The top states for tech and innovation aren't necessarily the best states for overall business, according to a recent report from CNBC.
In the news outlet's annual ranking of "America's Top States for Business," North Carolina claimed the first spot, followed by Virginia, Tennessee, Georgia, Minnesota, Texas and Washington. But when slicing the report specifically by top places for tech and innovation, the rankings take a different look.
The top states for tech, according to CNBC, are Massachusetts and California, which tied for first. Following those states, which are are home to the vibrant startup ecosystems of Silicon Valley and Boston, are Washington, Minnesota, New York, North Carolina and Maryland.
Four states show up on both the top 10 for tech and overall business: Washington, Minnesota, North Carolina and Texas.
CNBC measured a state's tech and innovation prowess by looking at patents issued per capita; health, science and agriculture grants; and semiconductor research and development. For business friendliness overall, the report examined each state's workforce, economy, infrastructure, cost of doing business and other factors.
This year's report is the first since 2017 that California hasn't outright owned the No 1. spot for tech and innovation. That year, Massachusetts overtook California as the top state for tech.
While Massachusetts and California came in tied for first in tech and innovation, they fell to 15th and 25th overall, respectively. Tennessee, while a top state overall for business according to CNBC, ranked 27th in terms of tech and innovation.
CNBC's report is in line with conventional wisdom surrounding America's top tech ecosystems: California, Massachusetts and Washington — home to tech giants like Amazon and Microsoft — lead the pack. But some smaller, up-and-coming tech markets are helping states rise the ranks for innovation.
North Carolina appears at No. 6 for tech and No. 1 overall — a strong showing for the Tar Heel State.
