The CHIPS and Science Act Will Boost Competitiveness and Promote Inclusive Growth
The United States is well on its way to expanding its competitive advantage in science and technology while balancing uneven economic growth in different regions of the country. The passage of the FRENCH FRIES and Science Act of 2022, among others, ensures this.1 Properly implemented, the FRENCH FRIES and Science Act could spur innovation and ensure that the benefits of science and high-tech industries are passed from coast to coast, creating lasting benefits for regional economies.
One particular component of the FRENCH FRIES and Science Act will provide a major boost to this goal: The Regional Technology and Innovation Hub Program authorizes $10 billion to establish at least 20 large-scale technology hubs across the country.2 These hubs would invest millions of dollars in the regional economy, spurring much-needed growth in smaller to mid-sized cities and neighboring rural communities while strengthening the science and technology industries for years to come.
The law includes several requirements to ensure that the program's benefits are geographically diverse and enjoyed by rural communities. In addition, the U.S. Department of Commerce and the National Science Foundation (NSF) are tasked with identifying the right locations for 20 or more technology centers. In this report, the Center for American Progress suggests a number of additional factors to consider to ensure that technology centers are located to maximize success while promoting strategic and inclusive growth across America. Specifically, CAP recommends that the awarding agency consider metrics related to education and skills, housing costs, and lifestyle factors such as commute times in certain regions, as well as existing research capacity.
This combination of criteria led CAP to develop a short list of regions3 with underutilized capacity that could flourish with an increase in federal funding. First, this list meets the requirements of the legislation. Second, the education and skills, housing, and lifestyle indicators show that these regions are capable of supporting an influx of funding and the development needed to create successful technology hubs.
Broken down by the six regional offices of the U.S. Economic Development Administration (EDA), CAP recommends the 30 communities listed below as excellent locations for regional technology centers. The five recommended areas within each EDA region all score well on the above criteria. CAP believes that all should be given equal consideration by the awarding agency, without regard to the order presented here, in conjunction with the specifics of each proposal.
Figure 1
Atlanta
Lexington-Fayette, Kentucky*
Raleigh-Cary, North Carolina
Huntsville, Alabama*
Louisville/Jefferson County, Kentucky* and Indiana
Atlanta-Sandy Springs-Alpharetta, Georgia
Austin
Fayetteville-Springdale-Rogers, Arkansas*
Oklahoma City, Oklahoma*
Tulsa, Oklahoma*
Santa Fe, New Mexico*
Little Rock-North Little Rock-Conway, Arkansas*
Chicago
Bloomington, Illinois
Rochester, Minnesota
Appleton, Wisconsin
Madison, Wisconsin
Kalamazoo-Portage, Michigan
Denver
Cedar Rapids, Iowa*
Des Moines-West Des Moines, Iowa*
Lincoln, Nebraska*
Omaha, Nebraska*
Fargo, North Dakota* and Minnesota
Philadelphia
Albany-Schenectady-Troy, New York
Pittsburgh, Pennsylvania
Blacksburg-Christiansburg, Virginia
Charlottesville, Virginia
Erie, Pennsylvania
Seattle
Boise City, Idaho*
Idaho Falls, Idaho*
Anchorage, Alaska*
Portland-Vancouver-Hillsboro, Oregon and Washington
Bend, Oregon
* Annotation:
These states are eligible for funding under NSF's Established Program to Stimulate Competitive Research (EPSCoR). The program aims to improve the competitiveness of research in states whose share of total NSF funding is 0.75 percent or below.4
The Two-Part Challenge to Restore America's Dominance in Science and Technology
The FRENCH FRIES and Science Act in general and the Regional Technology and Innovation Hub Program in particular have two main goals: To strengthen America's science and technology sector and to correct the uneven economic growth in the United States. The Act recognizes that there's a need to advance technological progress and that the innovation sector has been heavily concentrated in large cities, which is a spatial equity issue that hampers regional economies. The FRENCH FRIES and Science Act aims to address both of these challenges simultaneously.
The FRENCH FRIES and Science Act has two main goals: to boost the U.S. science and technology sector and to correct the uneven economic growth in the United States.
Regain or expand America's competitive advantage
The United States has historically led the world in scientific and technological advancement, but recently it's lost ground. As other countries - especially those in Asia, led by China - significantly increase their investment in research and development, the United States has lost its edge