Business Attraction & Development Strategy
Site Readiness:
Illinois plans to strengthen its business attraction strategy by investing in site readiness, offering strategically located and utility-accessible sites, particularly focusing on large parcels near key infrastructure. The state has initiated the Megasites Investment Program and the Vetted Sites Program in collaboration with Intersect Illinois. This initiative aims to prepare more sites across Illinois, providing grants to landowners and communities to enhance site readiness and promote economic development.
Customized Job Training:
Illinois emphasizes customized job training to align with employer needs. The state supports Manufacturing Training Academies at community colleges, offering advanced skills training. The Fast Track Program provides grants to help major employers recruit and train workers. Illinois plans to expand its workforce development initiatives by branding all Manufacturing Training Academies, increasing resources for the Fast Track program, and supporting apprenticeship programs.
White Glove Service for Businesses:
Illinois has developed a unified economic development team, "Team Illinois," consisting of the Governor’s Office, DCEO, Intersect Illinois, and other partners. This team offers coordinated engagement with businesses considering investments in Illinois. The state is expanding its Regional Economic Development (Team RED) to enhance local business support and streamline applications for business development programs.
Competitive Incentives:
Illinois offers various competitive incentives to attract businesses, including the EDGE for Startups, REV, and MICRO programs. The state plans to introduce new incentives like an Advanced Manufacturing Investment Tax Credit, allowing noncontiguous Enterprise Zones, and extending the Research and Development Tax Credit.
High-Growth Industries
Illinois is targeting six high-growth industries where the state has significant potential:
Life Sciences:
Illinois aims to be a central hub for innovation in biopharmaceuticals, medical devices, and health care-related manufacturing. The state plans to attract investment by leveraging its existing strengths in life sciences and supporting R&D in AI, gene therapy, and cancer treatment.
Quantum Computing, AI, & Microelectronics:
Illinois is positioned as a global quantum hub, with strengths in AI research at top universities and national labs. The state plans to capture growth in these industries by supporting the Illinois Quantum and Microelectronics Park and attracting private capital for R&D.
Clean Energy Production & Manufacturing:
Illinois is committed to expanding clean energy production and manufacturing, leveraging the Climate and Equitable Jobs Act (CEJA) to attract clean energy businesses. The state is also focusing on becoming a leader in EV manufacturing and renewable energy.
Advanced Manufacturing:
Illinois is focusing on advanced manufacturing sectors, including machinery, chemical, and nanomaterial manufacturing. The state is also seeing growth in defense-related manufacturing, such as airplane and drone production.
Next Generation Agriculture, Ag Tech, & Food Processing:
Illinois has been a global hub for agriculture and food manufacturing for over a century. The state plans to continue its leadership in this sector by supporting innovation in ag tech, sustainable practices, and biofuels.
Transportation, Distribution, & Logistics (TDL):
Illinois has a significant advantage in TDL due to its central location, extensive rail and highway systems, and major cargo airports. The state plans to capitalize on the surge in online shopping and investment in transportation infrastructure.
Building Resilient & Growing Communities
Education for Careers:
Illinois plans to expand efforts to coordinate workforce development and education programming from kindergarten through adulthood. This includes aligning education with business development efforts to prepare residents for in-demand occupations.
Investing in Underserved Communities:
The state is committed to investing in underserved communities, with initiatives like the Illinois Grocery Initiative, the Office of Rural Development, and broadband expansion. Illinois is also supporting entrepreneurs in underserved areas through programs like the State Small Business Credit Initiative (SSBCI) and the Illinois Innovation Venture Fund (INVENT).
Access to Child Care:
The Smart Start Illinois program supports child care access and providers, aiming to increase the number of child care seats across the state. The new Department of Early Childhood will make early childhood services more accessible and equitable.
Quality Jobs:
Illinois is focused on creating quality jobs and maximizing opportunities for residents. The state is launching the Quality Jobs Pilot Program in partnership with the Illinois Department of Labor to ensure that jobs created through state incentives are well-paying and sustainable.
Increasing Grant Accessibility:
To make grant processes more equitable, Illinois is establishing the Illinois Grant Access Initiative to support grantseekers and ensure that economic development opportunities are accessible to all communities.
