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.”

Texas continued its year-over-year improvement on an annual report of most innovative states. Photo via Getty Images

Texas again improves on annual ranking of most innovative states

making progress

It's another year of slow but steady progress for the Lone Star State on an annual report on the top states for innovation.

Texas ranked No. 14 with a score of 48.43 points on personal finance site WalletHub's Most and Least Innovative States in 2024 ranking. Last year, Texas ranked No. 15. The state has steadily inched up the list — Texas was No.16 on the list in 2022 and No. 17 in 2021.

According to the report, Texas had the following ranking across the following categories:

  • No. 19 – Share of STEM Professionals
  • No. 16 – Projected STEM-Job Demand by 2030
  • No. 25 – Eighth-Grade Math & Science Performance
  • No. 19 – Share of Science & Engineering Graduates Aged 25+
  • No. 13 – Share of Technology Companies
  • No. 31 – R&D Spending per Capita
  • No. 15 – Venture-Capital Funding per Capita
Source: WalletHub

The report analyzed the 50 states and the District of Columbia and how each performed across 25 key metrics and across two key dimensions, “Human Capital” and “Innovation Environment," per the report. The data was pulled from the U.S. Census Bureau, Bureau of Labor Statistics, National Science Foundation, National Center for Education Statistics, United States Patent and Trademark Office, and other records.

“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 Cassandra Happe, a WalletHub analyst in the report. "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.”

The report's top 10 included:

  1. District of Columbia with a score of 71.65
  2. Massachusetts with a score of 69.93
  3. Washington with a score of 66.36
  4. California with a score of 65.63
  5. Colorado with a score of 63.93
  6. Maryland with a score of 62.41
  7. Virginia with a score of 59.86
  8. Delaware with a score of 54.58
  9. Utah with a score of 53.66
  10. New Jersey with a score of 53.2
Texas has seen year-over-year improvement on an annual list that ranks states based on their innovation economies. Photo via Getty Images

Report: Texas rises through the ranks of most innovative states

moving on up

The Lone Star State has again taken a step up on an annual report that ranks the most and least innovative states in the country — this time cracking the top 15.

Texas ranked No. 15 in personal finance site WalletHub's 2023’s Most and Least Innovative States ranking. It's a steady improvement for the state, which ranked No. 16 in 2022 and No. 17 in 2021.

The report analyzed the 50 states and the District of Columbia and how each performed across 22 key metrics, including population of STEM professionals, venture capital investment activity, number of technology companies, patents per capita, and more. The data was pulled from the U.S. Census Bureau, Bureau of Labor Statistics, National Science Foundation, National Center for Education Statistics, United States Patent and Trademark Office, and other records.

Here's how Texas performed at a glance:

  • No. 18 for share of STEM professionals
  • No. 16 for projected STEM job demand by 2030
  • No. 25 for eighth grade math and science performance
  • No. 21 – for share of science and engineering graduates aged 25 or older
  • No. 13 – for share of technology companies
  • No. 31 – for R&D spending per capita
  • No. 18 – venture capital funding per capita
For the 11th year, Texas won Site Selection Magazine's Governor's Cup, the governor's office announced earlier this year. The award, which Texas has won 19 times since its inception in 1978, recognizes the nation’s top-performing state for job-creating business relocations and expansions.

"Texas truly is America’s economic engine, and we stand apart as a model for the nation. When choosing where to relocate or expand their businesses, more and more innovative industry leaders find themselves at home in our state," Governor Greg Abbott says in a news release about the award.

"I congratulate the exceptional economic development teams at the local, regional, and state level who have worked so diligently to attract and retain these growing businesses and the jobs they create in diverse communities across this great state," he continues.

The most innovative states included the District of Columbia, which ranked at No. 1, followed by Massachusetts, Washington, Maryland, and California, respectively. The least innovative state was identified as Mississippi, followed by Louisiana, North Dakota, West Virginia, and Arkansas, respectively.

Source: WalletHub

Access to quality education is a significant contributor to each state's innovation economy, the experts say in the report.

"Investing in education, particularly K-12 but also at the University level, it is no accident that innovative ecosystems develop in states with strong education systems and research universities," says David L. Deeds, professor at the University of St. Thomas in Minneapolis. "These institutions build strong capable modern workforces that attract capital, and jobs and create innovations. The benefits do not happen overnight, in fact, they take years if not decades, but consider what The UC’s or the University of Texas at Austin have meant for the development of premier innovative ecosystems."

