Separately, Otellini said Intel and 17 other leading companies have committed to increase hiring of recent college graduates this year. The announcement comes at a time when people are struggling to find work. Unemployment in January was more than 10% nationwide.
During a speech at the Brookings Institution in Washington, D.C., Otellini said Intel was working with VC firms in the creation of the "Invest in America Alliance" that would commit to invest $3.5 billion over the next two years in clean technology, information technology, and biotechnology. Intel plans to contribute $200 million to the effort.
"Strong, enduring economies grow out of a culture of investment and a commitment to innovation," Otellini said in a statement. "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."
The VC firms joining Intel in the effort include Advanced Technology Ventures, Braemar Energy Ventures, Bridgescale Partners, Canaan Partners, DCM, Draper Fisher Jurvetson, Flywheel Ventures, Good Energies, Institutional Venture Partners, Investcorp Technology Partners, Khosla Ventures, Kleiner Perkins Caufield & Byers, Menlo Ventures, Mohr Davidow Ventures, New Enterprise Associates, North Bridge Venture Partners, QuestMark Partners, Sevin Rosen Funds, Storm Ventures, Telesoft Partners, Updata Partners, U.S. Venture Partners, Venrock, and Walden International.
On the jobs initiative, Otellini said Intel and the other leading companies agreed to significantly increase hiring of graduates this year, with many of the companies planning to double graduate hiring over last year's levels. The commitment is expected to lead to the hiring of 10,500 recent graduates in mostly engineering and computer science.
Companies joining Intel in the effort include Accenture, Adobe Systems, Autodesk, Broadcom, CDW, Cisco, Dell, eBay, EMC, GE, Google, Hewlett-Packard, Liberty Mutual Group, Marvell Semiconductor, Microsoft, and Yahoo.
"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."
Otellini's announcements followed by about a year Intel's commitment to spend $7 billion to upgrade its U.S. semiconductor manufacturing facilities.