State leaders such as former Gov. Phil Murphy were happy to tout New Jersey as the “Innovation State.” Turns out a new report provides support for that claim.
In its recent report “2026’s Most & Least Innovative States,” personal-finance company WalletHub said New Jersey ranks among the 10 most innovative U.S. states and the District of Columbia. New Jersey ranked fifth in share of technology companies; 10th in projected STEM-job demand by 2030, R&D spending per capita, venture-capital funding per capita; 13th in share of STEM professionals; 15th in eighth-grade math and science performance; and 16th in the share of science and engineering graduates aged 25 and over.
The ranking is significant given that the United States ranks third out of 139 countries in the latest Global Innovation Index. The rankings highlight the strength of America’s markets and business sophistication, along with its knowledge creation and technological output.
Some states play a larger role than others in sustaining U.S. leadership in the technology-driven economy. These states continue to foster innovation by investing in education, research, and new business formation, particularly within highly specialized industries.
In addressing the state’s commitment to innovation, the New Jersey Economic Development Authority board a year ago approved a $12.55 million commitment to two Strategic Innovation Centers (SICs) focused on medical technology and maternal health, facilitating startup creation and bolstering New Jersey’s innovation ecosystem.
To identify the nation’s top contributors, WalletHub evaluated all 50 states and the District of Columbia using 25 key indicators of innovation friendliness. The data set includes measures such as the share of STEM professionals, R&D spending per capita, and the concentration of tech companies.
“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,” said Chip Lupo, WalletHub Analyst. “These states also instill young students the skills they need to succeed in the current workforce, skills which are useful whether or not they pursue a STEM career.”
The top three in the WalletHub ranking are the District of Columbia, Massachusetts and California.
