Standing at 130 feet tall, the twin smokestacks that tower over the Innovation Quarter (iQ) were once a sign of the coal-powered industry that shaped Winston-Salem. Now an iconic piece of the iQ skyline, these smokestacks serve as a reminder of the city’s push for continual innovation.
Since the early days of the iQ, the innovation district has served as an economic catalyst, drawing life science companies, talent and manufacturing into a collaborative community. Beyond its influence in Winston-Salem, the iQ is quickly becoming an entrepreneurial gateway for the state of North Carolina.
As an innovation district, the mission of the iQ is simple: drive economic growth while building a thriving entrepreneurial community. With more than 150 businesses now operating out of the district, the iQ has continued to recruit new companies and developed an active community. But has the district delivered on its intended impact?
The iQ’s Role in Winston-Salem’s Transformation
Through its development, the iQ tells the story of the city, showcasing both Winston-Salem’s industrial history and its bright future in advancing industries like life sciences, information technology and clinical research.
“The iQ is a visual testimony of who we are as a city. Instead of demolishing our past, we choose to reuse existing assets to reshape our story for the future,” Ellis Keifer says.
Keifer is the vice president of economic development at Greater Winston-Salem Inc., the local chamber of commerce with a mission to develop a community poised for business growth and sustainability. Her role places her at the forefront of business recruitment, expansion and retention, where she promotes the city to potential investors and partnerships.
Keifer has kept a close eye on the impact of the iQ in the broader scope of both the city and state. As Winston-Salem continually expands, the iQ has changed what Winston-Salem brings to the table, and this heavily impacts recruitment of businesses and talent to the region.
Winston’s history is founded in textiles and tobacco, industries that once supplied jobs to a large percentage of the city’s workforce. Now, the city positions itself as a destination for cutting-edge research, biomedical engineering and technological integrations that allow the city to draw in new industries.
The Innovation Quarter makes up a very tangible and visible symbol of the city’s economic development strategy. Winston-Salem needed to create a new image of a city of innovation and rapid change, and the Innovation Quarter is a key part of that new image,” says Mayor Allen Joines.
The longest serving mayor in Winston-Salem’s history, Joines has helped oversee Winston-Salem’s transition.
The Economic Impact of the iQ by the Numbers
One way to assess if the iQ has followed through on its intended economic impact is by looking at the numbers.
Lindsey Schwab is the associate vice president of districts ecosystem development with Advocate Health, a primary stakeholder and operator of the iQ. She’s been part of the iQ since its early days and now fills an integral role in the growth and development of innovation districts.
“The iQ continues Winston-Salem’s legacy of reinvention, contributing to the economic development and growth of the city,” Schwab says.
As of 2026, the iQ has compiled statistics that provide a picture of the district’s impact:
- 4,000+: The number of full-time employees in the iQ
- $2 billion: The estimated total economic impact of the iQ to Winston-Salem’s economy annually, which is based on the number of full-time employees in the district, associated employment costs and household spending
- $5 million: The amount the iQ puts back into Winston-Salem and Forsyth County through property tax
- $59.1 million: What the iQ contributes annually through state and local tax revenue
- $800 million: The amount of capital investment, which is money invested in buildings and other long-term assets from private and public investors
Looking at the direct effects of economic impact from the iQ such as full-time jobs created, property taxes paid and invested capital, it becomes apparent that the district has produced results quickly. This said, much of the iQ’s impact lies beyond the numbers.
“The real impact of the iQ goes beyond the economic ripple effects of development and growth,” Schwab says. “It shows up in more human ways too: better health and wellbeing, a stronger tax base and a talent pipeline that gives people real workforce opportunities.”
A Recruitment Tool for Winston-Salem
In addition to direct economic impact on Winston-Salem, the iQ functions as a recruiting tool to draw new companies seeking to relocate to the city or provide legacy businesses with space and resources to expand.
“I often refer to the iQ as the crown jewel of downtown Winston-Salem, a space that catches the eye of developers, talent and educators alike. In my role, I’m often meeting with companies that are immediately drawn to the district for the real estate, technology and partnership opportunities,” Keifer says.
The iQ has specifically garnered recruitment attention from the life sciences sector, with companies like BioSpherix and CorestemChemon locating in Winston-Salem in recent years. Biotech companies, from startups to mature businesses, are finding the space and resources within the iQ that position them for growth.
The iQ is part of several initiatives – such as Sparq Labs and the BioNest Fund – that help provide early-stage biotech firms with resources and easy entry into the iQ.
Sparq Labs supports growing life science companies by providing flexible dry and wet lab space with built-to-suit infrastructure, shared amenities and access to the growing innovation ecosystem of the iQ. With flexible leasing and reasonable rates, Sparq Labs is suited for companies looking to lengthen their runways and make their research dollars go further.
The BioNest Fund was established by Greater Winston-Salem Inc. in 2025 as a funding source for science businesses looking to move or expand within the city. For smaller businesses, qualifying for traditional tax incentives and development incentives isn’t always an option due to investment thresholds, so the BioNest Fund contributes funds to help build out space, which can be an obstacle for smaller companies.
These initiatives and others like them create a thriving life sciences industry that also results in an increase of jobs in Winston-Salem.
“Through the iQ’s anchor, Wake Forest University School of Medicine, life science employment in and around the district has grown about 1.4% over the past decade, roughly double the pace of private-sector job growth across the Winston-Salem region,” Schwab says.
