Throughout the last decade, the Midwest has done everything in its power to shake off the urban and industrial decline label that the region had been saddled with since the early 1980s. And, as with many areas of the U.S. economy, the expansion of the tech industry has played a key role in the former Rust Belt’s revival, as well.
Having previously documented the performances of the top 20 Midwestern metros for tech workers and businesses, we’ve updated the study with the most recently available data on metrics, such as tech business, employment and earnings growth, as well as general quality-of-life indicators.
Key highlights
- Madison, Wis. finishes #1 with top performances for tech business density and employment
- Sioux Falls, S.D. leads ranking for highest percentage of new tech businesses added
- More than 8,200 tech patents issued in Chicago since 2020, Detroit runner-up with 5,590
- 89% increase in tech employment in Fargo, N.D.; 35,000 new tech jobs added in Chicago
- Rochester, Minn. outranks Chicago among Midwestern metros with the highest earnings for tech professionals
- Median tech earnings in Wichita, Kan. grow by 37% since 2019
- Dakota entries lead across quality-of-life metrics, boasting low unemployment and cost of living
For a breakdown of all of these indicators, along with data sources and other details, please consult our methodology.
Keep reading to find out more about the overall score of each metropolitan statistical area (MSA).
Madison Holds Off Ann Arbor to Snatch 1st Place – Chicago Closes Podium
Madison, Wis., headed the ranking for the top 20 tech metros across the Midwest with outstanding performances in three of the nine metrics in this study. Specifically, the Wisconsin MSA placed first for its ratio of tech employment opportunities within the local economy (with 69 out of every 1,000 jobs being in this sector) and ranked within the top three for its tech-business density and life-quality index. Madison’s tech ecosystem is particularly strong in areas such as health care technology, biotechnology and software development. At the same time, the strong local academic institutions, such as the University of Wisconsin-Madison, continue to be vital for both innovation and tech talent recruitment efforts.
In second place, Ann Arbor, Mich., mirrored Madison’s performances by picking up vital points for the highest density of tech businesses within its perimeter (roughly 44 out of every 1,000 firms fall under this category), as well as the second-highest percentage share of tech job opportunities across the top 20. With an array of health tech (such as ONL Therapeutics, Genomenon and Ripple Science); cybersecurity (like Blumira); and robotics companies (including Refraction AI) establishing a presence in the Michigan metro, there’s a lot to be optimistic about regarding the future of this business ecosystem.
Next, Chicago’s strength in terms of research and tech innovation — along with its ability to provide attractive wages to the best professionals in this field — secured it a third-place finish. Notably, the Illinois metro recorded the highest number of tech patents across a five-year period (2019 to 2023), while also boasting the widest pool of contributors.
Not to be outdone, a string of smaller metro areas — which includes the likes of Fargo, N.D. (#6); Champaign, Ill. (#7); and Sioux Falls, S.D. (#18) — recorded remarkable performances across specific indicators.
For instance, between 2019 and 2023, Sioux Falls, S.D., witnessed a 25% hike in the share of tech companies within its economy — the best performance for this metric within the ranking — followed by Wichita, Kan., (14%) and Fargo, N.D. (8%). Wichita also heads the list of Midwestern metros that have witnessed the most significant median tech wage increases, followed by Champaign, Ill., and Appleton, Wis.
Midwestern Metros Performances Across Individual Metrics
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With roughly 44 out of every 1,000 businesses within its perimeter being a tech enterprise, Ann Arbor, Mich., is leading the line in terms of tech establishment density. Moreover, its rivalry with Detroit fuels the growth of the Michigan tech scene.
At some distance, Minneapolis and Madison, Wis., are nearly tied with 3% of active companies within these two metros falling under the tech category. In this case, both metros rely heavily on their robust talent pipeline and manufacturing capabilities to attract businesses from various industries.
Chicago wraps up the top five for this metric with a tech establishment density of approximately 2.6% — only a fraction behind Columbus, Ohio.
In a previous CommercialCafe analysis, Sioux Falls, S.D., ranked fourth in terms of tech business expansion (measured by percentage) after clocking an 8% growth between 2017 and 2021. This time around, the South Dakota metro area shot up to first place following a 25% increase in the total number of tech companies registered between 2019 and 2023. In actual numbers, that means an additional 28 firms doing business in Sioux Falls.
