The future of Texas’ digital economy is strong, according to a new study

by the numbers

Texas ranks in the top 10 states with promising digital economies. Photo via Getty Images

A new report from California-based software firm Tipalti ranks Texas in the top 10 for states with the best digital economy outlooks.

Based on findings from Indeed.com, the U.S. Census Bureau, The Computing Technology Industry Association, and BroadbanNow, the study looks at which states and countries are best prepared for future and continued shifts towards a more digitized world.

Texas was ranked ninth overall, with a score of 8.4 out of 10 for Tipalti’s digital economy score. The report based this score on a few criteria. Here’s what it found.

Texas was found to have had:

  • 86.23 “digital jobs” per every 100,000 posted
  • A 425.9 MBps download speed
  • 2,634.01 tech employees per every 100,000 employees
  • An economic impact of $142.8 billion economic impact from the tech sector
  • 39,299 tech firms in the state
  • A $91,885 median tech occupation wage

Comparatively, Virginia, which ranked first with a 10 out of 10 score, had:

  • 125.09 “digital jobs” per every 100,000 posted
  • A 505.6 MBps download speed
  • 4,047.26 tech employees per every 100,000 employees
  • An economic impact of $57.8 from the tech sector
  • 20,600 tech firms in the state
  • A $105,412 median tech occupation wage

Of the states in the top 10, Texas had the second-highest tech sector economic impact, falling only behind California with an impact of $515.6 billion. California also had the highest number of tech firms in the country with a total of 54,303.

Vermont was reported to have embraced remote working the most, with 63.05 remote jobs posted per 100,000 residents. Maryland had the highest average download speeds of 506.7 Mbps. And tech workers in Washington were reported to earn the highest median tech occupation wage of $124,653.

The United States did not rank on Tipalti's list of countries with the most promising digital economies. The city-state, which could "dominate the digital landscape in the near future," according to the report, had $193.93 billion in total tech exports in 2020.

On a late-2022 report, Houston and Texas also ranked high among regions to launch a startup. Houston ranked as ninth, falling just behind Dallas at No. 8, on a list from the 42Floors real estate website of the top spots for new entrepreneurs. Around that same time, Job search platform Lensa also ranked Texas as the best state to launch a startup.
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From amenities to flexibility, here's what tech companies need to prioritize in a working environment to stay competitive. Courtesy of HOK

Tech companies need flexible and personalized workplaces to stay competitive, according to this Houston interior design expert

Guest column

Nowhere is the rapid pace of change more apparent than in the tech sector. Fierce competition for talent, an evolving regulatory environment, and mounting privacy and data security challenges confront both well-established tech leaders and startups, forcing them to continuously adapt and innovate.

Companies that succeed in this hyper-competitive market have two things in common: workforces and workspaces that can pivot to address new demands and business models. In a recent report titled HOK Forward: Tech Workplace Takes Center Stage, HOK explored the impact tech industry challenges are having on the office space and examined design solutions that can make these spaces more responsive and successful.

The report found that workplace flexibility is key when it comes to spurring innovation and collaboration. So too is personalization. Each company's ideal environment should reflect its culture, work style, mobility profiles, and business goals and be continually re-evaluated as the organization grows.

Five workplace trends that are gaining popularity in the tech sector include:

  • Activity-Based Workplaces (ABW) – This office concept encourages movement and empower people to select the right space for the job at hand. ABW environments are typically designed to serve four major work functions: solo work, collaboration, learning, and socializing and rejuvenation. These spaces work nicely for organizations that are market-oriented in organizational structure.
  • Neighborhood-based Choice Environments (NCE) – A variation of the ABW model, these spaces create a neighborhood or home for teams to operate out of while still allowing people to have access to a variety of work settings. These spaces are ideal for organizations that are team-based and mobile, but seek to build community.
  • Agile Environments – Scrum spaces where project-based teams from different business groups or departments can gather to collaborate on special projects. These spaces are helpful for team-based organizations that desire belonging and community, as they are highly interactive and collaborative.
  • Maker Environments for Mobile Occupants (MEMO) – These spaces are emerging in sectors where rapid development is key. They encourage experimentation and group work in entrepreneurial environments with flat organizational structures.
  • Immersive Environments – These spaces pull the best lessons learned from ABW, NCE, agile environments and MEMO and tailor them to meet the specific needs of a company to create custom spaces.

These creative approaches meld the needs of an evolving workforce with the needs of the organization. But attracting talent extends far beyond the work styles accommodated. So, how can tomorrow's tech workplace attract and retain top talent?

Amenities play a critical role. Amenity offerings should be diverse and speak to the culture of an organization. Nap pods, wellness rooms, medical clinics and maker spaces are benefits gaining popularity in the tech industry and beyond. These amenities speak to a workforce that values convenience, works hard and finds inspiration in unique ways.

Smart workplaces are gaining popularity in the technology sector. Complete with multiple sensors that track office use—such as how often a space is used and the peak times of activity within a communal space—this advanced technology can help building owners and operators optimize a space and better understand which kinds of environments are in demand.

In addition to leveraging data, tech workplaces are on the cusp of merging the digital realm with physical space. This move towards seamless technology that anticipates behavior and needs and creates immersive experiences has the potential to transform the work experience. At the center of this evolution should be a commitment to engaging, equipping, and empowering individuals to excel, which requires developing flexible, technology-infused space solutions that accommodate a growing diversity of work styles, preferences and personalities.

The tech industry's increased focus on the human experience—from amenities to immersive technology—can be applied to workplaces in other sectors. While the next big technological advancement isn't set in stone, one thing is certain: Companies that wish to remain competitive and responsive in the future will need workplaces with the flexibility and personalization that allow their people to gather, connect, innovate, and simply be their best.

