Texas improves ranking on annual report of most innovative states

moving up

Texas has steadily inched up the ranking each year since 2021. Photo via Getty Images

Texas ranks above average — but outside the top 10 — in a new index that ranks the most innovative states.

To come up with its Most and Least Innovative States ranking, personal finance website WalletHub looked at 25 key indicators of innovation for the 50 states and the District of Columbia. These include a state’s share of STEM professionals, research and development spending per capita, and the proliferation of tech companies.

With an innovation score of 48.96 out of 100, Texas lands at No. 13 on the list. The District of Columbia stands atop the list, with an innovation score of 69.79, followed by Massachusetts, California, Colorado, and Washington.

Texas has steadily inched up the list — the state was No. 14 on the list in 2024 and has climbed up one spot each year since 2021.

Two components make up each state’s score: human capital and “innovation environment.” Texas ranks 14th in the human capital category and 13th in the innovation environment category.

“The most innovative states are especially attractive to people who have majored in science, technology, engineering and math, or STEM, as they offer abundant career opportunities and investment dollars, both for jobs at existing companies and for startups,” says WalletHub analyst Chip Lupo. “These states also instill young students with the skills they need to succeed in the current workforce, skills which are useful whether or not they pursue a STEM career.”

Despite not placing in the top 10 of the WalletHub index, Texas continues to produce thousands of jobs.

Citing data from the U.S. Bureau of Labor Statistics, Gov. Greg Abbott says Texas added the most nonfarm jobs in January (27,900) of any state and the most nonfarm jobs from January 2024 to January 2025 (187,700).

“Texas is America’s jobs engine, adding more new jobs in the last year than any other state,” Abbot said in a news release. “Our skilled and growing workforce and our business-friendly climate attract job-creating businesses in diverse industries from across the country and around the world. … Texas continues to remove regulatory red tape and invest in education, innovation, and infrastructure as we build a stronger, more prosperous Texas than ever before.”

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When it comes to Texas being a top state for business, we guess the jury's out. Photo via Getty Images

Is Texas a top state for business? New reports find mixed results

by the numbers

Texas economic development boosters are crowing about a new top-in-the-nation ranking. But they’re probably frowning about a different business ranking that’s mediocre.

First, the good news.

Business Facilities magazine just named Texas the 2023 State of the Year in recognition of its business climate, economic development leadership, and “blockbuster” year for capital investment and job creation. It’s the fifth time that Business Facilities has crowned Texas as the top state.

“Texas moves at the speed of business,” Gov. Greg Abbott said in a news release. “As recognized by Business Facilities magazine, Texas leads the nation for corporate relocations, business expansions, and job creation.”

“With the best business climate in the nation, leading investments in education and workforce development, and our young, skilled, diverse, and growing workforce, Texas is poised to lead the nation in 2024,” the governor added.

Additionally, Texas again appears on WalletHub's annual list of "Best States to Start a Business" — but ranks lower than last year. The Lone Star State ranked No. 8 this year compared to last year's No. 3 spot. This ranking looked at business environment, access to resources, and business costs across 25 relevant metrics by analyzing data from U.S. Census Bureau, Bureau of Labor Statistics, and other resources.

Now, the not-so-good news.

Texas landed at No. 32 on Forbes Advisor’s new list of the best states to start a small business in 2024. The Lone Star State received especially low marks economy, workforce, and business climate, but fared better in two other categories: business costs and financial accessibility.

Topping the Forbes Advisor list was North Dakota, followed by Indiana, Arkansas, South Dakota, and North Carolina.

Texas recently was awarded three other No. 1 business climate rankings, though: Best Business Climate in the U.S. by Business Facilities in June, Best Business Climate in the U.S. by corporate executives in September, and Top Business Climate in the U.S. by Site Selection Magazine in November.

“In a state the size of Texas, business is not just finding a home in the metros. A laser focus by economic developers across the state to foster established businesses as well as innovative startups is paying off for communities of all sizes,” Anne Cosgrove, editorial director of Business Facilities, says in a news release.

The magazine covers corporate site selection and economic development.

Other contenders for 2023 State of the Year were:

  • Arizona
  • Florida
  • Georgia
  • Indiana
  • Missouri
  • Nevada
  • North Carolina
  • Tennessee
  • Utah
  • Virginia
Houston-based MD Anderson will help the University of Texas expand its medical school in Austin. University of Texas at Austin/Facebook

MD Anderson, UT team up to expand medical school

ready to grow

Powerhouse and award-winning Houston cancer center MD Anderson will partner with the University of Texas at Austin to expand Dell Medical School and build two new hospitals.

This new medical center, called The University of Texas at Austin Medical Center, will include two facilities: a comprehensive cancer center operated by MD Anderson and a multi-specialty hospital operated by the University of Texas.

