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Austin’s Talent Development Secures Top Spot Among Southern Innovation Hubs

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The term “talent density” was initially coined by Netflix CEO, Reed Hastings, to describe businesses that enjoyed a lot of success as a result of the high quality of their workforce and the implementation of a high-performance culture. In other words, when provided with the right environment, performance is contagious.

Now, let’s consider the same principle applied to an entire city: When an area displays a significant concentration of skilled professionals — particularly in fields like technology, science and engineering — along with the infrastructure to develop and employ top talent, it creates a powerful engine for economic growth and innovation on a much larger scale.

Bearing this in mind, we compiled a list of the 20 most talent-dense innovation hubs across the South as the first iteration in a series that will look at cities across the entirety of the U.S. To that end, we employed 15 separate indicators, broadly grouped into three categories — employment, business environment and education.

Here are some of our findings:

  • Strong in STEM employment & available life sciences spaces, Austin, Texas, leads South in patent production
  • Columbia, S.C., boasts highest density of STEM universities; Miami #1 for STEM vocational institutions
  • Gainesville, Fla., & Charleston, S.C., lead for vocational STEM program density
  • 44% of college-educated residents in Miami moved in last year
  • Arlington, Va., has highest ratio of STEM establishments & residents employed in jobs within these fields
  • Building an infrastructure for innovation: Durham, N.C., boasts 6 million square feet of R&D and life sciences spaces

Keep reading for more top 20 highlights, along with a breakdown of each city’s performance across individual metrics. For details about the definition, sourcing and point-allocation for each of the metrics used in this analysis, please consult our methodology section.

Patents, STEM Employment & Infrastructure Propel Austin to #1 Among Southern Innovation Hubs

A first look at the ranking reveals that cities from Texas, North Carolina and Florida are the main attractors of talent across the South.

Among these, Austin, Texas, managed to secure the first spot thanks to its performances across the employment and business and innovation indexes. More precisely, out of a total of 75 cities across the South that we analyzed, Austin boasted the highest number of patents granted to local businesses between 2020 and 2024. Its 82,467 total placed it head and shoulders above Texas rival Houston, as well as Miami and Washington, D.C.

Naturally, the amount and quality of the research work required for this innovation output is also reflected in the city’s performances in terms of STEM employment and infrastructure as Austin had the second-highest density of professionals working in this field, as well as the third-largest inventory of life sciences and research and development (R&D) spaces in the ranking (2.4 million square feet).

Next, Raleigh, N.C.’s second-place finish owes a great deal to its average positioning within the top half of the ranking for each of the 15 indicators in our analysis, rather than any standout performance. That said, North Carolina’s capital did make it onto the podium twice: With 3,241 awards handed out to vocational STEM degree graduates, it collected the third-highest score for this metric. It also placed third for the innovation hub indicator with a total of 29,757 patents to its name.

Then, another entry from Texas landed in third place: Irving led the ranking for the percentage of people who had STEM degrees (among residents 25 years or older with at least a bachelor’s degree). It was also the runner-up to Arlington, Va., for its STEM establishment density (with roughly 13% of businesses operating in the city pertaining to this category). Notably, Irving also recorded a robust increase in terms of companies providing technical and engineering services — 18% between 2018 and 2022 to place fifth for this indicator.

Durham, N.C., was fourth, distinguishing itself through its research and development infrastructure with 6 million square feet of workspaces equipped for various STEM-related operations.

Not to be outdone, Orlando, Fla., had the third-highest increase in STEM employment within the ranking (55%) and some outstanding performances across the education index. For instance, the city came in second for the density of its vocational STEM institutions per 100,000 residents, as well as the number of vocational STEM awards it handed out (4,332).

Although it finished outside of the top five, Columbia, S.C., gave a good account of itself in several instances. In fact, the city had no less than three first-place finishes — the most among the 20 entries that made up the final ranking. Columbia also has the highest ratio of universities offering STEM courses per 100,000 residents, along with the most significant uptick in the percentage of STEM-educated residents (44%), in addition to witnessing the largest increase in its STEM employment (92%).

