According to a report, Houston lost over 3,000 innovation jobs between 2005 and 2017. Joe Daniel Price/Getty Images

You've heard of brain drain, the phenomenon of well-educated, highly skilled workers fleeing a geographic area for better opportunities elsewhere. It appears Houston is grappling with a different workforce affliction: innovation drain.

Houston is among several major business hubs in the U.S. — including Dallas-Fort Worth, Los Angeles, Philadelphia, and Washington, D.C. — where tech-dependent "innovation" jobs evaporated from 2005 to 2017, according to report released December 9 by the Brookings Institution think tank and the Information Technology & Innovation Foundation. At those cities' expense, innovation jobs have clustered in Boston, San Francisco, San Jose, Seattle, and San Diego. Those five metro areas accounted for more than 90 percent of job growth in the innovation sector from 2005 to 2017, researchers found.

Today, one-third of innovation jobs in the U.S. are located in just 16 counties, and more than half are concentrated in 41 counties, according to the report.

The report shows the Houston metro area lost 3,281 tech-oriented innovation jobs during that period. Dallas-Fort Worth lost even more (8,969), while the Austin metro area gained 1,200 and the San Antonio metro area picked up 1,472.

Houston's loss represents a slippage of 0.2 percent in the region's share of innovation jobs in the U.S., the report notes. On a percentage basis, DFW sustained an even greater loss (0.5 percent), while Austin's share declined 0.1 percent and San Antonio's didn't budge.

On the positive side, Houston ranked 14th for its sheer number of innovation jobs, with Dallas-Fort Worth at No. 7 and Austin at No. 16. They were among 20 "superstar" metro areas singled out in the report.

In the report, researchers classify innovation jobs as those in 13 R&D-heavy sectors, including aerospace, computer manufacturing, chemical production, and telecom. While the 13 innovation segments account for only 3 percent of U.S. jobs, they represent 6 percent of the country's economic output (GDP), one-fourth of exports, and two-thirds of corporate R&D expenditures, the report says.

Responding to the Brookings analysis, Susan Davenport, senior vice president of economic development at the Greater Houston Partnership, notes the Houston area employs about 150,000 tech workers, many of whom are employed outside the 13 innovation industries mentioned in the report. In fact, she adds, Houston boasts the highest share of tech workers at non-tech companies among the country's 20 largest metro areas.

"That said, we recognize the need to build Houston's digital tech presence, an area where we have traditionally lagged," Davenport tells InnovationMap.

Houston is making headway on that front, though. Davenport cites the expansion of Microsoft Corp.'s local operations, the recent opening of Bill.com's Houston office, and the rise of three Houston entrepreneurship initiatives — The Ion, TMC3, and The Cannon — as examples of this progress.

"Houston continues to gain recognition as a leading tech city," Davenport says. "The region cleared $500 million in venture capital funding this year, a new high for Houston, and tech-related employment continues to grow within the energy industry. We continue working with our partners to grow Houston's innovation ecosystem and are excited for the great momentum in this area."

Investor and entrepreneur Harvin Moore, president of Houston Exponential, a nonprofit that promotes startups and innovation, acknowledges the region's historical lack of focus on the innovation economy contributed to Amazon bypassing Houston as a finalist in 2018 for the e-commerce giant's second headquarters. Despite that harsh reality, Moore says the Brookings report fails to take into account innovation jobs embedded in sectors like Houston's massive energy industry.

"That data issue will always penalize a city with a large energy sector until it is corrected," Moore says. "And as we know, the energy sector is starting to innovate rapidly, as it must. And that innovation draws more employees to those companies and to Houston."

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Texas-based 'DoorDash for laundry' startup tumbles into Houston market

No Scrubs

Laundry may seem like an endless task that piles up, but a new service offers a solution to overwhelmed Houston families.

NoScrubs, an Austin-based home laundry pickup service has just expanded to Houston. Described by the company as "DoorDash — but for laundry," they wash customer's clothes at local laundromats and return them the same day, folded and ready to be put away.

The service took off like gangbusters in Austin, making an expansion to the state's largest city an obvious choice. It's not universal coverage just yet.

For now, only the following ZIP codes have NoScrubs service available: 77002, 77004, 77005, 77006, 77007, 77008, 77009, 77010, 77018, 77019, 77024, 77025, 77027, 77046, 77056, 77057, 77081, 77098, 77401, 77030, 77003.

A single pickup starts at $40 for 20 pounds of laundry, while the basic monthly subscription is $60 for two pickups. All services use hypoallergenic detergents.

The average American family spends about 240 hours a year on laundry, making it a very time-consuming chore. For people with disabilities, difficult work schedules, and other circumstances, it can be a real help, says co-founder Matt O'Connor.

"Some of our favorite customer stories simply revolve around saving people time when they have something challenging going on," he writes in an email. "For example, one customer reviewed NoScrubs saying 'So happy I could cry! (Partially because I'm pregnant and my emotions are heightened!)...1000% recommend if you have time restrictions or physical restrictions! ' So, whether it’s saving time, the affordability, or the pleasantly surprising turnaround time, NoScrubs has a variety of benefits for any customer."

NoScrubs is also a new opportunity for Houston's gig workers. Because there are no passengers, it can be a safer alternative to driving ride share for women and other people apprehensive about having strangers in their cars. As NoScrubs partners with local laundromats, drivers are also going to centralized locations rather than all over the map, leading to less wear and tear on their cars. The laundromats benefit as well, since NoScrubs loads are ones that would otherwise be done at home.

