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When rural communities begin to envision a more tech-driven future, they often look to infrastructure improvements, workforce training programs, or access to capital partners. But one of the most important and sometimes underutilized partners already exists in the heart of many rural places: colleges and universities.

Higher education institutions — whether they are community colleges, regional universities, or research campuses — are uniquely positioned to help rural America tackle some of its biggest economic challenges. From building talent pipelines to supporting entrepreneurship and innovation, they offer the people, the programs, and the capacity to secure and manage public and private funding to help rural communities thrive in the tech economy.

And in a moment when many rural places are grappling with brain drain (i.e., young people leaving for opportunities elsewhere), these institutions can play a major role in helping retain and attract the next generation of tech-enabled talent.

The rural tech opportunity gap

Graph displaying employment relative to 1969 levels.

The challenge is real. Rural America would need a fivefold increase in tech employment to match the concentration of tech jobs in metro areas. Today, only about 6% of high-tech businesses are based in rural counties, but this isn’t because rural places lack ideas, talent, or potential; it’s because the systems that drive innovation and investment have long favored larger cities.

Technology-Based Economic Development (TBED) gives rural communities a framework to change that. By investing in local talent, supporting entrepreneurs, and building inclusive innovation ecosystems, TBED can help rural regions compete in the modern economy. And higher education has a key role to play in making that happen.

How higher ed fuels rural tech growth

Across the country, rural colleges and universities are stepping up as leaders in tech-based economic development. Based on examples from CORI’s work and partner communities, we see three primary ways they are driving impact:

1. Growing local tech talent

One of the most powerful ways higher ed supports TBED is by helping people gain the skills they need to access tech-enabled jobs and build businesses of their own.

Flexible training for working adults

Arkansas State University (ASU)–Newport partnered with the Newport Economic Development Commission and the Arkansas Center for Data Sciences to launch the Tech Depot: a downtown hub offering short-term courses in IT, data analytics, and automation. Many of these courses are non-credit and designed for working adults. The program has far exceeded expectations, with hundreds of training sessions happening per week. This kind of flexible, accessible training helps people upskill without having to leave their community.

Hands-on innovation experiences

In Seward, Nebraska, Concordia University hosted the Nebraska Tech Builders Challenge — a rural hackathon where students from agriculture, business, and tech majors worked together to develop real-world tech solutions. Projects tackled local needs like livestock health tracking and emergency farm support apps. Events like these not only teach technical and problem-solving skills, they build confidence and encourage students to imagine tech careers rooted in their hometowns.

Pathways to employment

ASU–Newport has also helped lead the development of an IT apprenticeship program, connecting learners with paid, on-the-job training opportunities at local companies. For many participants, it’s a chance to switch careers or build new skills without relocating. 

In Waterville, Maine, Colby College is expanding access to tech careers through new programs in business analytics and cybersecurity, as well as a partnership with the Roux Institute focused on growing Maine’s tech economy. These offerings, paired with student-facing innovation programs like Top Gun, give learners a chance to gain in-demand skills without leaving the region. These efforts show how higher ed can adapt to meet learners where they are.

2. Creating spaces for innovation and entrepreneurship

Higher education institutions also serve as physical and intellectual hubs for innovation. They provide spaces where startups can launch their products and services, students can test ideas, and businesses can access support.

In Ruston, Louisiana Tech University has created a strong model for how a rural university can anchor a local innovation economy. Through its Innovation Enterprise initiative, the university runs spaces like Tech Pointe, where students and early-stage companies collaborate, and the Enterprise Campus, where more established tech firms work alongside university researchers and interns.

What makes this work isn’t just the space, it’s the relationships. As Kathy Wyatt, director of Louisiana Tech’s Enterprise Center, says, “It’s never about real estate, it’s always about connections.” 

These connections take many forms: faculty mentoring startups, students interning with local firms, and businesses helping to shape the university’s programs. In downtown Waterville, Colby College has invested in mixed-use buildings, arts spaces, and a boutique hotel that together create new opportunities for collaboration between students, startups, and local businesses. Nearby, Bricks Coworking and Dirigo Labs provide dedicated space and support for entrepreneurs at various stages. 

In Aberdeen, South Dakota, Northern State University and the Aberdeen Development Corporation partnered to launch the Northern Innovation & Startup Center, an initiative aimed at supporting early-stage companies and growing the region’s tech capacity. That level of collaboration supports a growing pipeline of tech talent and entrepreneurship in the region.

3. Convening partners and mobilizing resources

Higher education institutions often serve as trusted conveners, bringing together local leaders, employers, and community organizations to build shared strategies for tech growth.

In Ruston, much of the early success in building a tech economy came from Louisiana Tech’s leadership in pursuing grant opportunities that funded entrepreneurship programs, innovation spaces, and ecosystem-building efforts. As one local leader noted, this institutional leadership helped unlock other investments and create momentum across the region.

In Waterville, the Central Maine Growth Council works alongside multiple colleges and community organizations to lead Dirigo Labs, a regional accelerator supported by federal Build to Scale funding. The program brings together students, faculty, and founders to build a more resilient local economy. Similarly, in Aberdeen, Northern State University’s collaboration with the Aberdeen Development Corporation has helped secure resources and create alignment around shared goals for innovation-led growth.

In Arkansas, ASU–Newport’s collaboration with local government, nonprofits, and workforce partners helped make the Tech Depot a reality. Their shared commitment earned them the U.S. Economic Development Administration’s “Star of the Southwest” award. This accolade is a testament to what’s possible when higher education and community stakeholders work together toward a common goal.

Practical steps for collaboration

So, how can communities and higher education institutions partner more effectively to grow rural tech ecosystems? Here are some key strategies we’ve found based on our work with rural communities across the country:

For colleges and universities

  • Make TBED part of your mission and align programs with regional economic priorities.
  • Encourage faculty and staff to engage in applied research, grant writing, and community partnerships.
  • Offer flexible learning options, including non-credit or short-term programs that respond to local workforce needs.
  • Use campus spaces creatively: repurpose buildings into labs, coworking spaces, or incubators for startups.

For local leaders, businesses, and economic development organizations

  • Engage early and often with nearby colleges to explore collaboration. It’s important to understand and align with the institution’s goals and constraints — this is a reciprocal relationship.
  • Co-create programs that support both students and employers, such as internships, apprenticeships, or project-based learning, like a hackathon or tech builders challenge event.
  • Help shape programs by sharing industry needs and workforce trends in ways that support long-term alignment.

For policymakers and funders

  • Invest in rural higher ed as a catalyst — support innovation centers, training programs, and faculty capacity.
  • Encourage regional partnerships between universities, community colleges, and rural communities.
  • Highlight and scale what’s working — success stories can inspire similar efforts elsewhere.

Looking ahead

When colleges and rural communities work in partnership, the impact goes far beyond one program or grant: students gain valuable skills, startups find the support they need, and rural towns build the foundations of a more resilient, tech-enabled economy.

We believe higher education isn’t just part of the solution — it’s a powerful driver of rural prosperity. By fostering stronger partnerships, listening to each other’s needs, and aligning efforts around shared goals, we can unlock the full potential of rural innovation.