In seventh place, Miami has a string of top finishes under its belt, ranking first for both talent attraction (the metric that looks at the percentage of STEM graduates who have recently moved into a city), as well as STEM business growth (23%). Plus, it was #1 for the relative density of its vocational institutions that offered STEM-related training — an alternative educational pathway that’s gaining traction among younger generations.

Honorable mentions include Arlington, Va. (#8) — which distinguished itself for having the highest STEM employment ratio (11,727 per 100,000 residents) — as well as Gainesville, Fla., (#10) with a top performance in terms of its density of vocational STEM programs and the highest average graduation rate within the ranking (89%).

Employment (click to expand)

With 11,727 of every 100,000 working-age residents employed in STEM, Arlington, Va., is the uncontested leader across this metric. The ratio is even more impressive as second-place Austin, Texas, had nearly 2,000 fewer people per 100,000 residents employed in this industry, according to the same formula. Home to Amazon’s HQ2, along with a host of cybersecurity and engineering-related firms, Arlington provides a steady demand for tech talent across both private and public sector jobs.

Austin, Texas, is next with 9,660 out of 100,000 residents working in tech, engineering or research. While Arlington greatly benefits from its proximity to the capital and various employment opportunities within governmental institutions, the Texas city has made — and upheld — a name for itself as one of the most active startup incubators. In particular, 2021 was an especially good year for Austin in this regard as the city gained a lot of tech companies and talent that decided to move out of California.

Meanwhile, between 8,000 and 8,500 out of 100,000 working-age residents of Huntsville, Ala.; Washington, D.C.; and Raleigh, N.C., have STEM jobs. In particular, aerospace engineering and advanced manufacturing employment opportunities are the most prevalent for those seeking employment in STEM in Huntsville, whereas biotechnology — with numerous pharmaceutical and research companies located in Research Triangle Park — and data science are the key tech sectors in Raleigh.

Although they both rank more modestly for their current percentage of STEM-employed residents, Columbia, S.C., and Lakeland, Fla., have witnessed remarkable growth rates between 2019 and 2023.

First, Columbia — which has increased the share of its residents working STEM jobs by 92% — was one of the main beneficiaries of tech talent flocking into South Carolina after 2020. Here, various tech and engineering graduates can seek employment with the likes of science and safety equipment-maker Thermo Fisher, as well as Amazon or Nephron Pharmaceuticals.

As for Lakeland — where STEM employment density jumped 91% during the surveyed period — some of the most prominent employers include medical tech company Stryker, as well as Publix Super Markets, which offers competitive salaries for IT professionals at its recently developed $120 million tech campus downtown.

Occupying third place for this metric, Orlando, Fla.’s STEM employment has gone up by approximately 55% between 2019 and 2023 with companies like ServiceNow (HR tech and artificial intelligence); Capco (fintech); and media giants Disney and NBC driving demand for top talent.

To the north, Raleigh, N.C., was fourth in terms of percentage growth (51%), but the city nevertheless recorded one of the most significant increases in actual numbers of tech-employed residents after going from 25,688 to 38,783.

Percentage changes across the other Florida cities on our list ranged from 15% (Gainesville) to 41% (Miami), whereas, among entries from Texas, Irving ranked best for this metric (seventh) with a 40% rate increase throughout a five-year period.

In Irving, Texas, roughly 63% of residents with a bachelor’s degree who are older than 25 (totaling 42,483 people) have a degree in science- and engineering-related fields, making it the leading entry for this particular metric. Additionally, the city also recorded the fifth-highest increase in people with STEM degrees between 2019 and 2023 (29%).

Another Texas entry, College Station, came in second with 59%, despite a slight dip in its number of residents with STEM degrees.

