From Tobacco Fields to Tech Hub: North Carolina’s Research Triangle Booms
For decades, North Carolina was synonymous with tobacco and furniture. But in recent years, the state’s Research Triangle, home to universities like Duke, UNC Chapel Hill, and NC State, has transformed into a thriving tech and science hub, attracting top talent and companies from across the country. This economic shift has catapulted the region into one of the fastest-growing in the US, outpacing tech giants like Seattle and Dallas in 2023.
The driving force behind this transformation is Research Triangle Park (RTP), the largest research park in North America. Established in 1959 by a collaboration between government, businesses, and universities, RTP has attracted tech giants like IBM, Apple, and Google, who have invested billions in the region. The area has now become the nation’s 10th fastest growing region since 2020.
“I don’t think it can be underestimated, the influence of Research Triangle Park had on the growth of this region," said Randall Borror, a long-time Durham resident and employee of the UNC Chapel Hill Hospital’s cardiology department. “We still have companies wanting to move in here into Research Triangle Park or in this area, at least to me, that’s a big part of the story.”
This growth is evident in the rising number of STEM jobs and the flourishing biotech scene. The Triangle’s median household income is around $87,000, 20% higher than the national average, with a lower unemployment rate. Raleigh was even named the most promising job market for recent graduates in June 2024.
"I’ve experienced it firsthand in this job, just we’re always hiring faculty," said Borror. “We’ve got job posts open at least one or two or three consistently."
The area’s appeal extends beyond economic boom. Alex Brandwein, a former New York City finance professional who moved to Chapel Hill to pursue his MBA in 2018, opened a bagel shop in the heart of the city, finding a supportive community that embraces new businesses.
“This community goes above and beyond to actually support you," said Brandwein. "Even other competitors, they’re giving you little tips and tricks about how things go here. And I’d never seen anything like that.”
North Carolina’s pro-business environment, highlighted by the lowest corporate income tax in the nation (2.5%) and a flat income tax, has also contributed to the region’s success.
"There is an opportunity to come here and set yourself up and find incredible success," said Brandwein. “There’s businesses that have been here for 40 years and established themselves.”
While the Triangle enjoys a vibrant tech scene and a strong economy, it is not without challenges. Concerns about car dependency and limited public transportation infrastructure, rising housing costs, and a slower pace of venture capital funding compared to major hubs like California and New York, are among the issues that need to be addressed for continued growth.
But for many, the Triangle’s charm lies in its community spirit, affordability, and slower pace of life compared to bigger cities – a quality that has attracted families like the Borrors and entrepreneurs like Brandwein.
“I always describe New York as high highs, low lows, but for me it was the community I never like felt,” said Brandwein. “At least not for me. There’s so much opportunity just in this market that we want to be sure we’re growing in a way that feels right, and to just open up so many of them and not have that connection and that community feel. For me, that wouldn’t necessarily be a success. I feel like you can have both here. You can be really successful. It’s super exciting. It’s really cool.”
The Research Triangle’s success story is a testament to the power of collaboration, innovation, and a focus on building a thriving community. As it continues to attract talent and businesses, the triangle is poised to solidify its position as a leading economic force in the US.
North Carolina’s Research Triangle: A Thriving Tech Hub Where Cost of Living Meets Opportunity
North Carolina’s Research Triangle, home to some of the country’s most prominent universities, is experiencing explosive economic growth, outpacing major metropolitan areas like Seattle, Dallas, and Nashville in 2023. This once tobacco-dependent state has transformed into a hub for innovation, attracting tech giants, research institutions, and a new wave of residents seeking a better work-life balance. A combination of affordable housing, a thriving job market, and a supportive community has made the Research Triangle a magnet for both businesses and individuals, prompting many to leave behind expensive and congested cities like San Francisco, Boston, and New York. But what exactly is driving this boom, and how is it impacting life for residents and businesses in this region?
Key Takeaways:
- A Legacy of Innovation: The Research Triangle Park (RTP), established in 1959, has been instrumental in diversifying North Carolina’s economy. Its proximity to top universities like UNC Chapel Hill, Duke University, and NC State University has created a fertile ground for research and development, attracting tech giants like IBM, Apple, and Google.
