A new agreement has been signed aimed at fostering greater collaboration on matters such as transport, supply chains and R&D across the West and East Midlands.
The so-called 'West and East Midlands Compact' will focus on five key areas of economic significance for the wider region.
The historic agreement has been signed by West Midlands Mayor Richard Parker and his East Midlands counterpart Claire Ward.
It is hoped that, by working more closely together, it will deliver benefits for businesses and communities across the region.
The Midlands' economy is worth around £132 billion and is home to 5.2 million people and more than 147,000 businesses. It has significant clusters in fields such as manufacturing, automotive, aerospace, life sciences and clean energy.
Sign up for your free West Midlands newsletter and follow us on LinkedIn
Email newsletters
BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire.
Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates.
We will also send out 'Breaking News' emails for any stories which must be seen right away.
For all the latest stories, views and polls, follow our
The compact is prioritising five areas where the mayors believe joint action will have the greatest impact.
They are clusters and supply chains, foreign direct investment, transport and infrastructure, research and intelligence, and wider regional leadership.
Most Read
Mayor Parker said: "The Midlands was the home of the industrial revolution - an innovative spark that led to seismic change across the globe.
"The influence of this region is often overlooked but cannot be overstated, we are driving the national economy. For the first time, both east and west are represented by mayors.
"It is a unique opportunity to work together to make a greater impact across the whole region. Bringing the region together will help us fully realise our potential.
"We will create jobs, drive growth, improve transport links and help the whole region thrive."
Mayor Ward added: "This compact represents the desire that Mayor Parker and I have to harness our regions' shared strengths and to face our shared challenges.
"The Government is committed to its growth mission and it is pan-regional partnerships like ours that will deliver it.
"We will co-ordinate to attract investment, strengthen supply chains and to deliver the infrastructure that makes inclusive growth possible.
"This is about strong mayoral leadership at the regional level but it is also about the innovation that is possible when we pool risk and opportunity."