This story appears in this week’s State Journal.

By Jim Ross

CHARLESTON – Experts say the national economy is coming out of a recession. Some signs of that can be seen in the activity at the Charleston Area Alliance, the economic development agency of Kanawha County.

In terms of working with prospects, the recession hit Kanawha County in 2008 and is just now starting to ease up, said Matthew G. Ballard, president and CEO of the Charleston Area Alliance.

For the three years before the recession, “it was like we couldn’t keep up with the prospects that were coming in,” Ballard said. The Alliance received inquiries from back-office operations, IT centers and food processors, he said. But in 2008, that fell off.

During the recession, the Alliance encouraged local businesses to investigate the possibility of increasing exports as a way of growing their markets. Ballard said he also did a lot of on-site visits to local businesses to see how the Alliance could help them.

“You begin to focus on entrepreneurship and retaining the businesses you already have,” he said.

Things have started to pick up in recent months, Ballard said. Companies plan investments six months to a year or more ahead, so the recent inquiries are good signs things will change soon, Ballard said.

“Now what we’re seeing is a lot of calls on energy things such as the Marcellus shale and opportunities like the tech park,” Ballard said.

The Marcellus shale drilling activity is to the north of Kanawha County, but a byproduct of that activity could be important to Kanawha Valley industries, Ballard said. That byproduct is ethane, which can be used as a feedstock for chemicals that are used in a variety of products made in the valley, he said.

Entrepreneurship is on the rebound with the economy, Ballard said. In late 2008, the Alliance had the lowest occupancy rate ever in its small business incubator in Charleston. Now that has turned around and occupancy is at an all-time high.

The Alliance recently received a grant from the Appalachian Regional Commission to build out the fourth floor of its building so it can expand the incubator, he said.

The key to entrepreneurship and job creation in the Kanawha Valley is the tech center at the former Union Carbide site, Ballard said.

“It’s absolutely critical. It can’t fail. It’s too important,” he said.

Inventors may invent a new product or process and have the first demonstration in the size of a handheld container, but to get financing for full production they will need to show its viability on a larger scale. That’s where the tech park comes in, he said.

“We need to get some venture capitalists on site or interest in the project going,” Ballard said. “You’ve got to have people to fund these new ideas, and we have very little of that in the state.”

The Alliance is following the progress of two bills in the Legislature, as each would help the state attract and retain industries and educated people, Ballard said.

One is a bill that would give two-year tax breaks to people who earn degrees. The other would provide tax credits for companies that create jobs in industries that do not exist in the state now, such as nanotechnology and cloud computing, Ballard said.

West Virginia’s future as a leader in technology and innovation took a leap forward last Wednesday with the transfer of the former Dow Tech Park to the West Virginia Higher Education Policy Commission.

It’s an important step in the Charleston Area Alliance’s technology-based economic development strategy. The creation of the new West Virginia Education, Research and Technology Park (WVERTP) is the culmination of the work of many partners over the past decade and represents a tremendous opportunity for our region and the nation. 

Dow’s donation to the state has saved about 500 high-paying jobs with benefits. The average salary at the park is $81,900.

“The Technology Park employs citizens from 16 counties in West Virginia and two bordering states,” said Matt Ballard, the Alliance’s president and CEO. “The impact will only increase as the vision is realized over the next decade. That vision is to fully develop a diversified, multi-tenant research, development and commercialization park focused on energy, chemicals and related technologies for the advancement of education and economic development in West Virginia and the surrounding region.”

The WVERTP also offers the state a chance to build on the region’s unique competitive advantages through the promotion of collaborative innovation and entrepreneurial activity. 

“The park, combined with other important assets stretching from Morgantown to Huntington, embodies a regional innovation cluster across the state,” Alliance Chairman Pat Bond said.

A regional innovation cluster (RIC), as defined by the Federal Economic Development Authority, is a “geographic concentration of firms and industries that do business with each other and have common needs for talent, technology, and infrastructure.” 

“Being at the forefront of solving national issues, like energy independence, will create a more unique niche for our region and state, grow existing businesses and create new jobs and educational opportunities,” Bond said.

A new report conducted by Battelle, a multi-billion dollar organization with experience in similar projects around the globe, has confirmed the park’s possibilities. Battelle’s recommendations include using the inherent, indigenous strengths of the local region to capitalize on new opportunities.

“Leaders such as Sen. Joe Manchin, Gov. Earl Ray Tomblin, the Chemical Alliance Zone, the Higher Education Policy Commission, MATRIC, the Kanawha County Commission and others had the vision and courage to back our mission and gather support for West Virginia’s future,” Ballard said. “They know advancing technology leads to job creation, and with the Technology Park, we have a fantastic opportunity to boost West Virginia’s technology economy.”

In recent days you may have read about a project that would rejuvenate the South Charleston Technology Park. 

If realized, the project could generate hundreds if not thousands of high value jobs, make our region highly competitive in research and development and create new opportunities for West Virginia’s coal, natural gas and other leading industries.

At stake is a pending donation by Dow Chemical Company of valuable buildings and land located at the technology park to the State of West Virginia.

But this is not just a real estate transfer — it’s about the future of West Virginia.

The purpose of this message is to tell you why this project matters to you, your business and everyone in our region, and what you can do today to help make it happen.

Background

For more than 50 years, the tech park arguably was the top research center in the chemical industry.  Dozens of patents were produced there each year, resulting in globally distributed products worth billions of dollars. (more…)