List of Proposed Action Items
The plan concludes with a comprehensive list of proposed action items aimed at achieving the outlined goals. These include specific actions to enhance site readiness, expand workforce development initiatives, provide tailored business services, and deploy competitive incentives to attract and retain businesses in Illinois. The state is also committed to promoting innovation, supporting high-growth industries, and investing in underserved communities to ensure equitable economic growth.
Click Here for the Full August 2024 Illinois Economic Growth Plan
What is the goal of the semiconductor incentives in Illinois?
The goal is to attract semiconductor manufacturing and research to Illinois, positioning the state as a leader in the semiconductor industry. Source
How will the CHIPS and Science Act benefit Illinois?
The CHIPS and Science Act, signed by President Biden, aims to strengthen the U.S.'s domestic manufacturing and supply chains. Gov. J.B. Pritzker mentioned that this legislation will benefit Illinois manufacturers who use semiconductors in their products, as it will make it easier to obtain the necessary chips. Source
What is the significance of the CHIPS and Science Act in relation to semiconductor chip production?
The act will boost America's ability to compete, especially against countries like China, in semiconductor chip production. It will also support the construction of new plants and facilities for increased chip production. Source
How is Illinois supporting the experimental field of quantum computing?
Illinois, particularly through efforts by Gov. J.B. Pritzker and former Chicago Mayor Rahm Emanuel, is consistently bringing attention and funds to support the experimental field of quantum computing. This includes potential applications like faster vaccine development and unhackable computers. Source
What potential does quantum computing hold for Illinois?
Gov. J.B. Pritzker believes that Illinois has the potential to become "the Silicon Valley of quantum development." The state is investing in quantum research, with the University of Chicago leading several initiatives. Source
What incentives does Illinois offer for electric vehicle manufacturers?
Illinois offers tax credits, grants, and other incentives to attract electric vehicle manufacturers to the state. Source
How does Illinois support research and development in the electric vehicle sector?
Through various programs and incentives, Illinois encourages companies to invest in R&D, leading to advancements in electric vehicle technology and infrastructure. Source
Are there any specific regions in Illinois that are being developed as hubs for electric vehicle manufacturing?
While the entire state is open to electric vehicle manufacturing, certain regions may offer additional local incentives or benefits to attract businesses. Source
What is the state's stance on electric vehicle infrastructure development?
Illinois is actively promoting the development of electric vehicle charging infrastructure to support the growth of EVs in the state. Source
How does Illinois plan to collaborate with electric vehicle manufacturers in the future?
Illinois aims to form partnerships with manufacturers, offering them incentives and support in exchange for their investment in the state's electric vehicle ecosystem. Source
Hydrogen energy is making significant strides in Illinois with multi-state partnerships and university commitments in recent years and federal funding this year.
A Billion-Dollar Boost for the Midwest Hydrogen Hub
In collaboration with Indiana and Michigan, Illinois has secured $1 billion in federal funding from the U.S. Department of Energy (DOE) for the Midwest Hydrogen Hub. This network aims to accelerate decarbonization through strategic hydrogen use, targeting a substantial reduction of carbon emissions by approximately 3.9 million metric tons annually.
The Midwest Hydrogen Hub: A Multi-State Initiative
The Midwest Hydrogen Hub is a collaborative effort involving multiple states, including Indiana and Michigan. The hub's strategic location in a crucial U.S. industrial and transportation corridor will promote hydrogen use in various sectors, including steel and glass production, power generation, refining, heavy-duty transportation, and sustainable aviation fuel. The impact? An estimated annual carbon emission reduction equivalent to removing the emissions of over 867,000 gasoline-fueled cars.
Illinois' Climate Commitment
In line with the carbon reduction impact of the Midwest Hydrogen Hub, the DOE's award builds on the Illinois Climate and Equitable Jobs Act, which has set a national benchmark with its aggressive decarbonization goals, committing Illinois to be entirely reliant on clean energy by 2050.
