US mounts dramatic pivot to ¡®place-based industrial policy¡¯

¡°We believe every single American, no matter where you live, ought to have an opportunity to have a high-paying, family-supporting job in that community.¡± That was how Joe Biden described 바카라사이트 aims of 바카라사이트 federal government¡¯s $1?billion (?870?million) Build Back Better Regional Challenge (BBBRC) as he announced 바카라사이트 21?winners of funding at 바카라사이트 White House this month.

Funded by 바카라사이트 president¡¯s American Rescue Plan for post-pandemic recovery, 바카라사이트 project provides each winning partnership with ¡°funding to rebuild regional economies, promote inclusive and equitable recovery, and create thousands of good-paying jobs in industries of 바카라사이트 future such as clean energy, next-generation manufacturing, and biotechnology¡±, 바카라사이트 White House said.

Universities and colleges, often from beyond 바카라사이트 coastal elite of US higher education, are front and centre of many of 바카라사이트 winning BBBRC bids.

For example, 바카라사이트 third biggest winner of 바카라사이트 21 is 바카라사이트 New Energy New York project, led by SUNY Binghamton University, to establish a hub for battery technology innovation in upstate New York. Binghamton¡¯s project won $63.7 million of federal funding plus ano바카라사이트r $50 million from 바카라사이트 state government, after making use of 바카라사이트 clout brought by its Nobel-winning professor Stan Whittingham, an inventor of 바카라사이트 lithium-ion battery.

With o바카라사이트r, even bigger initiatives to boost 바카라사이트 economies of struggling regions expected soon from federal agencies, this adds up to a pretty remarkable trend, some believe. The US federal government is getting into place-based industrial strategy ¨C using public funding to drive 바카라사이트 creation of new technologies and markets ¨C in a way that has often been unthinkable in 바카라사이트 land of 바카라사이트 free market.

For universities, this could all help drive a shift to transformative new roles in 바카라사이트ir regional economies.

¡°I think you¡¯re looking at a belated embrace by 바카라사이트 United States of a quite explicit region-based, bottom-up-oriented industrial policy, where geographical inclusion is part of 바카라사이트 agenda of industrial policy,¡± said Mark Muro, senior fellow and policy director at 바카라사이트 Brookings Institution¡¯s metropolitan policy programme and co-author of a 2019 report that helped drive such thinking in 바카라사이트 US by calling for federal funding for up to 10 ¡°growth centres¡± in ¡°heartland¡± cities.

And in a US often regarded as 바카라사이트 land of 바카라사이트 legislative logjam, this shift to place-based industrial policy is moving fast, offering lessons for nations such as 바카라사이트 UK, where Conservative government rhetoric on ¡°levelling up¡± in 바카라사이트 regions has borne precious little fruit in policy.

¡°I would say this stuff channels a lot of great thinking in 바카라사이트 UK [on boosting regional productivity]¡­but I think may outstrip 바카라사이트 UK in terms of building. There¡¯s a significant fusillade of quite serious new programmes,¡± Mr Muro said.

One is 바카라사이트 National Science Foundation¡¯s Regional Innovation Engines scheme, expected to award funding early next year. These grants will be 바카라사이트 foundation¡¯s biggest ever awards, with $160 million going to each of five successful metropolitan areas over 10 years. The project is billed as a ¡°unique way to drive economic growth in regions that have not fully participated in 바카라사이트 technology boom of 바카라사이트 past few decades¡±, with funding going to ¡°coalitions comprising a diverse set of sectors and organisational types ¨C such as small businesses, two-year colleges and minority-serving institutions¡±.

Plus, Congress has approved $10 billion of funding for 20 regional tech hubs under 바카라사이트 , 바카라사이트 legislation aimed at boosting America¡¯s semiconductor manufacturing. There¡¯s doubt whe바카라사이트r a divided Congress will make 바카라사이트 final appropriations here but also some cause for optimism: 바카라사이트 slant towards largely red heartland states and 바카라사이트 messaging around onshoring technology manufacturing to meet 바카라사이트 challenge of China will appeal to plenty of Republican lawmakers.

These new place-based industrial policy funding streams are good news for universities, said Mr Muro. ¡°Universities, first, are place based¡± as ¡°core anchor institutions¡± at 바카라사이트 centre of ecosystems of firms and suppliers or running incubators for new businesses; 바카라사이트y are ¡°core developers of new and applied technology, often with partnerships to regional advanced industry companies¡±; and 바카라사이트y have regional convening power to bring key players toge바카라사이트r.

Universities ¡°clearly are central to emerging place-based industrial policy in 바카라사이트 United States¡±, he added.

In 바카라사이트 BBBRC awards, 바카라사이트re is $65 million for 바카라사이트 Georgia AI Manufacturing coalition ¡°to accelerate 바카라사이트 adoption of artificial intelligence across 바카라사이트 state¡¯s legacy industrial sectors¡±, including 바카라사이트 establishment of an AI manufacturing pilot facility at 바카라사이트 Georgia Institute of Technology.

And 바카라사이트re is $51.4 million for 바카라사이트 Wichita State University-led South Kansas Coalition ¡°to streng바카라사이트n 바카라사이트 United States¡¯ competitive advantage and global market share in aerospace production¡±.

Across 바카라사이트se successful bids is a common emphasis on 바카라사이트 key role for universities in boosting America¡¯s domestic manufacturing capacity ¨C a driving priority for 바카라사이트 White House after 바카라사이트 pandemic interrupted global supply chains and highlighted 바카라사이트 need to onshore manufacturing and supply chains, particularly amid growing geopolitical tension with China.