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Houston medical institutions launch $6M kidney research incubator

NIH funding

Institutions within Houston’s Texas Medical Center have launched the Houston Area Incubator for Kidney, Urologic and Hematologic Research Training (HAI-KUH) program. The incubator will be backed by $6.25 million over five years from the National Institutes of Health and aims to create a training pipeline for researchers.

HAI-KUH will include 58 investigators from Baylor College of Medicine, Texas Children’s Hospital, the University of Texas Health Science Center at Houston, University of Houston, Houston Methodist Research Institute, MD Anderson Cancer Center, Rice University and Texas A&M University Institute of Biosciences and Technology. The program will fund six predoctoral students and six postdoctoral associates. Trainees will receive support in scientific research, professional development and networking.

According to the organizations, Houston has a high burden of kidney diseases, hypertension, sickle cell disease and other nonmalignant hematologic conditions. HAI-KUH will work to improve the health of patients by building a strong scientific workforce that leverages the team's biomedical research resources to develop research skills of students and trainees and prepare them for sustained and impactful careers. The funding comes through the National Institute of Diabetes and Digestive and Kidney Diseases.

The principal investigators of the project include Dr. Alison Bertuch, professor of pediatric oncology and molecular and human genetics at BCM; Peter Doris, professor and director of the Institute of Molecular Medicine Center for Human Genetics at UT Health; and Margaret Goodell, professor and chair of the Department of Molecular and Cellular Biology at Baylor.

“This new award provides unique collaborative training experiences that extend beyond the outstanding kidney, urology, and hematology research going on in the Texas Medical Center,” Doris said in a news release. “In conceiving this award, the National Institute of Diabetes and Digestive and Kidney Diseases envisioned trainee development across the full spectrum of skills required for professional success.”

Jeffrey Rimer, a professor of Chemical Engineering, is a core investigator on the project and program director at UH. Rimer is known for his breakthroughs in using innovative methods in control crystals to help treat malaria and kidney stones. Other co-investigators include Dr. Wolfgang Winkelmeyer (Baylor), Oleh Pochynyuk (UTHealth), Dr. Rose Khavari (Houston Methodist) and Pamela Wenzel (UT Health).

“This new NIH-sponsored training program will enable us to recruit talented students and postdocs to work on these challenging areas of research,” Rimer added in a release.

6 Houston health tech startups making major advancements right now

meet the finalists

Home to leading hospitals, universities and health-focused incubators, Houston is a breeding ground for innovative medical technology and breakthroughs that can improve outcomes and lead to a better quality of life for patients.

The Health Tech Business category in our 2025 Houston Innovation Awards will honor an innovative startup within the health and medical technology sectors.

Six forward-thinking businesses have been named finalists for the 2025 award. They range from an end-of-life care company to others developing devices and systems for heart monitoring, sleep apnea, hearing loss and more.

Read more about these businesses, their innovative founders, and how they're shaping the future of health care below. Then join us at the Houston Innovation Awards on Nov. 13 at Greentown Labs, when the winner will be unveiled at our live awards ceremony.

Tickets are now on sale for this exclusive event celebrating all things Houston Innovation.

Bairitone Health

Bairitone Health is bringing anatomy imaging for sleep apnea to the home environment. The company's platform maps users' anatomy during natural sleep using a facial patch to determine the root cause of airway obstruction. It then offers effective therapies for each patient. The system is currently in the research and development phase and is being used in clinical trials and studies.

The company was founded in 2022 in the Texas Medical Center's Biodesign program by CEO Meagan Pitcher, CTO Onur Kilic and chief medical officer Britt Cross. It was a member of Activate Houston's inaugural cohort and has participated in numerous accelerators and incubators. It raised a pre-seed round last year of $435,000.

Corveus Medical

Corveus Medical has developed a novel catheter device that allows cardiologists to perform a splanchnic nerve ablation, restoring the pressure balance in patients with moderate heart failure. Its pre-FDA-approved, minimally invasive solution deactivates a nerve that has been demonstrated to be a root cause behind heart failure progression, which allows physicians to treat patients who have traditionally had few options.

The company, formerly known as Caridian Medical, was founded in 2021 by CEO Tyler Melton and CMO Ishan Kamat. It has participated in incubators such as TMC Biodesign, Y Combinator, MedTech Innovator and Fogarty Innovation and was named one of the 10 most promising life science companies at Texas Life Science Forum in 2022. The company says it will move toward validation and verification testing for its device in Q4 of this year.

FibroBiologics

Regenerative medicine company FibroBioligics uses fibroblasts, the body’s most common type of cell, rather than stem cells, to help grow new cells to repair tissue and modulate the immune system. The cell therapies offer treatments for chronic conditions such as degenerative disc disease, multiple sclerosis and non-healing wounds.

