Doing Business in Maryland
Few states in the nation can rival Maryland’s combination of superior workforce, technological prowess, market access, and tech-centered policy incentives. As a result, Maryland is ranked #1 in the nation for entrepreneurship and innovation, according to the US Chamber of Commerce. Technology and life sciences firms routinely choose Maryland as their preferred place to do business, which is why our state ranks 3rd in the country in high-tech business concentration, 9th in productivity growth and 13th in new startup rate.
Maryland’s location next to the Nation’s capital and within in the I-95 corridor gives employers rapid market access to grow their business. Federal agencies located in Maryland are a catalyst for the state's technology base. We host 50 federal agencies, including the National Institutes of Health, the National Security Agency, the U.S. Food & Drug Administration, and the National Cybersecurity Center of Excellence. Capitalizing on their proximity to the nation’s capital, Maryland companies are 2nd in the nation in federal R&D obligations with $15.9 billion annually.
Maryland has the second highest concentration of professional and technical workers among the states, and the highest proportion of doctoral scientists and engineers in the nation. At the elementary and secondary level, Maryland is the only state in America to earn the title, “#1 Schools in the Nation” five years in a row by Education Week.
On the higher education level, the University System of Maryland offers 11 campuses across the State. Maryland is also proud the host the Johns Hopkins University, one of the world’s foremost institutions for information sciences and biotechnology. Maryland's sixteen community colleges operate a network of 23 campuses and numerous learning centers throughout the state.
Few states in the nation offer as many policy incentives for technology companies as Maryland. The Anderson Economic Group says Maryland has the seventh lowest burden of state and local taxes on businesses based on the amount of taxes paid directly by businesses compared to business’ pre-tax operating margin. Further, the State offers targeted tax incentives designed specifically for technology companies, including:
- Maryland Innovation Initiative, a program designed to promote commercialization of research conducted in Maryland universities.
- Research & Development Tax Credit, which provides income tax credits to businesses that invest in research and development in Maryland.
- Biotech Tax Credit, which supports investment in seed and early stage biotech companies.
- Cybersecurity Tax Credit, designed to incentivize and attract cybersecurity companies to startup in or move to Maryland.
Note: Data compiled from the Maryland Department of Business & Economic Development.