About PSF’s Regional Innovation Series – As part of our goal to accelerate innovation across the United States and the world, we are using PSF’s MI ecosystem data and dashboards to analyze and identify emerging innovation ecosystems, beyond the larger centers such as Silicon Valley and Boston. This series highlights various regions and what they are doing to accelerate innovation in their local regions.
The Memphis MSA
Memphis is little known for its innovation sector, yet the outlying Memphis Metropolitan Statistical Area (MSA) has been steadily transforming into a high-tech powerhouse. This transformation is spurred by the “Digital Delta,” a coalition spearheaded by the University of Memphis focused on positioning Metro Memphis and surrounding areas as an applied technology cluster via targeted investments in the region’s infrastructure and human capital.
One invigorating aspect of this initiative is its scope, aiming to bring tech innovation to seven counties in the tri-state area of Tennessee, Arkansas, and Mississippi.
Advanced Manufacturing
A vital component of the Digital Delta’s economic strategy to create a durable ecosystem of manufacturing firms equipped with cutting-edge Industry 4.0 technologies.
So far, the Memphis Metro area has facilitated growth in advanced manufacturing through its Coalition for Advanced Manufacturing in Memphis (CAMM). This public-sector program focuses on developing the region’s STEM workforce through various initiatives, including calculus bootcamps and skills training programs, to support the growing advanced manufacturing industry.
Public investments towards strengthening the region’s STEM workforce pipeline has already paved the way for an advanced manufacturing renaissance in Memphis. Reconext, a global aftermarket electronics company, is investing over $9 million to establish its first Tennessee location in Memphis and is projected to create more than 200 jobs.
This program has also attracted capital infusions from large manufacturing companies such as Richardson International and AAON, which through their combined efforts are expected to revitalize Memphis’ manufacturing equipment and create 900 jobs in the region.
Biomedical and Healthcare Technology
Based on PSF’s ongoing regional analysis, the biomedical and healthcare technology industry attracts significant capital including almost $1 billion in federal R&D awards from 2019 to 2024. According to PSF’s comprehensive market database, this sector comprises a large portion of the region’s innovation capital, having so far attracted $973M in R&D awards. Development in this industry has greatly benefitted from close public-private partnerships, facilitating high capital infusions and a robust ecosystem that supports 73 vendors of biomedical technologies.
At the epicenter of regional innovation in this industry is the University of Memphis, which has played a pivotal role by leading the coalition to secure federal funding for transitioning the metro area into a prominent tech hub as a finalist in the Build Back Better Regional Challenge. This effort has enabled a partnership between the university and TheraSyn Bio to advance research in biomedical, bioscience, and cybersecurity fields. The University of Tennessee has similarly attracted an influx of biomedical innovation into the region via its Health Science Center Initiative, bolstering R&D and commercialization efforts as shown through their collaboration with organizations like Memphis Bioworks and TriMetis.
Innovation in the biomedical field has also been aided by private-sector initiatives often acting as incubators for emerging technology. The Digital Delta is home to the ZeroTo510 Accelerator Program, a 90-day program managed by Epicenter Memphis that supports entrepreneurs in advancing their medical technology projects toward commercialization. Additionally, Regional One Health’s Center for Innovation supports innovators in the testing phase of development through their Innovation Lab, aiming to improve patient experiences and outcomes by developing and implementing new healthcare technologies.
Artificial Intelligence and Supercomputing
Another notable tech area that the Digital Delta is currently exploring is innovation in Artificial Intelligence (AI) and supercomputing. The metro area has been especially attractive for tech giants seeking to expand their operations into urban regions with immense productive capabilities.
One such giant is xAI, announcing in December 2024 that it is seeking to expand its Colossus supercomputer facility in Memphis to incorporate over one million GPUs, which would represent the largest capital investment in the region’s history. xAI is flanked by comparably notorious tech giants such as Nvidia, Dell, and Supermicro Computer, bolstering the region’s position as a global epicenter for AI innovation.
These private sector investments are also accompanied by public funding that supports digital development. For instance, Tennessee’s Digital Opportunity Plan allocates $15.8 million to support digital skilling and workforce development programs, ensuring that all residents have access to high-speed internet and the necessary skills to work in the digital economy.
Conclusion: The Digital Delta initiative is rapidly transforming the Memphis metropolitan area into a high-tech powerhouse by fostering innovation in various industries such as biomedical technology, artificial intelligence, and advanced manufacturing. Through a combination of strategic public investments and substantial private-sector commitments, the region is attracting major players like xAI, Nvidia, and Richardson International while strengthening its STEM workforce through targeted programs. As these efforts continue to evolve, Memphis is positioning itself as a leading hub for cutting-edge technology and economic growth across Tennessee, Arkansas, and Mississippi.
