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Tennessee, Connected

Tennessee, Connected

Inside Tennessee’s growing innovation economy

Based on graduate research completed at Harvard University in 2026.

This project started because I wanted to better understand what was happening in my own backyard.

For the past several years, I have worked with emerging energy and hard-tech companies. Much of that work happened remotely. I knew a lot about the industries I worked in, but I was not well connected to the innovation community here in Tennessee.

I chose Tennessee’s innovation economy as the focus of my graduate research partly to change that.

I knew about Oak Ridge. I had watched Nashville grow. I knew Tennessee had become a major destination for corporate investment and advanced manufacturing. What I did not understand was everything happening between those pieces.

Over the course of the research, I spoke with and surveyed founders, investors, researchers, business leaders and people supporting entrepreneurs across the state. I learned about programs and organizations I had never encountered. I also started to see how much work had gone into connecting Tennessee’s universities, research institutions, entrepreneurs, companies, investors and state government.

Tennessee, Connected shares what I learned. It combines the original research with current data and resources from organizations working across the state.

It is not meant to rank Tennessee or suggest that every part of the system works the same way. It is a look at what is here, how people working within it see it and where there may be room to do more.

I hope it also makes it a little easier for people working in different parts of this community to find each other.

Tennessee looks different depending on where you are

Tennessee’s research, industries, entrepreneurs and institutions are spread across the state. Each region has developed around a different mix of industries, institutions and technical capabilities.

The map below offers a quick view of those differences and some of the organizations helping shape each region.

MEMPHISNASHVILLECHATTANOOGAKNOXVILLEOAK RIDGE

East Tennessee

Research, energy, nuclear, advanced manufacturing, materials and computing are strongly represented across Oak Ridge and Knoxville. Oak Ridge National Laboratory and the University of Tennessee anchor a larger network of researchers, entrepreneurs, companies and commercialization programs.

What I heard

How does Tennessee’s innovation economy look to the people working within it?

The research included perspectives from founders, investors, researchers, business leaders and people supporting entrepreneurs across Tennessee.

  • 90 survey responses
  • Original research
  • 2026
Universities and professional diversity88.7
Incubators85.0
Accelerators78.3
Investor availability73.0
Business and university linkages72.3
Investor perception and regulation59.7
Government support58.7
Internationalization46.7

Selected findings from the original research. Scores out of 100.

Overall Innovation Index69.9

These findings reflect the 90 people who chose to respond. Their roles, industries and locations shape the results. The scores describe how this group sees Tennessee’s innovation economy, not how everyone working in it would.

What stood out to me

Respondents were particularly positive about universities, incubators and accelerators. Their views were more mixed when the questions moved toward government, investment and connections between institutions.

The survey captures how people experienced Tennessee’s innovation economy at the time of the research. Other data provide another view.

The state has increased its investment in innovation. New programs are connecting companies with researchers. Universities are putting more resources behind commercialization. Venture investment has also grown.

That led me to a different set of questions.

Are people aware of the resources available to them? Are the right companies finding the right programs? Can researchers find entrepreneurs and industry partners? Can founders find capital when they need it?

I found those questions more useful than the overall score.

From research to market

Moving research into the market requires more than a good technology.

Holocene offers one example of how that process can work in Tennessee.

The story begins at Oak Ridge National Laboratory, where Radu Custelcean and his research team developed a new chemistry for capturing carbon dioxide directly from the atmosphere.

Anca Timofte encountered the research while at Stanford and saw the potential to build a company around it.

She went on to build Holocene with co-founders Tobias Rüesch and Keeton Ross. The company licensed the technology from ORNL and established itself in Knoxville.

What followed involved several different parts of the innovation community.

Holocene

Stage 1 of 9

Stage 1 of 9. Research

ORNL research

Radu Custelcean and his team at ORNL develop a new approach to direct air capture.

Oak Ridge National Laboratory and the direct air capture research.

Stage 2 of 9. Commercial opportunity

Anca Timofte

Anca Timofte identifies the commercial opportunity and begins building a company around the technology.

Anca Timofte connects to the ORNL research.

Stage 3 of 9. Founding team

Founding team

Timofte builds Holocene with Tobias Rüesch and Keeton Ross.

Anca Timofte, Tobias Rüesch and Keeton Ross form Holocene.

Stage 4 of 9. Technology transfer

ORNL license

Holocene licenses the underlying technology from ORNL.

ORNL licenses the technology to Holocene.

Stage 5 of 9. Commercialization

Innovation Crossroads

Innovation Crossroads gives the company continued access to ORNL researchers, facilities and technical support as the technology develops.

Innovation Crossroads joins the network around Holocene.

Stage 6 of 9. Company building

Spark

Holocene establishes itself in Knoxville and participates in the Spark Incubator at the University of Tennessee Research Park.

Spark joins the network around Holocene.

Stage 7 of 9. Technology demonstration

Knoxville pilot

Holocene builds and operates an industrial direct air capture pilot in Knoxville.

ORNL in Oak Ridge connects to the pilot in Knoxville.

Stage 8 of 9. Capital and market validation

Frontier + Google

The company attracts outside funding and carbon-removal customers. Frontier becomes an early buyer. Google later agrees to purchase 100,000 metric tons of future carbon removal at $100 per ton.

Frontier and Google connect to Holocene.

Stage 9 of 9. Commercial outcome

Oxy

Oxy acquires Holocene in 2025, adding its technology to a larger direct air capture program focused on improving efficiency, lowering capture costs and accelerating commercial deployment.

Oxy acquires Holocene.

Oak Ridge National LaboratoryDIRECT AIR CAPTURE RESEARCHAnca TimofteTobias RüeschKeeton RossHoloceneInnovation CrossroadsSparkUT RESEARCH PARKKnoxville pilotFrontierGoogleOxy
OAK RIDGEKNOXVILLE

The complete pathway

  1. ORNLResearch and license
  2. HoloceneFounding team
  3. Commercialization supportInnovation Crossroads and Spark
  4. Knoxville pilotIndustrial direct air capture
  5. CustomersFrontier and Google
  6. OxyAcquires Holocene in 2025

Scroll to move through each stage, or choose a stage above.

  1. Stage 1. Research

    ORNL research

    Radu Custelcean and his team at ORNL develop a new approach to direct air capture.

  2. Stage 2. Commercial opportunity

    Anca Timofte

    Anca Timofte identifies the commercial opportunity and begins building a company around the technology.

  3. Stage 3. Founding team

    Founding team

    Timofte builds Holocene with Tobias Rüesch and Keeton Ross.

  4. Stage 4. Technology transfer

    ORNL license

    Holocene licenses the underlying technology from ORNL.

  5. Stage 5. Commercialization

    Innovation Crossroads

    Innovation Crossroads gives the company continued access to ORNL researchers, facilities and technical support as the technology develops.

  6. Stage 6. Company building

    Spark

    Holocene establishes itself in Knoxville and participates in the Spark Incubator at the University of Tennessee Research Park.

  7. Stage 7. Technology demonstration

    Knoxville pilot

    Holocene builds and operates an industrial direct air capture pilot in Knoxville.

  8. Stage 8. Capital and market validation

    Frontier + Google

    The company attracts outside funding and carbon-removal customers. Frontier becomes an early buyer. Google later agrees to purchase 100,000 metric tons of future carbon removal at $100 per ton.

  9. Stage 9. Commercial outcome

    Oxy

    Oxy acquires Holocene in 2025, adding its technology to a larger direct air capture program focused on improving efficiency, lowering capture costs and accelerating commercial deployment.

  10. The complete pathway

    1. ORNLResearch and license
    2. HoloceneFounding team
    3. Commercialization supportInnovation Crossroads and Spark
    4. Knoxville pilotIndustrial direct air capture
    5. CustomersFrontier and Google
    6. OxyAcquires Holocene in 2025

Holocene is one company, and its path will not be typical for every technology. It does show what can happen when research, entrepreneurs, technology transfer, specialized facilities, commercialization support, capital and customers connect around the same idea.

Sources. ORNL for the research and license. UT Research Park and Launch Tennessee for the founders and company development. Frontier and Google for the purchases. Oxy for the acquisition. Listed in full under About.

Building more pathways from research

Tennessee is also trying to make this process more systematic.

During fiscal year 2025, the Tennessee Technology Advancement Consortium worked with 95 faculty members across participating universities.

95Faculty members
20Technologies identified for commercialization
13Received proof-of-concept funding
8Startups reported

From that work, 20 technologies were identified for commercialization. Thirteen received proof-of-concept funding and eight startups were reported.

TTAC also marketed 30 technologies to more than 600 industry partners and reported 16 industry partnerships.

TTAC reaches beyond the state’s largest research institutions. Its founding members included Tennessee State University, Tennessee Tech University and the University of Memphis alongside the University of Tennessee Research Foundation and Vanderbilt. Its early pilot focused on the state’s locally governed public universities. The goal is a statewide view of what it takes to move research from the lab into the market.

The numbers are still small compared with the scale of Tennessee’s research and business economy. They provide an early look at an effort to move more university research toward commercial use.

Sources. TTAC annual reporting via Launch Tennessee, fiscal year 2025. Venture Nashville, 2023.

How the pieces connect

Holocene’s development brought together research, entrepreneurship, commercialization support, capital and customers. Tennessee has organizations working across each of these areas.

This is not a complete list. It is a starting point drawn from interviews and desktop research.

Research to scale. Choose a stage to see Tennessee organizations working there.

Working in Research

  • Oak Ridge National Laboratory
  • University of Tennessee
  • Vanderbilt University
  • University of Memphis
  • Tennessee State University
  • Tennessee Tech University
  • Meharry Medical College
  • University of Tennessee at Chattanooga
  • ORNL Technology Transfer
  • University of Tennessee Research Foundation
  • Vanderbilt Center for Technology Transfer and Commercialization

Looking beyond the survey

A perception survey and economic data measure different things.

Looking at them together gives a fuller picture of what was happening around the people I surveyed.

Government support

Survey score58.7Government supportOriginal research, 2026
Activity
$63 million
Innovation-related initiatives included in Tennessee’s FY2026 budgetSource. TNECD, 2025.

That investment included funding for programs such as IRIS, which supports research and development partnerships between Tennessee companies and research institutions.

Access to capital

Survey score73.0Investor availabilityOriginal research, 2026
Activity
179$1.2 billion
Tennessee venture deals and venture capital invested in 2025Source. Greater Nashville Private Capital Association / PitchBook, 2025 Impact Report.

Tennessee recorded its highest venture deal count in 2025. The share of deals backed exclusively by Tennessee investors also increased.

The survey captures how people working within the ecosystem experienced it. These figures capture activity happening around them.

They are different views of the same system.

How Tennessee compares

National data provide another way to look at Tennessee’s innovation economy.

The comparison below shows Tennessee alongside North Carolina, Georgia and Ohio. Each has a substantial research or manufacturing economy and offers a useful point of comparison.

Business R&D as a share of private-industry output2023. Percent
Tennessee0.87%
North Carolina2.62%
Georgia1.34%
Ohio1.68%
United States2.92%
Total R&D as a share of GDP2023. Percent
Tennessee1.77%
North Carolina3.06%
Georgia1.69%
Ohio2.31%
United States3.36%
Academic R&D per $1,000 GDP2024. Dollars
Tennessee$3.78
North Carolina$5.51
Georgia$4.61
Ohio$4.00
United States$4.00
Science and engineering occupations2023. Percent of occupations
Tennessee4.74%
North Carolina6.55%
Georgia6.39%
Ohio5.71%
United States6.47%

Source. NSF NCSES State Indicators. Each comparison uses its own scale, starting at zero.

Tennessee’s academic R&D activity is relatively close to the national average. Its overall R&D activity is comparable to Georgia but lower than North Carolina and Ohio.

The larger difference appears in the private sector.

Businesses in Tennessee performed R&D equal to 0.87 percent of private-industry output in 2023. That was below all three comparison states and well below the national average of 2.92 percent.

Tennessee also had a smaller share of its workforce employed in science and engineering occupations than each of the comparison states.

