Porter Development Initiative (PDI) partnered with the Maine Jobs Council (MJC) to conduct a comprehensive evaluation of Maine’s economic competitiveness. Commissioned by MJC, the Maine Competitiveness Assessment was designed to measure the state’s competitive position in attracting and retaining jobs, investment, and talent. The project benchmarked Maine against other U.S. states in key dimensions such as workforce productivity, job creation, business formation, and innovation capacity. This assessment was developed to provide a data-driven foundation for understanding the structural factors influencing Maine’s economic performance. It also serves as a tool to support strategic decision-making among public, private, and civic stakeholders committed to strengthening Maine’s long-term economic position.
The results of this benchmarking revealed Maine’s relatively low performance, ranking 41st in economic output per capita and 46th in productivity per worker, highlighting the need for institutional and policy reforms.
To complement this quantitative analysis, the PDI team reviewed more than 30 sectoral and economic reports, which were triangulated to develop a Porter’s Diamond Model. This combined qualitative and quantitative assessment identified key barriers to the state’s growth, such as the limited presence of large firms, low R&D intensity, and weak cluster formation. While Maine benefits from natural resources and a high quality of life, it faces significant challenges, including a shortage of human capital aligned with market needs, low business density, and high energy costs. Despite emerging strengths in sectors such as biotechnology, financial services, and technology, employment in traded clusters remains below the national average.
The findings of the Maine Competitiveness Assessment highlight a set of structural conditions limiting the state’s economic dynamism. Although Maine possesses sectoral strengths and regional assets, current economic development approaches are not generating the levels of job creation, productivity, or private sector growth seen in comparable states.
Four strategic priorities were identified that require coordinated action:
