High tech pours $5.2 billion into state, study says
BYLINE: Sarah K. Winn
High-technology industries in north-central West Virginia contribute $5.2 billion to the state's economy, according to a recent economic impact report.
The study, commissioned by the West Virginia High Technology Consortium Foundation and conducted by Anderson Economic Group of Michigan, explores technology development in the area, including the influence of businesses, education and industry advocates.
"We thought the study would be a good way to document the size and scope of the technology industry and serve as a report card for the technology industry efforts of the past, as well as a statement of goals for the future," said Guy Peduto, commercialization manager for the WVHTC Foundation.
West Virginia has historically relied on coal mining and basic manufacturing industries for jobs and income, but technology is making inroads, according to the study.
"Today the industry is diverse, well-rooted and a significant source of employment and income," the report said, and its core is the I-79 Technology Corridor, including Harrison, Marion and Monongalia counties.
More than half of the region's technology industry jobs are within the corridor, the study said. Federal technology anchor businesses, including the Department of Energy's National Energy Technology Laboratory, NASA's Independent Verification and Validation Facility, the Federal Bureau of Investigation's Criminal Justice Information Services Division, three divisions of the National Institute for Occupational Safety and Health and the Department of Defense's Biometric Fusion Center, provide a significant impact.
The entire north-central region benefits from technology jobs, the study found. More than 18,000 technology-related jobs - 9 percent of the total jobs in the area - pay an average of $53,325 a year, which accounts for 16 percent of all wages in the region.
The jobs are diverse, spread across several areas. No single segment accounts for more than 25 percent of the employment, the study found.
The study found that the north-central West Virginia technology industry had a $5.2 billion impact on the state's economy in 2006. Of that, the direct economic impact was $769.6 million in wages and $2.3 billion in operating expenses. Indirect economic impact totaled $2.1 billion.
"It's an inspiring revelation," said John Dahlia, spokesman for Global Science & Technology, an area technology firm highlighted in the report. "Clearly, the business climate has changed over the past few years enabling us to grow our local staff and our local investment."
Also, the growth of the technology industry has resulted in significant construction in the region, the study found. While total construction data is too widespread to fully evaluate, the study evaluated construction projects in the I-79 Technology Park.
In total, $179 million has been or will be spent on construction projects for the Innovation Center, the Training Center, the WVHTC Foundation's Research Center and two new buildings, according to the report. Of that, 62 percent was spent with in-state companies, the study found.
Other industry activities such as education, grants and advocate groups also help economic growth in the region.
Overall, the study shows an overwhelming technology growth in the region and theorizes that the trend will continue, if a concerted effort is made.
"Fortunately, leadership in the region appears committed to the industry and future efforts to facilitate growth," the study said. "The people of West Virginia can expect to further benefit from a growing technology industry for years to come."
To contact staff writer Sarah K. Winn, use e-mail or call 348-5156.