U.S. states that actively accept cryptocurrencies and digital assets posted conspicuous gains in innovation competitiveness rankings. Traditional tech hubs California and New York fell in the rankings, prompting analysis that policy conditions are increasingly shaping the movement of companies and capital.

On July 28 local time, blockchain media outlet U.Today reported that the Draper Innovation Index, in a March 2026 update, assessed that areas embracing cryptocurrencies, blockchain and emerging technologies are gaining an advantage in competition to create startups and attract investment.

The Draper Innovation Index measures innovation competitiveness among U.S. states and countries based on how effectively they attract entrepreneurs, investment and new technologies. The survey found regions adopting digital asset-friendly policies advanced, while growth at some existing tech hubs slowed.

The most striking change was Texas. It climbed to fourth in innovation competitiveness in the United States, overtaking Wyoming. The report cited rising venture capital investment, inflows of funds into the cryptocurrency and blockchain sectors, and an expansion in new business formation as key reasons for the rise. Oklahoma also climbed to 15th, supported by an increase in startup formation and a widening of crypto-related venture investment.

Existing large tech centres, by contrast, fell in the rankings. California slipped to 31st and New York to 49th. Both regions still have large economies and mature innovation ecosystems, but a slowdown in the formation of new businesses was cited as the reason for the decline.

New Hampshire’s jump also drew attention. It ranks 40th in the United States by gross domestic product and only 42nd by population, but placed third in innovation competitiveness. The report assessed it as a case in which tax benefits and startup-friendly policies drew entrepreneurs and investors beyond the limits of economic scale.

Tim Draper (팀 드레이퍼) said the centre of innovation is shifting to places with lower barriers to starting a business. He argued that if tax burdens and regulation become excessive and risk-taking founders are not sufficiently rewarded, talent and capital have no choice but to move elsewhere.

The trend also appeared outside the United States. Canada’s innovation competitiveness ranking by country fell to fifth from third, and other regions also ranked lower due to policy uncertainty and capital outflows.

The Draper Innovation Index said key factors determining where the next generation of startups will be born are changing. It said regions with policies that embrace cryptocurrencies and blockchain technology, startup-friendly regulatory environments and corporate support systems are absorbing entrepreneurs and investment capital more quickly and emerging as new hubs of innovation.