For decades, the U.S. economy has been caught in a whirlwind of global competition and rapid technological change. Some regions have soared, while others have seen their manufacturing economies crushed by competition from lower-wage countries.
Leaders in struggling regions have often looked to America’s high-tech superstars—such as Silicon Valley and Boston—for models to revitalize their economies. Yet, new centers of innovation and high-tech manufacturing are emerging and thriving in perhaps unexpected corners and regions across the United States, like Tennessee, South Carolina, and Indiana.
For example, Donde Plowman, Chancellor, University of Tennessee, Knoxville recently commented that, “America’s greatest asset has always been our people and for so long, we led the world in innovation just by leveraging the talent of a handful of cities and region. That’s no longer enough. To remain competitive, we must tap into the talent and ingenuity in places like Tennessee, where we can leverage it alongside the existing industries and infrastructure to create new opportunities for our state and our country.”
Innovation hotspots like Tennessee are spreading high-tech-driven growth and jobs to new populations and communities. Despite definite regional distinctiveness, these up-and-coming innovation engines share a similar playbook and tactics, including:
· Strong leverage of the economic assets at hand, including colleges and research universities;
· Long-term commitment and engagement of state and regional government, industry, university, and national laboratory leaders;
· Willingness to take risks and make investments in the future;
· An aggressive approach to places and processes for industry-university and other permutations of collaboration;
· Education and workforce training aimed at meeting industry’s evolving needs; and
· Patience, persistence and an understanding that transformation takes time.
Let me share three examples of states who have put homegrown approaches to work:
Tennessee
Tennessee’s universities and institutions are collaborating in a whole-state approach, snowballing into a hub for advanced mobility and next-generation automotive manufacturing. Volkswagen, Eastman and other companies have located operations at the University of Tennessee’s Research Park, where industry, university faculty, graduate students and post-doctoral students collaborate. Ford picked Tennessee for its new electric truck factory—a $5.6 billion investment called Blue Oval City—in 2021. That site was prepared for economic development years ago in cooperation with the Tennessee Valley Authority and ready to go when Ford searched for a new site. LG Chemical announced a $3 billion battery plant nearby the following year.
Tennessee is also boosting AI technology. Vanderbilt University created a 10-mile-long real-world testbed — the largest in the world — to test a variety of AI-based traffic control. Vanderbilt collaborated with the Tennessee Department of Transportation to put sensors on the freeway to allow cars to travel on an interstate with AI-enabled cruise control. A Vanderbilt research team transformed 100 standard Nissan vehicles into custom vehicles with AI-enhanced cruise controls. These 100 custom vehicles produced tens of terabytes of data that Vanderbilt researchers are analyzing to better understand traffic jams and their safety and energy implications.
Finally, the University of Tennessee, Oak Ridge National Laboratory, and the Tennessee Valley Authority are operating a Techstars Industries of the Future Accelerator to support and invest in start-ups, with the aim to grow businesses in AI, advanced manufacturing, quantum, advanced wireless, biotech, and clean energy.
Daniel Diermeier, Chancellor and Distinguished University Professor, Vanderbilt University, recently summarized the state’s improving economic situation, saying, “Tennessee’s steadily growing economy has for many years now created increasing prosperity, largely through its business-friendly climate and its ability to attract large, multinational manufacturers, particularly in the automotive industry. Now it must pivot toward a knowledge economy that’s powered by innovations in AI, software and the connected technologies of the future.”
South Carolina
South Carolina has been building a new economy anchored in partnerships with automotive manufacturing, aerospace, and next-generation energy industries. Electric vehicle and battery-related companies have announced billions of dollars of investments in the state.
Clemson University created five Innovation Campuses across South Carolina to take its research and expertise directly to industry, including centers on advanced automotive research, energy, human genetics, biomedical engineering, and advanced materials. The Army and Clemson are working together on a $40 million partnership to develop next generation autonomous ground vehicles.
Growing the workforce is a top issue for the state’s auto industry. To help, Clemson created a master’s in automotive engineering, and launched the nation’s first Ph.D. in automotive engineering and first bachelor of science in automotive engineering.
Further, Clemson’s energy research center is home to the $98 million Dominion Energy Innovation Center. The facility houses the world’s most advanced wind-turbine drivetrain testing facility, as well as the Duke Energy eGrid, which can simulate the electric grid of any country in the world.
The University of South Carolina’s Office for Innovation, Partnerships and Economic Engagement builds industry partnerships across its eight campuses, such as the McNair Aerospace Center’s partnerships with Siemens, Gulfstream, and Boeing
Both Clemson and the University of South Carolina came together with other partners from the state’s academic and industry community, including the Savannah River National Laboratory, to form the SC
Indiana
When you think about microchips, Indiana probably does not come to mind. Yet, Purdue University is catalyzing a semiconductor ecosystem in Indiana. The university created a semiconductor degrees program, where corporate leaders serve on a Semiconductor Degrees Leadership Board to ensure education programming is relevant to industry. Purdue welcomed Skywater to build a $3 billion “baby fab” on campus, and Imec, Europe’s premiere center for semiconductor innovation, opened an R&D center on campus. Recently, Indiana was awarded $32 million to develop a hub for the Department of Defense Microelectronics Commons to support microelectronics development and production.
Purdue’s Discovery Park District in West Lafayette is also building an aerospace cluster. It is home to Purdue’s hypersonics research and testing facility with partners such as Rolls-Royce, GE, Lockheed-Martin, Northrup Grumman, the U.S. Air Force, the U.S. Navy, and NASA. And a new urban campus in West Lafayette will be anchored with Eli Lilly's new $3 billion pharmaceutical manufacturing site.
Competitiveness Conversations
These communities and regions are expanding and deepening America’s geography of innovation and high-tech manufacturing—and there is a lot we can learn from their distinct approaches. The Council’s National Commission on Innovation and Competitiveness Frontiers is launching a new, three-year initiative called “Competitiveness Conversations Across the County,” beginning in April in Tennessee. We will analyze and examine these new engines of innovation and growth, and identify cutting-edge and emerging best practices that can be scaled and adapted to regions and cities across the United States. We aim to bring new hope to people and places for a better, more prosperous future.