The project will be made possible by the demolition of the 500,000-square-foot Frank Erwin Center, which officially closed in May 2022. Its replacement, the Moody Center, officially opened to the public in April 2022, and in April 2023 celebrated its jam-packed first year.

In May, the UT System's Board of Regents approved an item paving the way for Dell Medical School's expansion. The full demolition is estimated to cost $25 million, and the university hopes to finish the demolition project by October 2024.

University Chancellor James Milliken and Board of Regents Chair Kevin Eltife announced the project on Monday along with Gov. Greg Abbott.

MD Anderson is a branch of the UT system and was recently named No. 1 in the country for cancer care by U.S. News & World Report. It is the largest cancer care center in the U.S. and one of the original three comprehensive cancer centers in the country.

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An earlier version of this story reported one new facility instead of two. It has been updated to reflect the correct information. Read the full story and watch the video at KVUE.com.

Catch up on two big pieces of news landing at the Houston Spaceport. Image via fly2houston.com

Space City News: Houston Spaceport receives grant, unicorn hires architecture firm

rocketing roundup

The Space City is starting 2022 off strong with news launching out of the Houston Spaceport — a 400-acre space in Southeast Houston.

The two big headlines include a unicorn company releasing the latest details of its earthbound project and fresh funds from the state to support the space ecosystem in Texas.

Governor Abbott doles out $10M in spaceport grants

Texas has launched fresh funding into two spaceport projects. Image via fly2houston.com

Last week, Gov. Greg Abbott announced $10 million in funding to two Texas spaceports as a part of the state's Spaceport Trust Fund. The Houston Spaceport Development Corp. received $5 million and the Cameron County Spaceport Development Corp. received $5 million.

The fund is administered by the Governor's Office of Economic Development and Tourism and was created to support the development of spaceport infrastructure, create quality jobs, and attract continuing investments that will strengthen the economic future of the state, according to a news release.

"For decades, Texas has been a trailblazer in space technology and we are proud to help cultivate more innovation and development in this growing industry in Cameron and Harris County," says Abbott in the release. "This investment in the Cameron County and Houston Spaceport Development Corporations will create even more economic opportunities for Texans across the state and continue our legacy as a leader in space technology."

Axiom Space hires Dallas-based architecture and engineering firm

Axiom Space has made progress on developing its 14-acre headquarters. Image via axiomspace.com

Houston-based unicorn Axiom Space has announced that it awarded Dallas-based Jacobs the architecture and engineering phase one design contract. The firm will be working on the 100,000-square-foot facility planned for the 400-acre Houston Spaceport at Ellington Airport.

Axiom Space's plans are ro build the first commercial space station that will provide a central hub for research, to support microgravity experiments, manufacturing, and commerce in low Earth orbit missions, according to a news release.

"This is an exciting and historic moment for Axiom and the greater Houston area," says Axiom CTO Matt Ondler in the release. "For the first time, spacecraft will be built and outfitted right here in Houston, Texas. This facility will provide us with the infrastructure necessary to scale up operations and bring more aerospace jobs to the area. With this new facility, we are not only building next generation spacecraft, but also solidifying Houston as the U.S. commercial industry's gateway to space."

Axiom Space, which raised $130M in venture capital last year, is building out its 14-acre headquarters to accommodate the creation of more than 1,000 high-paying jobs, from engineers to scientists, mathematicians, and machinists.

"Houston is a city built on innovation and is becoming a next-generation tech hub in the United States," says Ron Williams, senior vice president at Jacobs. "Privately funded infrastructure will drive U.S. leadership in space. Jacobs is committed to providing integrated solutions to accelerate the future of commercial space operations."

According to a recent ranking, Texas is chugging along as an innovative state. Photo by gguy44/Getty Images

Here's how Texas ranks among the nation's most innovative states

Ranking texas

Innovation is one of the cogs of any state's economic engine, and it appears Texas' innovation cogs are decently oiled.

Texas ranks 17th in a new study by personal finance website WalletHub of the country's innovative states. While the Lone Star State isn't the most innovative state in the ranking — that accolade goes to Massachusetts — it still earns above-average status.

"As the ninth-largest economy in the world, the Lone Star State is an economic and innovation powerhouse that offers unmatched opportunities for families and businesses. Texas continues to lead as a top state for job creation and for attracting job-creating capital investments — thanks to our unwavering commitment to economic freedom and our young, educated, and diverse workforce," according to the Texas governor's office.

While Texas sits below big states such as Massachusetts, California (No. 7), New Jersey (No. 12), and Michigan (No. 14) in terms of innovation, it beats other large states like North Carolina (No. 19), Florida (No. 20), Illinois (No. 23), New York (No. 25), and Tennessee (No. 44).

