Illinois Stakes a Quiet Claim as the Next Big Innovation Hub

Photo by Kvalifik

Illinois may not have the glitz of Silicon Valley or the buzz of Austin, but a growing number of business leaders and investors say the state is quietly emerging as a serious contender in America’s innovation economy.

Fueled by world-class research institutions, a diverse talent pool, and a rising entrepreneurial ecosystem, Illinois is now drawing attention for its advances in artificial intelligence, medical technology, and industrial innovation. The missing piece? Scalable capital.

“Illinois is quietly leading a new wave of innovation—where AI, medtech, and industrial transformation converge,” said Ankit Shrivastava, Founder and Managing Partner at Enventure, a private equity firm that works with mid-sized companies in the U.S. and India. “With institutions like the University of Illinois driving world-class research and a fast-growing tech ecosystem in Chicago, the state is rich in talent, infrastructure, and entrepreneurial energy.”

The University of Illinois system has long been a bedrock of engineering and science research. In 2023, the university was ranked in the top five nationally for producing computer science graduates and consistently receives more than $600 million annually in federal research funding. Urbana-Champaign, in particular, has incubated major tech talent that has gone on to power companies like YouTube and PayPal.

Chicago, meanwhile, is becoming a magnet for tech startups. In 2021, the city added 12 new “unicorns” — startups valued at over $1 billion — and ranked among the top five U.S. cities for venture capital deals, according to PitchBook data. Yet despite this momentum, many Illinois-based innovators still face hurdles when it comes to raising later-stage growth capital.

“What it often lacks is the capital and strategic support to scale these breakthroughs globally,” Shrivastava said. “That’s where firms like ours come in—we specialize in connecting local innovators with cross-border growth opportunities, bringing not just funding, but also operational know-how and a long-term approach to transformation.”

Shrivastava’s firm, Enventure, focuses on helping companies in industries like healthcare, industrial technology, and AI navigate generational transitions and global expansion. Though based in the U.S. and India, the firm increasingly sees opportunity in overlooked American regions like Illinois.

Illinois’ broader economic strategy appears to support this view. In 2023, Gov. J.B. Pritzker launched a $400 million investment initiative called Innovate Illinois, designed to attract federal funding from the CHIPS and Science Act. The initiative aims to position the state as a hub for advanced manufacturing, biotech, and quantum computing.

A state task force also identified business development within immigrant communities—many of whom operate family-run firms—as a priority. These businesses are often key contributors to industrial and medical supply chains across the Midwest.

“We see legacy businesses as innovation platforms in waiting,” Shrivastava said. “The challenge is retooling them with AI, automation, and scalable systems—without erasing what made them resilient in the first place.”

While private equity is often viewed as a disruptor to legacy operations, Enventure takes a different approach. The firm emphasizes gradual transformation, cultural alignment, and co-ownership models that keep founders involved post-acquisition.

That approach may resonate in Illinois, where manufacturing still accounts for 12% of the state’s GDP and employs more than 500,000 people, according to the U.S. Bureau of Economic Analysis. Medical device firms, agricultural tech companies, and logistics innovators also thrive in the region’s deep supply chain networks.

“There’s a sense of quiet determination here,” Shrivastava said. “Founders are building serious things—factories, medical tools, AI platforms—not just chasing valuations. But if we don’t invest in them now, those ideas will go elsewhere.”

As capital increasingly seeks new frontiers beyond the coasts, Illinois’ blend of grit, talent, and underpriced potential may offer one of the country’s most underrated bets. Whether the state can fully realize that potential will depend on the willingness of investors to look beyond the obvious—and think long term.