In second place, Wichita, Kan., is a newcomer to this list. Boasting a 14% jump in its tech business ecosystem, it’s home to a host of tech and tech-adjacent businesses — such as Knowmadics and Torch.AI — that support the strong defense and military presence in Kansas.
Further north, Fargo, N.D., recorded an 8% growth rate to land in third place for its performances in this metric.
Then, two Ohio entries — Akron and Columbus — are next in line with roughly 7% increases each. Of the pair, Columbus stands out as the metro area that added the highest number of tech companies (77) since 2019. Among these were Google, Meta and Intel. The latter launched a $20 billion investment effort to build two semiconductor plants by 2025, thereby providing a major vote of confidence in the Columbus region.
Add to this the strides made in expanding the talent pool that tech companies can draw upon through efforts to increase the participation of women in STEM, along with the rise in vocational training programs that provide practical skills for various tech-related jobs. Then, it becomes clear that the Midwest has a serious long-term ambition to put its name forward as a prominent tech hub within the U.S.
Percentagewise, Indianapolis and Detroit were further down the pecking order. Even so, the additions in terms of the total numbers of tech firms to their respective local economies were significant. For example, the Indiana metro has added 43 new tech businesses since the pandemic, following a statewide surge in investments. More precisely, roughly $22 billion was pumped into the Indiana city’s economy, allowing it to develop its EV-manufacturing capacities, among other things. Thus, in the mid- to long-term, Indianapolis is well-positioned to benefit from the state’s ambition to become the hub of domestic microchip development and production.
Meanwhile, Detroit saw the addition of 70 new tech companies to its economy between 2019 and 2023 to enjoy a flurry of venture capital investments in recent years. Here, Michigan boasts a strong talent base that companies can recruit from. The state also provides several workforce development programs, such as Michigan Works! Jobs Ready Michigan and Michigan New Jobs Training Program.
Before delving into the numbers, it’s worth considering the special circumstances of the surveyed period, which is marked by the onset of the pandemic and its long-lasting effects on public health and policies, as well as research efforts and patent submissions.
Historically, economic downturns have often stifled innovation, leading to decreased patent filings. However, the COVID-19 pandemic has defied this trend. In fact, if we compare patent outputs across Midwestern metros in the years leading up to COVID-19 to totals for the following five years, we can see that patent output actually increased.
For instance, some 1,501 patents were issued in Chicago in 2018 with yearly numbers since then consistently outperforming that total (with the exception of 2024, for which data is available only up until October). Overall, since 2020, Chicago’s patent output was roughly 8,219 patents with 918 contributing organizations — both metrics being the largest within the region.
Detroit was the runner-up with a total of 5,590 patents filed during this five-year period, including 2020 as its most productive year. While it came in third in terms of patent output (3,197), Minneapolis outranked its Michigan neighbor when it comes to the number of organizations that contributed to its patent output (487 in Minneapolis, as opposed to 341 in Detroit).
Besides tech patent filing numbers, it’s worth noting that the pandemic’s influence varied across different sectors. According to a study by the Centre for Economic Policy Research, while industries like commercial real estate, tourism, and hospitality suffered, various health- and tech-adjacent sectors — such as biotechnology, medical technology and pharmaceuticals — experienced significant growth in patent filings. This divergence highlights the adaptability and resilience of the innovation ecosystem in the face of adversity.
More companies in Madison, Wis., are active in the tech sector than in any other entry in our ranking: Roughly 69 out of every 1,000 businesses in the Wisconsin metro are tech firms. And, while Madison was one of the beneficiaries of the largest expansion of the tech sector that the U.S. had ever seen in 2020, that growth was made possible by the solid foundation laid during the pre-pandemic years.
In second place, Ann Arbor, Mich.’s ratio of tech firms within the local economy stands at approximately 5% (53 out of 1,000 businesses). It was followed by a quartet of entries with very similar tech employment densities, which includes Minneapolis; Des Moines, Iowa; Kansas City, Mo.; and Columbus, Ohio.
Lastly, Chicago ranked ninth for this indicator. It squeezed between Indianapolis and Omaha, Neb., with a ratio of roughly 44 tech firms out of 1,000 businesses.
In terms of tech employment growth by percentage points, Fargo, N.D., stood out with an 89% surge — head and shoulders above its runner-up, Wichita, Kan., which still boasted an impressive 61% increase. In terms of the number of tech workers, the former added more than 2,500 in the span of five years while the latter grew its tech workforce by an extra 3,200 employees.
