Pittsburgh’s innovation ecosystem is surfing a wave of momentum

November is State of the Local Tech Economy Month on Technical.ly’s 2024 editorial calendar.

Pittsburgh’s tech ecosystem is on a powerful upward trajectory. 

With momentum building steadily over the past few years, 2024 has been no exception. 

Located at the crossroads of the Midwest and Mid-Atlantic, Pittsburgh has long been the economic heart of Southwestern Pennsylvania. Despite having a population of just 2.5 million in its metro area, making it the 27th largest in the nation, the city punches well above its weight as an emerging tech hub. 

More and more people are discovering that Pittsburgh is far more than just a steel and coal town, though its industrious roots still built the foundation that innovation thrives on today. 

The city has established itself as a rising star in the tech world, attracting major investments and fueling innovation in industries like AI, health tech and robotics. So, there’s a growing buzz about Pittsburgh’s potential to become a global leader in tech, but the question remains: What will it take to push the city over the edge and into the spotlight? 

The narrative hangs over the city, pushing innovators to keep hustling, as it takes advantage of the existing education and healthcare laborforce that dominates the landscape. It helps, too, that fresh talent and established leaders alike see it as an affordable option compared to the usual “tech cities,” with all the same opportunity to grow.

It’s all up to the passionate stakeholders in the innovation ecosystem to propel the city into greater national and international recognition. And so far, they’ve proven up to the challenge, driving meetups, support systems and financial opportunity into the city.

Scholar-entrepreneur partnership drives innovation 

One of the Pittsburgh region’s greatest strengths is the relationships it fosters between scholars and entrepreneurs, a dynamic that’s fueled by Pittsburgh’s world-class universities. 

Carnegie Mellon University is ranked number one globally for its AI and machine learning programs, while also leading in robotics research and education. The University of Pittsburgh further strengthens the region’s tech ecosystem with its highly ranked health sciences and engineering programs. 

These universities not only produce top-tier talent but also serve as incubators for innovation. And there seems like more opportunities for innovative developments in the future as major companies like Nvidia look to partner with these institutions to advance AI research. 

Pittsburgh’s thriving tech ecosystem is further supported by a robust network of nonprofits and programs that provide much-needed resources to local entrepreneurs. Organizations like the Pittsburgh Technology Council, Innovation Works and InnovatePGH, among many others, which often have their own ins with local academia, help translate ideas into successful ventures, fielding the city’s continued growth as a tech hub. 

A strong robotics, health tech and AI presence 

Pittsburgh is home to major tech players like Google or Duolingo, along with rising stars like health tech startup Abridge. 

As of 2024, tech jobs made up 5.2% of Pittsburgh’s workforce, totaling nearly 60,000 positions, with the sector contributing an estimated $11.9 billion to the economy, according to a report from the Computing Technology Industry Association. 

The city’s economy is bolstered by industries like robotics. The name ‘Roboburgh’ has been used to describe the city, primarily pointing to Robotics Row, a portion of Pittsburgh’s Strip District that is home to some of the world’s leading robotics companies. They include autonomous vehicle startup Aurora and space company Astrobotic. And more are emerging with help from organizations like the Robotics Factory. 

Healthcare tech is another major driver, supported by two major healthcare providers that call Pittsburgh home, UPMC and Allegheny Health Network. So, it adds up to why accelerator AlphaLab Health got a $10 million donation this year to further startups in that field.

Plus, Pittsburgh was recently identified as a leading life science ecosystem in a report conducted by TEConomy for the Pittsburgh Life Science Alliance. The report identified the city’s strengths in data-driven healthcare and next-gen therapeutics as factors that differentiate it from the competition.

Recent advancements in AI were also referenced as fuel for the region’s supremacy in the life sciences. 

This makes sense with the city’s recent emphasis on AI innovation. Pittsburgh held its inaugural AI summit in October this year at the up-and-coming “AI Avenue” neighborhood. The takeaway? Collaboration within the tech ecosystem could make the city a leading AI hub for years to come.

Investments, even without local VC support, roll into the region

Pittsburgh experienced its second-highest year on record for tech investment in 2023, according to a September report from Ernst & Young LLP and Innovation Works. 

This year, venture capital investments continue to rise, but Pittsburgh’s lack of local VC investors has been identified as a missed opportunity for the region, limiting the city’s potential to capital greater returns from its burgeoning tech sector. 

Despite that, government funding pour in to support the work. 

The Pittsburgh region is benefiting from $62.7 awarded to the region through the Build Back Better Regional Challenge grant. Through the New Economy Collaborative, a collection of over 90 local organizations, more than $15 million has already been invested into the economic development of Southwestern Pennsylvania. 

There’s also been a series of investments from the commonwealth. Governor Josh Shapiro has been putting money behind his desire for the Pittsburgh region to grow its tech and manufacturing industries, including $62.6 million for downtown revitalization efforts. 

So, what’s next? As long as the region keeps watering its strong academic partnerships, key industry growth and ongoing investments, Pittsburgh’s tech ecosystem is poised for continued expansion.