Virginia has a long tradition of innovation and entrepreneurship, dating back to the state’s role in founding the United States. Today, Virginia has a diverse and dynamic innovation ecosystem spanning multiple industries and sectors, including technology, healthcare, defence, and aerospace.
Technology is one of the leading sectors in Virginia’s innovation ecosystem. Northern Virginia, often called the “Silicon Valley of the East Coast,” is home to a large and growing technology industry. According to the Northern Virginia Technology Council, more than 15,000 technology companies are in the region, generating more than $50 billion in annual revenue and employing over 300,000 people.
Some of Virginia’s most prominent technology companies include Amazon, which has its second headquarters, or HQ2, located in Arlington. The facility is expected to create over 25,000 jobs and generate more than $2.5 billion in annual economic activity. Other leading technology companies in Virginia include Google, Microsoft, and many startups and smaller tech firms.
Outside of technology, Virginia is also home to leading companies in healthcare, defence, and aerospace. The defence contractor Northrop Grumman has a large presence in Virginia, as do companies like Booz Allen Hamilton and General Dynamics. In healthcare, Virginia is home to leading institutions like the University of Virginia Health System, which is consistently ranked as one of the top hospitals in the country.
Virginia’s innovation ecosystem also includes a thriving startup scene, particularly in and around the cities of Richmond and Charlottesville. There are a number of co-working spaces, incubators, and accelerators in the state that help support and nurture new businesses. For example, the Virginia Biotechnology Research Park in Richmond is home to more than 60 life sciences companies, and the Charlottesville-based incubator i.Lab at UVA has helped launch more than 150 ventures since its founding in 2013.
Virginia’s universities and research institutions also play a significant role in driving innovation in the state. The University of Virginia, Virginia Tech, and George Mason University are all leading institutions with strong research programs and entrepreneurship centres. The Virginia Tech Corporate Research Center is home to more than 200 research, technology, and support companies.
In 2021, the Consumer Technology Association ranked Virginia as the 6th most innovative state in the U.S., based on factors like research and development spending, tech workforce, and the number of patents issued. Additionally, in 2020, Virginia ranked 4th in the U.S. for the number of Inc. 5000 companies (fastest-growing private companies) headquartered in the state, with 236 companies making the list.
Virginia’s innovation ecosystem is thriving, with leading companies, institutions, and startups all contributing to a vibrant and dynamic community. The state’s strong tradition of entrepreneurship and innovation, coupled with a supportive environment for new businesses, makes Virginia a compelling destination for those looking to start or grow their companies.