As Senate Majority Leader Charles E. Schumer continues to deliver on his promise to help jump-start upstate New York as a tech hub, comes the announcement that competition has begun for regions.
It is the chance for Buffalo Niagara to shine, as it vies to be chosen as one of about 20 “tech hubs” around the country. Not only could that designation mean more well-paying jobs in a growing sector, but the overall effort better positions the U.S. in its global competition with China and other countries. For the Western New York region, it is both exciting to potentially be at tip of the spear of this modern-day competition.
The application deadline for the first phase is Aug. 15.
Schumer has advocated for the Commerce Department’s program. The department has amassed $500 million in funding thus far as part of the CHIPS and Science Act that the senator championed. In so doing, he had upstate in mind. And no wonder. The region is home to a world-class workforce and a concentration of “renowned higher education and research institutions.”
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The last point meshes with University at Buffalo’s status as a premier, top-ranked public research university. Moreover, the eight counties of Western New York are home to 21 colleges and universities – an educated, skilled workforce.
The U.S. Economic Development Administration is expected to designate about 20 regions as tech hubs at the end of the first phase. Regions can initially apply for strategy development grants from a $15 million pool of funding.
The grants are worth $400,000 to $500,000 each. The amount depends on the level of local match recipients qualify for. The funds will help a region prepare for the program’s second and final phase.
The EDA expects to make at least five “implementation awards” in phase two. The remaining available funding will be issued to designated tech hubs. Only tech hubs designated after phase one can apply for the awards in phase two. The EDA plans to announce details of that funding opportunity in the fall.
Eligible applicants must have a partnership that includes one or more companies, a state development agency, worker training programs, a university and state and local government leaders. With its multifaceted relationships across sectors and borders, Western New York is particularly suited to meet this requirement. The federal designation is unrelated to the Tech Hub that M&T Bank established inside Seneca One tower.
Schumer has laid the groundwork for this opportunity. His direct advocacy has resulted in Buffalo receiving major federal investments for its growing tech industry through the Build Back Better Challenge. It meant securing $25 million in a competitive process that matched Western New York against hundred of U.S. regions in competition to be selected as a tech hub.
This program is not merely of potential benefit to Western New York, but to the entire nation, which has fallen behind in the semiconductor industry. That carries implications not just for the national economy but for national security. We are embarking on a valuable and essential project. We need to do it right.
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