Regionally Focused Investments Build Meaningful Economic Ecosystems
In recent years, EDA has evolved its investment strategies to include a focus on a transformational regional approach that builds meaningful economic ecosystems. That means building our capacity in people, places, and possibilities through investments in America’s workforce, infrastructure, industries, and technologies to create sustainable regional economic development, and in turn, promote equitable economic growth, create good-paying jobs, and enhance U.S. global competitiveness.
This regional investment model is highlighted in multiple new investment initiatives at EDA, including in two new programs, the Regional Innovation and Tech Hubs Program (Tech Hubs) and the Distressed Area Recompete Pilot Program (Recompete Pilot Program), which were authorized by the CHIPS and Science Act of 2022.
The $10 billion Tech Hubs program — of which $500 million was appropriated to EDA in the FY2023 Omnibus Appropriations Bill) — is an economic development initiative to drive technology- and innovation-centric growth that leverages existing research and development strengths, and technology demonstration and deployment capacities (public and private) within a region to catalyze the creation of good jobs for American workers at all skill levels, equitably and inclusively.
The Tech Hubs program isn’t about one building or one entity. It’s about collectively leveraging the economic drivers in a region — its assets, resources, capacity, and potential — focused on emerging technologies critical to our national and economic security and boosting the ecosystem to drive equitable and inclusive growth. With the right support, regions could become global leaders and drivers of the next wave of innovative technologies, businesses, and products that will continue to propel our nation’s global leadership and competitiveness. EDA’s broad goal through this program is to give regions across the country the support needed to be architects of the future.
The Recompete Pilot Program, another program authorized by CHIPS, will make focused investments in distressed communities across the country, creating and connecting workers to good jobs and supporting long-term comprehensive economic development. It’s designed to alleviate persistent economic distress in eligible areas – places with low prime-age (25 to 54 years of age) employment rates – by investing in strategic planning, capacity building, workforce development, business and entrepreneur support, and infrastructure.
The Recompete Pilot Program received $200 million in appropriations – of the $1 billion authorized – as part of the FY 2023 Omnibus Appropriations Bill.
These two new investment initiatives further EDA’s work in regionalism, which complements the bureau historically funding relatively smaller-scale, independent projects across communities in the United States.
Regional approaches in place-based economic development were key components of EDA’s marquee American Rescue Plan program, the Build Back Better Regional Challenge. In fall 2022, the program awarded $1 billion to regional coalitions to transform their regional economies by growing an industry sector. Awardees received between $25 million and $65 million to execute transformational projects and revitalize local industries.
The competition structure brought together local entities and stakeholders as a regional coalition, some who had never worked together previously, and empowered each coalition to work collectively to survey its region’s strengths and identify an industry sector with opportunities to grow.
In just the few short months since awards were announced, the 21 grantees are launching programs and using the momentum of their award to grow their coalitions and goals. These grantees are poised to make sustainable, inclusive, and equitable economic growth in their respective regions.
Through the Build Back Better Regional Challenge, Tech Hubs, and the Recompete Pilot program, EDA is making strategic investments in regional economic growth, focusing on building sustainable ecosystems to drive communities, and the country, toward industries and the economy of the future.