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To grow regional economies around the sunrise industries of the future, leaders from both parties have begun embracing new federal tech-based economic development investments. The objective of these investments is to foster tech-based growth coalitions in regions left behind by the 20th-century rise of Silicon Valley and the Boston corridor. 

One of those key programs is the within the Commerce Department’s Economic Development Administration (EDA), which was authorized by Congress in 2022. They unite a broad network of regional partners, including but not limited to universities and community colleges, industry, economic development organizations, innovation and startup incubators, labor unions, philanthropies, and state agencies.

Regions with cross-sectoral teams, meaningful assets, and expertise in critical technology areas, ranging from autonomous systems, advanced biotechnology, materials manufacturing, and critical minerals, are eligible to be designated as Tech Hubs by EDA. 

With the Tech Hubs designation, the region can then compete for funds to implement projects that are most significant for sparking tech-based economic development, such as maturing emerging technologies, supporting high-potential entrepreneurs, and developing workers’ skills.

So far, have been designated, and in their first two-and-a-half years since designation, they have catalyzed meaningful innovation and economic activity. A few illustrations of impact across workforce training, infrastructure development, and entrepreneurial ecosystem building include:

• The Nevada Tech Hub, collaborating with Truckee Meadows Community College and Tesla to expand an advanced manufacturing from 85 to 700 apprentices in a year, improving participants’ career prospects and fulfilling industry workforce needs. 
• Pacific Northwest Mass Timber Tech Hub partners have invested more than $100 million in an at the Port, which includes a new factory to accelerate modular mass timber home manufacturing and a facility to test new products and train workers in their construction. 
• is leveraging the Illinois Fermentation and Agriculture Biomanufacturing (iFAB) Tech Hub to scale from its $6.5 million seed round and ensure its technology reaches the cost and scale needed to help client farms, mills, and others improve profitability by converting their bio waste into aviation fuels and chemical products.

Such early outcomes speak to the catalytic power of Tech Hubs strategies when implemented effectively. Unfortunately, they represent only a fraction of what could have been: between weak Congressional appropriations and the 2024 presidential transition, EDA has invested just 6 percent of the program’s $10 billion in authorized funding in regions by the time of this writing. As we near the fourth anniversary of the program’s creation, this is a good point to take stock of the Tech Hubs program’s status and impacts.

Understanding Federal Actions on EDA Tech Hubs

In addition to limited appropriations relative to Congress’s authorization, the implementation of the Tech Hubs program has been stymied by the change in administration and staff departures. The result on the ground is that implementation funds have been awarded only one time and to just 12 of the 31 designated regions (with another competition currently pending). 

The challenge is illustrated by this timeline of federal activity:

• 2022 August – The CHIPS & Science Act of 2022 is enacted.
• 2022 December – Congress first funds the “Science” portions of the bill, including $500 million for Tech Hubs ($41 million for FY 2023 and $459 million in emergency funds).
• 2023 May – EDA releases the first funding opportunity for Tech Hubs.
• 2023 October – EDA designates 31 regions as Tech Hubs, down-selecting from nearly 400 applications. Another 18 regions do not receive designation as a Tech Hub but do receive approximately $500,000 each to further develop their local technology strategies.
• 2024 March – Congress provides $41 million for Tech Hubs in FY 2024.
• 2024 July – Commerce announces $504 million in project implementation funds across 12 of the 31 designated regions (most awards are executed in late fall 2024). The 19 designees that do not receive project funds are awarded $500,000 each to continue convening and strengthening their consortium partners and regional strategies.
• 2024 December – Congress provides up to $500 million for Tech Hubs, with the exact amount to be determined by an by the FCC mechanism (EDA is able to access $220 million of this amount immediately via an interest-bearing loan that must be refunded by the auction proceeds or Tech Hubs appropriations).
• 2025 January – EDA announces that six new regions will receive implementation awards, but these are on May 16 by U.S. Commerce Secretary Howard Lutnick.
• 2025 March – Funding of $41 million is again provided in the FY 2025 continuing resolution.
• 2025 September – EDA launches a replacement funding competition for the 19 designated Tech Hubs that have not yet received implementation awards. The competition is ongoing.
• 2026 January – Congress provides $41 million for Tech Hubs in FY 2026 appropriations.
• 2026 June – FCC auction , providing $200 million for a new round of Tech Hubs implementation awards.

