The sheer quality and quantity of educational institutions in the US Northeast have proven to be formidable forces in advancing the region's position as a center of technology and innovation. And the region's wealthy corporations and economic power have helped provide the resources to propel the Northeast to the forefront of the technological revolution that is now sweeping the world.
A recent CommercialCafe report ranked the top 20 Northeast metro areas for tech growth by various metrics. They include the local ratio of tech to non-tech firms, tech employment, the number of patents granted, as well as unemployment rates and educational attainment.
“From investment-driven innovation in the region's biggest cities to creative disruptors coming from small university towns, the North East's tech scene comes in many shapes and sizes,” the report notes.
As expected, Boston emerged as the top tech metro in the region. It had the highest ratio of technology to other employment opportunities: 59 for every 1,000 jobs. And at about $105,800 a year, the median salary for tech workers was the second highest in the Northeast. Additionally, 37 out of every 1,000 companies in Boston are in the tech space – the second highest percentage in the region.
“Technology companies and professionals have the conditions to thrive in this metro,” commented the report. In fact, Boston was the only metro in the top five that didn't lose tech companies between 2017 and 2021, instead gaining 1.4%.
Surprisingly, Trenton, NJ took second place overall. “Despite having a metro population less than one-seventh the size of metro Boston, Trenton punches above its weight when it comes to technology,” the report said. Tech workers are also the highest paid in the region with a median income of $123,500 – a 22.8% increase from 2017 to 2021. For every 1,000 workers, 51 are employed in technology and has 60 tech companies for every 1,000 companies – higher level in the northeast.
Manchester-Nashua, NH came in third, with 55 tech jobs for every 1,000 and 30 tech companies for every 1,000. Manchester has benefited from an influx of tech and medtech companies, while smaller companies benefit from local higher education institutions. The average tech income is $99,000. An unemployment rate of just 1.4% boosted the metro's quality of life score. “Manchester is one of the most promising pockets of innovation in North East Europe,” the report said.
Then came the New York subway, which has expanded beyond its traditional financial and insurance benefits to embrace technology. Now, 41 out of 1,000 jobs are in technology, with a median income of $101,000, and 23 out of 1,000 companies are in that sector.
Another surprise is that Portland, ME came in at 5th place – just one point behind New York. Although it had a lower tech employment density than the leaders, it had the second highest tech employment growth in the entire study. Between 2017 and 2021, the number of tech workers grew by 56.3% and median salaries increased by 32% to $90,000.
Other metros in the top 10 were Bridgeport, CT, Philadelphia, Albany, NY, Hartford, CT and Burlington, VT. “The presence of these smaller cities – most of which are also research university centers – highlights the Northeast as a region of innovation that comes from both higher and lower density areas, and the importance of cultivating talent for industry success. the report commented.
Two Pennsylvania metros saw the fastest growth of tech companies in the Northeast between 2017 and 2021: York-Hanover, which had a 16.2 percent increase in business, and Reading, where the rise was 12.1 percent. It was among the six cities in the state that attracted the most tech companies. Burlington and Boston also increased their numbers. However, 12 metros in the Northeast saw declines in the number of tech companies, which the report attributed to pandemic shutdowns or funding difficulties.
In terms of job growth – as distinct from company growth – Lancaster, PA led the way with a 62% increase in tech employment between 2017 and 2021. Portland, ME followed, with a 56% increase. Other metropolitan companies with rapid employment growth were Norwich, CT (up 48%), Springfield, MA (up 44%) and Reading, PA (up 43%).
The highest-earning metro, Trenton, was followed by Boston and then Bridgeport with a median income of $101,429. New York/Newark/Jersey City took fourth place with $100,983, with Manchester capturing $99,000. Earnings grew fastest in Portland (32%), Burlington (24%), Bridgeport and Trenton (23% each) and Hartford, CT (22%).
Ranked by the all-important topic of patents, New York took the crown in the Northeast, with 43,820 patents between 2018 and 2022. The Boston area earned 15,508 patents to come in second. Philadelphia came in third, with 3,839, followed by Albany with 2,389 and Bridgeport with 1,617 – all with top-tier, research-intensive universities, the report noted. New York patents were awarded to 1,580 different companies and organizations, while Boston patents were awarded to 1,460.
But for companies looking for quality of life, Burlington can't be beat in the Northeast, according to the report. Other havens to consider are Manchester, Portland, Boston and Albany.