These data help separate research capacity from what happens around it.

Tennessee has major research institutions and academic activity. The comparison suggests more room for that research to connect with private-sector R&D, technical employment and commercial activity.

Several recent initiatives are aimed at parts of that process.

Recent activity

  1. 2023

    • TTAC begins building a statewide university commercialization network.
    • Tennessee creates the Nuclear Energy Fund.
    • Tennessee launches InvestTN with $70 million in federal SSBCI funding for startups and venture funds.
  2. 2024–2025

    • InvestTN begins deploying capital into Tennessee startups and venture funds.
    • IRIS launches industry-led research partnerships.
    • TTAC expands university commercialization activity.
  3. 2026

    • Tennessee Innovation Exchange launches.
    • Tennessee begins deploying $63 million in state innovation funding.
    • Tennessee advances its Oak Ridge Nuclear Lifecycle Innovation Campus proposal and establishes the country’s first state regulatory framework for fusion.

Many of these efforts are too recent for their effects to appear in national economic data.

Where Tennessee’s capabilities connect

The peer comparison shows where Tennessee differs from other states. It does not show what those differences look like on the ground.

Tennessee’s research institutions, companies, investors and entrepreneurs are spread across several regions. The capabilities they bring are spread across them too.

A company working on advanced manufacturing might draw on research in Oak Ridge, customers or capital in Middle Tennessee, suppliers in Chattanooga and logistics infrastructure in Memphis.

A healthcare company would follow a different path.

The connections depend on what someone is trying to build.

What are you looking for?

Choose a capability to see where it appears across Tennessee. Select a location or statewide organization to learn more.

CHATTANOOGACOOKEVILLEJOHNSON CITYKNOXVILLEMEMPHISNASHVILLEOAK RIDGE

Statewide

    One area brings many of these capabilities together.

    OAK RIDGEKNOXVILLENASHVILLECHATTANOOGASPRING HILLMEMPHISJOHNSON CITY

    Advanced energy

    Research, manufacturing, infrastructure, industry and technical talent intersect across Tennessee.

    Advanced energy in Tennessee

    $55.9BState GDP
    420,632Jobs
    22,554Business establishments
    $74,025Average annual salary

    2022 economic activity reported in the 2024 TAEBC Tennessee Advanced Energy Economic Impact Report.

    The Tennessee Advanced Energy Business Council reported that advanced energy represented 11.5 percent of state GDP and 14.8 percent of Tennessee employment. Average salaries were 31 percent above the statewide average.

    Nuclear

    Oak Ridge gives Tennessee an unusual concentration of nuclear research, engineering, manufacturing and technical expertise. ORNL, the University of Tennessee, TVA, the Y-12 National Security Complex and a growing group of private companies connect research with manufacturing, workforce development and commercial activity. Recent activity includes the Tennessee Nuclear Energy Fund, new nuclear manufacturing programs, private-sector investment and federal activity around Oak Ridge.

    From the original research

    Sustainability looks different

    The original research also asked respondents how likely their neighbors and local businesses are to follow environmental sustainability practices.

    51.4Sustainability Index. Out of 100
    68.7Recycling, the highest score
    48thTennessee’s packaging recycling rank among 50 states

    The overall Sustainability Index was 51.4.

    Recycling scored highest at 68.7. Using public transportation and limiting air travel were among the lowest-scoring practices.

    Outside data point the other way on recycling. Respondents saw recycling as the practice most likely to happen around them. Yet the 50 States of Recycling report by Eunomia and Ball Corporation ranked Tennessee 48th of 50 states for recycling common packaging materials, based on 2021 data.

    Lawmakers have taken up the issue. In 2026, Tennessee enacted House Bill 2518, which revives a state office that connects recycled materials with buyers and creates an advisory council to study recycling markets. The Tennessee Waste to Jobs Act, first introduced in 2025, proposes that large packaging producers help fund recycling infrastructure and education.

    These questions measured how respondents see sustainability in their own communities and businesses. The contrast is a reminder that perceptions of everyday sustainability practices and statewide outcomes do not necessarily tell the same story.