Local Implementation of Tech Hubs

The program’s partial implementation by the federal government has not prevented designated Tech Hubs from pursuing their tech and economic goals—as much as is possible within their funding constraints, at least. The 12 Tech Hubs with implementation funding have led the way in launching projects and constructing facilities, but many of the 31 designees have experienced similar successes in developing new technologies and forming new opportunities with industry partners.

Regions are advancing different technologies toward different priorities. Some are more interested in accelerating breakthroughs, while others emphasize adopting the latest advances. Allowing regions to pursue their own approaches helps local initiatives maximize their chances of success, relative to a stringent top-down program design, but hinders storytelling.

The following are just a few examples of initiatives advanced by Tech Hubs with current implementation awards:

• Akron Polymer Industry Cluster in Ohio – Funding a diverse set of , including biomass and plastics, that address real-world challenges.
• Headwaters Tech Hub in Montana – Supporting photonic integrated circuits by helping startup and other industry clients of the more rapidly develop and test their innovations.
• NY Smart I-Corridor in upstate New York – Accelerating semiconductor technologies with that support equipment and expert access. Innovation vouchers have been substantial improvements in companies’ products by the Innovation Growth Lab.
• SC NEXUS in South Carolina – Launched a new to recruit entrepreneurs, pair them with technology from federal labs and universities, and match them to grid testbeds.

Intermediaries Driving Local Impact

Fully appreciating how Tech Hubs strengthen their regions requires an understanding of the program’s structure. EDA designates Tech Hubs on behalf of a consortium of regional organizations representing industry, government, higher education, and other stakeholders. This approach (like that employed by EDA’s Build Back Better Regional Challenge, National Science Foundation’s Regional Innovation Engines, and a few others) unlocks greater access to local influence and resources than would an award to any single entity. The program is effectively designed to marshal the region’s key actors and assets toward the Tech Hub’s goal of achieving global competitiveness in its selected technology area.

Ultimately, all Tech Hubs can be understood as intermediaries that connect a breadth of stakeholders to new initiatives and opportunities. Structuring these functions (particularly with an eye on long-term sustainability) for maximum effectiveness and efficiency is, unfortunately, challenging. Every governance model has trade-offs that each coalition must navigate based on its existing assets and initiatives, political realities, and access to resources. 

A few examples illustrate the variety in how different Tech Hubs have structured the overarching leadership of their efforts.

Industry Cluster Initiative

Some regions have positioned the Tech Hub’s functions within an existing nonprofit industry cluster initiative. The KC BioHub, operated as part of BioNexus KC, is an example of this structure. BioNexus KC has long sought to connect established biosciences firms, startup companies, higher education, and economic development entities. The Tech Hubs designation prompted the organization to create a new advisory board and expand some programming, but this fits well within its longstanding mission. In other contexts, cluster nonprofits have benefited from being more agile than institutional leads, but independence often entails the budget variability that accompanies reliance on external funders.

State Economic Development Agency

For a few regions, a state economic development agency leads the coalition. South Carolina Nexus for Advanced Resilient Energy is an example of this approach. The Tech Hub has strong support from the current governor and is therefore well-positioned to activate numerous stakeholders and achieve relatively rapid alignment with other state policies. Some industry cluster initiatives have found that public sector leadership can have drawbacks, particularly by adding complications to navigating changes in policy priorities and legal limits on integration with the private sector.

Institution of Higher Education

Several Tech Hubs are led by an institution of higher education with a research specialty in the chosen field. An example of this model is the iFAB Tech Hub at the University of Illinois. Universities may be best positioned to understand current technology trends and may already house the region’s most important assets, and these resources (particularly when paired with funding sustainability) can meaningfully benefit the Tech Hub. To be effective in this role, a university may need to build a collaborative culture outside of what is often perceived to be the norm, as many external partners, investors, and companies complain about the typical institution’s willingness to build successful off-campus and commercial relationships.

What’s Next for Tech Hubs

The Tech Hubs program is continuing to scale. EDA currently has a competition expected to award another $200 million in implementation funds. The FCC spectrum auction that Congress used to capitalize this round could make another $200 million available in the near future. Congress could, of course, decide to unleash the program at its intended capacity in any upcoming funding bill.

The program’s authorization expires in September 2027, so the federal government needs to decide how to address the program in 2028 and beyond. Clearly, Tech Hubs are using the program’s convening power to catalyze local activity and achieve meaningful successes. Regardless of future funding, most individual Tech Hubs will continue to build their selected sectors at whatever pace they can achieve with the resources they can piece together. However, funding on par with Congress’s $10 billion authorization is critical to achieving the program’s intended vision of accelerating the rise of regions that guarantee national security and economic competitiveness in the technologies of the future.