In the U.S., digital innovation is everywhere we look. Every day, technologies like AI, Internet of Things (IoT), blockchain, VR, cloud computing, and FinTech revolutionize our world, creating new solutions and enhancing existing ones.
Curious about which states lead the pack in digital innovation? Some truly outshine the rest.
Web hosting provider Hostinger gathered data from government platforms and considered thirty-one U.S. states, evaluating their digital economic impact, overall venture capital investment, digital sector venture capital, the number of government tech hubs, and the presence of business incubators.
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It may not surprise some but California is leading the way as a digital innovation gold medalist, with more than $492.8 billion generated by the digital sector. It’s no wonder they ranked No. 1 when they are home to tech giants like Apple, Google, and Facebook, Tesla and SpaceX. No other state came close to the amount they invested in venture capital and grants, at $70.9 billion.
| State by Rank | Total Score | Digital Economic Impact (In Billions) | Number Of Government Tech Hubs & Innovation Centers | Number Of Venture Capital & Grants (In Billions) | Number Of Digital Sector Venture Capital & Grants (In Billions) | Number Of Business Incubators & Accelerators In National Top 300 | Rank |
|---|---|---|---|---|---|---|---|
| California | 100 | 492.80 | 1 | 70.9 | 54.593 | 5 | 1 |
| New York | 97 | 123.40 | 2 | 15.6 | 12.012 | 3 | 2 |
| Washington | 94 | 103.50 | 2 | 3.4 | 2.618 | 2 | 3 |
| Illinois | 91 | 55.50 | 2 | 2.2 | 1.694 | 3 | 4 |
| Massachusetts | 88 | 91.60 | 1 | 14.4 | 11.088 | 3 | 5 |
| Missouri | 85 | 21.70 | 2 | 0.937 | 0.72149 | 2 | 6 |
| Wisconsin | 82 | 21.40 | 2 | 0.346 | 0.26642 | 2 | 7 |
| Texas | 79 | 141.70 | 1 | 6.9 | 5.313 | 3 | 8 |
| Florida | 76 | 73.80 | 1 | 2.8 | 2.156 | 3 | 9 |
| Colorado | 73 | 49.90 | 1 | 4.3 | 3.311 | 3 | 10 |
In second place is New York, with a solid $123.4 billion generated by digital innovations. This state is home to leading companies IBM, Verizon, and Citigroup, which are pioneering advancements in AI, telecommunications, and financial technology. Their venture capital and grants reached $12.012 billion.
Ranked third overall was Washington, generating $103.50 billion. This state is home to Microsoft and Amazon who are leading the charge in cloud computing and e-commerce. All-in-all, they saw a total of $3.4 billion in venture capital and grants.
