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A growing number of startups are being created across the country — and they're cropping up outside of the top innovation hub cities. That's according to new data released today by TechNet and the Progressive Policy Institute.

Why it matters: Political and economic dynamics are forcing companies and investors to pay more attention to business activity in middle America, where many workers feel left out of the booming economies of the coastal cities (think San Francisco, San Jose, Seattle, New York and Boston.) Following the recession, start-up formation stalled outside of the big tech hubs like Silicon Valley. But activity has picked up over the past two years, with midwestern cities gaining momentum.

Expand chart

Data: TechNet / Progressive Policy Institute Report; Map: Lazaro Gamio / Axios

The findings:

  • Almost half (48%) of new start-up growth is happening outside of the 35 largest metro areas.
  • Top 10 emerging start-up hubs: Washington, D.C., Atlanta, Denver, Salt Lake City, Portland, Dallas, Raleigh-Durham, Worcester and Philadelphia.
  • Cities to watch include Nashville, Cleveland, New Orleans, Minneapolis, Detroit.
  • In 2014, companies in their first 5 years created 2.2 million jobs, while firms older than 5 years created 450,000 jobs.
  • New startups could create one million new jobs per year nationwide.

"Start-up activity has burst out of the tech hubs and is really spreading across the entire economy," PPI's Michael Mandel, who conducted the study, told Axios. "You're starting to see the new green shoots come up in a lot of areas."

What to watch: Local and state level officials are looking for ways to encourage more start-up growth in midwestern regions, including tax incentives for homegrown companies and helping boost access to capital.

Go deeper

Mike Allen, author of AM
2 hours ago - Politics & Policy

Biden adviser Cedric Richmond sees first-term progress on reparations

Illustration: "Axios on HBO"

White House senior adviser Cedric Richmond told "Axios on HBO" that it's "doable" for President Biden to make first-term progress on breaking down barriers for people of color, while Congress studies reparations for slavery.

Why it matters: Biden said on the campaign trail that he supports creation of a commission to study and develop proposals for reparations — direct payments for African-Americans.

Cyber CEO: Next war will hit regular Americans online

Any future real-world conflict between the United States and an adversary like China or Russia will have direct impacts on regular Americans because of the risk of cyber attack, Kevin Mandia, CEO of cybersecurity company FireEye, tells "Axios on HBO."

What they're saying: "The next conflict where the gloves come off in cyber, the American citizen will be dragged into it, whether they want to be or not. Period."

Cedric Richmond: We won't wait on GOP for "insufficient" stimulus

Top Biden adviser Cedric Richmond told "Axios on HBO" the White House believes it has bipartisan support for a stimulus bill outside the Beltway.

  • "If our choice is to wait and go bipartisan with an insufficient package, we are not going to do that."

The big picture: The bill will likely undergo an overhaul in the Senate after House Democrats narrowly passed a stimulus bill this weekend, reports Axios' Kadia Goba.