Ken Millett is the director of economic development for the City of Winston-Salem and oversees programs for job creation and retention. In his role, Millett sees the most noticeable impact of the iQ in the creation of sustainable jobs and the reenvisioning of downtown spaces as vessels for growth.
“The iQ has helped spur the transition from a manufacturing-based economy in Winston-Salem into one shaped by research, technology and life sciences. With this, it’s created a flow of sustainable jobs and growing entrepreneurial resources,” Millett says.
Schwab adds, “The iQ keeps talent local. Graduates and researchers who might leave for Raleigh, San Diego or Boston have a reason to build their careers in Winston-Salem instead.”
A Place Where People Want to Live
Beyond industry appeal, the desirability of a thriving downtown innovation district and the associated lifestyle acts as a population driver for the city.
The iQ provides many of the elements needed for a vibrant community – entertainment and festivals, restaurants and bars, wellness activities and green space. From hosting outdoor yoga in Bailey Park to Techstars Startup Weekends in Sparq, the iQ runs both community-building events and programming that can jump-start a career.
The iQ’s everyday amenities also help make downtown a desirable place to be. A weeknight might hold a casual beer with a round of trivia or cornhole with friends, and weekends might include catching a concert in the Coal Pit after a sit-down dinner or drinks.
“Having available space that is positioned for growth is one thing, but showcasing a strong quality of life is another recruitment tool. People gravitate toward communities that are future-oriented and built with collaborative communities in mind,” Keifer says.
In terms of a growing talent pool, North Carolina, along with Florida and Texas, is outpacing the rest of the country for domestic migration and population growth. These new transplants are drawn toward workforce training programs, educational ecosystems and retirement opportunities. With each wave of increased population, the local economy is further stabilized.
“While the appeal of the iQ is certainly a big factor for company and industry recruitment, it’s also a big deal for attracting residents downtown – having a space where you work, play and live all within a walkable few miles,” Keifer says.
The iQ helps provide that lifestyle draw for Winston-Salem’s downtown.
Contributing To Statewide Growth
From a statewide perspective, the iQ has quickly become a funnel for biotech and life science company placements, playing a larger role as the state showcases an emphasis on the sector. Sparq Labs holds particular allure for small biotech companies wanting to establish themselves in North Carolina with accessible research and buildable opportunities.
“When you put researchers, companies, clinicians and investors in the same few blocks, things move faster. Someone can take an idea from the lab into an early stage clinical trial without ever leaving the district,” Schwab says.
For example, Sparq Labs sits adjacent to the Wake Forest Institute for Regenerative Medicine (WFIRM) ) – an arm of Wake Forest University School of Medicine, the academic core of Advocate Health – and enables researchers and life science companies to form long-lasting partnerships that can expand alongside the iQ.
When companies are looking to get their foot in North Carolina, the proximity to the third largest nonprofit health system in the country and one of the top private medical schools is attractive, creating a community within the iQ that is rapidly growing, but approachable.
“The iQ offers something you can’t get elsewhere in the state. Oftentimes, in larger markets, smaller companies get overshadowed and have limited access to resources, but in the iQ there is an active community eager to assist newcomers. Many companies we’re working with are drawn to the iQ as an accessible entry point,” Keifer says.
In Winston-Salem, companies are only a step or two away from someone with both the knowledge and willingness to help with challenges, and prospective companies can sense this. This unique ability to have a community that rallies around an idea and embraces new chapters makes the iQ a particularly rich place to root.
“The impact of the new companies created in the Innovation Quarter, which has produced significant new job creation, is critical to the city’s economic health,” Mayor Joines says. “The additional impact of the positive national and international recognition of the research that is being carried out there will produce additional investment in our city.”
Developing the Next Phase of Growth
With all the growth happening in life sciences and other industries, the innovation district is filling up.
“Right now, the iQ is at 90% occupancy, which shows just how much demand there is for space in the district,” Schwab says.
The upcoming development of iQ Phase II will add 28 acres with approximately 2.7 million square feet planned for mixed-use development, labs, offices, residences and retail spaces. Spanning from Third Street to Salem Parkway, Phase II will significantly expand the iQ and strengthen the connection between downtown and communities on its east side.
One of those communities is Winston-Salem State University, which already has a presence in the iQ. However, this new development will bring the iQ to its front door, and with it, hopefully even more opportunities for academic connectivity beyond physical space.
“The next phase of development will double the district’s footprint, bringing more jobs and property tax revenue to the city and county. We’re being intentional about building talent pipelines and workforce development opportunities so the whole community grows with it,” Schwab says.
Additionally, with this expansion, the iQ will grow the city’s skyline, and bring it even closer into view for throughway travelers on highway U.S. 52 and Salem Parkway as an initial snapshot of Winston-Salem.
These various growth factors create appeal for both established entrepreneurs in the region looking to expand and as a long-term investment for companies locating in Winston-Salem.
A Community-First Blueprint
A district characterized by ingenuity, collaboration and opportunity, the iQ has a steady hand in steering Winston-Salem’s future. But, more than this, the district has become known as a base of genuine community.
“The heartfelt impact of the iQ can be felt in the day-to-day interactions that take place there: having lunch at Barcelona Burger, sitting under the railroad tracks, waving to friends and colleagues across the bridge. It’s a place where you quickly become seen and known,” Keifer says.
