Intel, VCs To Invest $3.5B In U.S. Firms

Intel and 24 venture-capital firms are planning to invest $3.5 billion over the next two years on U.S.-based technology companies to help create new jobs.

Intel Corp.'s CEO, Paul Otellini, announced the "Invest in America Alliance" in a speech Tuesday in Washington.

"Strong, enduring economies grow out of a culture of investment and a commitment to innovation," said Otellini in his speech. "We simply must have a clear, consistent strategy to promote innovation, investment, and start-up companies. There are things business can do, and ought to do, independent of what government achieves."

Intel intends to increase hiring of newly-minted graduates as well as more experienced professionals.

"It would be a long-term mistake to let our future scientists and engineers sit idle after graduation," Otellini said. "Today's announcements are both an investment in the country's innovators and a signal to the global marketplace about America's commitment to innovation and future competitiveness."

The program will target areas such as clean technology, information technology and biotechnology. It also includes a commitment by 17 major technology companies to boost their hiring of college graduates to make cutting-edge technologies.

Otellini was speaking at the Brookings Institution. (Here's a link to his speech.)

The Associated Press contributed to this report.