For more than a century Washington State has led the way to create historic milestones in business innovation. Starting in 1916, Bill Boeing set the nation’s first airplane production facility on the shores of the Duwamish River.
Over time, the industry shifted gears, thanks to the leadership of new players developing such innovations as air mobility systems, uncrewed craft, electric aircraft and also sustainable fuels that reduce the state’s carbon footprint. This drive to break barriers, question the status quo and bring the “next big thing to market” has woven itself into the DNA of entrepreneurs, business owners and workers across the state. Just ask those representing an array of industries, including Microsoft, Amazon, Starbucks, Nordstrom, Costco, Holland America and Tommy Bahama.
Where Innovation and Creativity as a State of Mind
Washington is now a melting pot of new ideas and smart people who transform these innovations into a profitable reality. Bold ideas converge, merge and interact to create something the world has never seen before. This phenomenon fuels our economy by driving a culture of education and creativity that allows us to take the world by storm.
But don’t take our word for it. Washington State is the place to go for an innovative and strong state economy, according to online personal finance platform WalletHub, which recently gave the state high marks on both lists.
Washington was ranked fifth overall for innovation in March 2025. The assessment included criteria such as the share of science, technology, engineering, and math professionals, projected STEM jobs, and student scores on Advanced Placement exams. WalletHub also recognized Washington among the strongest state economies in June 2025. Other studies echo these results, including a 2025 Tech Alliance Benchmarking Report ranking innovation capacity in Washington State among the highest in the nation.
Where Diversity and Uniformity Converge
Credit these rankings to one of Washington’s greatest assets — its diversity. The state’s 39 counties are all very different in terms of geography, industries, workforce, lifestyle and even climate. Choosing a place to do business — and to live — in Washington is as much about choosing the pace and quality of life you desire as it is about location and amenities.
A key support to Washington’s diverse make-up is its uniform commitment to education, which is consistent across all regions of the state.
The presence of world-class research universities, a strong network of community colleges and technical schools and laboratories encourages people to explore and monetize new ideas, products and services. With this focus on education, it’s no surprise that 92% of residents have their high school diploma and 37% of residents have a bachelor’s degree or higher.
Even more impressive, Washington has nearly 35% more college graduates than the state’s educational system produces. As any business knows, a highly skilled, expert workforce offers an essential competitive edge. Washington’s workers can step in and contribute right from the get-go, maximizing production, reducing time to market, lowering costs and driving profitability.
Quality of Life is Our Secret Sauce
Moreover, the growth of alternative work arrangements, including hybrid work schedules and locations, has allowed top-tier talent to fan out across the state, finding new enclaves to call home that are both affordable and connected. This has spawned a wealth of breathtakingly new ideas as workers draw inspiration from suburban and rural communities that were previously beyond the reach of daily commutes.
You’ll see the spirit of the Northwest everywhere you look, from the funky festivals and quaint towns that dot the landscape to our diverse interests and curious nature.
It is understandable how a half-million businesses have chosen to take root and flourish in Washington State, from tiny startups to world-famous brands.
Offering An Array of Incentives for Business
Financial incentives are the norm in business attraction and retention. Washington State does not have a corporate or personal income tax, instead using a B&O tax that is only paid on gross receipts, regardless of the company’s profitability. Also, an array of tax incentives and tax credits are in place, geared toward specific, high-growth industries that fit into Washington’s sector-based strategy for economic prosperity.
Along with that, Washington also deals in other valuable currencies – the chance to change the world and to provide your workforce with an unparallelled quality of life. While others just talk dollar signs, we offer the chance to work with some of the most amazing minds and businesses bent on creating the next big thing. Your ability to bring new ideas to market and to recruit and retain top talent is the currency that counts, most, in Washington State.
The Washington State Department of Commerce works with local governments, businesses, community-based organizations and tribes to strengthen communities. The department’s diverse portfolio of more than 100 programs and effective public and private partnerships promote sustainable community and economic development to help all Washingtonians thrive.
Contact one of our business or trade experts at (206) 256-6100 or email us at moreinfo@choosewashingtonstate.com. You can also visit our website to learn more about locating or expanding a business in Washington, choosewashingtonstate.com.
