North Carolina Ascends into Top 10 States for Innovation
The North Carolina Department of Commerce has unveiled the 2026 Tracking Innovation report, marking a significant milestone as North Carolina enters the nation’s top 10 states for innovation capacity for the first time, securing the 9th position. The report highlights the state’s accelerated growth in innovation compared to the national average since the early 2000s.
“North Carolina’s ability to innovate is a critical part of our economic strength and future competitiveness,” stated North Carolina Commerce Secretary Lee Lilley. Emphasizing the state’s focus on harnessing these capabilities, Lilley referred to the First in Opportunity Strategic Economic Development Plan. This plan aims to foster innovation and economic opportunity statewide.
Key Performance Indicators
The 2026 Tracking Innovation report assesses North Carolina’s innovation performance using 41 metrics, identifying both strengths and areas for improvement. Among the notable achievements, North Carolina ranks fifth nationally in academic R&D expenditures and academic article production. Additionally, university academic license income and startup formation have seen growth rates significantly higher than the national average, with a 149% and 9.8% increase, respectively, since 2000. Furthermore, federal funding for early-stage technology companies in North Carolina has surged at a rate seven times faster than the U.S. average.
Greg Copenhaver, Acting Chair of the North Carolina Board of Science, Technology & Innovation, highlighted the critical role of innovation in economic resilience and growth, stating, “Innovation is a critical force multiplier that raises the standard of living of North Carolinians and an accelerator that helps create new industries, keep existing ones globally competitive, advance national security, and drive future economic growth and well-being.”
Innovation Trends and Opportunities
Since 2000, knowledge- and technology-intensive (KTI) business establishments in North Carolina have grown by 111%, a rate nearly double that of the national average. Moreover, the state’s workforce in science and engineering occupations has expanded by 83% since 2003. North Carolina also boasts a strong record in gender and ethnic diversity within KTI industries, surpassing national averages since 2001.
The report also points to increased in-migration of college-educated adults, growing at three times the national rate since 2005, further bolstering the state’s innovation economy. Additionally, an increasing number of North Carolina counties are performing above the U.S. average across multiple innovation measures, indicating a geographical spread of innovation strengths.
Challenges and Future Focus
Despite these advancements, the report identifies areas for further development, including expanding innovation activities statewide and diversifying strengths across high-tech sectors. It also highlights the need to address disparities in broadband access and enhance public school funding.
To keep pace with rapid population growth, North Carolina must improve in economic growth, wages, and workforce incomes, ensuring broad economic benefits, particularly for rural and economically distressed communities.
For those interested in delving deeper into the findings, the complete Tracking Innovation report is available online. Additional information about the Board of Science, Technology & Innovation can be found here.
—
Read the Full Press Release Here About This
Read More North Carolina News
