Central New Jersey — with Mercer County as a focal point — has experienced considerable tech growth in recent years. Consequently, the sector has been providing durable employment even as unemployment ticked up from 3.3% to 4.9% year-over-year here. Hosting operations from multi-billion-dollar tech companies like Cognizant and Unisys, Trenton’s innovation ecosystem is also augmented by startup accelerators like Trenton Makes StartUp, in addition to government platforms like the NJ Accelerate Program.
At #2 with 65.9 points, the Boston metro area remains one of the region’s most productive in terms of innovative output and tech employment. The metro boasts great performances in several indicators, including the best median earnings in the tech sector in the Northeast ($120,800 per year), the largest share of residents with higher education (52.2%) and the second-highest number of patent grants (16,170 from 1,673 organizations and companies). From robotics to fintech and from big data to gene editing, the tech scene in Boston is also remarkably diverse, making it a strong contender for tech employment as well as companies looking for a talent-rich area to set up shop in.
Meanwhile, the Manchester-Nashua, N.H. metro area completed the podium, offering a combination of excellent tech employment density, tech employment growth and median tech earnings. In fact, the New Hampshire metro surpassed its tech employment showing from last year, becoming the best-scoring city in that metric in the process. Moreover, while unemployment climbed from 1.4% last year to 2.9% now, it’s still the third-lowest rate in the region. With an output of talent from local research institutions like the University of New Hampshire and lower costs compared to other areas in New England, the metro’s advantages are plain to see for tech workers and entrepreneurs alike.
At #4, the New York metro area retained its spot from last year’s ranking along with the same advantages and challenges for the tech industry. NYC is — predictably — still top dog when it comes to tech patent output, as well as the number of companies and organizations that have been awarded such patents. Excellent tech earnings also contribute to the metro’s attractiveness for top talent, as tech workers here earn the third-highest median salary among Northeastern metros with more than 200,000 residents. Still, New York couldn’t crack the podium despite these great showings due to its comparatively high unemployment and low regional price parity, resulting in the lowest life quality index score in the top 20.
Overall, New York State stood out by recording the highest number of entries in the top 20. Besides New York City, five additional metros cracked the list, all from Upstate New York. The best-ranking of these was the Albany-Schenectady-Troy metro area, which landed at #9 in our ranking with great tech company density and a high quality of life index. Up next, Utica-Rome became the second-smallest metro by population on the list at 287,000 residents after climbing from 27th to 14th over the span of a year. Finally, the Rochester, Syracuse and Buffalo metros made 17th, 18th and 19th on our list, respectively, cementing Upstate New York as a tech-friendly, talent-rich region.
To the southwest, metro Philadelphia cracked the top 5, scoring just over 50 points. Philly earned its highest score through its excellent tech establishment growth, scoring third out of 20 in that metric. Additionally, the metro’s patent output over the last 5 years was the third-highest in the region, as was its number of establishments receiving patent grants. The local tech scene is vibrant, with local names like knowledge management platform Guru and 3D bioprinting company BioBots being just two of many Philly tech success stories. With a tradition in education, rich talent pipeline and great access to venture capital, Philly encapsulates what makes the Northeast tech scene successful.
Notably, four other Pennsylvania metro areas are among the Northeast’s 20 best tech locations: Harrisburg-Carlisle made #8, up from #11 last year, with the highest growth of tech startups in the entire top 20 and great tech employment density. Pittsburgh reached the 12th spot with good tech earnings growth, quality of life and companies receiving patent grants, while Lancaster (#15) and Allentown (#20) completed the picture of Keystone State tech clusters.
Besides New York and Pennsylvania, two more states recorded more than one entry in the top 20. Specifically, Connecticut was represented on the list by Hartford (#11) and Bridgeport (#13), both of which scored well across the board, with stand-out performances in quality of life and tech earnings. Additionally, Massachusetts provided the list’s runner-up in Boston, but also 10th-place Worcester, which climbed two spots from last year’s ranking.
New Jersey, New Hampshire, Maine, Vermont and Rhode Island all recorded one entry each in the top 20, highlighting the geographic spread of innovation centers in the Northeast compared to other more centralized regions in the U.S.