Crypto-friendly policies and startup incentives are helping reshape the U.S. innovation landscape, according to the .
The index ranks states based on their ability to attract entrepreneurs, investment, and emerging technologies.
The top performers and laggards
The March 2026 update shows that states embracing digital assets and emerging technologies are gaining ground. Meanwhile, some traditional technology hubs are losing momentum.
Texas climbed to fourth place in the DII US ranking due to overall venture capital investment, cryptocurrency and blockchain-related funding, and new business creation. Oklahoma also posted one of the biggest gains, rising to 15th place after strong growth in startup formation and crypto-related venture investment.
Meanwhile, California dropped to 31st place and New York fell to 49th despite their large economies and established innovation ecosystems. The states have been dragged down by weaker business formations.
New Hampshire ranked third, despite being 40th in GDP and 42nd in population size. The state’s tax environment and startup-friendly policies have helped it attract entrepreneurs.
Draper has stated that innovation moves toward conservative states due to punishing taxes and unfavorable regulation in liberal states.
The index also shows Canada falling from third to fifth place and other regions seeing declines linked to instability and capital flight.
Cryptocurrency, blockchain adoption, and policies supporting business formation are becoming increasingly important factors in determining where the next generation of startups will emerge, according to Draper.
InkByte Editorial Team
Dan Burgin
