The U.S. Department of Commerce has announced the creation of 31 Tech Hubs across 32 states and territories to drive innovation and foster growth outside the nation’s usual economic hotspots.
These regional tech hubs can access $500 million in funding as part of the CHIPS and Science Act, which allocates $10 billion in federal support for emerging technologies and new opportunities in fields like artificial intelligence, quantum computing, and biotechnology.
Known as the Regional Technology and Innovation Hub Program, this initiative highlights the need for increased investment from both the government and the private sector in businesses outside a handful of major U.S. cities. These “hot spots” include Austin, Boston, New York City, San Francisco, and Seattle, according to administration officials.
Commerce Secretary Gina Raimondo shared that over 400 applications were submitted to join the program.
“I have to say, in my entire public service career, I’ve never seen this level of interest in any initiative,” Raimondo told reporters during a press call previewing the announcement.
Expanding Access to Innovation Funding
This new funding will deliver transformative investments in innovation, supply chain resilience, and job creation by bringing together public and private sector partners to compete for up to $75 million in implementation grants.
“The phase 1 designees and grant recipients reflect the diverse technology sectors thriving here at home and are a testament to American innovation and opportunity,” said Deputy Secretary of Commerce Don Graves. “The Tech Hubs program will give them the tools and resources to drive economic growth nationwide—benefits Americans will experience for generations.”
As part of the Biden Administration’s Investing in America Agenda, the U.S. Department of Commerce has been making targeted public investments in innovative sectors to help attract private funding in key areas of technology.
Since launching this strategy, private companies have announced over half a trillion dollars in clean energy and manufacturing investments. This includes $230 billion for semiconductor manufacturing, nearly $140 billion for electric vehicle and battery production, and $20 billion for biomanufacturing.
The Tech Hub designations include:
- Enabling Safe and Effective Autonomous Systems: Offices in Oklahoma, Rhode Island, Massachusetts, and Montana are building an innovation ecosystem for autonomous vehicles on land, water, and in the air.
- Maintaining Our Quantum Edge: Hubs in Colorado, Illinois, Indiana, and Wisconsin are advancing research in quantum intelligence and communications.
- Advancing Biotechnology in Drugs and Medical Devices: A network of hubs in Virginia, New Hampshire, Illinois, Missouri, Kansas, Indiana, and Puerto Rico is expanding the value and supply chain for homegrown biotech products.
- Advancing Biotechnology Precision and Prediction: Hubs in Wisconsin, Maryland, Alabama, Greater Philadelphia, Minnesota, and Wisconsin are accelerating their leadership in cutting-edge biotechnology.
- Accelerating America’s Clean Energy Transition: Groups in Louisiana, Idaho, Wyoming, South Carolina, Georgia, Florida, and New York are advancing research in clean energy technologies.
- Strengthening Our Critical Minerals Supply Chain: Offices in Nevada and Missouri are focused on optimizing minerals for batteries and supply chain applications.
- Regaining Leadership in Semiconductor Manufacturing: A network of institutions in Texas, Oklahoma, Oregon, New York, and Vermont is working to boost domestic semiconductor manufacturing.
- Growing the Future of Materials Manufacturing: Tech hubs in Ohio, Maine, Washington, Idaho, and Oregon are focusing on more sustainable manufacturing processes.
This funding follows an earlier request from the administration for $4 billion from Congress to support additional tech hubs this year, though Congress has yet to pass a full-year budget for the current fiscal year.
A Diverse Funding Mix Fuels Sustainable Growth
While public-private partnerships—combining government funding, private capital, and institutional resources—are essential for strengthening local tech ecosystems, individual entrepreneurs should also adopt a similar approach to funding their ventures.
That means tapping into a mix of funding sources so you can drive growth, keep equity in your business, and support your R&D efforts.
At Boast, we’ve helped thousands of startups across North America secure non-dilutive funding to power their product roadmaps and boost their R&D. Our platform brings together key financial and project tracking tools in one place, giving you the insights you need to optimize your strategy and maximize the impact of your team’s innovation.
To learn more about U.S. government R&D tax credits and how you can leverage them to extend your product runway, download our Guide:
Contact an expert today to discover how Boast’s unique approach can help you optimize R&D and maximize non-dilutive funding.
