How Place-Based Philanthropy is Driving Tech-Based Economic Development in Rural America

Rural America is at a turning point. With historic federal investments in broadband infrastructure and a growing recognition of the potential for tech-based economies, the question is no longer if rural regions can participate in the tech economy—but how. Place-based philanthropy is playing a key role by strengthening regional leadership, shifting narratives about rural potential, and aligning priorities toward innovation-driven growth.

Building Leadership Capacity for Tech-Driven Growth

While broadband expansion is critical, infrastructure alone isn’t enough. Rural communities need leaders who can leverage these investments to drive meaningful economic change. Place-based philanthropy is stepping in to fill this gap. The Vermont Community Foundation, for example, made an initial $250,000 investment in five Vermont communities, helping to build local leadership capacity. This early support has since unlocked more than $6 million in state and federal funding to expand tech training pathways and entrepreneurship programming, positioning these communities for long-term success.

Other foundations are making similar catalytic investments. The TLL Temple Foundation has helped build capacity and position Nacogdoches as a regional leader in innovation-driven economic development, impacting 14 counties in Deep East Texas. Meanwhile, the Patterson Family Foundation has played a key role in developing multiple emerging innovation hubs across Kansas and Missouri, creating new opportunities for entrepreneurs and tech workers in these states.

Tailoring Strategies to Unique Regional Economies

Unlike urban areas, where economic assets are densely concentrated, rural economies require customized approaches to tech-based development. While common frameworks exist, each region must adapt strategies to fit its specific strengths, workforce composition, and economic conditions. Place-based philanthropy helps bridge this gap, ensuring that innovation hubs, startup ecosystems, and training programs align with the unique realities of each community.

Changing the Narrative About Rural Innovation

A critical piece of this work is shifting the perception of what’s possible in rural America. By supporting storytelling efforts, convening thought leaders, and demonstrating successful models of rural tech growth, philanthropy is helping to redefine rural economies—not as places left behind, but as emerging centers of innovation.

With continued investment in leadership and regional capacity, rural America is poised to become a meaningful player in the tech-driven economy. The future isn’t just urban—it’s rural, too.

Interested in building your rural tech-driven economy?