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Science and Technology Capability and Economic Development in Lagging States: The Case of West Virginia Manufacturing

The importance of local infrastructure, institutions, and service providers to the development of a competitive technology-based economy has been well established in recent years. Rural states, which lack many of the ingredients found in successful technology districts, must overcome serious problems in efforts to build a technologically-based economy. Problems include the lack of major metropolitan areas, limited research capabilities of the local universities, limited industrial research and development, a lack of research infrastructure, an over dependency on a resource-based economy, and the problem of competing with well-established technology regions. West Virginia is an example of such a state in the southeastern United States. This paper examines the status of West Virginia's research and development competitiveness and the relationship of factors associated with competitiveness of manufacturing establishments in the state. Results of a survey of manufacturers are presented. The survey shows that establishments with scientific and engineering staff, and those that purchase advanced business services, are more likely to have nationally competitive primary products or processes. West Virginia is taking steps to improve its science and technology position, and policymakers in West Virginia, as well as in other lagging states, need to understand the depth of support needed for long-term technology-based industrial development.