The Baltimore-Washington-Richmond corridor’s economy is at an inflection point: without a concerted effort to diversify and shift its economic trajectory, the region risks further falling behind its national peers. This pivotal moment presents an opportunity for regional business and civic leaders to align on economic priorities and strategies that could jumpstart a more competitive and prosperous future. 

However, the region’s composition—multiple states with overlapping metro areas and unique priorities—creates a coordination challenge. Addressing the region’s economic challenges will require working across state lines to align on policies and strategies that will improve its attractiveness for businesses and residents alike.  

 

Business leaders across the region already agree on this challenge: in a recent survey of locally-based employers, 42% rated the region’s cross-jurisdictional collaboration as only slightly effective—or not effective at all. The results offer a clear signal that better alignment on policies, regulations, and investment strategies across Maryland, Virginia, and the District of Columbia could remove friction across borders and jumpstart the region’s competitiveness.  

Lessons from Other Regions 

Place-based research has shown the benefits of regional collaboration for shared economic success, offering lessons that can be applied here in our region. Collaboration across jurisdictions can spur economic development by aligning investments, reducing duplicative infrastructure and services, and increasing effectiveness in reaching regional policy and economic goals. A recent Urban Institute report confirms that a lack of regional coordination can produce inefficient metro economies, particularly around issues that are deeply interdependent across jurisdictional boundaries, such as transportation and housing.  

The corridor from Baltimore to Richmond is clearly not alone in dealing with a need for greater collaboration, and other regional economies that span state lines have developed promising strategies to boost competitiveness. Adapting and modifying these efforts—while building on the preexisting advantages already present in the region—could unlock the next stage of regional growth.   

Regional alliances such as these help eliminate counterproductive competition that can devolve into zero-sum bidding wars that essentially relocate firms across state lines without creating real regional growth. A well-known example of this occurred in Kansas and Missouri through efforts to lure companies across the border through targeted tax incentives, a gambit that ultimately shifted jobs by just a few miles—with little if any net creation—and cost taxpayers $217 million. In other ways, however, competition can be beneficial when it encourages states to strengthen assets like talent pipelines, transportation networks, and permitting processes. 

By emulating successful interjurisdictional initiatives and committing to being a more business-friendly and affordable destination, each jurisdiction in this region will be able to benefit. Aligning strategy on core competitiveness issues, like affordability and regulatory ease, will make it easier in the long run for the entire region to be successful, with each part of the region better able to focus on its comparative advantages and industry strengths. 

The Time for Better Collaboration is Now 

Amid the economic upheaval of the past year, it’s become increasingly evident that the region’s existing wealth of talent and economic assets are no longer enough to maintain a competitive edge nationally. Regional peers are outpacing the corridor in attracting businesses and talent, driven by faster development timelines, greater affordability, stronger job growth, and better quality of life. 

 

The warning lights are flashing red for the region’s shared economic future:  

Greater Collaboration, Greater Competitiveness 

So, where and how should the region be better aligned? A survey of the region’s leading employers identified several concrete areas in which coordination across the region can be improved: 

 

Regional leaders are already making some progress on these areas during recent legislative sessions: 

Maintaining and growing these efforts will be essential in coming years, as the region seeks to reassert itself as a more competitive and desirable place for businesses and residents. But ultimately, regional competitiveness will only improve by becoming a shared priority for Maryland, Virginia, Washington, DC, and private-sector leaders—not left as a matter of individual state policy.

When policymakers, business leaders, and civic institutions begin treating the corridor as a single competitive unit, while still leaning into each place’s comparative advantages, a more successful region will emerge. Identifying the areas in which collaboration can work is key, and some of those areas are already coming into focus: infrastructure, housing, regulatory reform, and creating a shared economic brand.