Published in Crain’s on July 17, 2025
Opinion: Relationships are powering our next wave of innovation
By Thomas D. Kuczmarski
Twenty-five years ago, when students went to business schools like Kellogg and Booth for their MBA, it was usually to pursue a career in investment banking or Big Three consulting. Today the big action in Chicago is in entrepreneurship — not just in tech startups, but in organizations of all types and sizes and across all sectors.
It’s a shift that didn’t happen by accident. Over the past quarter-century, we have seen the evolution of an innovation-based economy in the Chicago region, and that gives us the opportunity to be a leader in the next wave of growth in the U.S. economy.
There is no one industry type that dominates our regional economy. In fact, no one industry captures more than a 14% share of the workforce. Unlike Silicon Valley’s tech focus or New York’s financial focus, Chicago’s economy spans manufacturing, finance, health care, agriculture, transportation and emerging industries ranging from cannabis to quantum computing. This creates something almost magical: an ability to see opportunity in entirely new ways and to develop connections across industries that simply isn’t happening elsewhere.
Consider Pete Kadens’ journey, a perfect example of Chicago’s cross-pollinating innovation ecosystem. He founded SoCore Energy and sold it to Southern California Edison, then launched Green Thumb Industries, which became the second-largest cannabis company in the country. Then he started Hope Chicago, addressing social equity, and now he’s working on Warmer, a tech platform focused on mental health. Or take Kristi Ross, who helped lead fintech firm Thinkorswim, then co-founded Tastytrade and is now revolutionizing the coffee experience with U3 Coffee. These aren’t linear career paths; they’re examples of Chicago innovators who leveraged diverse networks and industries to create something entirely new.
What I wish I knew 40 years ago
When I started my career at Quaker Oats, working on brands like Aunt Jemima and developing Chewy granola bars, I was focused on products and processes. What I didn’t fully grasp then is that innovation is fundamentally about people and relationships. Over the past 40 years, the most successful entrepreneurs I’ve worked with share one trait: They understand that networking isn’t separate from running their business — it is running their business. Whether through the Executives’ Club, Economic Club, Chicago Urban League, Chicago Network or even that study group in B-school, the connections you make today determine your opportunities tomorrow. This is why many venture capitalists care more about founding teams than the technology being pitched. They’re not just investing in a product idea; they’re betting on the team’s ability to build relationships, solve problems and adapt to change.
Embracing opportunity
While Chicago faces plenty of challenges, that shouldn’t distract us from the unique opportunities that we enjoy. Chicago has something increasingly rare: space to grow, unmatched access to talent and affordability.
As a result, we’ve quietly built one of the most robust and sustainable innovation ecosystems in the country. We’ve moved beyond the incubator explosion of the pre-COVID
era to focus on what really matters: education, mentorship and sustainable community building.
The next generation of innovators
This understanding led to our decision to launch Chicago Innovation Fellows, a program that merges innovation and connection. It brings together emerging leaders from government, academia, business and nonprofits. Rather than just convening these future innovators, we challenge them to work together to find practical solutions within their industries as part of their capstone projects. That is Chicago’s superpower at work. What excites me most about these fellows isn’t just their individual potential; it’s how they’re making connections across sectors in ways that will strengthen Chicago’s
innovation ecosystem for decades to come.
Looking forward
I’m more optimistic than ever about our city’s future. The next generation of Chicago entrepreneurs understands that innovation isn’t just about having a great idea. It’s about building relationships, understanding diverse perspectives and creating solutions that work in the real world.
It’s a new type of relationship-based economy and it’s just what the world needs.
Thomas D. Kuczmarski is founder of consulting firm Kuczmarski Innovation, co-founder of
Chicago Innovation and a senior lecturer at Northwestern University’s Kellogg School of Management.
By Thomas D. Kuczmarski
