The HI DRiVE program aims to attract federal funds to the tune of $100 million, which the governor is required to apply for, to facilitate these initiatives. By creating this program, the bill intends to expand upon existing small business innovation research programs, offering grants to Hawaii-based businesses receiving federal small business innovation research Phase II awards. The program will provide support for commercializing technology and developing necessary manufacturing infrastructures, thereby aiming to stimulate economic growth and job creation in the state.
Senate Bill 1420, known as the Hawaii Diversification and Resilience in a Vibrant Economy Program (HI DRiVE), focuses on enhancing economic diversity in Hawaii, particularly in the technology sector. The bill, introduced in response to the economic disruptions brought about by the COVID-19 pandemic, recognizes the need for the state to move beyond its heavy reliance on tourism. It proposes the establishment of a special fund to support small businesses in their efforts to engage in technology commercialization and manufacturing, encouraging a more vibrant and resilient economy.
While the bill has garnered support as a necessary step towards economic resilience, there may be concerns regarding the effective allocation and management of the proposed federal funds. Skeptics might question the ability of the state to successfully administer this program and ensure that it meets its intended goals. The reliance on federal funding could also be viewed as a double-edged sword, raising potential issues surrounding the sustainability of the program without ongoing federal support. Moreover, discussions on the long-term impact on job sectors traditionally dominated by tourism may arise as part of the broader dialogue on state economic policy.