Something big is happening across the United States. Not in Silicon Valley, not in Manhattan—but in places most investors have never thought to look. A new wave of innovation is reshaping the country, and at its core is a bold, government-backed strategy to turn regional tech hubs into global powerhouses. In just over a year, the Tech Hubs Initiative has transformed the way America builds, funds, and scales cutting-edge industries. The result? Thirty-one regions have been officially designated as tech hubs—of which eighteen have now been selected to receive implementation funding, spanning quantum computing, biotech, semiconductors, and AI—each designed to make the U.S. more competitive on the global stage.
Eric Smith was a key player in launching the initiative. As the former head of the U.S. Economic Development Administration (EDA) Tech Hubs Initiative, he helped shape the program that selected the 31 regions in the running and the 18 hubs now receiving targeted funding. For him, this was more than another federal program—it was a radical shift in how the U.S. thinks about technology and economic development.
“This initiative was a completely different paradigm,” Smith says. “Historically, economic development in the U.S. focused on local projects—things like rail infrastructure or industrial zones. With Tech Hubs, we took a different approach. We asked: what would it take for an entire region to become globally dominant in a high-tech field?”
That shift meant bringing together governors, private sector giants, research universities, and investors to focus on long-term economic growth. The competition was fierce. Hundreds of applicants vied for a spot in the program, but only those that demonstrated global potential, deep industry partnerships, and workforce readiness made the cut. The 18 winning hubs weren’t just given funding—they were given a mission: to build the future of American technology.
Geographically, the hubs aren’t whole states but regions—often a subset of one state, and in some cases spanning multiple states. The quantum hub, for instance, bridges Colorado and New Mexico. Others, like grid resilience and security, cover South Carolina and Georgia, while the biotech hub connects Missouri and Kansas.
Take Tulsa, Oklahoma, now an emerging leader in uncrewed aerial systems and advanced manufacturing. Tulsa’s ability to bring together drone manufacturers, aerospace firms, and defense agencies made it an obvious choice. Then there’s Colorado and New Mexico, home to the country’s most ambitious quantum computing hub. Instead of chasing moonshot quantum breakthroughs, they’re starting with practical applications—cryogenics and chip integration—that are already generating commercial demand.
“The U.S. Tech Hubs are no longer just ideas—they’re strong regional collaborations rapidly transforming industries and redefining technology economies.”
Eric Smith, former Director U.S. Economic Development Administration Tech Hubs Initiative
The Tech Hubs Initiative is a direct response to the U.S. government’s push to secure leadership in critical technologies. The CHIPS and Science Act provided the initial firepower, and funding has arrived in tranches. The first allocation—$500 million—came through the FY23 omnibus appropriations bill. Another $41 million was added through the FY24 regular appropriations bill, most of which went to the first 12 implementation awards announced in July 2024. A third tranche arrived through the 2025 National Defense Authorization Act (NDAA), with up to $500 million more based on proceeds from future spectrum auctions. Of that, $220 million became available immediately, and $210 million was awarded to six additional hubs in January 2025.
That’s exactly what Smith and his team were aiming for. “None of these technologies exist in isolation,” he explains. “That’s why we encouraged hubs to seek foreign direct investment (FDI) and global partnerships. Many of these projects will involve European companies, research institutions, and venture capital. The U.S. isn’t just trying to compete with global tech hubs—it’s inviting the world to be part of them.”
That’s a key point. Unlike past U.S. industrial strategies, which focused on domestic players, the Tech Hubs Initiative explicitly welcomes international collaboration. The semiconductor supply chain hub in New York’s I-Corridor, for example, is already working with European and Asian manufacturers to scale up chip production beyond what’s happening in Taiwan and South Korea.
Other hubs, like the Precision Fermentation Hub in Illinois, are redefining biotech manufacturing, leveraging research from global agritech firms and food science labs. In Montana’s Headwaters Hub, photonics and optical sensing are the next frontier, with early partnerships forming with European satellite companies.
Workforce development is the real game-changer. The most pressing challenge isn’t infrastructure—it’s talent. “We knew that for these hubs to work, they needed access to AI engineers, biomanufacturing experts, quantum computing specialists—people who can push these industries forward,” Smith says.
That’s why many of the selected hubs have partnered with local universities and technical colleges to ensure a direct pipeline of high-skill workers. In some cases, state governments have stepped in with apprenticeship programs and incentive packages specifically designed to attract talent from overseas.
Momentum is building fast. Just 18 months after funding was approved, the first wave of projects is already underway. Some hubs are launching new R&D facilities. Others are rolling out incentive programs designed to pull in venture capital, startups, and Fortune 500 partnerships. The goal isn’t just to compete with Silicon Valley—it’s to build entirely new centers of gravity for global technology.
Each hub has been tasked with hitting investment and commercialization milestones, ensuring that public money unlocks long-term private capital. This isn’t a one-off grant program—it’s a carefully structured strategy to create lasting, self-sustaining innovation economies.
For investors, the message is clear: the U.S. is moving fast on regional tech expansion, and the most forward-thinking companies are getting in early. Whether it’s biotech in Illinois, semiconductors in New York, quantum computing in Colorado, or photonics in Montana, these hubs aren’t just regional initiatives—they’re blueprints for the next era of American innovation.
Smith puts it simply: “These hubs are executing real projects to make and deliver new technologies. The question isn’t whether they’ll succeed. It’s how quickly they’ll achieve success.”
