Economic Development Now

Leaders in the innovation and technology space are stepping up to tackle staggering disparities for BIPOC and low-income communities by increasing the number of regional technology hubs, including current proposals in Congress to implement large-scale federal R&D funding for Midwestern and Southern metro centers. A recent Brookings webinar titled Leveraging Regional Tech Hubs to Advance Racial Equity discussed additional solutions to these disparities such as upscaling BIPOC talent and targeting companies to invest in their location’s talent base.

From 2005 to 2017, five metro areas—Boston, San Francisco, San Jose, Seattle, and San Diego—contributed more than 90 percent of the U.S. innovation sector’s growth. At the same time, in 90 percent of U.S. metro areas, innovation sector growth declined. Alongside regional disparities, Black and Brown Americans make up only 16 percent of the total innovation sector which is half of their total share relative to the U.S. population. As Mark Muro, senior fellow and policy director at the Brookings Metropolitan Policy Program put it, “Underrepresentation is the rule in the U.S. innovation sector…to its detriment.”

In lower-skilled regions, communities first need to be familiar with technology and business development topics such as how to fund startups and entrepreneurs. Many regions are unable to reach parity with places like Silicon Valley or the MIT–Boston Corridor because they lack the institutional knowledge that exists in tech hubs.

Nashlie Sephus, PhD, founder of The Bean Path, reminded the audience of the power of STEM and computer training as a workforce development tool. Oftentimes within six months of self-teaching, someone with no education or background in STEM can earn a job paying six figures. The Bean Path is developing a tech hub in Jackson, Miss., to educate those of all ages on AI, machine learning, cybersecurity, and other common tech topics.

Other nonprofit organizations like Ed Farm, developed in collaboration with Apple, are upscaling K–12 education by integrating coding and technology curricula. Ed Farm also partners with HBCUs in the Atlanta area through Propel Atlanta. By collaborating with HBCUs and two-year college programs, more regions can provide companies with a diverse talent base.

On the employer side, Sheri Gonzales, VP at the Civic Council of Greater Kansas City, works to encourage a diverse workforce by understanding place-based strategies. The Council’s diversification initiative KC Rising is focused on developing a design hub in a historically-disinvested area.

Corporations are equally responsible for ensuring racial equity via newly-developed as well as foundational tech hubs. Doing their part takes many forms, including signing diversity pledges, engaging as mentors, and diversifying suppliers.