    Sources. Original research, 2026. Eunomia and Ball Corporation, 50 States of Recycling, 2021 data. Tennessee Lookout and The Pew Charitable Trusts on recycling legislation.

    Advanced energy shows how several of Tennessee’s strengths can work on the same problems. The sustainability findings show that progress is uneven, and that growing industries do not automatically change everyday practices. Both shaped how I came to see the state.

    What I learned

    I started this research because I wanted to better understand the innovation community in my own state.

    I expected to learn more about Tennessee’s universities, research institutions, startups and economic development programs.

    What surprised me was how much had already been built to connect them.

    There are organizations helping researchers commercialize technologies. There are entrepreneur centers working across the state to support founders and small businesses. More capital is being invested in Tennessee companies. Universities and research institutions are opening new ways for industry to engage with them. The state is putting more money behind commercialization and emerging industries.

    People working in Tennessee were highly positive about the state’s universities, incubators and accelerators. They were less positive about government support, regulation, internationalization and some of the connections involved in moving ideas into the market.

    The broader data add context to those perceptions.

    Tennessee has significant research and technical capabilities. Its academic research activity is relatively close to the national average. Private-sector R&D remains lower than in the comparison states examined here. The share of Tennessee workers in science and engineering occupations is also lower.

    Many of the state’s newest programs are aimed at commercialization, industry participation and investment. Most are too new to judge their impacts or results by national measures.

    I came away from the research less interested in whether Tennessee should be called a top innovation state and more interested in what happens next.

    The state has capabilities that are difficult to reproduce. Oak Ridge is one of them. Tennessee’s manufacturing base is another. So are its healthcare industry, logistics network, universities, corporate base and growing entrepreneurial community.

    The opportunity is in how people use them together.

    Tennessee has more innovation happening than I understood when I began this research.

    Much of its potential sits in the connections between people who may not yet know each other. Researchers need entrepreneurs. Founders need customers and capital. Investors need access to promising ideas. Industry needs new solutions.

    My hope is that this work makes a few of those connections easier.

    Explore the ecosystem

    Explore the ecosystem

    One of the challenges I had when I began this project was simply figuring out who was doing what.

    The resources below offer a starting point for founders, researchers, investors, companies and others who want to explore Tennessee’s innovation community.

    They are intentionally selective. Many more organizations, programs and people are working across the state than could be included here.

    What are you looking for?

    39 organizations. Listed alphabetically.

    AgLaunch

    Memphis · Agtech innovation platform

    Agriculture innovation platform where startups can develop and test technologies with farmers while building relationships with industry and investors.

    Visit resource for AgLaunch, opens in a new tab

    The Company Lab

    Chattanooga · Accelerator / ecosystem builder

    Chattanooga startup hub offering founder programs, mentorship and industry connections, with particular activity in mobility, freight and advanced technology.

    Visit resource for The Company Lab, opens in a new tab

    EPB

    Chattanooga · Public utility and quantum network

    Chattanooga public utility that operates a citywide fiber network and a commercial quantum network, now expanding through the EPB Quantum Center.

    Visit resource for EPB, opens in a new tab

    Epicenter

    Memphis · Entrepreneur center

    Memphis entrepreneurship hub providing startup support, mentorship and capital connections while helping founders navigate the region’s business community.

    Visit resource for Epicenter, opens in a new tab

    IACMI

    Knoxville · Manufacturing innovation institute

    Manufacturing innovation institute where companies and researchers collaborate on advanced composites, materials, manufacturing processes and scale-up.

    Visit resource for IACMI, opens in a new tab

    Innova

    Memphis · Venture investor

    Memphis-based early-stage investor focused heavily on agriculture, food and related technologies, with experience helping young companies reach commercial markets.

    Visit resource for Innova, opens in a new tab

    IRIS

    Statewide · Industry-research grant

    Tennessee grant program funding company-led partnerships with research institutions to develop, prototype, test and move new technologies toward market.

    Visit resource for IRIS, opens in a new tab

    Launch Tennessee

    Statewide · Ecosystem hub

    Statewide entry point for entrepreneurs seeking startup support, capital programs, commercialization resources and connections to Tennessee’s regional entrepreneur centers.