- A Growing Tech Hub: The area has become the nation’s 10th fastest growing region since 2020, fueled by RTP’s status as a leading tech hub. Companies are drawn to the region’s talented workforce, which is graduating from these renowned universities and finding ample employment opportunities in the area.
- A Competitive Job Market: The Research Triangle boasts a lower unemployment rate than the national average and is a prime location for recent graduates seeking STEM careers. With a median household income of $87,000, the region offers a higher standard of living compared to other areas of the country.
- Affordable Housing Relative to Major Cities: Despite a recent uptick in housing prices, the Research Triangle remains relatively affordable compared to other major metropolitan areas like California and New York. This affordability, coupled with the quality of life and job opportunities, has led many to relocate to the area.
- A Supportive Business Environment: North Carolina’s low corporate income tax, which is set to reach zero by 2030, encourages businesses to set up shop in the state. The flat income tax and helpful community make it an attractive option for entrepreneurs and startups alike.
- Infrastructure Challenges: While the Research Triangle offers significant advantages, it faces challenges in its lack of public transportation infrastructure, particularly when compared to more densely populated urban centers. While the region has made strides in developing mass transit, more robust infrastructure is needed to meet the growing demands of its population.
The Power of Collaboration: A Shared Vision
The Research Triangle’s success story is a testament to collaboration between the public, private, and academic sectors. This collaborative spirit is deeply ingrained in the region’s history and has fueled its steady growth.
"I don’t think it can be underestimated, the influence of Research Triangle Park had on the growth of this region," says Dr. David Allen, a physician at UNC Chapel Hill Hospital. "We still have companies wanting to move in here."
The founding of RTP in 1959 was a bold move, a strategic investment in the future. By pooling resources and expertise, the region has created a distinct ecosystem where research, innovation, and business growth flourish.
The Appeal of a Vibrant and Supportive Community
Beyond the economic allure, the Research Triangle offers a unique sense of community. A shared commitment to growth and opportunity fosters a welcoming environment for residents and businesses alike.
"That was like, all right, that’s a place I want to live," remarks Starla Borror, who moved to Durham with her family in the 1990s. "The fact that people genuinely wanted to see other people happy like that was so cool."
The Borror family, like many others, found a sense of belonging in the Research Triangle. This welcoming atmosphere, coupled with the economic opportunities, is a defining factor for both individuals and businesses choosing to set down roots in the area.
A Rising Tide Lifts All Boats: The Economic Ripple Effect
The tech boom in the Research Triangle has a direct and significant impact on other sectors of the economy. Businesses are thriving, creating diverse job opportunities and stimulating further investment.
"When the state goes out and recruits businesses, the impact doesn’t stop there," says Alex Brandwein, owner of a bagel shop in Chapel Hill. "You can see it when you drive through the streets: there are all kinds of new businesses."
Brandwein’s business, like many others, has benefited from the growing tech scene. The increased demand for housing, retail services, and entertainment creates opportunities for businesses in various sectors, contributing to the region’s overall economic vibrancy.
A Balancing Act: Challenges and Opportunities
Despite the Research Triangle’s impressive growth trajectory, it faces challenges that need to be addressed to ensure continued sustainability.
"Of course, we are going to be lower on our wages because of that cost of living advantage," acknowledges Dr. Allen. "10% lower."
While the lower cost of living compared to other major cities is a major attraction, it also leads to lower wages for comparable jobs. Addressing this gap and ensuring fair compensation for workers will be crucial for long-term success.
The region’s reliance on car transportation presents another challenge. While the Research Triangle has attempted to develop mass transit, the lack of robust public transportation options can hinder access to opportunities and contribute to traffic congestion. Investing in robust infrastructure is essential to create a truly accessible and sustainable urban environment.
Looking Ahead: A Promising Future
The Research Triangle is poised for continued growth, but it must address the challenges it faces to maintain its momentum.
"I think the triangle is well positioned," says Dr. Allen. "But other than that, I think the triangle is well positioned."
The region’s strong foundation in education, research, and innovation, combined with a supportive community, positions it well for long-term growth. By addressing the challenges of infrastructure and ensuring equitable access to opportunities, the Research Triangle can continue to flourish as a model of economic and social progress for the nation.
