Joe Biden Designates 31 US Technology Centers to Encourage Innovation with Funds of IDR 7.9 Trillion

US President Joe Biden has determined 31 tech hubs in the US. (photo: Twitter @potus)

JAKARTA - President Joe Biden's administration on Monday 23 October announced 31 regional technology centers in the US out of 370 applicants. This makes these regions eligible to receive USD 500 million (IDR 7.9 trillion) in federal funds to encourage innovation in various sectors.

President Joe Biden's "industrial policy" effort uses federal government funds to finance prospective growth sectors, from electric vehicle battery production to semiconductors and clean energy, to attract more private sector investment.

"The US government will again lead the world in innovation across all sectors," Biden said at a White House event announcing the decision.

"This new program aims to spread the benefits of the technology sector's growth beyond traditional centers from California's Silicon Valley to Boston," said US Commerce Secretary Gina Raimondo.

"The technology ecosystem is concentrated in just a few places across the country," he told reporters. "They don't reflect the full potential of our country... They don't command the marketplace of big ideas."

The Biden administration this month announced seven "hydrogen hubs" in 16 states that will share $7 billion (IDR 111 trillion) to jump-start the burgeoning industry.

Designated regional technology centers are in cities from Baltimore, Maryland, to Birmingham, Alabama, and beyond. The industry focuses on critical minerals, biotechnology, artificial intelligence, and quantum computing, among other areas.

"People shouldn't have to move to get a good job," Raimondo said. He also noted that many of these centers are in small towns.

Industrial centers in Washington and Idaho will focus on developing new materials for next-generation aircraft that are more fuel efficient. Meanwhile industrial centers in Oklahoma are trying to commercialize autonomous systems in areas such as agriculture and pipe inspection. The program in Wisconsin aims to develop personalized medicine.

Designation of these centers does not guarantee federal funding. Raimondo said the government would provide grants to around five to 10 of the 31 technology centers next year, each amounting to up to 75 million US dollars (IDR 1.1 trillion).

Congress approved $500 million for this program in August 2022 as part of the "Chips and Science" law that provides $52 billion (IDR 824.6 trillion) for US semiconductor production and research to better compete with China.

Biden this year asked Congress to allocate USD 4 billion (IDR 63.4 trillion) to fund additional regional technology centers. Congress has not yet approved a full annual budget for the current fiscal year.

Unemployment and inflation are top concerns for voters. Biden, a Democrat with an approval rating of around 40%, is seeking another four-year term in the 2024 presidential election. Economists polled by Reuters expect data on  Thursday, October 286 will show US output growth of around 4.3% in the inflation rate in the quarter third.