Once primarily defined by their academic institutions or industrial pasts, cities throughout the Midwest are increasingly transforming these foundations into dynamic, credible tech economies. From Ann Arbor, Mich. — which managed to convince semiconductor giant KLA to establish its U.S. headquarters in the city — to focused development of quantum computing in Chicago and newer centers like Fargo, N.D., the Midwest is demonstrating a powerful capacity to attract both innovative enterprises and the essential talent they require.
Having previously looked at emerging innovation centers across the South, we now focus on hubs across the Midwest. These rankings draw on 15 indicators across three categories — employment, business environment and education.
Here are some of our findings:
- Ann Arbor, Mich., tops the overall ranking, buoyed by high graduation rates, strong talent inflows, and the region’s densest share of STEM students
- STEM job concentration is highest in Madison, Wis., which also hosts 2.3 million square feet of combined R&D and life sciences — the largest footprint in the region.
- Indianapolis awarded more vocational STEM credentials than any other Midwest city in 2023 with a total of 5,697
- Fargo, N.D., doubled its STEM employment between 2019 and 2023
- At 87 vocational STEM programs per 100,000 residents, Dayton, Ohio, has the highest STEM program density
- From 2020 to 2024, Cincinnati generated 31,181 patents – second only to Chicago’s 45,488
Keep reading for the full top 20, along with a breakdown of each city’s performance across key metrics. For details on methodology, sourcing, and scoring, see the final section of the report.
STEM Talent, a 92% Graduation Rate & the Highest Share of Inbound Movers Secure Ann Arbor, Mich.’s Top Spot
One pattern that emerges from the top 20: No single state or corridor dominates. Instead, innovation talent is showing up across the region in cities of different sizes with different strengths. Even so, one city stood out.
Ann Arbor, Mich., led the region with a strong across-the-board performance by ranking first in education, second in business activity and third in employment. It also topped four individual metrics across these categories. Here, the University of Michigan’s influence is unmistakable with a 92% STEM graduation rate and a STEM student density of 229 per 1,000 students. The city also holds the highest share of STEM degree-holders in the Midwest.
Yet, Ann Arbor is no longer just a university town. Now, it also functions as a full-fledged innovation hub, attracting talent from across the country. As such, it ranked first in talent attraction with 41% of recently relocated STEM graduates choosing to move here — a sign of its rising status as a destination for technical talent.
Next and in second place was Madison, Wis. It led the region in STEM job concentration as more than one in 10 residents work in the field. Madison also had the largest footprint of R&D and life sciences space in the Midwest at 2.3 million square feet. Other metrics were similarly strong across the board, including an 88% graduation rate (second overall), 54.5% STEM degree-holders (third) and top-three placement for vocational STEM awards.
Then, Fargo, N.D., placed third with the steepest growth trajectory. Between 2019 and 2023, STEM employment more than doubled — up 121.5% — while the share of residents with STEM degrees rose 43%. It also ranked second in STEM student density, supported by the likes of North Dakota State University.