Then, Gainesville, Fla., and Arlington, Va., were tied in third place for the share of residents with STEM degrees (57%). Of the two, the Florida city boasted the superior growth rate by increasing its share of residents with a STEM education by 40% across a five-year period, while Arlington recorded a more modest 11% bump. Interestingly, the two percentages translate into similar increases in actual numbers (7,489 in Gainesville and 7,358 residents with STEM degrees in Arlington).

In Columbia, S.C., roughly half of residents 25 years or older who have a bachelor’s degree have studied science and engineering, but the city boasts the highest-percentage increase for its STEM-educated population during the surveyed period (44%).

At the same time, Charleston, S.C., and McKinney, Texas, witnessed 30% increases in their share of STEM-educated residents. Approximately 47% of the population older than 25 have at least a bachelor’s degree in science or engineering in Charleston, as compared to 43% in McKinney.

The percentage of college-educated residents who have moved to a city within a given timeframe (most recent available data was for 2023) is an important indicator of both sustained demand for a highly skilled workforce within that city, as well as its success in attracting top talent.

As previously mentioned, cities across the South have largely benefited from net-positive migration, especially following the disruptions caused by COVID-19. Miami tops the list with 44% of its current college-educated population comprised of people who have recently made the city their home. The city is also one of the fastest-growing venture capital hubs in the U.S. with local government actively courting technology companies and financial institutions, particularly those seeking to relocate from higher-cost areas.

Even so, it’s worth noting that while it occupies the first spot, Miami’s performance is not a standout as percentages are substantial across the entire region.

For instance, Arlington, Va., and Washington, D.C. are tied in second place with 42%. Even more remarkably, across more than half of the entries in our ranking, graduates who have recently moved to a new place made up 30% to 40% of the total talent pool of that city.

Business Environment (click to expand)

With 13% of its total businesses falling under the STEM label, Arlington, Va., has the highest density of science and engineering establishments within the Southern top 20, outranking big tech hubs such as Austin (in fourth place for this metric) and Washington, D.C. (eighth place). In terms of raw numbers, we’re looking at approximately 820 STEM businesses.

It’s worth noting here that, following more recent developments, Arlington’s tech and life sciences employers will also have the opportunity in the coming months to recruit some of the best talent from the federal workforce in the Arlington-D.C. area, which has been subject to downsizing measures from the Department of Government Efficiency.

In second place, Irving, Texas, represents a highly concentrated hub within north Texas’ thriving Telecom Corridor, boasting a significant density of major technology, science, and engineering corporations (12.5%) that includes AT&T, Microsoft, Oracle, Infosys and Accenture.

Next, Huntsville, Ala., has a 10% STEM business density with as many as 300 companies clustered within the Cummings Research Park — the second-largest research park in the U.S. Here, names include the likes of Boeing (which runs both its Missile Defense Agency and Space Launch System operations within the city); Blue Origin, which opened its rocket engine production facility; and Lockheed Martin.

Despite placing fourth in terms of density with roughly 8% of its total businesses categorized as STEM, Austin had the second-largest total of establishments of this kind (3,356).

Tech and engineering businesses hold a more modest share of the local economies of Miami and Houston (at 4% and 5%, respectively), but, once again, the sheer number of STEM establishments is significant (3,178 firms in Miami and 3,878 firms in Houston) when compared to other entries on the list.

No other entry has been as prolific in boosting the number of STEM businesses between 2018 and 2022 as McKinney, Texas. The city is looking to make a name for itself as the AI hub of Texas by offering funds to startups and support for established businesses interested in relocating to McKinney. Consequently, names such as ScienceSoft; Delta System & Software; Raytheon Technologies; and Cirrus Aircraft are among the top employers in the city.

Miami was second, following a 23% increase that added roughly 600 establishments to the local economy. Among the industry names that moved to or opened shop in the city were the likes of Citadel Securities, which established its new headquarters in Miami; Spanish startup ClimateTrade; and a host of startups operating in the real estate space, such as property management platform Belong and real estate investment platforms Reental and Propy.

