When the world seems on the verge of collapse -at a variety of levels both here and abroad – it’s worth expressing a little gratitude when something’s announced that offers Vermont some help and some hope with its economic future. The announcement came this week with the news Vermont had been designated as one of 31 “Tech Hubs” across the country, unlocking the potential for about $75 million in federal money.
That’s a big deal for Vermont. The designation has the potential to be a feeder system not only for the large tech companies – like GlobalFoundries – but for our smaller companies and for any new startups or companies that decide to relocate here.
The federal designation was a product of an effort led by the University of Vermont, GlobalFoundries and the state. Over 400 applications were received by the feds, and for Vermont’s to prevail means the “Greater Burlington Area” is developing a solid reputation on the technology front.
Although UVM and GlobalFoundries are at the center of this designation, because of Vermont’s small size, the impact is statewide but focused on Chittenden, Franklin, Lamoille and Addison counties.
The purpose of the fed’s designation is to “strengthen U.S. economic and national security by catalyzing technology-based regional growth that enables the industries of the future to start, grow, and remain in regions across our country.”
Winning this designation is the product of UVM’s continual push to establish itself as one of the nation’s largest research and development institutions. UVM closed out its fiscal year in June, raising $263 million, ranking it in the top 100 largest public research universities in the nation. A significant part of UVM’s success can also be attributed to the school’s relationship with Sen. Patrick Leahy, who, before his retirement, was chair of the powerful Appropriations Committee. In fact, Mr. Leahy’s fingerprints are all over the newly won designation.
As valuable as this tech hub designation is, the challenge lies in how the opportunity is used, and how efficiently any money received can be spent. The challenge is recognizing that Mr. Leahy’s power in the U.S. Senate is past. As was noted when he retired, it was barely an overreach to characterize the senator as the face of economic development in Vermont.
Which is why this new designation as one of 31 tech hubs in the nation should become a joint venture for a variety of partners, particularly in northwest Vermont, so that it is not an opportunity lost. Why not have this designation be something the state’s Economic Development department uses in its out-of-state promotions? Why not have the local regional economic development organizations [like Franklin County Industrial Development Corporation] embrace the designation as a welcome tool to recruit new businesses and to help existing ones?
Vermont has been unduly fortunate in two key respects. First, we benefitted immensely from Mr. Leahy’s position of power, particularly in the last two decades of his 48 years in the Senate. Second, research funding for UVM has doubled since 2018. Until then, the vast majority of the university’s research dollars went to its school of medicine. Today, the school of medicine gets about 35 percent of the total with the remainder going to other parts of the university, like engineering and mathematical sciences. This has broadened the university’s reach to all corners of the state and to many additional research objectives.
That said, although the money to Vermont has increased, there has been a lag in communication/opportunity. We have the money, people just don’t know we have the money. If Vermont is interested in attracting growth, it will need to begin telling its story. In other words, what good is it to win the tech hub designation if the state doesn’t tell anyone?
To tell this story would cost pennies compared to the dollars we would reap in return. It is time for Vermont to stop hiding its light under the bushel. As the parable goes, ‘Light is to be revealed, not concealed.” We need to start revealing.
By Emerson Lynn