Texas ranks as the No. 13 most innovative state in 2026 study

innovative states

WalletHub assigns Texas a No. 13 ranking for innovation among the states. Photo via Getty Images

During a SXSW reception March 12 at the Governor’s Mansion in Austin, Gov. Greg Abbott hailed Texas as the No. 1 state for innovation. Personal finance website WalletHub doesn’t see it that way, though.

A new study from WalletHub assigns Texas a No. 13 ranking for innovation among the states and the District of Columbia. D.C. comes out on top, followed by Massachusetts, California, Colorado and Washington. Mississippi appears at the bottom of the list.

Texas earns an innovation score of 49.56, compared with 69.13 for top-ranked D.C. In two broad categories, Texas ranks 12th for human capital and 13th for innovation environment.

To identify the top places for innovation, WalletHub evaluated the 50 states and D.C. by reviewing 25 key indicators of innovation friendliness. The indicators include:

Share of STEM professionals.
Forecast for Share of STEM professionals
Forecast for STEM jobs
Eighth-grade math and science performance
Concentration of tech companies
R&D spending per capita
Share of science and engineering graduates age 25 and over
Average internet speed
Venture capital funding per capita

“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,” he added.

Texas zeroes in on semiconductor industry

On the innovation front, Abbott and other state leaders have focused intently on growing the state’s semiconductor industry, which generates roughly $30 billion to $60 billion in economic activity per year. Texas ranks among the top states for semiconductor manufacturing, with major operations in North Texas and Central Texas.

To bolster the industry, Abbott signed the Texas CHIPS Act into law in 2023. The law established the Texas Semiconductor Innovation Fund, which issues grants for semiconductor research, design and manufacturing, and the Texas Semiconductor Innovation Consortium, which advises the governor and state legislators on matters related to the semiconductor sector.

Among the consortium’s appointed representatives are:

Joe Elabd, vice chancellor for research at the Texas A&M University System
David Staack, deputy vice chancellor for research at the Texas A&M University System
Ramanan Krishnamoorti, vice president for energy and innovation at the University of Houston
Magesh Rajan, vice president for research and innovation at Prairie View A&M University

Semiconductor companies with a presence in the Houston area include chip manufacturer NVIDIA, which is building an AI supercomputer factory in Houston; Labtopia, a tech staffing firm that does business in the semiconductor sector; Microchip USA, a distributor of semiconductors and other electronic components that opened an office in Kingwood last year; and Infineon Technologies, which designs, develops, and manufactures semiconductors.

The Greater Houston Partnership touts the Houston area’s track record as an innovation hub.

“As a home to world-changing innovations and a talented labor pool, Houston has been an attractive region for innovation and startups across all key industries for years,” the partnership says, “and as a major player as a center of activity for the next generation of innovators and entrepreneurs.”

Houston fuels energy innovation

As for energy innovation in the Houston area, Abbott last month announced a 455-megawatt, $617 million natural gas plant that Houston-based NRG Energy is building at its Greens Bayou facility in north Harris County is now a designated project under the Texas Jobs, Energy, Technology, and Innovation (JETI) program. JETI offers economic incentives for qualifying projects.

The NRG plant is expected to begin generating power for the Electric Reliability Council of Texas (ERCOT) in 2028.

Other energy innovators in the Houston area include Chevron, ExxonMobil, Occidental’s 1PointFive subsidiary, Schneider Electric, Shell, AB Energy USA, Fervo Energy, Solugen and Syzygy Plasmonics.

One promising area for energy innovation in Houston is carbon capture, utilization, and sequestration (CCUS). A new study from the Houston Energy Transition Initiative (HETI) and Deloitte Consulting says the Houston area is positioned to take a leading role in the development of CCUS, thanks to the region’s chemical and refining industries, energy infrastructure, energy-heavy workforce and access to global markets.

“With supportive policy, continued innovation, and strong industry partnerships, we can accelerate [CCUS] deployment, create new low-carbon value chains, and ensure Houston remains at the forefront of the global energy transition,” said Jane Stricker, HETI’s executive director and senior vice president of energy transition.

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

Texas improves ranking on annual report of most innovative states

moving up

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:

District of Columbia with a score of 71.65
Massachusetts with a score of 69.93
Washington with a score of 66.36
California with a score of 65.63
Colorado with a score of 63.93
Maryland with a score of 62.41
Virginia with a score of 59.86
Delaware with a score of 54.58
Utah with a score of 53.66
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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Uber, Nuro and Lucid plan to roll out robotaxi services in Houston

autonomous autos

More autonomous vehicles are expected to hit the roads in Houston next year.

Ridesharing giant Uber announced that it plans to roll out its premium robotaxi service in the Bayou City in mid-2027. Houston will be Uber’s second planned market for the program, following the San Francisco Bay Area, where the program is expected to be rolled out later this year.

Uber, Nuro and Lucid Group will bring the robotaxi program to Houston with more markets planned for the future. Currently, Nuro is conducting autonomous on-road testing with safety operators in Houston. Testing includes simulation, closed-course testing and supervised public-road testing.

“Houston is a city Nuro knows well, and we’re excited to help bring this robotaxi service to the city through our partnership with Uber and Lucid,” Andrew Chapin, chief operating officer at Nuro, said in a news release. “Houston’s large, complex metro area is an ideal market for demonstrating how Nuro’s universal autonomy platform can generalize across different geographies and operating environments. We look forward to continued engagement with the community as we prepare to launch service in 2027.”

