During a SXSW reception March 12 at the Governor’s Mansion in Austin, Gov. Greg Abbott hailed Texas as the No. 1 state for innovation. Personal finance website WalletHub sees it a little differently though.

In a new study from WalletHub, the Most & Least Innovative States (2026), Texas is assigned the No. 13 ranking for innovation among the 50 states and the District of Columbia.

D.C. comes out on top, followed by Massachusetts, California, Colorado, and Washington. Mississippi appears at the bottom of the list.

Texas earns a total innovation score of 49.56, compared with 69.13 for top-ranked D.C. In two broad categories, Texas ranks 12th for human capital and 13th for innovation environment.

To identify the top places for innovation, WalletHub evaluated the 50 states and D.C. by reviewing 25 key indicators of innovation friendliness. The indicators include:

• Share of STEM professionals
• Forecast for Share of STEM professionals
• Forecast for STEM jobs
• Eighth-grade math and science performance
• Concentration of tech companies
• R&D spending per capita
• Share of science and engineering graduates age 25 and over
• Average internet speed
• Venture capital funding per capita

“The most innovative states are especially attractive to people who have majored in science, technology, engineering, and math, or STEM, as they offer abundant career opportunities and investment dollars, both for jobs at existing companies and for startups,” WalletHub analyst Chip Lupo said in the report.

“These states also instill young students with the skills they need to succeed in the current workforce, skills which are useful whether or not they pursue a STEM career,” he added.

Texas held steady in the 2026 report, receiving the same ranking as in 2025 (at No. 13), but improving its overall score slightly, up from 48.96. In 2024, Texas was ranked No. 14 in the U.S., marking its first appearance within the top 15 most innovative states. In recent years, Texas has consistently moved up the ladder among most innovative states.

Texas zeroes in on semiconductor industry
On the innovation front, Abbott and other state leaders have focused intently on growing the state’s semiconductor industry, which generates roughly $30 to $60 billion in economic activity per year. Texas ranks among the top states for semiconductor manufacturing, with major operations in North Texas and Central Texas.

To bolster the industry, Abbott signed the Texas CHIPS Act into law in 2023. The law established the Texas Semiconductor Innovation Fund, which issues grants for semiconductor research, design and manufacturing, and the Texas Semiconductor Innovation Consortium, which advises the governor and state legislators on matters related to the semiconductor sector.

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This article originally appeared on our sister site, InnovationMap.com.