The U.S. government has initiated a $500 million investment program in an effort to create tech innovation hubs in metro areas across middle America. The Department of Commerce’s Regional Technology and Innovation Hub program, known as Tech Hubs, has issued its first notice of funding opportunity (NOFO), which allows eligible groups across the country to apply to be designated as Tech Hubs. Successful applicants will be able to utilize the funds to make their regions attractive places for entrepreneurs and technologists to live and work.
Commerce Secretary, Gina Raimondo, stated that the U.S. leads the world in technological innovation, but the tech ecosystem is heavily concentrated, with 80% of U.S. venture capital money invested in the San Francisco Bay Area, Northeast and Southern California. Raimondo believes that there is significant potential for tech innovation across the country, as it has some of the world’s best research institutions, many of which are located in America’s heartland.
Program Details
Congress has authorized $10 billion for the Tech Hubs program between fiscal years 2023 and 2027, with $500 million available for distribution this year. Under the current funding opportunity, applicants designated as Tech Hubs will receive a total of $15 million in planning grants. The Department of Commerce will then award five to ten designated Tech Hubs grants of $50 million to $75 million each to help build out capacity in their regions later this year.
The program requires eligible groups to include at least one entity from each of the following categories: a higher education institution, subdivision of local or state government, industry or firm in relevant tech or manufacturing fields, economic development group, and labor organization or workforce training group. Tech Hubs should focus on specific key areas of technology, including artificial intelligence, robotics, natural disaster prevention, biotechnology, cybersecurity, energy efficiency, and more.
The government hopes that the investment will help regions across the country become essential centers of innovation, creating more well-paying jobs across a wider swath of the nation. The program is also viewed as an important investment in U.S. national security, as the nation is currently investing in domestic semiconductor manufacturing to reduce its dependence on chips made in Taiwan. The Tech Hubs program aims to ensure that the U.S. stays ahead of the curve on essential technologies, from quantum to artificial intelligence to biotech, for sustained innovation and competitiveness in the global market.
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