Job Creation and Economic Boost
The Midwest Hydrogen Hub also anticipates the creation of 13,600 jobs and plans to invest around $15 million in training and employment services for the clean energy workforce. Furthermore, the hub is committed to promoting equitable hiring and contracting practices. Some of its targets include allocating 40 percent of subcontracted dollars to Minority/Disadvantage Business Enterprises and investing $30 million in an inclusive entrepreneurship program.
References:
Gov. Pritzker Announces $1 Billion Federal Funding for the Midwest Hydrogen Hub (State of Illinois)
Illinois Part of MaH2 Midwest Hydrogen Fuel Hub Project (Crain's Chicago Business)
UIC Joins Alliance to Create Midwest Hydrogen Hub (UIC Today)
Hydrogen Energy at Illinois (University of Illinois)
Regional Clean Hydrogen Hubs Selections & Award Negotiations (U.S. Department of Energy)
Regional Clean Hydrogen Hubs (U.S. Department of Energy)
What is the Bloch Tech Hub?
The Bloch Tech Hub is a coalition of private and public organizations, led by the Chicago Quantum Exchange, that aims to advance the regional adoption of quantum information science and technology (QIST). Source; Source
What is the significance of the Bloch Tech Hub's designation as a U.S. EDA Tech Hub?
The U.S. Economic Development Administration (EDA) has designated the Bloch Tech Hub as one of the 31 Regional Technology and Innovation Hubs (Tech Hubs) based on its potential for innovation and economic growth. This designation makes the Bloch Tech Hub eligible for significant federal funding to further its initiatives. Source
What is the potential funding that the Bloch Tech Hub can receive from the EDA?
As a designated Tech Hub, the Bloch Tech Hub is eligible to apply for the second phase of the Tech Hubs Program, where it can receive between $50 and $75 million in federal funding. Source
How will the Bloch Tech Hub impact the Illinois economy?
By 2035, the Bloch Tech Hub is projected to generate an estimated $8.7 billion in annual economic output and create up to 8,000 high-paying jobs in the region. Source
What sectors will the Bloch Tech Hub initially target?
The Bloch Tech Hub will initially focus on the financial sector, with plans to later adapt its QIST-enabled solution framework to meet the needs of other industries such as transportation, manufacturing, healthcare, and defense. Source
Illinois is positioning itself at the forefront of quantum technology innovation, with ambitious plans and supportive legislation that could transform the state into a global hub for quantum computing. The recent proposals and investments signify a promising future for quantum technology in Illinois. Here's a look at what’s next for this burgeoning field in Illinois.
The Quantum Manhattan Project
One of the most significant developments is the proposal for a $50 billion "Quantum Manhattan Project." Illinois Governor JB Pritzker has voiced strong support for this initiative, which aims to establish Illinois as a leader in quantum computing and related technologies. This project is inspired by the original Manhattan Project, which was a massive, collaborative effort during World War II that led to significant advancements in nuclear technology. Similarly, the Quantum Manhattan Project seeks to harness the power of quantum mechanics to revolutionize computing and data processing .
The initiative focuses on bringing together academia, industry, and government to create a robust quantum ecosystem. The University of Illinois Urbana-Champaign, a pioneer in quantum research, will play a crucial role in this endeavor. The project aims to secure federal funding, attract private investment, and foster collaboration among the state's top research institutions and tech companies.
Legislative Support and Tax Breaks
To support the growth of the quantum sector, Illinois lawmakers approved $500 million in 2024 tax incentives for companies investing in quantum computing. This move is part of a broader strategy to make Illinois an attractive destination for tech companies and startups focusing on quantum computing , which in part helped with Chicago being selected in July 2024 as the location for PsiQuantum, a Silicon Valley startup, to build the world's largest quantum computer.
Educational and Research Initiatives
Illinois has also made substantial investments in education and research to support its quantum ambitions. The Illinois Department of Innovation & Technology (DoIT) has launched several initiatives to promote STEM education and quantum research. These initiatives aim to build a strong pipeline of talent and ensure that the state has the skilled workforce needed to support its quantum ambitions .
Programs like the Illinois Quantum Information Science and Technology Center (IQUIST) at the University of Illinois are at the forefront of this effort. IQUIST brings together experts from various disciplines to conduct cutting-edge research in quantum information science. The center also offers educational programs to train the next generation of quantum scientists and engineers.
