LOGAN — Utah has earned a top 10 spot in WalletHub’s 2025 ranking of the most innovative states, bolstered by strong student performance in STEM subjects and a robust entrepreneurial ecosystem.
WalletHub placed Utah ninth overall in its annual list, citing the state’s top ranking in eighth-grade math and science performance, as well as high marks for its share of STEM professionals (8th), projected STEM job demand by 2030 (7th), and venture capital funding per capita (8th). Utah ranked 24th for R&D spending per capita and 13th for its share of technology companies.
The rankings compare all 50 states and the District of Columbia across 25 metrics related to innovation, including workforce development, business infrastructure and education outcomes.
Kaveh Abhari, Ph.D., a professor of digital innovation at San Diego State University, emphasized the importance of human-centered skills in today’s innovation economy.
“The core skills that define competitiveness today are the same ones that mattered centuries ago—such as integrity, creativity, resilience, and initiative,” Abhari said in commentary provided by WalletHub. “Even for technical roles… the most competitive individuals are those who see opportunities, navigate uncertainty, and create value in evolving markets.”
A separate December report from the Kem C. Gardner Policy Institute and the Economic Development Corporation of Utah ranked Utah first in the nation for innovation capacity and outcomes. It identified strengths in human capital, collaborative infrastructure, and a statewide culture of innovation.
Cache County and other parts of Northern Utah were highlighted as growing innovation hubs, especially in sectors such as aerospace, life sciences and information technology. Utah State University and the Space Dynamics Laboratory in Logan were noted as key contributors.
Still, both reports pointed to challenges. Rural areas in particular face gaps in venture capital access and lab infrastructure, especially in industries like energy and health care.
Overall, Utah’s innovation economy spans five major sectors: aerospace and defense, energy production, financial services and fintech, health care and life sciences, and technology and information systems.
According to the report, the United States spends more than $800 billion per year on research and development, placing the U.S. third out of 133 countries on the Global Innovation Index.
See how all states rank here: