Pennsylvania's Top 5 national ranking for Technology & Innovation is driven by regions like the Lehigh Valley, where universities, entrepreneurs, startup organizations, and advanced manufacturers work together to transform ideas into products used around the world.
That ecosystem helped Pennsylvania rank fifth nationally in Technology & Innovation in CNBC's 2026 “Top States for Business” study, released July 9. Pennsylvania ranked 13th overall, up four places from last year, and No. 1 in the Northeast.
"Truly competitive states prize innovation, nurture new ideas, and have the resources to support them," CNBC said. Its rankings evaluate factors including patents per capita, support for research and development, semiconductor research and manufacturing, and each state's role in the "artificial intelligence revolution."
Here’s how the Lehigh Valley is contributing to Pennsylvania’s rising reputation as a top state to do business.
Talent Fuels Innovation
The Lehigh Valley's innovation economy begins with talent.
The region is home to 11 colleges and universities, including Lehigh University, one of only 187 institutions nationwide classified as an R1 research university for the highest level of research activity.
About 16% of the certificates and degrees awarded by Pennsylvania’s community colleges come from the two schools in the Lehigh Valley, Lehigh Carbon Community College and Northampton Community College.
Together, those 11 institutions graduate more than 10,000 students each year, including engineers, technicians, and business leaders who are filling critical roles at companies developing everything from life-saving medical technologies to semiconductors powering artificial intelligence, telecommunications, electric vehicles, and advanced manufacturing.
A Legacy of Turning Ideas into Products
The Lehigh Valley has been transforming innovation into commercial success for generations.
Seventy-five years ago, the world’s first mass production of transistors occurred at Western Electric's facility in Allentown, helping launch the semiconductor era and laying the foundation for the region's reputation as a tech hub.
Today, more than 1,100 people work at 35 semiconductor and related technology companies in the Lehigh Valley, including global brands Broadcom, Cisco, Coherent, Intel, and Nokia, along with smaller and emerging companies such as AAYUNA and iDEAL Semiconductor.
Nokia recently announced a $30 million expansion of its location in Upper Macungie Township that tests and packages semiconductors for optical networking equipment supporting telecommunications and artificial intelligence infrastructure.
The region's technology companies have contributed to innovations ranging from components used in the first iPhone to Bluetooth, USB technology, and advanced communications systems relied upon worldwide.
Supporting the Next Generation of Innovators
Innovation requires more than great ideas. It occurs through investment, mentorship, and connections.
The Lehigh Valley is home to Ben Franklin Technology Partners of Northeastern Pennsylvania, part of Pennsylvania's technology commercialization network. Ranked among the nation's Top 5% of the most active seed-stage investors, Ben Franklin Northeast operates the TechVentures business incubator on Lehigh University's Mountaintop Campus in Bethlehem.
In the past three years, Ben Franklin Northeast has assisted 1,064 companies and created 1,045 new jobs over a 21-county area that includes the Lehigh Valley. Over that time, it has supported the launch of 25 new companies; the development of 252 new products and processes; and attainment of 104 patents and copyrights. 
Ben Franklin is part of a network of organizations that work together to support startups and emerging companies by providing mentorship and advice, financing, networking opportunities, incubator space, and other assistance.
The Entrepreneurship Council of the Lehigh Valley, which is led by Lehigh Valley Economic Development Corporation (LVEDC), brings together organizations, agencies, and colleges and universities to improve the region's environment for startup businesses by identifying services they need and connecting them to a wide range of resource providers.
Organizations range from SCORE Lehigh Valley, which provides mentorship and training, to 1 Million Cups, which provides regular networking and learning opportunities.
Few companies better illustrate the strength of that ecosystem than OraSure Technologies, Inc.
It started in a local business incubator, created the first at-home test for HIV, and has grown into a global producer of at-home tests for COVID-19, Ebola, HIV, and Hepatitis C, among others. OraSure opened a new production facility in Bethlehem Township in 2022.
(Photos by Moravian University, Donna Fisher Photography)