A Roadmap to Prosperity

THE 2025 COMPETITIVENESS BLUEBOOK OFFERS DATA-DRIVEN TAKEAWAYS ON DELAWARE’S ECONOMIC HEALTH

BY KELLY BASILE

The Delaware State Chamber of Commerce recently released a new publication, the 2025 Competitiveness Bluebook, to provide an in-depth, unbiased, and data-driven analysis of the state’s economic health across nearly 60 metrics. The goal of the Bluebook is to track year-over-year performance, highlighting areas where our state performs well and identifying opportunities for improvement before it’s too late. This collective knowledge will, in turn, better inform policy decisions.

DELAWARE’S STRENGTHS AT A GLANCE

Innovation: Delaware stands out for its investments in venture capital (third per capita) and research and development spending (sixth per capita). When comparing our tiny state—in geography and population— our spending per capita in these areas places us with giants like California, New York, and Massachusetts who have longtime invested in the startup and innovation economy.

Private Sector Growth: Delaware’s state liability system is the best in the nation and consistently ranks at the very top. This is one of many reasons why Delaware saw more than 298,165 entities form in 2023 and ranks second in the nation for business applications per capita. It’s important to protect this “product,” as it contributes to one-third of the State’s revenue.

Workforce: CNBC placed Delaware seventh on its 2024 workforce ranking. The state ranks in the top 10 for both annual average investment per employee in manufacturing (eighth)— one of Delaware’s growing sectors— and highest median wage for the tech workforce (ninth). Additionally, 15.5% of the workforce holds an advanced degree, placing Delaware 13th.

Supporting industries like technology, biotechnology, advanced manufacturing, biopharmaceuticals, and health care will bring more employees with advanced degrees to the state who will, in turn, pay higher income taxes and support the local economy around where they live and work. With skilled workers increasingly in shorter supply and the definition of qualified workers expanding, it becomes imperative to continue looking for ways to enhance, attract, and retain our workforce.

OPPORTUNITIES TO IMPROVE DELAWARE’S COMPETITIVENESS

Demographic and Future Workforce: While Delaware benefits from positive in-migration (16th), particularly when compared to neighboring states like Pennsylvania, Maryland, New Jersey, and New York, much of that growth is attributed to retirees and our ranking as the fifth oldest state. This demographic shift will have profound implications for the state’s future workforce, education and healthcare systems, and public investment decisions. Delaware’s declining labor force participation rate— from 62.27% in 2019 to 59.17% in October 2024—is in part due to an aging workforce. It is the lowest rate among neighboring states, including Virginia, Maryland, New Jersey and Pennsylvania.

Cost of Doing Business and Business Friendliness: CNBC ranked Delaware 46th—down 20 places from 2023—for business friendliness and 44th for cost of doing business in 2024. Combined with ranking 50th for corporate taxes and 42nd for individual income tax by the Tax Foundation, Delaware must consider strategies around expediting permitting and approval processes, controlling wage and utility costs, supporting emerging industries, and protecting incentives and tax breaks offered to reduce business costs.

Health Care Expenses: Delaware ranks fifth in the U.S. for health care expenditures per capita and seventh highest for total percent of personal income. Medicare is a major contributor to this issue, which ties back to the state’s aging population. Focusing on attracting a younger population is crucial, as they tend to be higher-spending consumers who contribute more to the economy.

WHAT’S NEXT?

This is just the beginning. While some strengths and opportunities were outlined, there is much work to do around infrastructure, education, housing, and more. Over the course of 2025, the Delaware State Chamber will provide in-depth analysis of some of the key data from our Competitiveness Bluebook to help us understand and chart a path forward.

We urge policymakers and business leaders to use the data to create smart policies to move our state forward and create prosperity for every Delawarean.

DELAWARE’S STRENGTHS

• 1st state liability system, best in nation

• 2nd business applications per capita

• 2nd roadway investment per capita

• 3rd venture capital investment per capita

• 6th R&D spending per capita

• 7th workforce

• 10th economic strength

OPPORTUNITY AREAS

• 34th in CNBC’s Top States for Business

• 6th oldest population

• 50th corporate tax & 42nd individual income tax

• 44th economic, fiscal, & regulatory freedom

• 42nd gross domestic product

• 11th for business taxes per employee as a share of all taxes and GSP

• 5th for health care services expenditures per capita

See where Delaware ranks across numerous economic indicators in the 2025 Competitiveness Bluebook for Delaware, available at dscc.com/bluebook. Reach out to Regina Donato at rdonato@dscc.com to receive a free copy of the book.