tech startup density

Tech Startup Density Rises in the Triangle

tech startup densityCary, NC – Tech startup density is on the rise in the Triangle, according to a new report by Engine. That’s good news for local business.

Tech Startup Density Rises in the Triangle

Engine in collaboration with the Kauffman Foundation has just released a report on Tech startups: “Tech Starts: High-Technology Business Formation and Job Creation in the United States“.

The report specifically examines the impact of new, high-tech startups on job creation, finding that high-tech startup formations are way up, and that these firms create jobs at twice the rate of other young private sector firms.

The report looks at both the high-tech sector and the information and communications technology (ICT) segment of high-tech and their important contributions to entrepreneurship in the U.S. economy.

During the last three decades, the high-tech sector was 23 percent more likely and ICT 48 percent more likely than the private sector as a whole to witness a new business formation.

NC has 2 Metros Ranked in the Top 25

NC Metros for High-Tech Startup Density* (2010):

  • Raleigh-Cary, 13th at 1.9
  • Durham-Chapel Hill, 22nd at 1.6

NC Metros for ICT High-Tech Startup Density* (2010):

  • Raleigh-Cary, 10th at 2.1
  • Durham-Chapel Hill, 19th at 1.6

* Density values of one (1) indicate that a region has the same density of startups as does the United States as a whole. Density measures greater than one indicate above average densities. Metro startup density peaks around 3 (with Boulder, CO as an outlier at 6+). Startup density determined by comparing 384 metropolitan areas in the United States in 2010.

Changes Over the Last Decades – High-Tech Startup Density

Raleigh-Cary, NC

  • 1990 – 1.8
  • 2010 – 1.9

Durham-Chapel Hill, NC

  • 1990 – 0.9
  • 2010 – 1.6

Changes Over the Last Decades – ICT High-Tech Startup Density

Raleigh-Cary, NC

  • 1990 – 1.4
  • 2010 – 2.1

Durham-Chapel Hill, NC

  • 1990 – 0.7
  • 2010 – 1.6

The Triangle has a Bright Future

The Triangle has a developing entrepreneurial community anchored by Research Triangle Park, fueled by our 3 major university centers (NCSUDukeUNC-CH), housed in our exploding incubators and accelerators (American UndergroundHQ RaleighFirst Flight Venture, etc.) and supported by our great quality of life. Our Tech startup density is increasing rapidly; where it stops, no one knows!

Read the report for all the details.

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Story by Ian Henshaw, Managing Partner of Technology Tank in Cary. Photo by Hal Goodtree for American Tobacco District.

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