An effort under the federal CHIPS Act to formally create tech hubs across the country took a big step forward late last week, and North Carolina could become a big winner from it.
The U.S. Department of Commerce’s Economic Development Administration launched the Regional Technology and Innovation Hubs competition on May 12 — putting out what’s called a “notice of funding opportunity,” kicking off the process for regions across the nation to apply to be designated as official Tech Hubs.
The designation comes with the chance to take advantage of the $10 billion program — $500 million of which is available to be distributed this year. The goal is to promote innovation and technology jobs outside of traditional hotspots such as Silicon Valley and Boston.
North Carolina is working to secure status as a hub, the Triangle Business Journal — a CBJ sister publication — has confirmed. But it's unclear where such a tech hub would be located in the state.
A spokesman for the N.C. Department of Commerce confirms there is a state-fronted effort to get one of the hubs in North Carolina, though details were sparse. Multiple tech leaders in the Triangle tell Triangle Business Journal they are aware of the effort and that there could be multiple proposals coming from North Carolina.
North Carolina Commerce spokesman David Rhoades said the department anticipates coordinating with several groups in the state to pursue the opportunity.
The State Board of Science, Technology and Innovation — which is supported by N.C. Commerce — initially responded to the federal program's request for interest back in March, and officials are now reviewing the notice issued last week, Rhoades said.
Thom Ruhe, who leads entrepreneurial support organization NC IDEA Foundation, calls it a “transformational opportunity,” but said there’s likely to be a lot of competition across the nation.
“We believe proposals from North Carolina should emphasize investment in the entrepreneurs who are driving technology innovation and job creation in our state,” Ruhe said.
According to a White House notice issued May 12, the program aims to bring together industry, higher education institutions, state and local governments, economic development organizations and labor and workforce partners to “supercharge ecosystems of innovation for technologies that are essential to our economic and national security.” The program was authorized by the CHIPS and Science Act and is part of President Joe Biden’s Investing in America agenda, according to the notice.
Applications for planning grants and Tech Hubs designations are now being accepted. Later this year, the U.S. Department of Commerce will launch a second notice for applicants that receive designation as a Tech Hub to apply for implementation funding.
Under what’s currently covered in the notice, $15 million in planning grants will be available to applicants designated as official Tech Hubs. Then the second notice would award five to 10 of those Tech Hubs grants worth between $50 million and $75 million. Groups will be made up of higher education institutions, government agencies, companies and economic development organizations.
The plan is for Tech Hubs to focus on a specific area of technology such as artificial intelligence and biotechnology.
