By David Shepardson
WASHINGTON (Reuters) – The U.S. Commerce Division stated on Monday it was naming 31 regional tech hubs from 370 candidates, making the areas eligible for $500 million in federal funding to assist spur innovation throughout a wide range of sectors.
Commerce Secretary Gina Raimondo informed reporters this system aimed to diversify the USA away from its conventional tech hubs like Silicon Valley, Seattle and Boston.
“These tech ecosystems are concentrated in just some locations across the nation,” Raimondo stated. “They do not replicate the complete potential of our nation…. They do not nook the market on nice concepts.”
This system is a part of President Joe Biden’s perception the federal government ought to assist fund key sectors to draw extra personal sector investments in industries like electrical car battery manufacturing, semiconductors and clear power.
White Home Nationwide Financial Director Lael Brainard stated the regional tech program makes “good public investments in crucial applied sciences in each area of the nation.”
The Biden administration this month introduced seven “hydrogen hubs” in 16 states would share $7 billion to jump-start the rising business.
The designated regional tech hubs are in locations like Montana, Wisconsin, upstate New York, Vermont, Nevada, Illinois and Puerto Rico, and are targeted on areas together with semiconductors, clear power, crucial minerals, biotechnology, synthetic intelligence and quantum computing.
“Folks should not have to maneuver to get an excellent job,” Raimondo stated, noting most of the hubs are in small cities.
A Washington state and Idaho hub will concentrate on creating new supplies for extra fuel-efficient next-generation plane, whereas an Oklahoma hub seeks to commercialize autonomous methods in areas like agriculture and pipeline inspections. A Wisconsin program goals to develop personalised medication.
The hub designations aren’t any assure of federal funding.
Raimondo stated the administration subsequent yr plans to award about 5 to 10 of the 31 tech hubs as much as $75 million every.
Congress accepted $500 million for this system in August 2022 as a part of the landmark “Chips and Science” regulation that gives $52 billion for U.S. semiconductor manufacturing and analysis to raised compete with China.
Biden this yr requested Congress for $4 billion to fund extra regional tech hubs. Congress has not but accepted a full-year finances for the present fiscal yr.