and developing a highly skilled workforce, business leaders said.

In many ways, Democrats are more comfortable with such policies, since they tend to require a more active role for the government in the economy, business leaders said. Patrick, while offering few specifics in the campaign, endorsed such a role for the state.

"What we hope to see is some positive policy action where it's needed," said Andre Mayer, senior vice president of research at Associated Industries of Massachusetts.

"It would be very useful to education and workforce development, which is what our economy lives and dies with."

Robert Gavin can be reached at rgavin@globe.com. Ross Kerber of the Globe staff contributed to this report.