Michigan doesn't make the cut for list of new federal tech hubs
Five Michigan regions wanted the U.S. Department of Commerce's Economic Development Administration (EDA) to select them as a "Tech Hub" to receive federal dollars aimed at jump-starting growth in the tech sector. The administration chose none of them but picked out one to receive some funding to help it win the tech hub designation in the future.
While projects in Michigan were not among the 31 hubs selected by the EDA, the agency also awarded 29 Strategy Development Grants to help communities become more competitive for tech hub funding moving forward. One of those grants will go to the Materials Advancement and Research Solutions (MARS) Strategy Development Consortium led by Michigan State University Research Foundation. MARS will receive a $400,000 grant from the EDA, according to a news release from Gov. Gretchen Whitmer's office which celebrated the funding. The project will focus on synthetic diamond and rare isotope production.
It was among the five "tech hub" pitches that came from Michigan along with proposals for mobility in Detroit-Ann Arbor, battery production innovation in greater Grand Rapids, water technology in Traverse City and an air mobility hub led by Western Michigan University.
"The Materials Advancement and Research Solutions (MARS) Hub will power innovation and help the region fully realize its economic potential,” David Washburn, executive director of the MSU Research Foundation, said in a statement Monday. "Unlocking Michigan’s true potential lies in our ability to gather regional strengths and put them together in a way that secures federal funding — and this is perfect evidence of our success. All Michiganders should be proud."
The CHIPS and Science Act passed by Congress directed the U.S. Economic Development Administration (EDA) to launch the national tech hub contest — the "Regional Technology and Innovation Hub Program" — in which regions across the U.S. competed for federal dollars to spur tech innovation in more communities.
Congress authorized $10 billion for the program and each region selected will receive $50 million-$75 million from the initial $500 million appropriation, Jonathan Smith, senior chief deputy director for the Department of Labor and Economic Opportunity, previously told the Free Press. "But then once the whole thing is fully funded, it could mean hundreds of millions of dollars per tech hub," he said.
The Strategy Development Grants awarded by the EDA will help recipients better coordinate and develop their regional economic development strategy. "Such development could make selected grantees more competitive for future Tech Hubs funding opportunities," the EDA said in a news release.
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Lt. Gov. Garlin Gilchrist, the Michigan Infrastructure Office (MIO), the Department of Labor and Economic Opportunity and the Michigan Economic Development Corporation (MEDC) partnered to support the applications from Michigan and held an innovation summit in June to hone the pitches.
"There are so many things that we've received," MEDC CEO and President Quentin Messer Jr. told the Free Press when asked whether he was disappointed the federal government didn't designate a tech hub in Michigan. "I am zealously focused on Michigan, so I want to win everything for Michigan, but we also realize there are 49 other states."
"The big excitement about the tech hubs is making sure that we continue to develop and move forward with the collaborations that came about preparing for that and competing for that," he said.
Contact Clara Hendrickson: chendrickson@freepress.com or 313-296-5743. Follow her on X, previously called Twitter, @clarajanehen.
This article originally appeared on Detroit Free Press: Michigan doesn't make cut for list of new federal tech hubs