What’s more, the future seems to hold plenty of growth opportunities for Miami’s STEM business scene as Amazon, Microsoft and Apple have announced their intentions to expand their footprints in the area.

Then, College Station, Texas; Charleston, S.C.; and Irving, Texas, are next in line in terms of percentage-growth of their STEM establishments (18% to 19%), although the total number of companies added is more modest.

Otherwise, in fifth place, we find Austin, Texas, a city that has added some 500 tech and engineering companies to its roster, following a 17% hike during the surveyed period. Tesla officially moved its operations from California to its Austin Gigafactory in 2021 and, one year later, Apple and Meta also expanded their offices in the city.

Autonomous trucking company Torc Robotics has also been looking at opening an engineering office in Austin near the Barton Creek Greenbelt Trail.

Part of the Research Triangle and home to the highest concentration of Tier 1 research universities between UNC-Chapel Hill, Duke University, and North Carolina State University, Durham boasts the highest volume of R&D and life sciences spaces across the top 20: As of March 2025, the city had roughly 6 million square feet of under-construction or already-completed workspaces within its stock. Some of the largest projects dedicated to research in Durham in the last five years include the 210,410-square-foot Roxboro at Venable Center owned by SLI Capital and the 160,000-square-foot Alexandria Center for Advanced Technology.

Next, Houston has 4.4 million square feet of R&D and life sciences office space to its name. Among developments still under construction, projects within Houston’s 37-acre Helix Park stand out. A key expansion of the Texas Medical Center (TMC), the 600,000-square-foot South Campus Research – Building 5 will serve as a hub for collaboration across MD Anderson and the entire TMC. The South Tower at Dynamic One — a 320,000-square-foot building estimated for completion by Q3 2025 — is the second of four planned industry research buildings within the park.

Austin, Texas, closes out the podium with a life sciences office stock of approximately 2.4 million square feet. Located at 12829 Parmer Ridge Drive and totaling 100,000 square feet, Parmer Labs 2.2 was the only major research facility delivered to the Austin market post-COVID-19.

When it comes to patent production, nobody can match the two Texas giants — Austin with 82,467 patents and Houston with 69,004. The confluence of a robust educational infrastructure, funding, and investment — including actual lab facilities — available for research and development purposes has built up a significant lead for these two cities compared to other hubs in the region. In fact, Austin and Houston occupy the highest positions within a national innovation hub ranking based on the number of patents granted between 2020 and 2024 to local businesses in 75 cities across the South.

Five other cities also made the South’s innovation hub top 10: Raleigh, N.C., placed fourth with a total of 29,757 patents granted. It was followed by Atlanta (25,246 patents) and Durham, N.C. (16,953 patents).

Miami and Washington, D.C. ranked 11th and 13th, respectively, both with more than 10,000 patents granted to local businesses across the surveyed period.

Education (click to expand)

According to the most recently available data from the National Center for Education Statistics (NCES), there are 3.5 higher learning institutions offering degrees in the fields of engineering, life sciences, mathematics and physics to every 100,000 residents in Columbia, S.C. For comparison, Charleston, S.C., and Lakeland, Fla. — the next two cities to occupy the podium — have ratios of 2.6 and 2.5, respectively, for this indicator.

CommercialCafe has previously analyzed the growing appetite of Americans for vocational courses, either as an alternative to the financially encumbering student loan debt that accompanies college degrees or as a means to acquire new skills upon (re)entering the job market.

To that effect, our study also included an indicator to measure the share of vocational institutions offering STEM-related courses among our list of Southern cities. Miami topped this metric with 2.6 vocational education institutions that have STEM-related courses on their curricula, followed by Orlando, Fla.

In fact, with the exception of third-placed Columbia, S.C., cities from Florida are the standout performers for this metric with Tampa and Lakeland also making their way into the top five.

