Ohio ranked America’s 5th best state for business
Cincinnati also recognized as a top 5 innovation hub in the Midwest
Ohio has never shied away from its role as America’s innovation engine. Now, outsiders are taking note of the Buckeye State – and Cincinnati in particular.
CNBC’s annual “America’s Top States for Business 2025” report ranked Ohio as the country’s fifth-best state for business, the Buckeye State’s highest ranking yet. The study, released in early July, is widely regarded as one of the nation’s most authoritative ratings of business-friendly ecosystems.
Ohio performed well across each category. Below are some highlights:
- #1 in the Midwest for business
- #1 overall for infrastructure
- #2 overall for cost of doing business
- #6 overall for technology and innovation
- #7 overall for access to capital
- #1 overall for public/private infrastructure investment
The Buckeye State improved upon its 2024 scores in six of 10 categories and tied its prior scores in two more.
Ohio’s pro-business climate is on a sharp upward trajectory. The Buckeye State jumped 18 spots nationally from a decade ago and ranks first in the Midwest with an economy accelerating each year.
Ohio stands out for excelling in both business and lifestyle metrics, a balance many competitor states struggle to achieve. While states like Texas, Florida and North Carolina perform well across most business metrics, they lag on quality of life and cost of living.
Ohio means business
The Ohio economy is on the rise and experiencing sustained growth. The population is expanding, companies are investing across the state and living costs remain significantly below the national average.
Exterior view of UC's 1819 Innovation Hub. Photo/Jay Yocis
Ohio’s economic growth reflects the state’s deliberate efforts to reduce business barriers while enhancing the quality of life for citizens. Organizations like JobsOhio and REDI Cincinnati have also brought unprecedented momentum to the state through economic development campaigns.
At the heart of Ohio’s growth spurt is a laser focus on innovation. The Cincinnati Innovation District, powered by the University of Cincinnati’s 1819 Innovation Hub, has emerged as a statewide leader in launching successful startups and attracting major corporate investment.
The University of Cincinnati is a proven innovation leader itself – not just for our region, but for the whole state. U.S. News and World Report ranks UC as the fifth best school in America for co-ops and internships, meaning the school graduates thousands of students each year who already boast professional work experience.
Cincinnati: Ohio’s home for innovation
In a state fueled by innovation, Cincinnati has become the epicenter for Ohio’s economic growth. A 2025 Huntington Bank report reveals Greater Cincinnati has the largest gross domestic product of Ohio’s metropolitan areas, at $198 billion, along with the state’s most sizable workforce at 1.16 million employable workers.
Cincinnati also earned top marks in a July 2025 report on the Midwest’s leading innovation hubs. Below are a few of the Queen City’s key rankings:
- #1 innovation hub in the Midwest among metropolitan areas of over 1 million
- #5 innovation hub in the Midwest among cities of all size
- #2 in the Midwest in patents produced, with 31,181 patents over four years
The National Academy of Inventors consistently ranks the Technology Transfer office at UC among the top 100 American universities for its significant contributions to innovation and the number of patents issued.
This recent report explicitly highlights the city’s impressive number of patents: “Cincinnati ranked second with 31,181 patents granted,” the study says. “The University of Cincinnati has played a pivotal role in Ohio’s growth, nearly doubling its patent output in recent years.
Expanded research funding, a revamped Tech Transfer office and deeper corporate ties ... have sharpened the city's ability to turn academic research into market-ready technologies.
CommercialCafe 2025 report
“Expanded research funding, a revamped Tech Transfer office and deeper corporate ties – particularly with Procter & Gamble, Microsoft and Kroger – have sharpened the city’s ability to turn academic research into market-ready technologies. Many of those partnerships are housed at the university’s 1819 Innovation Hub, which is now a core piece of Cincinnati’s innovation infrastructure.”
Startups launch here
Positive accolades keep coming for the Queen City – in late July, Global Banking and Finance Review featured an article titled, “Why Cincinnati Is America’s Most Accessible Startup Hub.” The story praises Southwest Ohio for the following traits:
1819 Venture Lab. Photo/Brad Feinknopf
- Capital access without coastal gatekeeping: Venture capital and connections to business leaders are simple in Cincinnati compared to in places like Silicon Valley and New York City, where there are high barriers to entry.
- Pipeline of talent, rooted in innovation: The University of Cincinnati and other regional colleges produce career-driven, innovative students prepared for today’s workforce.
- Urban revitalization fuels entrepreneurial energy: Revival in Cincinnati’s Central Business District and Over-the-Rhine neighborhoods has fueled a business renaissance and spike in entrepreneurship.
- Corporate support for startups to lean on: Global companies remain accessible startup partners in Cincinnati, unlike in cutthroat business hubs like Atlanta, Dallas and Seattle.
- Ecosystem built for scalability: Small businesses benefit from accelerators such as the 1819 Venture Lab, the region’s accessible location, the growing StartupCincy community and “a cost of living 40-60% lower than most coastal hubs.”
1819’s key role in elevating our region’s innovation ecosystem was again recognized: “Cincinnati has doubled down on nurturing local innovation,” the article states. “The University of Cincinnati’s 1819 Innovation Hub stands at the center of this mission, helping create a direct pipeline between research, student talent and real-world startup applications.”
After years of flying under the radar, Cincinnati is shining brightly as a leading business hub and startup accelerator in 2025. Ohio boasts one of America’s top business climates, and Cincinnati has become the Buckeye State’s magnet for global companies and startups as they call Ohio home.
Featured image at top: Cincinnati skyline. Photo/Mariana Ianovska via Adobe Stock
Innovation Lives Here
The University of Cincinnati is leading public urban universities into a new era of innovation and impact. Our faculty, staff and students are saving lives, changing outcomes and bending the future in our city's direction. Next Lives Here.
Related Stories
Ohio ranked America’s 5th best state for business
August 27, 2025
CNBC ranked Ohio as a top 5 state for business in 2025, and recent reports name Cincinnati as the Buckeye State’s destination of choice for global companies and startups.
Ohio business investments are heating up this summer
August 27, 2025
The Buckeye State had a summer of breakthrough investments, from the O.H.I.O. Fund’s inaugural $238 million funding round to employee relocation incentives and capital for advanced manufacturing.
What’s going on at UC’s 1819 Innovation Hub?
August 15, 2025
Not sure what the 1819 Innovation Hub is or why it matters to you? We’ll explain how incoming Bearcat students and staff can learn, enjoy and innovate in the space.