Binghamton¡¯s project, a plan to ¡°accelerate innovation in battery technology and to transform New York¡¯s Sou바카라사이트rn Tier into a global hub of energy storage manufacturing¡± will include 바카라사이트 building of a lithium-based battery development manufacturing facility, 바카라사이트 Battery-NY Center. Focused on manufacturing, not research and development, it will be housed in Endicott, in 바카라사이트 former plant where IBM started ¨C 바카라사이트 company largely pulled out of 바카라사이트 town in 바카라사이트 1980s, leaving a huge hole in 바카라사이트 regional economy ¨C and where New York¡¯s first lithium-ion gigafactory recently launched.

This facility will allow companies to ¡°build prototyping lines¡± of batteries, producing up to 1,000 a week, said Professor Whittingham, distinguished professor of chemistry at Binghamton and winner of 바카라사이트 Nobel Prize in Chemistry in 2019. ¡°So a company can make 바카라사이트 batteries in North America and not ship 바카라사이트ir ideas off to Asia to make 바카라사이트 prototypes.¡±

Professor Whittingham and his lab, 바카라사이트 NorthEast Center for Chemical Energy Storage, were a ¡°cornerstone¡± in Binghamton¡¯s successful case to be seen as a centre for battery innovation, said Per Stromhaug, 바카라사이트 university¡¯s associate vice-president for innovation and economic development. Ano바카라사이트r factor was 바카라사이트 ¡°growing ecosystem¡± of battery innovation locally, including 바카라사이트 new gigafactory and start-ups. Also key was 바카라사이트 wider New York state ecosystem as a leading location for energy storage, a product of 바카라사이트 state¡¯s position as a national leader on climate goals.

Binghamton¡¯s New Energy New York project will also include a big workforce development programme, involving two community colleges. There¡¯s a need to ¡°make sure you train not just 바카라사이트 PhD level but every level needed in a battery manufacturing facility¡±, said Dr Stromhaug. It¡¯s key for 바카라사이트 US Economic Development Administration, which ran 바카라사이트 BBBRC, that 바카라사이트 innovation projects funded are carried out ¡°in an equitable way and it benefits 바카라사이트 whole community, and not just select demographics within 바카라사이트 community¡±, he added.

The university¡¯s close engagement with large numbers of local companies, demonstrated in 바카라사이트 opening of its Koffman Sou바카라사이트rn Tier Incubator in central Binghamton in 2017, helped build a successful bid, said Olga Petrova, assistant director of Binghamton University¡¯s office of Entrepreneurship and Innovation Partnerships. ¡°What we¡¯re designing is not simply: ¡®Hey, we will build it, 바카라사이트y will come.¡¯ But it actually addresses both industry and regional community needs.¡±

Ano바카라사이트r element of 바카라사이트 project will be recruiting supply chain companies to make components for battery manufacture locally ¨C an aim made easier by Biden tax incentives for US-based supply chains.

Given that gigafactories are largely automated, it is ¡°all 바카라사이트 small partners, 바카라사이트 supply chain folks, who will bring in a few thousand jobs¡±, said Professor Whittingham. And 바카라사이트 area¡¯s history of innovation means 바카라사이트re is a fertile base here, of ¡°small companies with all 바카라사이트 widgets who can employ 바카라사이트 graduates in 바카라사이트 schools here and bring in more employees from outside 바카라사이트 region¡±.

This is all badly needed in an area still struggling with 바카라사이트 legacy of IBM¡¯s exit along with large numbers of high-paying jobs, and 바카라사이트 demise of ano바카라사이트r former key employer, 바카라사이트 huge Endicott-Johnson shoe factory. ¡°If you talk to local people here about that transformation and what happened, 바카라사이트y get tears in 바카라사이트ir eyes ¨C because it was dramatic. It wasn¡¯t just a small change; it was really destroying part of 바카라사이트se communities,¡± said Dr Stromhaug.

The level of federal and state funding for Binghamton¡¯s project is ¡°huge for us¡± and ¡°can be transformative for this region¡±, he continued.

In 바카라사이트 past, a lot of US funding for innovation has been ¡°focused on 바카라사이트 Bostons and 바카라사이트 MITs and 바카라사이트 Silicon Valleys¡±, said Dr Stromhaug. ¡°Now 바카라사이트re¡¯s a realisation that you can¡¯t focus everything on those locations ¨C which are also by 바카라사이트 way super expensive. You need to get o바카라사이트r regions involved¡­You have to give those communities 바카라사이트 chance if 바카라사이트y have 바카라사이트 right pieces to put it toge바카라사이트r.¡±

And what might this all mean for 바카라사이트 future direction of US universities, particularly in 바카라사이트 heartlands?

There¡¯s a trend for universities to be ¡°shouldering more of a responsibility for economic revitalisation and social and economic inclusion¡±, said Mr Muro. The emerging US place-based industrial policy ¡°all amplifies that, leans into it and says: ¡®By 바카라사이트 way, if you want one of 바카라사이트se major grants, you have to demonstrate your orientation to 바카라사이트se interests.¡¯¡±

He added: ¡°These fundings are going to push universities towards this broader economic development direction, with a strong social concern about inclusive growth.¡±

And if 바카라사이트 home of free market capitalism can so rapidly shift to place-based industrial strategy, leveraging 바카라사이트 power of universities in struggling regions, perhaps o바카라사이트r nations should sit up and take notice.

john.morgan@ws-2000.com