Omaha recently found itself at the bottom of Technical.ly’s inaugural Map of Innovation Ecosystems rankings, earning a score of just 0.25 in the Technical.ly Innovation Index. Despite this low ranking, the city excelled in key areas like cost of living and economic mobility, signaling a strong foundation for future growth.

In this follow-up from last week’s story on the map, local leaders discuss Omaha’s strengths and challenges, and efforts to shape the city into a thriving innovation hub.

Omaha’s Strengths

Omaha’s affordability emerged as a significant advantage, scoring the highest among the 24 cities analyzed. The city’s low cost of living makes it an attractive hub for startups seeking to scale efficiently without the financial pressures of pricier innovation hubs like San Francisco or New York. Additionally, Omaha ranks sixth in economic mobility, reflecting its potential to help individuals and businesses thrive within the ecosystem.

These strengths are seen as a springboard for further development. Heath Mello, president and CEO of the Greater Omaha Chamber, pointed out the importance of leveraging Omaha’s unique advantages, saying “Strategic investments in our urban core and placemaking are key to attracting new tech companies. Omaha is well known as a tech hub, and with a growing network of startup support organizations, the Chamber will continue to work alongside these groups to ensure new businesses receive market research and business intelligence to fuel their growth.”

The city’s ease of doing business, ranking in the top 50% of cities on the map, further reinforces its potential as a destination for entrepreneurs seeking alternatives to more expensive and competitive markets.

Challenges to Address

While Omaha’s strengths are clear, the Ecosystem Map highlights significant challenges that could hinder the city’s growth. The city lags in research and development (R&D) spending, which is a critical driver of innovation. Without robust R&D investments, Omaha risks falling behind regions with more dynamic academic-industry collaborations, such as Boston or Silicon Valley.

Startup valuation and scalability are also areas for improvement. Fewer high-profile exits and unicorns have limited the city’s ability to attract venture capital and nurture high-growth companies. 

Nebraska Business Development Center (NBDC) Executive Director Dan Curran, said, “Our investor-ready individuals and groups are wanting to improve the research and technology that drive Omaha’s innovation hubs.” Connecting academic talent to private sector opportunities and scaling resources for startups will help advance Omaha’s innovation economy. 

Technical.ly Editorial Director Danya Henninger, said, “Investing in research and development can drive invention and startup formation while attracting outside capital can help scale these efforts.”

Omaha’s advantages in affordability and mobility create a solid base for growth. Henninger said the city could boost its innovation potential by building a dense, collaborative ecosystem — similar to Pittsburgh’s robotics-focused network or Denver’s aerospace-driven economy.

The Role of Storytelling in Innovation

An often overlooked element of fostering innovation is the power of storytelling. 

“Storytelling shares local successes with broader audiences and helps shape a region’s identity,” Henninger explained. “Narratives about thriving startups, cutting-edge research and economic wins inspire community pride and attract new talent and investment while holding civic leaders and bigger companies accountable for their actions or lack thereof.”

Henninger shared — storytelling is a critical yet often overlooked part of what we like to call the “Innovation Ecosystem Stack.” 

Omaha’s ecosystem could benefit from reframing its narrative to emphasize collaborative success stories and spotlight underappreciated assets, such as its accessibility to elite public and private sector leaders. According to Josh Nichol-Caddy, director of innovation & technology at NBDC, storytelling could also help break traditional industry silos by encouraging founders to think more broadly about their startup applications.

“At least in the early stages, when founders need to throw all the pasta at the wall to see what sticks, it might help to think less specifically about what industry a startup is in,” said Nichol-Caddy. He also added Omaha startups should think more about its mechanisms of action instead of customer segments.

Moving Forward: A Path to Growth

Omaha’s stakeholders agree on the need for a coordinated strategy to gain ground on the Innovation Index and compete with higher-ranking cities. Key recommendations include:

1. Increased R&D Investments: Allocating more resources to university-led research and commercialization to drive innovation and invention.
2. Support for Scalable Startups: Connecting startups with investors, fostering public-private partnerships and creating a dense, collaborative ecosystem.
3. Regional Collaboration: Partnering with neighboring hubs like Kansas City and Des Moines to amplify collective innovation and attract outside capital.
4. Enhanced Storytelling: Crafting and sharing success stories to inspire pride, attract talent and build visibility.

Looking Ahead

Omaha’s placement on the Technical.ly Ecosystem Map provides both a benchmark and a roadmap for progress. While the city has work to do in areas like R&D spending and startup valuations, its affordability, economic mobility and collaborative community offer a solid foundation for growth.

As Technical.ly updates its map in the future, Omaha has a unique opportunity to climb the ranks by prioritizing investments, fostering connections and reshaping its narrative. With the right strategy, Omaha can redefine itself as a competitive innovation hub in the heart of the Midwest, bridging its current gaps and building momentum toward a brighter future.