Tuesday, October 29

Commerce Department begins course of to fund tech hubs throughout the U.S. with $500 million in grants

WASHINGTON (AP) — The Commerce Department on Friday is launching the appliance course of for cities to obtain a complete of $500 million in grants to develop into know-how hubs.

The $500 million is a part of a $10 billion authorization from final yr’s CHIPS and Science Act to stimulate investments in new applied sciences reminiscent of synthetic intelligence, quantum computing and biotech. It’s an try and develop tech funding that’s largely concentrated round just a few U.S. cities – Austin, Texas; Boston; New York; San Francisco; and Seattle – to the remainder of the nation.

“This is about taking these places on the edge of glory to being world leaders,” Commerce Secretary Gina Raimondo instructed The Associated Press. “My job is to enhance America’s competitiveness.”

The Biden administration has made it a precedence to set an industrial technique of directing authorities funding into laptop chips, clear power and a spread of different applied sciences. Officials say that being leaders in these fields will foster financial and nationwide safety, reflecting a perception that one of the simplest ways to compete towards China’s ascendance will come from constructing inner power.

The tech hubs are supposed to construct up areas that have already got main analysis specialties however lack the entry to financing that would gasoline stronger development and enterprise formation in these fields. Pockets of the U.S. have already got modern tech reminiscent of medical units in Minnesota, robotics in Pittsburgh and agricultural know-how in Fresno, California. But the problem has been discovering methods to spice up these fields in order that authorities funding results in extra help from non-public capital.

To qualify for the tech hub cash, every applicant will want a partnership that features a number of firms, a state improvement company, employee coaching applications, a college and state and native authorities leaders. Roughly 20 cities are anticipated to be designated as tech hubs with 10 finally receiving funding.

President Biden hopes to broaden the funding over time, requesting in his price range proposal that Congress acceptable one other $4 billion for it over the subsequent two years. Raimondo mentioned that she expects a lot of functions from throughout the political spectrum.

The tech hubs program, formally the Regional Technology and Innovation Hub Program, ties right into a political message that Biden has delivered in speeches. The Democratic president has mentioned that individuals shouldn’t really feel compelled to depart their hometowns to seek out good jobs nor ought to alternative cluster in only a few elements of the nation whereas different areas wrestle.

“You shouldn’t have to move to Silicon Valley if you’re a scientist with a great idea,” Raimondo mentioned.

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