Map shows Biden’s new 31 “tech hubs” in the US that are ripe for investment

President Joe Biden on Monday named 31 regional innovation and technology centers (tech hubs) across the U.S., marking a step in boosting American innovation, manufacturing and job opportunities.

The initiative grew out of the CHIPS and Science Act that Biden signed last August and was orchestrated by Washington Senator Maria Cantwell, chairwoman of the Senate Committee on Commerce, Science and Transportation.

The Phase 1 Tech Hubs, spread across 32 states and Puerto Rico, span a wide range of technology areas including semiconductors, clean energy, biotechnology and quantum computing, among others. They aim to integrate the private sector, local governments, educational institutions, labor unions, tribal communities and nonprofit organizations.

The hubs can apply for implementation grants of up to $75 million to drive progress in innovation, supply chain resilience and job creation. Senator Cantwell praised the Department of Commerce’s recognition of the Spokane-based American Aerospace Materials Manufacturing Center as a U.S. technology center for aerospace materials manufacturing.

The Tech Hubs program aims to strengthen U.S. economic and national security by directing investments to regions that have the potential to become globally competitive innovation hubs over the next decade. The program is intended to accelerate the creation and growth of industries and companies, thereby promoting economic growth.

More broadly, the program represents part of President Biden’s Investing in America agenda, which took effect in August last year. This is the government’s commitment to revitalizing American manufacturing, boosting private sector investment and creating good-paying jobs.

According to the Department of Commerce, this is the initial phase of the Tech Hubs program.

The economic forecast of the initiative is significant. Designated Tech Hubs are now eligible to apply for the Tech Hubs Phase 2 Notice of Funding Opportunity, in which the Economic Development Administration (EDA) will award implementation grants of between $40 million and $70 million each, for a total of nearly $500 million becomes.

Funding for the Tech Hubs initiative comes from the CHIPS and Science Act. The legislation provided a total of $280 billion in taxpayer money to not only strengthen semiconductor manufacturing but also advance research and commercialization of cutting-edge technologies.

Of the $280 billion total, $200 billion was earmarked for scientific research and commercialization efforts, and $52.7 billion was earmarked for semiconductor manufacturing, research and development, and workforce development. Another $24 billion is earmarked for tax credits for chip production, including $3 billion for targeted advanced technology and wireless supply chain programs.

The Tech Hubs program is part of the overarching law and represents an initial allocation of $10 billion to support new growth capacity. The Hubs are not physical locations, but are considered catalysts for place-based economic development with the aim of driving technology-led growth in areas , which are already considered “high potential”.

In Chicago, for example, the newly founded “Quantum Tech Hub: The Bloch” is expected to generate an estimated annual economic output of $8.7 billion by 2035 and create up to 8,000 high-paying jobs.

In addition, the EDA established a type of on-ramp program for areas not considered particularly promising, awarding 29 strategy development grants to help communities improve local coordination and planning activities and potentially make them more competitive for future funding opportunities for tech hubs.

The Tech Hubs award is expected to be a recognized indicator of a region’s potential for rapid economic growth, thereby attracting additional private investment and supporting job creation. To date, nearly 400 applications have been received from regional consortia of industry, academia, state and local governments, economic development organizations, and labor and labor partners.

U.S. Commerce Secretary Gina Raimondo said the Tech Hubs program is fundamental to the mission of enabling the U.S. to “outperform and innovate the rest of the world.”