Governor Bob Wise is an activist turned consensus type of politician. Pointing frequently to a chart, he aggressively makes his case as to why West Virginia must continue to invest in scientific research at its higher education institutions.

It’s a presentation he has given many times. Governor Wise is a strong proponent for economic development, even when budgets are tight. He makes himself available to corporate executives both in the US and overseas, and frequently calls on corporations himself to promote investment in West Virginia.

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“Most executives overseas are surprised to find we aren’t bogged down in bureaucracy like many other places,” he says. “If a company needs to get something done, I can call a meeting of all the key players to discuss it. We have the flexibility, so can act.”

New horizons

With his state severely locked in recession for years – West Virginia’s economy had been based on old, labour intensive industries such as coal mining, steel and forestry – Governor Wise is now beginning to see the fruits of his labour for a new West Virginia.

“Foreign investment has been a particularly bright spot in our economy,” he says. “Japan, for example, has invested significant amounts of money in their Toyota engine plant. As a result, there are some 20 auto parts companies located in West Virginia now, plus some expansions in the last 18 months.”

After years of worldwide promotion of the state’s economic development, West Virginia is seeing success in key industries such as automotives and new technologies centred on the chemical industry, plastics, energy and telecommunications.

Last year, Italy’s Sogefi – one of the largest international groups operating in the automotive components sector – chose Huntington, West Virginia for its first North American assembly plant. “The reason we were targeted was partially because we are a one-day drive from 60% of the US and 30% of the Canadian population and offer a good NAFTA [North American Free Trade Agreement] platform,” Governor Wise says.

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The Polymer Alliance Zone (PAZ), which was put in place before Governor Wise’s administration, is a positive influence on the plastics and chemical industries. PAZ, which encompasses three West Virginia counties along the Ohio River, is intended to create a favourable business climate for the plastics industry and produce a world-class work force that is productive, highly trained and knowledgeable.

Biotech valley

However, opportunities lie ahead for West Virginia in state-of-the-art fields such as biotechnology and biometrics. Governor Wise outlines his plan to boost state research by $10m a year for grants, stressing that this is critical to build West Virginia’s research capacity and generate the kind of activity that will bring high paying jobs and stature in the future. He sees his proposal, and others similar to it, as having major consequences for the state’s future.

“We are investing more than $200m in new Economic Development Grants that will generate more than $1bn in new and expanded projects, creating thousands of jobs,” he says. “Last year, we completely rewrote our business tax incentives, making it easier to invest in job creation in West Virginia.” He states that West Virginia’s new Research and Development tax credit programme is already attracting cutting-edge industries.

“Our new Venture Capital initiative can translate into hundreds of millions of dollars in new investments,” he adds. He also refers to how West Virginia’s private enterprise representatives in Washington, DC – and the rest of the state’s congressional delegation along with its colleges and universities – are making West Virginia the Silicon Valley of biometric technology. Governor Wise states biometric technology “will improve the safety and security of every American and bring good-paying jobs to West Virginia”.

Development grants

Governor Wise goes on to explain how the West Virginia Economic Development Grant Committee, established in 2002, authorises bonds for qualified economic development, infrastructure, and capital improvement projects in West Virginia.

“Last year the committee approved a $10m economic development grant for the Blanchette Rockefeller Neurosciences Institute, a partnership between West Virginia University and Johns Hopkins University in Maryland,” he explains. “The new international medical research centre will focus on fundamental cognitive neuroscience and the development of new drugs and diagnostics to treat and diagnose neurological and cognitive disorders such as Alzheimer’s.”

The Institute will begin as an $80m independent research centre and be headquartered on the campus of West Virginia University in Morgantown. When the Institute opens in 2005, it will be the largest scientific research venture in the history of West Virginia.

But the Institute is only one fragment of the West Virginia life sciences story. The West Virginia Economic Development Authority recently awarded a $12.5m grant towards the development of Marshall University’s biotech development centre. A $1.5m grant was also awarded for a biotechnology incubator in conjunction with Dow Chemical Company.

“These examples show that West Virginia has what it takes even at a time when we had no joint venture capital to support this type of industry,” Governor Wise says. “Now we have access to funds with over $100m.”

The Blanchette Rockefeller Neurosciences Institute in Morgantown has already attracted several biotech/biometric companies such as MDBiotech, a start up company whose products include an automated microscopy system that allows the study of cells; and Protea Biosciences, which is involved in Proteomics, a new area of medical research.

“Protea Biosciences moved to Morgantown because the Washington Beltway is becoming so filled and property costs are high in Montgomery County,” Governor Wise says. “Morgantown is still considered close to the Maryland centre even though it is two-and-a-half hours drive away.”

Starting point

West Virginia got its push toward life science industries when, in the late 1970s, the state was one of the first five states to participate in a National Science Foundation (NSF) initiative known as EPSCoR (Experimental Program to Stimulate Competitive Research). The mission of EPSCoR is to build research capacity in states that historically have not received much federal funding for scientific research, and thus to make them more competitive for federal research grants. Because of the strong link between research capacity and economic development, EPSCoR is also a powerful engine of economic growth.

During the last three years, Governor Wise recognised the value of EPSCoR, and included full funding for the program as a key component of his Information Technology Blueprint in 2001. During the next few years, West Virginia EPSCoR was re-energised and reorganised, and in 2003 a new EPSCoR State Advisory Council was created by Governor Wise.

Consequently, NSF core support for EPSCoR and related competitive programs increased from just under $6m in 2001 to nearly $14m in 2003 with West Virginia providing a $1.5m match for the programme. “With nearly $14m in NSF funds in 2003, West Virginia is getting $9 for every $1 it invests in EPSCoR,” Governor Wise says.

Staying on the cutting edge, and investing state funds for industries of the future are what will grow West Virginia’s economy. And Governor Wise is determined to make that happen.

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