Western Virginia Explores Its Future

Western Virginia’s economy is stagnant due to a variety of factors and must get in line with the “New Economy” according to a report commissioned by the Center for Innovative Leadership in Roanoke. A second study by the Center revealed the area's residents appear willing to support activities designed to bring new business and employment to the region.



The report concluded that despite a favorable quality of life in the “New Century Region," as Western Virginia calls itself, the area's economy has been concentrated heavily on declining manufacturing industries and must find ways to attract high technology business.



The region is home to the fourth largest concentration of population in Virginia, but has suffered from cutbacks in defense spending, increases in global competition and corporate mergers. Employment in the region increased by only 0.2 percent in 1999 compared to 2.7 percent for the entire state. The lack of new businesses contributed to stagnant population growth of 0.3 percent in the 1990s versus 1.5 percent for all of Virginia.



“The industry mix in the [New Century Region] has not kept up with the changes in national and local demand and the industry mix is concentrated in forms that have grown at a sluggish rate or have declined over the last few years,” the report said.



The report recommends the region target economic development policies toward fast-growing high tech industries to compensate for an expected decline in labor-intensive industries that currently exist there.



On the positive side, the report found that the area has an excellent higher education base, led by Virginia Polytechnic Institute and the Carillon Biomedical Institute, that could be a catalyst to transform the region into the biomedical capital of Virginia.

The public opinion survey, taken by 570 respondents and 130 governmental leaders, revealed that most residents recognize there are economic problems in the region. However, there is a willingness to seek cooperation among the 17 entities in the New Century Region to improve the economy.

Three-quarters of the respondents said they favor a course of action that will result in economic growth and agree that high tech jobs are needed.

While the general population in the the region remains cautious about growth, 88 percent of government leaders are strongly in favor of economic development, even if it means the region might become more congested and might lose some natural areas. Most citizens favor government incentives for business recruitment and for growth and regulations.

The 106-page combined report is available for download at www.innovativeleadership.org