A new report from the Innovation SATX Consortium finds modest job growth across the city’s innovation industries, while identifying challenges in attracting businesses, retaining talent and competing with other major metros.
San Antonio’s innovation economy is growing, but the region continues to lag behind comparable metropolitan areas in its concentration of innovation jobs, according to a new report released by the Innovation SATX Consortium.
The consortium, formed by VelocityTX, Port San Antonio, Geekdom and Tech Bloc, released its first report Nov. 4, establishing a baseline for measuring the region’s innovation economy and identifying priorities for future growth.
The report found San Antonio had 55,054 jobs across its innovation industries in 2025, up 2.5% from 53,703 in 2024. However, the number of establishments in those industries declined 1.9%, from 3,698 to 3,626.
Despite job growth, San Antonio ranked ninth among 10 comparable metropolitan areas in innovation industry employment concentration, a measure of the sector’s share of the overall workforce. The city ranked below the national benchmark, while Austin’s concentration was nearly double.
San Antonio’s innovation economy was most comparable to Nashville, Tennessee, and Charlotte, North Carolina, according to the report.
“This economic strategy cannot be accomplished alone,” Rene Dominguez, president and CEO of VelocityTX said. He emphasized the need for partnerships among academic institutions, private research organizations, military missions and public and private sector leaders.
The report examines nine industries, including biotechnology and pharmaceuticals, biomedical and medical devices, advanced manufacturing, defense and aerospace, cybersecurity, software and data services, and research and development.
Dominguez said the report provides a starting point for organizations across the region to align their economic development strategies, while acknowledging limitations in the underlying data.
Because this is the consortium’s first report, some industry figures include margins of error and gaps in available data, particularly in areas such as the military’s economic impact.
Still, the report outlines an established innovation ecosystem, including $2.55 billion in federal research and development contracts, $31 million in venture capital investments and 491 new patents filed. New patents and venture capital investment declined year over year.
The report also highlights growth in the region’s STEM talent pipeline. STEM degree completions increased, with cybersecurity and information assurance emerging as leading fields, recording 11% year-over-year growth between 2023 and 2024.
But Dominguez said workforce development must be matched by job creation to keep graduates in the region.
“We’re doing great aligning our industries but we don’t have the jobs for those students to field and they’re going to leave,” Dominguez said.
He said San Antonio must focus on attracting innovation companies, helping existing businesses expand and supporting the creation of new ventures.
The report identifies four priorities for strengthening the region’s innovation economy: concentrating investment around San Antonio’s competitive strengths, creating clearer pathways to bring innovation to market, developing capital sources that support companies at different stages of growth, and increasing the visibility of San Antonio’s innovation economy.
“What we hope to do is, over the next year, dig into each of the recommendations and find alignment with all the economic development, you know, actors to settle on what are the best kind of objectives and tactics we should pursue and support and fund,” Dominguez said.
The report is intended to be the first in an annual series tracking San Antonio’s progress and helping establish a coordinated regional strategy for innovation-driven economic growth.