To allow more decentralization of technology innovation across various sectors in the US, Commerce Department said on Monday that it was listing 31 designated regional tech hubs from 370 applicants, to make the areas eligible for $500 million in federal funding.
The Biden administration had earlier this month announced seven hydrogen hubs in 16 states which would share $7 billion to jump-start the emerging industry.
Strategic places like Montana, Wisconsin, upstate New York, Vermont, Nevada, Illinois and Puerto Rico will house the regional tech hubs, with a strong focus on areas such as semiconductors, clean energy, critical minerals, biotechnology, artificial intelligence and quantum computing.
The administration of President Joe Biden believes that the government should fund key sectors to attract more private investments in industries like the clean energy, electric vehicle battery production and semiconductors.
In August 2022, Congress approved $500 million for the program as part of the landmark “Chips and Science” law which provides $52 billion for U.S. semiconductor production and research to better compete with China.
The president had also asked Congress for $4 billion to fund additional regional tech hubs this year but the Congress has not yet approved a full-year budget for the current fiscal year.
Gina Raimondo, Commerce Secretary revealed to newsmen that the program was targeted at diversifying the country from its traditional tech hubs such as Silicon Valley, Seattle and Boston.
According to him, the country’s tech ecosystems were concentrated in few places and not reflecting the full potential of the US, saying that the administration plans to award about five to 10 of the 31 tech hubs up to $75 million each by next year.
The move is also seen as a move to allowing people get a good job in small cities without any need to relocate.
The white house National Economic Director Lael Brainard also explained that regional tech program makes smart public investments in critical technologies in every region of the country.
The hubs in Washington state and Idaho will focus on developing new materials for more fuel-efficient next-generation aircraft, while an Oklahoma hub seeks to commercialize autonomous systems in areas like agriculture and pipeline inspections and the one in Wisconsin aims to develop personalized medicine.