Has Chapel Hill Become an Innovation and Tech Hub?

ORANGE SLICES

Innovate Carolina

By Laurie Paolicelli
Guest Columnist

If you’ve visited downtown Chapel Hill recently, you’ve probably noticed it feels a little different. The familiar rhythms of Franklin and Rosemary Streets — once defined by bookstores, flower stalls, and cafés — now hum with the energy of entrepreneurs, students, and researchers building what’s next. The shift is more than cosmetic: Chapel Hill has quietly become one of the Southeast’s most dynamic innovation and tech ecosystems.

The good news? This future-focused energy still feels like Chapel Hill — curious, casual, and community-driven: whatever the cosmetic difference, the soul of Chapel Hill endures. Many of the new labs and workspaces downtown invite the public in for continuing-education classes, monthly seminars, and lively discussions that spill out into nearby coffee shops. You can still grab a latte, bump into a professor, and overhear a startup pitch — all before noon.

Innovate Carolina Exterior

The most visible symbol of this transformation is The Junction, the former CVS building that once housed the N.C. National Bank — and before that, the beloved Flower Ladies who brightened downtown with buckets of garden blooms. Today, the seven-story structure is buzzing with new purpose.

Inside, bright shared workspaces have replaced long rows of retail shelves. The Junction’s Rosemary Street entrance, adjacent to the old Wallace Deck, now opens into a welcoming lobby and coffee lounge where innovators and investors share ideas over cappuccinos. It’s a physical expression of what Chapel Hill has always done best — connecting people and ideas to make something extraordinary happen.

Sheryl Waddell

Under the direction of Executive Director Sheryl Waddell, The Junction offers everything from private offices to co-working pods and soundproof booths. The Junction’s story is intertwined with Innovate Carolina, the University of North Carolina at Chapel Hill’s innovation and entrepreneurship engine, led by Dr. Dedric Carter, Vice Chancellor for Innovation, Entrepreneurship, and Economic Development. Dr. Carter is a nationally recognized leader who believes that innovation must serve not just the University, but the broader community and state economy.

Through Innovate Carolina, UNC helps turn ideas into real-world solutions by providing the infrastructure, mentorship, and financial support that new ventures need to thrive. Its programs connect faculty, students, and alumni with industry partners, investors, and civic leaders — accelerating discoveries from the lab bench to the marketplace.

Innovate Carolina

Launch Chapel Hill, an accelerator supported by UNC, the Town of Chapel Hill, and KPMG, is housed within The Junction. As part of this public-private partnership, Innovate Carolina offers each cohort a year-long stay at the Junction. In its first decade, Launch companies have generated more than $105 million in revenue and raised $63 million in total funding. These alumni ventures now employ at least 802 people, including 684 in North Carolina and 435 in Orange County.

Durham Technical Community College has also opened an office at The Junction, offering professional development, corporate services, and work-based training programs. KickStart Venture Services supports research-based startup formation and growth through education, early-stage funding, and accelerator space. And 1789, a student innovation hub on Franklin Street, provides free mentoring, events, and startup support to UNC students — proof that Chapel Hill’s entrepreneurial spirit begins young.

Entrepreneur spirit is alive and well with tenants talking with Sheryl Waddell, Mark Crowell and Laurie Paolicelli

This fall, Innovate Carolina released its Fiscal Year 2025 Innovation and Economic Impact Report, revealing impressive numbers that underscore Chapel Hill’s growing influence:

• Nearly $8 billion in total economic impact generated by UNC-affiliated startups in North Carolina during FY25.
• 20%+ growth in invention disclosures, patent filings, and startup launches compared to FY24.
• 682 active UNC startups, with 537 headquartered in North Carolina.

Innovate Carolina

Chapel Hill’s innovation boom didn’t happen by accident. It reflects a deliberate partnership among the University, Town, County, and private-sector allies who believe that great ideas should have local roots. The Junction and Innovate Carolina are at the heart of that strategy, providing the talent pipeline, infrastructure, and spirit of collaboration.

From Morehead Planetarium training astronauts in the 1960s to tech founders building the next generation of companies on Franklin Street, Chapel Hill has always looked to the stars — literally and figuratively.

A Saturday afternoon in Chapel Hill.

Still Funky, Still Chapel Hill

Think downtown is all glass walls and free Wi-Fi? Think again. When the laptops are closed the old Chapel Hill magic kicks in. You can catch a band at Local 506, grab a burger at Sutton’s, sip a North Carolina whiskey at The Crunkleton, or relax in the garden at Café Driade.

And for those who want to remember college the way it used to be — He’s Not Here and The Cave, the oldest bar in Chapel, Hill, are still pouring drinks, still full of laughter, and still very Chapel Hill.

Because here, even as we build the future, we never forget the past, and how to have a little fun.

Share your thoughts with me here,

Laurie Paolicelli

Disclaimer: Published by Orange County’s Tourism Department through its Public Relations team, this story includes interviews and repurposed content from websites and partner press releases. For more, visit www.visitchapelhill.org or contact Laurie Paolicelli.

Laurie Paolicelli is executive director for the Chapel Hill/Orange County Visitors Bureau, a position she has held since 2005. Laurie has worked in tourism and marketing for twenty-five years, having served in leadership roles in Houston and California convention and visitor bureaus. She is a native of the Twin Ports of Duluth, MN/Superior Wisconsin. She holds a Bachelor of Science degree in Business and Communications from the University Wisconsin-Superior and graduate certification in Technology In Marketing from the UNC-Chapel Hill’s Hussman School of Journalism and Media. This reporter can be reached at Information@TheLocalReporter.press