Texas A&M University’s main campus in College Station, Texas, serves as a powerful catalyst for the city’s growth, drawing substantial research grants from federal agencies, such as NASA and the National Science Foundation. This robust funding environment fosters a strong STEM focus, as evidenced by College Station’s leading position across this metric with 379 out of every 1,000 students enrolled in STEM courses.

Huntsville, Ala., secured the second-highest STEM student enrollment with 366 out of every 1,000 students pursuing these fields. This strong showing aligns with Huntsville’s technology-driven economy and the University of Alabama in Huntsville’s (UAH) established prominence as a center for engineering and science, notably in fields such as astrophysics and aerospace engineering. A prime example of the city’s pioneering role in space-related endeavors (predating the rise of well-known companies like SpaceX and Blue Origin) is UAH’s involvement in early non-rocketry programs, such as Consort and Joust.

Another city in Texas, Richardson closed out the podium for this indicator with a ratio of 258 out of every 1,000 students enrolled in STEM courses. The city is part of the “Telecom Corridor” — a 6.5-mile strip along U.S. Route 75 that’s home to some 600 technology companies, including the likes of AT&T, Verizon, Samsung and Texas Instruments. The increased demand for tech talent from these companies naturally drives interest for STEM education in the city.

When it comes to average graduation rates (including, but not limited to STEM degrees), Gainesville, Fla., leads with 89%. It’s followed by College Station, Texas, (84%) and Washington, D.C. (79%). At the opposite end, we find the likes Miami and Lakeland, Fla., where, on average, just more than half of the total students enrolled in four-year courses manage to complete their degrees.

There are several factors behind these differences in graduation success. For instance, Gainesville’s higher graduation rates compared to Miami stem from distinct university cultures and economic realities. Namely, Gainesville is dominated by the University of Florida, a public institution that invests heavily in retention programs with much of student activity centered on campus. By contrast, more students attending learning institutions in Miami are likely to live off-campus, thus being more susceptible to the added pressures of a higher cost of living. Of course, the difference in tuition and fees among public and private universities also plays a role in how likely students are to successfully graduate.

Having looked at the ratio of vocational institutions that provide STEM courses, we can also ascertain their focus on training in this field by analyzing the relative density of STEM programs for every 100,000 residents. For this, we considered residents, rather than the student population, because vocational training tends to also attract various older age groups that wish to expand their skillset in an ever-changing job market.

Despite only ranking sixth for its institution density, Gainesville, Fla., landed in the top spot for its share of vocational STEM programs. Next, at 39 per 100,000 residents, is Charleston, S.C. Then, at some distance, Orlando, Fla., is third with 26 vocational STEM programs to every 100,000 residents.

Conversely, three Texas entries occupy the opposite end of the spectrum. The variety of vocational educational offers in Richardson, Irving and especially Houston are partly responsible for the lower density of STEM courses here (between four to five per 100,000 residents). The demand for a range of skills leads to a broader distribution of vocational programs across various sectors, including health care, trades and business, thus diminishing the relative percentage of solely STEM programs.

As the most populous city in our top 20, Houston is predictably leading the ranking for the highest number of vocational STEM awards handed out between 2022 and 2023. According to the NCES, roughly 4,382 such degrees were conferred by various institutions.

More precisely, a 2023 study found that Houston-area vocational training graduates showed better post-high school outcomes in enrollment, employment and earnings. In terms of STEM-focused vocational degrees, the largest share of graduates came from health science (20%).

However, appetite for vocational training doesn’t always map with population size.

While Austin, Texas, has the second-largest number of residents among Southern cities, it was outranked in terms of vocational STEM award totals by both Orlando, Fla., (which garnered 4,332) and Raleigh, N.C., with 3,241.

Next, we find Miami and Texas’ Irving and McKinney as the only remaining entries that have exceeded the 1,000-award threshold across the surveyed period, although Atlanta and Tampa came close.

Finally, Richardson, Texas; Columbia, S.C.; Huntsville, Ala.; and Arlington, Va., all handed out fewer than 100 vocational STEM awards.

Methodology

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