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Amy English is the director of interiors for HOK.

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2 Houston startups selected by US military for geothermal projects

hot new recruits

Two clean energy companies in Houston have been recruited for geothermal projects at U.S. military installations.

Fervo Energy is exploring the potential for a geothermal energy system at Naval Air Station Fallon in Nevada.

Meanwhile, Sage Geosystems is working on an exploratory geothermal project for the Army’s Fort Bliss post in Texas. The Bliss project is the third U.S. Department of Defense geothermal initiative in the Lone Star State.

“Energy resilience for the U.S. military is essential in an increasingly digital and electric world, and we are pleased to help the U.S. Army and [the Defense Innovation Unit] to support energy resilience at Fort Bliss,” Cindy Taff, CEO of Sage, says in a news release.

A spokeswoman for Fervo declined to comment.

Andy Sabin, director of the Navy’s Geothermal Program Office, says in a military news release that previous geothermal exploration efforts indicate the Fallon facility “is ideally suited for enhanced geothermal systems to be deployed onsite.”

As for the Fort Bliss project, Michael Jones, a project director in the Army Office of Energy Initiatives, says it’ll combine geothermal technology with innovations from the oil and gas sector.

“This initiative adds to the momentum of Texas as a leader in the ‘geothermal anywhere’ revolution, leveraging the robust oil and gas industry profile in the state,” says Ken Wisian, associate director of the Environmental Division at the U.S. Bureau of Economic Geology.

The Department of Defense kicked off its geothermal initiative in September 2023. Specifically, the Army, Navy, and Defense Innovation Unit launched four exploratory geothermal projects at three U.S. military installations.

One of the three installations is the Air Force’s Joint Base San Antonio. Canada-based geothermal company Eavor is leading the San Antonio project.

Another geothermal company, Atlanta-based Teverra, was tapped for an exploratory geothermal project at the Army’s Fort Wainwright in Alaska. Teverra maintains an office in Houston.

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This article originally ran on EnergyCapital.

Houston investor calls for all angels to move the ecosystem forward

houston innovators podcast episode 233

One of the biggest components of a well-functioning startup ecosystem is inarguably access to capital, and Mitra Miller is dedicated to enhancing education around investment and growing Houston's investor base.

As vice president and board member of the Houston Angel Network, the oldest angel network in Texas and one of the most active angel networks in the country, Miller strives to provide guidance to new and emerging angel investors as well as founders seeking to raise money from them.

"Most founders have no idea or understanding of how investors think — we are not an ATM," Miller says on the Houston Innovators Podcast. "We are really partners you are getting married to for the next 5, 8, 10 years — sometimes longer. We need to bring your allies in every sense of the word."



HAN, a nonprofit, provides a unique opportunity for its members, as Miller explains. The group consists of around 100 individuals from all business backgrounds, so evaluating companies together brings more than just a wealth of capital — but also a wealth of knowledge.

"What HAN provides is access to investments," Miller says, adding that members have the benefit in evaluating companies together with people from different backgrounds. "Inside a group like HAN, we have extraordinary expertise."

In addition to educating both founders and investors in the process, Miller has dedicated herself to providing opportunities for students in low-income parts of Houston to learn about the startup world. Eight years ago, she founded Eagle Investors, an organization that provides a year-long program that culminates in a group of students participating as judges for the Rice Business Plan Competition.

"They spend a year learning about innovation, entrepreneurship, and investing by meeting local investors, entrepreneurs, and service providers. They go around Houston to get to visit and ... experience all of the ecosystem," Miller says.

At RBPC, the cohort of high school students evaluate the pitches and select a company to provide a $5,000 prize.

Miller herself has been a judge at RBPC for 20 years now, and she's had a front row seat for watching Houston develop as an ecosystem. She's seen the city make real progress, but has one major call to action.

"The piece that I am most aware of that I would like to see grow is activating more accredited investors who are interested in this asset class of early-stage companies and plugging in," Miller says. "They can also invest their time and knowledge to help companies in our region grow and scale."

Report: Houston secures spot on list of top 50 startup cities

by the numbers

A new ranking signals great promise for the growth of Houston’s startup network.

Houston ranks among the world’s top 50 startup cities on a new list from PitchBook, a provider of data and research about capital markets. In fact, Houston comes in at No. 50 in the ranking. But if you dig deeper into the data, Houston comes out on top in one key category.

The city earns a growth score of 63.8 out of 100 — the highest growth score of any U.S. city and the seventh highest growth score in the world. In the growth bucket, Houston sits between between Paris (64.4) and Washington, D.C. (61.7).

The PitchBook growth score reflects short-term, midterm, and long-term growth momentum for activity surrounding venture capital deals, exits, and fundraising for the past six years.

PitchBook’s highest growth score (86.5) goes to Hefei, a Chinese manufacturing hub for electric vehicles, solar panels, liquid crystal displays, home appliances, and Lenovo computers.

The overall ranking is based on a scoring system that relies on proprietary PitchBook data about private companies. The system’s growth and development scores are based on data related to deals, exits, fundraising and other factors.

Houston earns a development score of 34.1 out of 100, which puts it in 50th place globally in that regard. This score measures the size and maturity of a city’s startup network.

Topping the overall list is San Francisco, followed by New York City and Beijing. Elsewhere in Texas, Austin appears at No. 16 and Dallas at No. 36.

The ranking “helps founders, operators, and investors assess locations when deciding where to expand or invest,” says PitchBook.

“Network effects matter in venture capital: Investors get more than half of their deals through referrals, according to research led by Harvard professor Paul Gompers,” PitchBook goes on to say. “So it stands to reason that dealmakers should seek these networks out when deciding where to do business.”

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