The publicly traded company was founded in 2021 by CEO Pete O'Heeron. It opened a new 10,000-square-foot Houston lab earlier this year to scale up research efforts and pave the way for in-house manufacturing. The company says it plans to launch its first clinical trial for diabetic foot ulcers soon, representing the transition of its fibroblast technology to the clinic setting.

Koda Health

Koda Health has developed an advance care planning platform (ACP) that allows users to document and share their care preferences, goals and advance directives for health systems. The web-based platform guides patients through values-based decisions with interactive tools and generates state-specific, legally compliant documents that integrate seamlessly with electronic health record systems. The company also added kidney action planning to its suite of services for patients with serious illnesses last year.

Koda Health was founded out of the TMC's Biodesign Fellowship in 2020 by CEO Tatiana Fofanova, chief medical officer Dr. Desh Mohan, and chief technology officer Katelin Cherry. The company raised a $7 million series A earlier this year, and also announced major partnerships and integrations with Epic, Guidehealth, Medical Home Network, Privia Health and others.

NanoEar

NanoEar has miniaturized hearing aid technology so that it can be implanted across the eardrum, allowing adults with age-related hearing loss to enjoy better sound quality than they would with behind-the-ear hearing aids.

Dr. Ron Moses, an ENT specialist and surgeon at Houston Methodist, developed the technology, and the company was founded in 2016 with CFO Willem Vermaat and COO Michael Moore. The company participated in the TMC Innovation Institute in 2016. It has issued nine U.S. patents and performed successful human cadaver and animal proof-of-concept experiments. Its next step is developing a prototype.

Wellysis USA

Wellysis USA Inc. works to detect heart rhythm disorders with its continuous ECG/EKG monitor with AI reporting. Its S-Patch cardiac monitor is designed for extended testing periods of up to 14 days on a single battery charge. The device weighs only 9 grams, is waterproof and designed to be comfortable to wear, and is considered to have a high detection rate for arrhythmias. It is ideally suited for patient-centric clinical trials to help physicians make diagnoses faster, cheaper and more conveniently.

It was established in Houston in 2023 and participated in the JLABS SFF Program the same year. It closed a $12 million series B last year. It was founded by CEO Young Juhn, CTO Rick Kim, CFO JungSoo Kim and chief strategy officer JoongWoo Kim.

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Houston university is at the top of the class in new college ranking

Top of the Class

Rice University is maintaining its reputation as one of the top colleges in the U.S., according to a new batch of rankings from WalletHub.

Rice topped WalletHub's 2026 lists comparing the best colleges and universities in Texas and the best universities in the South. The private institution also ranked as the 9th best university in the country, three spots lower than its 2024 ranking.

The personal finance website's experts analyzed nearly 800 colleges and universities in the U.S. using 30 key metrics, including factors like student-faculty ratios, graduation rates, campus safety, and many more.

Rice was ranked across seven major categories in the report and scored highly for its faculty resources (No. 10), student educational outcomes (No. 12), student selectivity (No. 16), student career outcomes (No. 26), and campus experience (No. 46).

The only two categories Rice lagged behind in were campus safety (No. 576) and cost and financing (No. 700). U.S. News & World Report says tuition and fees at Rice can add up to more than $65,000 per year for in-state students, with the total cost soaring to nearly $84,000 when factoring in the price for housing, food, books and supplies, transportation, and personal expenses.

In addition to topping WalletHub's rankings, Rice has also claimed top spots in other prestigious lists by U.S. News, Forbes, The Princeton Review, and more. Rice's revered graduate schools – including the MBA program at the Jones Graduate School of Business and Brown School of Engineering and Computing – are also among the best in the country, according to U.S. News and The Princeton Review.

Locally, University of Houston also ranked among the statewide top 10 and ranked as the 268th best university in the U.S. for 2026. In the regional rankings of best universities in the South, UH ranked 52nd on the list

The 10 best colleges and universities in Texas for 2026 are:

  • No. 1 – Rice University, Houston
  • No. 2 – The University of Texas at Austin
  • No. 3 – Trinity University, San Antonio
  • No. 4 – Texas A&M University-College Station
  • No. 5 – Texas Christian University, Fort Worth
  • No. 6 – Austin College, Sherman
  • No. 7 – Southwestern University, Georgetown
  • No. 8 – University of Dallas
  • No. 9 – The University of Texas at Dallas
  • No. 10 – University of Houston
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This article originally appeared on CultureMap.com.