• Vanderbilt University Chancellor Daniel Diermeier and University of Tennessee, Knoxville, Chancellor Donde Plowman are members of the Council on Competitiveness.
• Deborah Wince-Smith, president and CEO of the Council on Competitiveness.

New knowledge and technology.

New business and industry.

New jobs and opportunities for Tennesseans and the country.

These are the benefits of growing the innovation economy in Tennessee, and across the United States.

Recently, our three organizations — the Council on Competitiveness, Vanderbilt University and the University of Tennessee, Knoxville — partnered to host the first in the council’s nationwide series called “Competitive Conversations Across America” on Vanderbilt’s campus.

We brought together leaders in business, education, workforce, science and government to uncover the best practices and policies for expanding innovation in Tennessee. These insights will also inform an integrated national strategy designed to enhance economic and productivity growth and inclusive prosperity in Tennessee and across the nation.

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Capitalize on Tennessee as America’s next innovation hub

In Tennessee, we have a strong foundation for innovation — particularly in the mobility, energy and manufacturing sectors — thanks to robust partnerships among corporations, universities and colleges, Oak Ridge National Laboratory and state and local governments. Venture investments are accelerating growth in the state too.

According to Pitchbook, Tennessee businesses received $1.57 billion in venture capital investment in 2023, a 42% increase from the previous year and the state’s largest year on record. The investments flowing into the state attract more ideas, more companies and more people.

Now is the time to capitalize on Tennessee’s momentum and build America’s next great innovation hub. Tennessee doesn’t need to be the next Silicon Valley or Research Triangle. Instead, Tennessee can drive innovation and support the state in a way that leverages its own unique strengths — and that meets the needs of Tennesseans.

Consider mobility, an economic driver in the state and a rapidly evolving industry that is advanced by changes in the way we design, drive, power and use vehicles. Tennessee has long been a major hub for automotive manufacturing. Now the state is focused on becoming a major hub for automotive research and development too.

A coalition of more than 100 public and private entities — including more than 50 companies, every technical school, two-year college and four-year university in the state, and a national lab — is working to make Tennessee a destination for mobility innovation.

It’s just the start. Tennessee’s other sectors, including finance, energy, entertainment and health care, can become similarly supercharged.

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How colleges and university are key to Tennessee’s future

Colleges and universities are essential to any innovation economy. University researchers are positioned to take risks that corporate research and development (R&D) teams can’t, because they can pursue solutions to complex, seemingly insurmountable problems without the pressure of turning a profit. This freedom enables them to drive the research that startups and larger corporations can then turn into products and apply at scale.

Colleges and universities also play a vital role in preparing Tennessee’s workforce. Their continued cooperation and adaptability will be crucial for preparing workers — from high school grads to Ph.D.s — as the regional innovation economy grows.

Expanding Tennessee’s capacity for innovation means more and better-paying jobs, increased skill development for workers and a more diverse and resilient state economy that can better weather economic downturns. The return on investment in innovation is enormous for society generally: A conservative estimate is that every dollar invested in innovation yields at least five dollars in social benefits — and possibly as much as 20.There is more investment, talent, collaboration and entrepreneurial spirit in Tennessee than ever. The Volunteer State can build a thriving innovation economy on its own terms, based on what it uniquely does well and rooted in the quality of life its residents love.That’s the idea behind place-based innovation and the conversations that kicked off in Nashville this week: to make innovation the province of not just a few cities, but of thriving communities across the state and nation in a network of invention and ingenuity that results in a stronger, more prosperous and more competitive America. For that to happen, the fruitful discussions of the past two days must truly be just the start of the conversation.

Vanderbilt University Chancellor Daniel Diermeier and University of Tennessee, Knoxville, Chancellor Donde Plowman are members of the Council on Competitiveness and serve as national commissioners on the council’s flagship National Commission on Innovation and Competitiveness Frontiers. Deborah Wince-Smith, president and CEO of the Council on Competitiveness, co-chairs the national commission.