The North Carolina Department of Commerce, on behalf of the North Carolina Board of Science, Technology & Innovation, today released the 2026 Tracking Innovation report, the tenth edition since 2000. The report shows North Carolina has broken into the nation’s top 10 states for overall innovation capacity for the first time, ranking 9th among states based on the 41 measures included in the report. The state’s innovation economy has also improved faster than the U.S. overall since the early 2000s.
“North Carolina’s ability to innovate is a critical part of our economic strength and future competitiveness,” said North Carolina Commerce Secretary Lee Lilley. “Our First in Opportunity Strategic Economic Development Plan is focused on building on these strengths to drive innovation, economic growth and opportunity in every region of North Carolina. This report shows where we are making progress and where we can do more to ensure communities across the state can participate in and benefit from an innovation-driven economy.”
The 2026 Tracking Innovation report evaluates North Carolina’s performance against other states and the nation on 41 measures of innovation. The report identifies areas of strength as well as opportunities to further strengthen the state’s innovation economy, including expanding innovation capacity across more regions of North Carolina.
“Innovation is a critical force multiplier that raises the standard of living of North Carolinians and an accelerator that helps create new industries, keep existing ones globally competitive, advance national security, and drive future economic growth and well-being,” said Greg Copenhaver, Acting Chair of the North Carolina Board of Science, Technology & Innovation. “Innovative regions are better equipped to resist and recover from economic shocks, and North Carolina’s ability to thrive in an increasingly dynamic, global economy depends on how much we infuse innovation throughout our state.”
North Carolina continues to show strength or gains on several key innovation measures:
- Academic R&D expenditures and academic article output remain long-standing strengths, with North Carolina ranked fifth among states in both categories.
- University academic license income and startup formation have increased by 149 percent and 9.8 percent, respectively, since 2000—well ahead of the U.S. average, particularly for academic license income, which has declined nationally.
- Federal non-dilutive Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) funding for North Carolina early-stage technology companies has increased seven times faster than the U.S. average since 2000, maintaining the state’s position above the national average.
- Knowledge- and technology-intensive (KTI) business establishments have increased by 111 percent since 2000, nearly double the U.S. rate. KTI establishments pay average wages roughly twice those of all establishments.
- The share of North Carolina’s workforce in science and engineering occupations has increased by 83 percent since 2003, faster than the national rate and above the U.S. average.
- Gender and ethnic diversity in KTI industries remains well above the U.S. average, as it has since 2001.
- In-migration of college-educated adults has increased at three times the U.S. rate since 2005, reflecting growing opportunities for workers who contribute to the innovation economy.
- Innovation strengths are spreading geographically, with more North Carolina counties performing above the U.S. average across a greater number of measures.
The report also identifies areas where North Carolina can strengthen its innovation capacity, including expanding innovation activity into more regions of the state and broadening the state’s strengths across a wider range of high-tech sectors. The report also highlights disparities in broadband and internet device access across the state and finds that elementary and secondary public school current expenditures lag national averages and those of nearly all states.
The report notes that North Carolina must also increase the pace of improvements in economic growth, wages and workforce incomes, which continue to lag the national average, as the state experiences rapid population growth. Ensuring that economic gains are broadly shared—including in rural and economically distressed communities—will be important to keeping reductions in poverty and increases in household income in step with the state’s overall economic expansion.
The full Tracking Innovation report is available online. Requests for additional information or presentations should be directed to the Board of Science, Technology & Innovation Executive Staff. More information about the Board is available at https://www.commerce.nc.gov/about-us/boards-commissions/board-science-technology-innovation.