CHATTANOOGA, Tenn. — From Boston to Seattle, cities across the country are vying to create technology hubs, spurring real estate developments to attract start-ups and young entrepreneurs.

To the south, this smaller but thriving city is seeing returns on its effort to do the same. Chattanooga has leveraged its lightning-fast broadband connections to develop a tech scene in its recently designed innovation district, a 140-acre section of its compact central business district.