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To ensure future prosperity, Maine’s economy is currently undergoing an aggressive and vast transformation. The government has created several programs and initiatives to assist state economic development. Goals include increasing science and technology research & development, stimulating investment and diversifying the economy, thereby redefining Maine as a powerful regional, national and international market.

Maine enjoys an affordable cost of living, combining high homeownership rates and low median home prices. In 2000, the state’s homeownership rate was 71.6%, significantly higher than the national average of 66.2%. And in 2001, the median price of a home in Maine was $123,500, well below the national median of $147,500.

Maine’s 1999 Gross State Product (GSP) was over $34 billion. The services industries accounted for the largest percentage of the GSP. Other leading industries were manufacturing, real estate, insurance, retail and wholesale trade and transportation. Mining continues to decline significantly in its percentage share of GSP, while wholesale and retail trade, followed by agriculture, forestry and fishing, have shown the greatest increases.

Employment in high-technology industries continues to increase, with numerous indications of continued growth. Maine recently received promising rankings from the Progressive Policy Institute’s 1999 The State New Economy Index. Nationally, Maine was ranked 11th in globalization, a combined measurement of the export focus of manufacturing and foreign direct investment, and 13th in economic dynamism, a measurement of employment by rapidly growing businesses, business success and IPO value.

Several programs and services of interest to businesses are administered through Maine’s Department of Economic and Community Development and the Finance Authority of Maine (FAME), including:

Maine Economic Development Venture Capital Revolving Investment Program: state investments of up to $1,000,000 in high-growth businesses
Small Enterprise Growth Fund: investments of up to $500,000 in patient capital
Maine Seed Capital Tax Credit Program: state income tax credits to investors for up to 40% of cash equity invested
Research and Development Tax Credit
Sales Tax Exemptions
Business Property Tax Reimbursement Program

Other organizations of interest to business development include:

Maine & Company: provides information to businesses relocating or expanding to Maine
Maine Business Works: provides comprehensive information on local business development, from financing to facility location
Maine International Trade Center: works to expand Maine’s international market
Maine Technology Institute: promotes research and development and technology transfer in the high-technology industries
Maine Small Business Development Centers: provides business management assistance to small businesses in Maine

Although relatively small, the dynamic and innovative nature of Maine’s economy offers unlimited growth and opportunity.

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