Midway through the first decade of the 21st century, New England innovation and creative capacity are being challenged by other regions of the nation and the world. New England needs foresight to understand what its emerging economic sectors need to thrive in a changing demography. The region is losing 20- to 34-year-olds and seeing a growing disparity in household incomes in every state. Some New Englanders are doing well; others are struggling. Some of its local governments offer the purest form of democracy in the world--the open town meeting--but reliance on local property tax creates pressure for ever-more growth to pay for local services. While New England states tend to "go it alone" in responding to change, there are some things governors and legislators should do to focus strength on cooperative action. This article discusses the challenges New England faces.