For its study, WalletHub compared the 50 states and the District of Columbia across 22 indicators of innovation friendliness, ranging from share of STEM professionals and R&D spending per capita to tech-company density and VC funding per capita.

Texas fared well in categories like tech-company density (No. 14), VC funding per capita (No. 16), share of STEM professionals (No. 17), projected demand for STEM jobs by 2028 (No. 18), and share of science and engineering graduates age 25 and over (No. 24). But the state lagged the majority of states in areas such as math and science performance among eighth-graders (No. 29) and R&D spending per capita (No. 32).

"My goal is to have Texas be the home of innovation," Gov. Greg Abbott told the Austin American-Statesman in 2016. "We are heading into a new era that I want Texas to be in the forefront of, a new era of life sciences research — a combination of technology and life sciences — and medical advances, where over the coming two or three decades there will be incredible advances in medicine and health care, and the cures and treatments we have for people."

At the time, Abbott envisioned a "research triangle" encompassing Houston, Dallas-Fort Worth, Austin, and San Antonio.

Houston, of course, plays a significant role in Texas' innovation economy. For instance, it ranks 24th on a list of the most inventive U.S. cities based on the number of patents issued per capita. (Texas ranks 20th among the states for the number of patents issued per capita.) And this year, The Ion innovation hub will open as the anchor of Houston's 16-acre South Main Innovation District.

"Houston is where innovation and industry converge. Ours is a city that chooses to take humankind's boldest challenges head-on, from landing on the moon to developing the first artificial heart," the Greater Houston Partnership says. "And Houston's innovation ecosystem continues to thrive through programs like TMC Innovation Institute at the Texas Medical Center and spaces like the emerging South Main Innovation District."

Hewlett Packard Enterprise's new Houston-area facility will open in 2022. Photo courtesy of HPE/GHP

Tech giant Hewlett Packard Enterprise taps Houston area for global headquarters relocation

here comes HPE

Thousands of potential jobs are coming to the Bayou City region with a major move by a Fortune 500 company. Hewlett Packard Enterprise (HPE) and Texas Gov. Greg Abbott have announced that HPE will relocate its global headquarters to Spring, Texas from San Jose, California.

The headquarters will be located in a new state-of-the-art campus that will open in early 2022, and will build on the company's established presence in the state of Texas, according to a press release. The new campus, being built in the 60-acre Springwoods Village development, will consist of two five-story buildings with some 440,000 square feet of combined space. HPE already boasts a significant footprint in the Houston region, with more than 2,600 area employees, the Greater Houston Partnership notes.

HPE cited Houston's diverse talent base and low cost of doing business as key factors driving the move to the digital tech hub and global headquarters city.

A global enterprise information technology company that helps customers drive digital transformation by "unlocking value from all of their data," HPE delivers unique, open, and intelligent technology solutions, per the GHP. It works to create a consistent experience across all clouds and edges, to help customers develop new business models, engage in new ways, and increase operational performance. HPE has a long Houston pedigree, as Hewlett Packard merged with Compaq Computers in 2002. The company was founded in 2015 following the separation from HP, Inc., and is currently ranked 109 on the list of Fortune 500 companies.

Texas is already the site of HPE locations in Austin, Plano, and Houston. It currently operates major product development, services, manufacturing, and lab facilities in Houston and Austin.

The Houston move would no doubt be a boon to the local economy and create myriad jobs in the sector.

"As we look to the future, our business needs, opportunities for cost savings, and team members' preferences about the future of work, we are excited to relocate HPE's headquarters to the Houston region," said Antonio Neri, CEO of HPE, in a release. "Houston is an attractive market to recruit and retain future diverse talent and where we are currently constructing a state-of-the-art new campus. We look forward to continuing to expand our strong presence in the market."

Abbott applauded the move in a statement, noting, "We are excited that Hewlett Packard Enterprise has chosen to call Texas home, and I thank them for expanding their investment in the Lone Star State by relocating their headquarters to the Houston region. Hewlett Packard Enterprise joins more than 50 Fortune 500 companies headquartered in the Lone Star State, including 22 in the Houston area alone. That is because Texas offers the best business climate in the nation. Our low taxes, high quality of life, top-notch workforce, and tier one universities create an environment where innovative companies like HPE can flourish. We look forward to a successful partnership with HPE, as together we build a more prosperous future for Texas."

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This article originally ran on CultureMap.

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Texas plugs in among states at highest risk for summer power outages in 2025

hot, hot, hot

Warning: Houston could be in for an especially uncomfortable summer.

A new study from solar energy company Wolf River Electric puts Texas at No. 2 among the states most at risk for power outages this summer. Michigan tops the list.

Wolf River Electric analyzed the number of large-scale outages that left more than 5,000 utility customers, including homes, stores and schools, without summertime electricity from 2019 to 2023. During that period, Texas experienced 7,164 summertime power outages.