"Our model makes driving a tiny fraction of the time, so folks who don’t want to wear down their vehicles and spend a ton on gas love working at NoScrubs," added O'Connor.

Here's what's next for Houston’s Tempest Droneworx after SXSW Speed Pitch win

winner, winner

It’s not easy to be a standout at South by Southwest, especially during SXSW Interactive, which is the subsection of the festival that focuses on new media, technology and entrepreneurship.

But it’s even more difficult to win at SXSW Pitch, the competition for startups and entrepreneurs that showcases innovative new technology to a panel of industry experts, high-profile media professionals, venture capital investor, and angel investors.

Tempest Droneworx, a Houston-based company that provides real-time intelligence collected through drones, robots and sensors, did just that last month, taking home the Best Speed Pitch award. It was also named a finalist and alternate in the full SXSW Pitch competition. The company is known for it flagship product, Harbinger, a software solution that agnostically gathers data at virtually any scale and presents that data in easy-to-understand visualizations using a video game engine.

Tempest CEO and founder Ty Audronis says his company won based on its merits and the impact it’s making and will make on the world. Audronis founded the company after his hometown of Paradise, California, was destroyed by a wildfire in 2018.

“(SXSW) was a huge moment for our team,” says Audronis, whose background is in science visualization, data visualization and visual effects for the movie industry. “This is about what everyone at Tempest Droneworx has created, and our mission to make sure that issues—like the one that befell Paradise, California, my hometown, and the inspiration for our Harbinger software—don’t become the full-blown (disasters)."

Audronis shares that the company is working to release an agriculture beta this summer and is raising a Tactical Funding Increase (TACFI) round through the AFWERX, the Department of the Air Force’s innovation arm.

Tempest’s Harbinger is impressing investors and clients alike, but what is it exactly and what does it do?

The best way to explain the solution is in how it’s redefining the agriculture space. Tempest has deployed the product at Grand Farm in North Dakota, an agtech operation that seeks to promote sustainable, climate-resilient farming using applied technology.

“We decided to go down the road of agriculture,” Audronis says. “We're currently installed at the Grand Farm in North Dakota, which is a farm that is very closely tied to Microsoft. They do third-party verification of new soils and fertilizers, and we are helping them with visualizing the data that they're getting from their sensors.”

Additionally, Audronis and his co-founder and wife, Dana Abramovitz, spearhead a pilot program at Doubting Thomas Farms, an organic farm in Minnesota, where the company has installed 22 in-ground sensors that can measure volatile organic emissions.

To further optimize their solutions approach, Tempest Droneworx will also train artificial intelligence to look for overspray from neighboring non-organic farms. This will help maintain organic certification and reduce insurance claims for lost crops.

“This will save Doubting Thomas Farms and other organic farms a boatload of cash,” Audronis says.

During an exclusive tour with InnovationMap, Audronis pulled up a live feed of sensors buried around the Minnesota farm up on the conference room display. The feed did, in fact, look like a video game, with the sensors giving real-time data about the farm’s temperature, moisture level, humidity, CO2 and nitrogen.

Harbinger will collect, extract and extrapolate all of the data and later provide a digital almanac for farmers to track the history of their crops.

As the office tour continued, Audronis pointed out the company’s expanding partnership with the U.S. Military.

As a retired U.S. Navy veteran with over two decades of experience designing, building and piloting drones, Audronis understands that Harbinger has multiple military applications that will ultimately save lives—a core tenet of his company’s mission.

The company has launched a robotic dog known as UBU, developed by Tempest partner Ghost Robotics, that enables faster, more accurate ground surveys for explosive devices. This task previously required multiple airmen and hours to complete, Audronis says.

With agriculture and military initiatives in progress and making an impact, Audronis hopes to one day bring his original vision for Tempest Droneworx and Harbinger full circle by getting the call to combat California’s next catastrophic wildfire.

“We're proving our technology in military and in agriculture right now,” Audronis says. “Eventually, I would like to still save some lives with wildfire. That's really the purpose of the company … Whether it's agriculture, smart cities, the bottom line is saving lives through real-time situational awareness."

New energy innovation and coworking spaces open at the Ion

moving in

Houston-based Occidental officially opened its new Oxy Innovation Center with a ribbon cutting at the Ion last week.

The opening reflects Oxy and the Ion's "shared commitment to advancing technology and accelerating a lower-carbon future," according to an announcement from the Ion.

Oxy, which was named a corporate partner of the Ion in 2023, now has nearly 6,500 square feet on the fourth floor of the Ion. Rice University and the Rice Real Estate Company announced the lease of the additional space last year, along with agreements with Fathom Fund and Activate.

At the time, the leases brought the Ion's occupancy up to 90 percent.

Additionally, New York-based Industrious plans to launch its coworking space at the Ion on May 8. The company was tapped as the new operator of the Ion’s 86,000-square-foot coworking space in Midtown in January.

Dallas-based Common Desk previously operated the space, which was expanded by 50 percent in 2023 to 86,000 square feet.

CBRE agreed to acquire Industrious in a deal valued at $400 million earlier this year. Industrious also operates another local coworking space is at 1301 McKinney St.

Industrious will host a launch party celebrating the new location Thursday, May 8. Find more information here.


Oxy Innovation Center. Photo via LinkedIn.