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Charleston Ranks 19th as Top Southern Innovation Hub

Charleston skyline representing innovation and economic growth

News Summary

Charleston has been recognized as a leading Southern innovation hub, earning 19th place in a CommercialCafe study evaluating cities based on ‘talent density.’ The city excelled particularly in its STEM sector growth, showing an 18.5% increase in establishments. In response, Charleston is executing a five-year economic strategy called ‘Charleston Inspired’ to enhance innovation and inclusivity, aiming for significant future economic growth and collaboration among key stakeholders.

Charleston has been recognized as one of the leading Southern innovation hubs, ranking 19th in a recent study by CommercialCafe. The study evaluated various cities based on their “talent density,” a concept introduced by Netflix CEO Reed Hastings to measure the quality of talent in a city compared to its overall population. Charleston scored 86.21 out of 100 based on an analysis of 15 separate metrics categorized into three groups: employment, business environment, and education.

In detail, Charleston earned 51 points in the employment category, 22 points for business environment, and just 6 points for education. The city’s strength lies particularly in the growth of its STEM (science, technology, engineering, and mathematics) sectors, where it ranked seventh in the Southern region with an impressive 18.5% increase in STEM establishments over the measured period.

The findings from CommercialCafe underscore a larger trend: cities that cultivate clusters of skilled professionals and maintain robust infrastructure are often able to drive significant economic growth and foster innovation. In response to this potential, Charleston is executing a five-year economic strategy called “Charleston Inspired: Discover the Possibilities.” This strategy was developed by Ernst & Young LLP, commissioned by the Charleston Regional Development Alliance (CRDA), and aims to enhance the local economy while focusing on innovation and inclusivity in the business landscape.

Major corporations have taken notice of Charleston’s advantages, with companies such as Boeing, Mercedes-Benz Vans, Volvo Cars, and SHL Medical choosing to establish operations in the city. The “Charleston Inspired” initiative emphasizes the importance of maintaining competitiveness by investing in high-impact industries, entrepreneurship, and talent development.

The implications of the strategy suggest significant benefits for the region. Research indicates that by placing a heightened focus on innovation, Charleston’s projected economic growth could rise from 3.5% to 4.2% by the year 2040. This increase could translate to an additional $13 billion contribution to the local economy and $10 billion in personal earnings for residents.

The CRDA’s President and CEO has articulated the crucial need for collaboration among various stakeholders to foster a more innovative Charleston. The strategy was presented during the CRDA Leadership Luncheon, where it was highlighted that partnerships with key organizations, such as the Medical University of South Carolina (MUSC) and the South Carolina Research Authority, will play an essential role in achieving the goals set forth in the economic plan.

In summary, Charleston’s 19th-place ranking as a top Southern innovation hub illustrates the city’s emerging position as a leader in technology and skilled labor. With initiatives like “Charleston Inspired,” the city aims to build upon its strengths in entrepreneurship and education, while optimizing collaboration across sectors to enhance its economic landscape. As Charleston continues to attract major companies and invest in the talent of its workforce, the city is poised for significant growth and innovation in the coming years.