Reilly would invest $500m in UMass

Attorney General Thomas F. Reilly plans to unveil an economic development proposal today that calls for investing $500 million in the University of Massachusetts system, with the aim of bringing it into the top 25 nationwide in research and development spending.

The money -- $400 million in state funds and $100 million to be raised privately -- would be spent over five years under the direction of a panel of private and public sector advisers, according to an outline of the proposal obtained by the Globe. The funds could be used to hire faculty and research teams, to support research labs and equipment, and to bring products using new technologies to market.

``This is a significant investment to create good-paying jobs in every region of the state, while at the same time elevating research and education at UMass," a Reilly adviser said.

With job and population growth stagnant in the past several years, economic development has become a central issue in this year's governor's race. The state's population dropped by nearly 19,000 between 2003 and 2005, according to census data; a nationwide survey commissioned by the Globe this spring found that 39 percent of those who left cited a better job as a major factor.

The other Democrats have proposed new investment in research and development. Last month, Christopher F. Gabrieli, a former venture capitalist, put forward a plan to invest up to $500 million in stem cell research and $500 million in other scientific research in both the private and public sectors. Gabrieli's plan also calls for an independent board to decide how the money would be spent. Last fall Deval L. Patrick, a former civil rights and corporate lawyer, was the first to propose that government funds be invested in stem cell research. Like Reilly, he would funnel the money to public colleges and universities, but Patrick has not said how much should be spent.

Reilly's proposed investment would dramatically boost spending on cutting-edge technology in the UMass system. In fiscal 2005, the university system spent $376.7 million on research and development, said Bill Wright, a spokesman for Jack M. Wilson, system president. The state's total contribution was more than $400 million, about 20 percent of the system's $2.1 billion budget. The university system made $28.7 million through its research via intellectual property licensing and other dividends of technology commercialization, he said.

Robert P. Connolly, a university system spokesman, called the Reilly proposal exciting.

``One of the impressive things I think we're seeing in this election is all the candidates agreeing that UMass is crucial to economic development and sustained growth in the state," he said.

Alan G. Macdonald, executive director of the Massachusetts Business Roundtable, said the plan could provide a big boost for communities outside Greater Boston, where UMass does the lion's share of important scientific research that eventually nurtures job creation.

``It's a tremendous economic engine for our state," he said.

Reilly plans to unveil the proposal at Infoscitex Corp. in Waltham, a research and development company that has numerous partnerships with local universities .