San Antonio’s innovation ecosystem received a detailed assessment this week with the release of the 2026 State of Innovation Report. Produced by a partnership of Geekdom, Port San Antonio, Tech Bloc and VelocityTX, the study establishes a baseline for future growth, investment and action across the city’s biotechnology, software, cybersecurity, defense and aerospace sectors.
Job growth amid a shrinking share of the market
The report notes that innovation‑related employment rose to 55,054 in 2025, up from 53,703 the year before, marking a solid increase for the region. While the Austin metro area posted the fastest employment growth among major U.S. metros at 3.1%, San Antonio ranked second with a 2.5% rise, outpacing Charlotte (2.2%) and Dallas (1.3%).
Despite the gains, the study warns that innovation jobs now represent a smaller share of total local employment than the national average, suggesting the city’s talent pool is not yet fully leveraged.
Startup formation and venture capital decline
One of the report’s more concerning findings is the sharp drop in new startup formation. In 2025, only 23 new startups launched, compared with 49 the previous year. Venture capital investment fell by 31%, and patent grants declined by 24%.
Venture capital per resident is down 77%, and early‑stage venture capital, which totaled $127.5 million in 2024, decreased by 92% in 2025. These figures highlight a funding gap that local entrepreneurs say pushes many to consider relocating to Silicon Valley or Austin for better access to capital.
Local leaders call for stronger connections
Chief Technology Officer and entrepreneur Nathan Anderson described the report as “a lot of good hard truths, a lot of optimism.” He emphasized the need to “connect the right groups in San Antonio to capitalize on that potential,” while acknowledging the city still lags behind larger hubs.
VelocityTX President and CEO Rene Dominguez called the study “an eye‑opener,” noting that San Antonio already possesses many elements of a strong innovation economy but must translate those assets into tangible economic outcomes.
Port San Antonio President and CEO Jim Perschbach stressed the importance of investing in people and optimism, saying that such investment can lead to “massive success.”
Education and federal research funding remain bright spots
On a positive note, the number of STEM degrees awarded by local universities and research institutions rose 1.3% in 2024, the most recent year measured. Federal research and development contracts continue to flow into the region, with Southwest Research Institute receiving the largest share of the city’s $2.55 billion in qualifying contracts, followed by Port San Antonio ($224 million) and San Antonio International Airport ($88 million).
The report concludes that building a stronger local market will require a deeper cycle of company creation, investor participation and long‑term reinvestment, urging successful founders and investors to help finance the next wave of growth.
Original reporting: San Antonio Report — read the source article.
