For decades, Silicon Valley has held the title of the leading center for technology innovation and disruption, but recently it’s become clear that The Times They Are a-Changin. As I mentioned in our last newsletter, the tech economy in many parts of the country is thriving and already contributing significantly to the national innovation story. So what is it about emerging tech regions that allow critical industries beyond software to flourish? And what can Silicon Valley learn from the Heartland about innovation and the future tech economy?
Hard tech industries like electric vehicles, semiconductors, robotics, and agritech are booming today, and it’s no coincidence that the American Heartland is at the center of this growth. The combination of legacy industrial workforce talent, leading research universities in hard sciences and a welcoming, lower-cost business environment add up. But there’s much more, from infrastructure to regulatory factors, that gives the region a competitive advantage over coastal tech hubs.
According to research by CNBC, North Carolina, Texas, Colorado, Nevada, Utah, and Tennessee are some of America’s best states to do business in. What these states have in common is a welcoming business environment and the resources to help build and scale companies.
Ranked: America’s Best States to Do Business In
Another competitive advantage of the Heartland stems from legacy industries and infrastructure. Normal, IL dubbed itself “EV Town” back in 2011 when it began investing in the automotive space. Despite Mitsubishi shutting down in 2015 (Normal’s biggest auto player at the time), the existing plant and skilled workforce paved the way for Rivian’s success years later. This pattern stretches across the “Battery Belt,” where cities like Detroit are positioned to take the next leap in the automotive space, thanks to the pre-existing manufacturing infrastructure and recent funding.
Location is also crucial when it comes to the supply chain. It makes far more logistical sense to produce silicon chips and auto parts in the center of the country, closer to automakers and other manufacturing operations. Finally, a factor often overlooked is the natural environment that differentiates the Heartland from the coasts. Take AgriTech–an industry that leverages technology to improve efficiency in farming. App Harvest, a leader in the space, has a 60-acre greenhouse in Kentucky that operates completely on rainwater. This concept would be laughably unrealistic in California’s dry climate.
Looking ahead, the next generation of talent may land in the Heartland, thanks to a density of prominent colleges–many of which boast excellent engineering and tech programs. University of Michigan, Georgia Tech, Purdue, Texas A&M University, and Ohio State University all have the potential to retain tens of thousands of alums and leverage their skill sets right in their city. And with the largest startup weekends occurring in cities like Denver, I’m excited to see tech hubs across the country continue to innovate from the inside out.