Then, in third place, we find Indianapolis, which witnessed a 35% growth in its tech employment between 2019 and 2023 after adding nearly 13,000 professionals to its tally — the second-most significant bump in the number of employees across the ranking.
As a whole, the state of Indiana is rapidly making a name for itself as a significant tech hub. This is due, in part, to statewide investments into labor force training initiatives, such as the Eleven Fifty Academy or the ambitious Mission41K, which aims to add more than 41,000 new tech workers to the state’s workforce by diversifying talent.
Finally, while it recorded a more modest (by comparison) percentage growth rate of 20%, Chicago is nevertheless the big winner among Midwestern metros when it comes to the expansion of its tech workforce: Since 2019, it has added roughly 35,000 new professionals to its tally. That’s three times the employment growth in numbers witnessed by either Indianapolis, Detroit or Kansas City.
Rochester, Minn., outranked Chicago among Midwestern metros with the highest earnings for tech professionals. According to U.S. Census Bureau data, the 12-month average income for jobs in this sector was $101,582 in the Minnesota metropolitan area — some $2,000 more than in the state’s largest MSA (Minneapolis).
As a matter of fact, Rochester has become an important tech hub in the region with the likes of IBM and Mayo Clinic calling it home. With plenty of startups also competing with these companies for top talent, wages have witnessed a 10% increase since before the COVID-19 pandemic.
Similarly, annual incomes for tech workers in Chicago averaged $100,965 in 2023 to earn the Windy City second place for this indicator. The other Illinois entry, Champaign, settled in the lower half of the ranking with mean earnings for tech employees at $84,433 per year, following a significant upturn (36%) between 2019 and 2023.
In third place, Minneapolis fell just short of the $100,000-mark for yearly tech wages, while Columbus, Ohio, (with $95,649) and Des Moines, Iowa, (with $93,895) closed out the top five.
Granted, there are a few significant upsets across this metric. For instance, in our previous analysis, which looked at tech earnings throughout the Midwest in 2021, Madison provided the second-highest earnings for tech workers. A few years later, the Wisconsin metro now drops out of the top 10 with an annual average of $87,928.
Likewise, median wages for tech employees in Indianapolis in 2021 were fifth-highest across Midwestern metros. But, by 2023, the $86,357 per year, on average, that these professionals were earning landed them in 13th place for this indicator.
In terms of tech income growth, four of the 20 metros included in our ranking recorded increases above the 30%-mark. Namely, Wichita, Kan., led the way with a 37% jump in median wages for tech workers after going from roughly $61,000 in 2019 to $83,231 five years later. At the same time, the metro area has witnessed an influx of cybersecurity, e-commerce, and fintech firms, which has positively affected employment and earnings for tech professionals.
Champaign, Ill., was second with a 36% increase that resulted in an average income of $84,433 for tech employees in this area. And, a 35% surge brought mean annual earnings to $91,191 in Appleton, Wis., which — in conjunction with a more modest growth rate in Milwaukee — means that Appleton currently provides the most generous wages to tech workers in Wisconsin.
Among the largest Midwestern areas, two entries stood out in terms of their income growth for tech sector workers. First, mean earnings across Detroit metro shot up 22% across a five-year period to reach $93,074. Second, tech workers in Columbus, Ohio, saw their wages hit $95,649, following a 21% bump.
Our composite life-quality index ranked Midwestern metros across three different indicators — educational attainment levels, unemployment rate and regional price parity (RPP).
The entries from North Dakota and South Dakota were at the top of this list, aided by great performances in terms of their unemployment and RPP scores. In particular, Fargo, N.D., proved to be the most affordable in terms of costs of living among the top 20 metros, while Sioux Falls, S.D., boasted the lowest unemployment rate at just 1.6%.
Madison, Wis., came in third with the second-highest percentage of residents older than the age of 25 that have a bachelor’s degree (49%). It also placed third for its unemployment rate (2.6%), outranking its in-state neighbors Appleton (2.9%) and Milwaukee (3.7%).
Further southwest, Wichita, Kan., stood out for its regional price parity — which was the second-lowest across the ranking — while Ann Arbor boasted a 60% educational attainment rate (the highest, by far, among the top 20).
