The U.S. is expanding its tech frontiers with new hubs nationwide. Find out how this impacts employers and the opportunities it presents in various tech fields.
This past October, President Biden announced the designation of 31 tech hubs across the country. Known as the Regional Innovation and Technology Hubs (Tech Hubs) program, they aim to spur investment in technologies pivotal for economic advancement and national security. The program also seeks to decentralize the technological innovation that has been predominantly concentrated in cities like New York, San Francisco and Austin, Texas, effectively spreading it nationwide.
The Tech Hubs program is authorized by the CHIPS and Science Act, signed by President Biden in August 2022. To date, Congress has earmarked $500 million for the program. The president has proposed a further $4 billion, pending approval.
where are the tech hubs?
Encompassing 32 states and Puerto Rico, these 31 tech hubs represent a collaborative effort involving universities, state or local governments, economic councils and private sector entities.
The hubs, categorized by their technology focus, include:
- Autonomous systems — Tulsa, Oklahoma; Rhode Island; Montana
- Quantum computing — Colorado; Chicago, Illinois
- Biotechnology — Virginia; New Hampshire; Urbana-Champaign, Illinois; Missouri and Kansas; Indiana; Puerto Rico
- Precision medicine — Wisconsin; Baltimore, Maryland; Birmingham, Alabama; Greater Philadelphia; Minneapolis-Saint Paul, Minnesota
- Clean energy — Louisiana; Idaho and Wyoming; South Carolina; Miami-Dade, Florida; New York
- Critical minerals — Reno, Nevada; south-central Missouri
- Semiconductor manufacturing — Texas and Oklahoma; Oregon; New York; Vermont
- Materials manufacturing — Ohio; Maine; Washington; Oregon
what does tech hub status mean?
Gaining the status of a tech hub doesn't automatically mean you'll get federal funds, but it does significantly boost the chances of government support. A notable aspect of this support is the potential access to a portion of the $500 million allocated by Congress. The administration aims to award up to $70 million each to five to 10 hubs next year. Applications for this funding close on February 29, 2024.
But there's more to it than just the money. These tech hubs also get to tap into various federal resources, including development programs from the Economic Development Administration, financial support from the Treasury Department’s State Small Business Credit Initiative and expert advice from a range of federal agencies. This kind of support is a big deal — it can help the hubs attract international investments, get better market access and smoothly navigate the often choppy waters of intellectual property laws.
embracing new opportunities in emerging tech hubs
Establishing tech hubs in regions not traditionally known for tech innovation presents a unique opportunity for employers in the sector. This initiative opens doors to a more diverse talent pool, particularly in emerging tech fields. Also, incentives to attract businesses to these hubs might translate into reduced red tape and lower operational costs.
Of course, transforming these areas into buzzing tech centers won’t happen overnight. It’s a marathon, not a sprint. In the meantime, leaders should focus on building robust talent strategies to stay ahead in the competitive recruitment landscape. Get in touch with Randstad Digital, and let’s talk about your current and future tech workforce needs. With our support, you’ll be ready to jump on the opportunities these emerging hubs will eventually offer.