Economic Impact
The potential economic impact of these initiatives is significant. The Quantum Manhattan Project, PsiQuantum campus, and supportive legislation are expected to create thousands of high-paying jobs and attract billions of dollars in investment to Illinois. This influx of talent and capital will spur innovation, drive economic growth, and position Illinois as a global leader in quantum technology.
Moreover, the advancements in quantum computing have the potential to revolutionize various industries, from healthcare and finance to manufacturing and logistics. Quantum computers can solve complex problems much faster than classical computers, leading to breakthroughs in drug discovery, financial modeling, and supply chain optimization.
Challenges and Opportunities
While the future of quantum technology in Illinois looks promising, there are challenges to overcome. Developing practical and scalable quantum computers is still a formidable task, requiring significant advancements in hardware, software, and error correction techniques. Moreover, there is a global race to lead in quantum technology, with countries like China and the United States making substantial investments.
However, Illinois is well-positioned to meet these challenges. The state's strong research institutions, supportive government policies, and vibrant tech ecosystem provide a solid foundation for success. By fostering collaboration among academia, industry, and government, Illinois can accelerate the development and commercialization of quantum technologies.
Looking Ahead
The next few years will be crucial for the development of quantum technology in Illinois. With the proposed Quantum Manhattan Project, supportive legislation, and substantial investments in education and research, the state is poised to become a leader in this transformative field. The potential benefits of quantum technology are immense, and Illinois is taking bold steps to ensure it remains at the cutting edge of this exciting frontier.
As the state moves forward, continued collaboration and investment will be key to realizing the full potential of quantum technology. By leveraging its strengths and addressing the challenges ahead, Illinois can secure its place as a global hub for quantum innovation and drive economic growth for years to come.
References
What is the iFAB Tech Hub?
The Illinois Fermentation and Agriculture Biomanufacturing Tech Hub (iFAB Tech Hub) is an initiative led by the University of Illinois Urbana-Champaign. It aims to scale precision fermentation and biomanufacturing to convert underutilized corn feedstocks into high-value products such as alternative proteins, food ingredients, materials, chemicals, and more. Source
What is the significance of biomanufacturing in Illinois?
Biomanufacturing converts crops like corn and soybeans into a wide range of high-value commodities, creating more market stability and growth in bio-based businesses. The iFAB Tech Hub aims to make Illinois a global leader in fermentation manufacturing. Source
Who are the partners associated with the iFAB Tech Hub?
The hub collaborates with various partners, including higher education institutions, economic development organizations, industry firms, industry groups, labor organizations, manufacturing extension centers, units of government, venture development organizations, and workforce training organizations. Source
How does the iFAB Tech Hub fit into the broader national strategy?
The iFAB Tech Hub is one of 31 Tech Hubs designated by the U.S. Department of Commerce's Economic Development Administration (EDA) to accelerate regional innovation and growth. These hubs aim to strengthen a region's capacity to manufacture, commercialize, and deploy technology that will advance American competitiveness. Source
What is the future funding opportunity for the iFAB Tech Hub?
The Department of Commerce has launched a second Tech Hubs Notice of Funding Opportunity, allowing designated Tech Hubs like iFAB to apply for implementation funding between $40 million and $70 million. Source
What is the "Rust Belt to Green Belt" initiative in Illinois?
The "Rust Belt to Green Belt" initiative in Illinois is a transformative effort to shift the region from its industrial past to a hub of sustainable climate innovation. It involves targeted decarbonization funds and a commitment to clean energy and technology development.
What role does Innovate Illinois play in this initiative?
Innovate Illinois, launched by Governor JB Pritzker in partnership with various organizations, is a coalition aimed at securing federal funding for science, technology, and climate initiatives. It focuses on leveraging Illinois' innovation hubs and educational institutions to drive economic development and technological progress.
How is the National Community Investment Fund (NCIF) involved?
