CommercialCafe Ranks 20 best Northeastern Areas for Tech Development

The sheer quality and quantity of educational institutions in the Northeastern U.S. have proved to be formidable forces in advancing the region’s status as a center of technology and innovation. And the wealthy corporations and economic strength of the region have helped provide the resources to push the Northeast into the vanguard of the technological revolution now overtaking the world.

A recent report by CommercialCafe ranked the 20 best Northeastern metro areas for tech development by several metrics. They include the local ratio of tech to non-tech businesses, tech employment, the number of patents granted, as well as unemployment rates and educational attainment.

“From investment-driven innovation in the region’s largest cities to creative disruptors hailing from the small university towns, the Northeast’s tech scene comes in many shapes and sizes,” the report noted.

Unsurprisingly, Boston emerged as the top tech metro in the region. It had the highest ratio of tech to other employment opportunities: 59 of every 1,000 jobs. And at around $105,800 a year, its median salaries for tech workers were the second highest in the Northeast. In addition, 37 of every 1,000 companies in Boston are in the tech space – the second-highest ratio in the region.

“Tech companies and professionals both have the conditions to thrive in this metro,” the report commented. In fact, Boston was the only metro in the top five not to lose tech companies between 2017 and 2021, instead gaining 1.4%.

More surprisingly, Trenton, NJ ranked second overall. “Despite having a metro population less than one-seventh the size of Boston’s, Trenton punches far above its weight when it comes to tech,” the report said. Its tech workers are also the best 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 tech, and it has 60 tech firms for every 1,000 companies – the highest level in the Northeast.

Manchester-Nashua, NH came in third, boasting 55 tech jobs for every 1,000, and 30 tech firms for every 1,000 companies. Manchester has benefited from an influx of tech and medical tech companies, while smaller companies benefit from local higher education institutions. Median 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 Northeast’s most promising pockets of innovation,” the report said.

Then came the New York City metro, which has expanded beyond its traditional finance and insurance strengths to embrace tech. Now 41 out of every 1,000 jobs are in tech, with a median income of $101,000, and 23 out of every 1,000 companies are in this space.

Another surprise is that Portland, ME pulled into 5th place – just one point behind New York. Though it had a lower tech employment density than the leaders, it scored 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 shot up 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 an area of innovation sourced both from higher and lower-density areas, as well as the importance of nurturing talent for the industry’s 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% increase in firms, and Reading, where the rise was 12.1%. They were among six cities in the state to attract more tech companies. Burlington and Boston also increased their numbers. However, 12 metros in the Northeast saw declines in the number of tech firms, which the report attributed to pandemic closures or funding difficulties.

In terms of job growth – distinct from company growth – Lancaster, PA led the way with a 62% increase in tech employment between 2017 and 2021. Portland, ME followed, rising 56%. Other metros 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, then Bridgeport with median income of $101,429. New York/Newark/Jersey City took fourth place at $100,983, with Manchester raking in $99,000. Earnings rose fastest in Portland (32%), Burlington (24%), Bridgeport and Trenton (23% each), and Hartford, CT (22%).

Ranked by the all-important issue of patents, New York took the crown in the Northeast, being awarded 43,820 patents between 2018 and 2022. The Boston area won 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 high-ranking, research-intensive universities, the report noted. New York’s patents were awarded to 1,580 different companies and organizations, while Boston’s went to 1,460.

But for companies seeking quality of life, Burlington can’t be beat in the Northeast, according to the report. Other havens to be considered include Manchester, Portland, Boston and Albany.