    Visit resource for Launch Tennessee, opens in a new tab

    Plug and Play

    Nashville / global · Accelerator / investor

    Global innovation platform connecting startups with corporate partners, investors and accelerator opportunities, including programs operating in Tennessee.

    Visit resource for Plug and Play, opens in a new tab

    The Wond’ry

    Nashville · University innovation center

    Vanderbilt innovation center where students, researchers and entrepreneurs can prototype ideas, develop ventures and access entrepreneurship programs.

    Visit resource for The Wond’ry, opens in a new tab

    About the research

    This publication is based on graduate research I completed at Harvard University in 2026 examining Tennessee’s innovation and sustainability ecosystems.

    Methodology

    The research included a survey of 90 respondents working within or alongside Tennessee’s innovation community. Survey results throughout the publication are identified as Original research, 2026. The original research has been supplemented with more recent public data and information from organizations working across the state.

    Limitations

    Survey results reflect the views of the 90 people who responded. Their roles, industries and locations shaped the results, and the findings should not be read as a representative survey of all Tennessee businesses or residents. Third-party data are identified by source and year throughout the publication.

    Download the full research

    Third-party sources

    1. NSF NCSESState indicators. Peer comparison
    2. TNECDIRIS and FY2026 innovation investment. Government support and timeline
    3. Tennessee Advanced Energy Business CouncilAdvanced energy economic impact report. Advanced energy figures
    4. ORNLHolocene licensing. Holocene research and license
    5. UT Research ParkHolocene and the Spark Incubator. Founders and company development
    6. Launch TennesseeHolocene profile. Commercialization support
    7. GoogleHolocene purchase. Carbon removal purchase
    8. FrontierFall 2023 purchases. Early buyer
    9. OxyCarbon innovation. Holocene acquisition
    10. Launch TennesseeStatewide ecosystem and programs. Ecosystem programs
    11. Tennessee Innovation Exchange2026 launch and directory. Research gateway
    12. Venture NashvilleLaunch Tennessee pilots statewide TTAC consortium. TTAC founding members
    13. Greater Nashville Private Capital Association / PitchBook2025 Impact Report. Venture deals and capital invested in 2025
    14. HypepotamusTennessee secures $70 million for startups and new funds. InvestTN launch
    15. The Quantum InsiderTennessee’s growing quantum ecosystem. Chattanooga quantum activity
    16. Eunomia and Ball Corporation50 States of Recycling, Tennessee profile. Recycling ranking
    17. The Pew Charitable TrustsTennessee recycling market legislation. House Bill 2518
    18. Tennessee LookoutRecycling bills in the 2026 legislature. Tennessee Waste to Jobs Act

    Acknowledgments

    This work began as graduate research at Harvard University. I am grateful to Dr. Ramon Sanchez for his guidance throughout the project and for encouraging me to engage directly with people working across Tennessee’s innovation community.

    I also want to thank Julia Polk, Tasia Malakasis, Sam Davidson, Nicole Mansour, Morgan Beam, Lori Odom and Cecilio Ponce. Each helped the research in a different way, whether by sharing experience, distributing the survey, providing resources or introducing me to people I needed to meet.

    Thank you as well to everyone who completed the survey or took time to speak with me. Many of those conversations shaped how I came to understand Tennessee’s innovation economy, even when they do not appear directly in the publication.

    About Tyler

    Tyler Cole is an energy commercialization executive, entrepreneur and advisor. His work has focused on bringing emerging energy technologies into complex industrial and infrastructure markets, with experience across alternative fuels, supply chains, carbon markets and project development.

    He completed graduate studies in sustainability at Harvard University in 2026. His research focused on Tennessee’s innovation and sustainability ecosystems and the connections among research, entrepreneurship, industry and commercialization.

    Know someone who should be connected?

    If this research brings a company, technology, investor, researcher or organization to mind, I’d be glad to hear about them.

    Connect with Tyler, opens LinkedIn in a new tab

    Published November 2026. Resources and data reflect information available at the time of publication.