The NCIF is leading a Midwest consortium to submit a $1 billion proposal to the EPA’s Clean Communities Investment Accelerator. This proposal is a part of the "Rust Belt to Green Belt Initiative," emphasizing the region's commitment to sustainable climate innovation.
What are the goals of the Chicagoland Climate Investment Alliance?
The Alliance aims to create an interconnected climate innovation ecosystem, accelerate local startups, mobilize substantial climate investments, secure federal support, and strengthen collaborations to foster innovation and growth in climate-resilient technologies.
What specific areas will the initiative focus on?
The initiative will focus on sectors like agtech, clean energy, water, food, recycling, building decarbonization, and materials-science innovations.
How will this initiative impact job growth and economic development?
The initiative is expected to spur job growth and economic development in Chicagoland and the broader Midwest, particularly in specialized sectors related to climate innovation.
What federal acts support this initiative?
The initiative is supported by federal acts such as the CHIPS and Science Act, the Inflation Reduction Act, and the Infrastructure Investment and Jobs Act.
Who are the founding members of the Chicagoland Climate Investment Alliance?
Founding members include public, private, and civic entities like World Business Chicago, the State of Illinois, City of Chicago, Invenergy, ComEd, Nicor Gas, Jones Lang Lasalle, and Wanxiang America.
What is the role of higher education institutions in this initiative?
Higher education institutions in Illinois are key partners in developing technologies, scientific advances, and training the workforce needed for climate innovation. They will collaborate with the private sector and government in this initiative.
How can businesses and individuals get involved in the initiative?
Businesses and individuals can engage with the initiative by partnering with the state and education system for research, technology, and workforce development opportunities related to innovation and clean energy.
Sources:
Artificial Intelligence (AI) is rapidly transforming various sectors, from healthcare to transportation. As AI technologies become more integrated into our daily lives, there's a growing need for regulations to ensure their ethical and responsible use. Illinois, like many other states, is actively considering and implementing laws related to AI. This article delves into the current landscape of AI laws and regulations in Illinois and what's on the horizon.
Employers Using AI in Hiring: A Word of Caution
The use of AI in hiring processes is becoming increasingly common. Employers leverage AI-driven tools to screen resumes, conduct virtual interviews, and even predict a candidate's future performance. However, Illinois' Artificial Intelligence Video Interview Act, effective since January 1, 2020, mandates employers to notify applicants when they use AI to analyze video interviews. The law also requires employers to explain how the AI works and what general types of characteristics it uses to evaluate applicants. This is a significant step towards ensuring transparency in AI-driven hiring processes.
Task Force on AI: A Proactive Approach
Recognizing the transformative potential of AI, Illinois has taken a proactive approach by considering the establishment of a task force. This task force aims to determine how the state can utilize and regulate AI effectively. By bringing together experts from various fields, the state hopes to create comprehensive guidelines and policies that will foster innovation while safeguarding the interests of its residents.
A Call for Federal AI Policy: Transparency and Risk Management
Illinois Attorney General Kwame Raoul has emphasized the need for a federal AI policy. He advocates for a policy that mandates transparency and considers the potential risks associated with AI. By having a unified federal policy, states like Illinois can better navigate the challenges posed by rapidly advancing AI technologies.
A Broader Perspective: AI Legislation Across States
While Illinois is actively considering AI regulations, it's essential to understand the broader landscape of AI laws in the U.S. In 2022, at least 17 states introduced general AI bills or resolutions. States like Colorado, Florida, and Vermont have enacted AI-related laws, with Colorado and Vermont establishing task forces to study AI. Washington state has taken a unique approach by providing funding for an inventory of all automated decision systems used by state agencies.
AI Regulation, In Conclusion
As AI continues to evolve, it's crucial for states like Illinois to stay ahead of the curve by implementing robust regulations. By ensuring transparency, promoting ethical use, and fostering innovation, Illinois is positioning itself as a leader in the AI regulatory space.
References:
Task force to determine how Illinois can use, regulate artificial intelligence (The State Journal-Register)
Attorney General Raoul Calls for Federal Artificial Intelligence Policy That Requires Transparency, Considers Potential Risks (Illinois Attorney General)
Legislation Related to Artificial Intelligence (National Conference of State Legislatures)