Governor tries to imagine new economy for Mass.

Mascoma Corp., founded in late 2005, is pursuing the next generation of biofuels with cellulosic ethanol technology.

South said Massachusetts is an ideal incubator for companies like his which rely on access to venture capital and a highly trained work force.

"In Massachusetts, people understand the startup culture and have the skills that we can apply rapidly and that is a huge advantage," he said.

Equally important, South said that while the company will ultimately have plants in multiple states, he plans to keep the top offices in Massachusetts.

"We don't foresee ourselves having to move out of here to get what we need to run an effective corporate operation," he said.

State Environmental Secretary Ian Bowles said the state's rush to lure and nurture clean energy and biotechnology companies isn't meant as a slight to other, more traditional businesses, but is a recognition by Patrick that those newer companies are where the biggest potential growth is now.

"It's not saying that other parts of the economy aren't vitally important," he said. "But I think he's really putting a priority in these areas because these are industries that are going to grow nationwide."

Bowles pointed to one of the biggest generators of new, cutting edge technology firms--the Massachusetts Institute of Technology.

MIT has helped give birth to companies like Watertown-based A123Systems, one of the world's leading suppliers of high-power lithium ion batteries, and Marlboro-based solar panel maker Evergreen Solar Inc. which just has signed a sales contract with Germany's IBC Solar AG worth $1.2 billion.

Patrick said those kind of success stories are good for the environment and good for the struggling Massachusetts economy.