The fleet of 100 vehicles across California and Texas will feature Lucid Gravity EVs and future Lucid Midsize vehicles equipped with Nuro Driver technology, Nuro’s Level 4 universal autonomy platform, plus a redundant sensor suite with cameras, lidar, radar and a roof-mounted halo.

The vehicles will be owned and operated by Uber and its fleet partners and made available to riders through the Uber network, according to the company.

In addition to the fleet of autonomous vehicles, Uber also announced that it has secured a 50,000-square-foot depot facility and dedicated charging pitstop in Houston. The facility will allow Uber and its partners to control vehicle maintenance, repairs, charging, cleaning, and day-to-day operations.

“Houston marks an important next step in our partnership with Lucid and Nuro as we expand autonomous mobility to more riders throughout the world,” Sarfraz Maredia, global head of autonomous mobility & delivery at Uber, added in the release. “Together, we’re combining best-in-class vehicle and autonomy technology with Uber’s scale, fleet operations expertise, and infrastructure capabilities to build a service that can grow across dozens of markets in the years ahead.”

Waymo launched its autonomous vehicle program in Houston in February.

The company later suspended its driverless car services in Houston, other major Texas cities, and Atlanta, after one of its vehicles was stranded by flooding during heavy rains. However, according to the Houston Chronicle, the fleet has resumed activity in Houston and is fully active.

Houston fintech company closes $7M funding round

fintech funding

Houston-based fintech company Receipts Depositary Corporation has closed a $7 million oversubscribed funding round and plans to scale.

The round was led by Austin-based LiveOak Ventures, with participation from Hivemind Capital, Onigiri Capital, OTC Markets Group, GTS, and Redbeard Ventures, according to a release from RDC.

RDC's platform issues depositary receipts (DRs) to qualified investors on digital and alternative assets, making it easier for investors to buy and trade hard-to-access and less traditional assets. Currently, the company offers DRs for cryptocurrencies including Bitcoin, Ethereum, Solana and XRP.

RDC says the new funding will allow it to launch new DR products across a wider range of asset categories, potentially including commodities. Additionally, it plans to grow its relationships with "banks, broker-dealers, market makers, custodians and exchange partners" and add to its product, operations, technology, and commercial functions teams. The company is actively hiring, according to a press release.

“Depositary Receipts are trusted, regulated capital markets products which RDC is bringing to an entirely new universe of assets, from commodities to digital assets, that have historically been out of reach of traditional securities markets," Krishna Srinivasan, founding partner at LiveOak Ventures, said the release. “The team's depth of experience in the DR business on a global scale, combined with the broad institutional validation from co-investors, anchor customers, and strategic partners across asset classes, makes RDC uniquely positioned to define this category. We're proud to lead this round and support the company as it scales.”

RDC was founded in 2022 by three Citibank alumni: CEO Ankit Mehta, CEO Bryant Kim and COO Ishaan Narain. It began offering its first DRs for Bitcoin in 2024.

“This funding round is a strong validation of what we’re building at RDC and the growing demand for modernized Depositary Receipt infrastructure,” Mehta added in the release. “With the support of LiveOak Ventures and our investor partners, we are accelerating development across our DR platform expanding our market reach, and building the team needed to support the next generation of DR product

Houston space co. adds local colleges to university alliance

space schools

Houston’s Axiom Space has added 26 new members to its University Alliance—including two from Houston—to support the next generation of space exploration.

Engineers, researchers and students from the partnering universities will be dedicated to advancing microgravity research, technology development and commercial innovation in low-Earth orbit.

Rice University and the University of Houston are among the new colleges to join the alliance, which launched with 15 members last year. The University of Texas at Austin and the University of Texas at El Paso have also joined, in addition to international institutions in Europe, Asia and Australia, and others from around the U.S. See full list here.

“Through the University Alliance, Axiom Space is uniting the international research community driven to enable human progress,” Lucie Low, Axiom Space chief science officer, said in a news release. “Together, alliance members are taking the initiative to ensure microgravity research benefits everyone on Earth and our shared goals fulfill a scientific purpose to advance civilization.”

Axiom is building the world’s first commercial space station, known as Axiom Station. The University Alliance “will support and advance space science during the transition from government-led to commercially owned and operated space stations,” the company said in a release. Partnering universities will contribute to the research community by participating in international collaborative scientific initiatives, identifying future research, and bolstering strategic positions in the commercial orbit research field.

Recently, the Rice Space Institute was also selected to lead the U.S. Space Force Strategic Institute 4 in addition to other space-centric partnerships.

“We’re excited to bring our expertise to this global alliance and to benefit from the deep expertise of our partners,” David Alexander, professor of physics and astronomy and director of the Rice Space Institute, said in a news release. “Space is truly a collaborative and global endeavor. Alliances like these are key to progress.”

UH and NASA’s Johnson Space Center expanded their collaboration in 2022. In 2024, UH launched its NASA MIRO Inflatable Deployable Environments and Adaptive Space Systems Center (IDEAS2) via a five-year, $5 million grant.

“As a major public research university located in Space City, the University of Houston has a unique opportunity and responsibility to help lead the future of space innovation, and our participation in Axiom Space’s University Alliance represents a major step forward in that mission,” Karolos Grigoriadis, the Hugh Roy and Lillie Cranz Cullen Endowed Professor and chair of mechanical and aerospace engineering at UH, added in a separate release.

Meanwhile, Axiom recently tacked on an additional $175 million to a previously announced capital raise, bringing the oversubscribed round to a total of more than $525 million. It also has announced plans to launch Swiss and Japanese subsidiaries.

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