Despite Michigan being hit with more summertime outages, Texas led the list of states with the most hours of summertime power outages — an annual average of 35,440. That works out to 1,477 days. “This means power cuts in Texas tend to last longer, making summer especially tough for residents and businesses,” the study says.

The Electric Reliability Council of Texas (ERCOT), which operates the electric grid serving 90 percent of the state, predicts its system will set a monthly record for peak demand this August — 85,759 megawatts. That would exceed the current record of 85,508 megawatts, dating back to August 2023.

In 2025, natural gas will account for 37.7 percent of ERCOT’s summertime power-generating capacity, followed by wind (22.9 percent) and solar (19 percent), according to an ERCOT fact sheet.

This year, ERCOT expects four months to surpass peak demand of 80,000 megawatts:

  • June 2025 — 82,243 megawatts
  • July 2025 — 84,103 megawatts
  • August 2025 — 85,759 megawatts
  • September 2025 — 80,773 megawatts

One megawatt is enough power to serve about 250 residential customers amid peak demand, according to ERCOT. Using that figure, the projected peak of 85,759 megawatts in August would supply enough power to serve more than 21.4 million residential customers in Texas.

Data centers, artificial intelligence and population growth are driving up power demand in Texas, straining the ERCOT grid. In January, ERCOT laid out a nearly $33 billion plan to boost power transmission capabilities in its service area.

Houston ranks among top 5 cities for corporate HQ relocations in new report

h-town HQ

The Houston area already holds the title as the country’s third biggest metro hub for Fortune 500 headquarters, behind the New York City and Chicago areas. Now, Houston can tout another HQ accolade: It’s in a fourth-place tie with the Phoenix area for the most corporate headquarters relocations from 2018 to 2024.

During that period, the Houston and Phoenix areas each attracted 31 corporate headquarters, according to new research from commercial real estate services company CBRE. CBRE’s list encompasses public announcements from companies across various sizes and industries about relocating their corporate headquarters within the U.S.

Of the markets included in CBRE’s study, Dallas ranked first for corporate relocations (100) from 2018 to 2024. It’s followed by Austin (81), Nashville (35), Houston and Phoenix (31 each), and Denver (23).

According to CBRE, reasons cited by companies for moving their headquarters include:

  • Access to lower taxes
  • Availability of tax incentives
  • Proximity to key markets
  • Ability to support hybrid work

“Corporations now view headquarters locations as strategic assets, allowing for adaptability and faster reaction to market changes,” said CBRE.

Among the high-profile companies that moved their headquarters to the Houston area from 2018 to 2024 are:

  • Chevron
  • ExxonMobil
  • Hewlett-Packard Enterprise
  • Murphy Oil

Many companies that have shifted their headquarters to the Houston area, such as Chevron, are in the energy sector.

“Chevron’s decision to relocate its headquarters underscores the compelling advantages that position Houston as the prime destination for leading energy companies today and for the future,” Steve Kean, president and CEO of the Greater Houston Partnership, said in 2024. “With deep roots in our region, Chevron is a key player in establishing Houston as a global energy leader. This move will further enhance those efforts.”

According to CBRE, California (particularly the San Francisco Bay and Los Angeles areas) lost the most corporate HQs in 2024, with 17 companies announcing relocations—12 of them to Texas. Also last year, Texas gained nearly half of all state-to-state relocations.

In March, Site Selection magazine awarded Texas its 2024 Governor’s Cup, resulting in 13 consecutive wins for the state with the most corporate relocations and expansions.

In a news release promoting the latest Governor’s Cup victory, Gov. Greg Abbott hailed Texas as “the headquarters of headquarters.”

“Texas partners with the businesses that come to our great state to grow,” Abbott said. “When businesses succeed, Texas succeeds.”

CBRE explained that the trend of corporate HQ relocations reflects the desire of companies to seek new environments to support their goals and workforce needs.

“Ultimately, companies are seeking to establish themselves in locations with potential for long-term success and profitability,” CBRE said.

SpaceX test rocket explodes in Texas, but no injuries reported

SpaceX Update

A SpaceX rocket being tested in Texas exploded Wednesday night, sending a dramatic fireball high into the sky.

The company said the Starship “experienced a major anomaly” at about 11 pm while on the test stand preparing for the 10th flight test at Starbase, SpaceX’s launch site at the southern tip of Texas.

“A safety clear area around the site was maintained throughout the operation and all personnel are safe and accounted for,” SpaceX said in a statement on the social platform X.

CEO Elon Musk ’s SpaceX said there were no hazards to nearby communities. It asked people not to try to approach the site.

The company said it is working with local officials to respond to the explosion.

The explosion comes on the heels of an out-of-control Starship test flight in late May, which tumbled out of control. The FAA demanded an investigation into the accident.

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