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

Abstract

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.

Business Services, Productivity, and Wages: Metropolitan and Nonmetropolitan Michigan Counties, 1977–1997

“…Because of this, advanced service industries have emerged to meet their needs. In the advanced services, the skill-sets of firms often represent the state of the art in an industry and are necessary to maintain and upgrade existing products and processes, particularly in the manufacturing sector (Calzonetti, Allison, and Gatrell 1999). For these reasons, the role of producer services is a central component of contemporary industrialization in rural and urban places (Illeris 1996).…”

“…In particular, the article examines the relationship between the businessservices sector and the manufacturing sector. By focusing on manufacturing, the article con-siders the pivotal role of the business-services industry in deepening the spatial division of labor, improving the competitiveness of firms, and the ability of local economies to reap the benefits of increased specialization (i.e., increased productivity and wages) (Hansen 1990(Hansen , 1993Bailly 1995;MacPherson 1997;Calzonetti, Allison, and Gatrell 1999). The study also tests whether business-service variables can statistically account for average observed wages across all sectors.…”

State Science and Technology Planning in West Virginia: Challenges Facing Practitioners

“…The rationale for the selection of these areas is explained.This article explores a fundamental question in state-level science and technology planning in West Virginia; this is the question of building on existing areas of industrial and academic science and technology strength or moving into new and promising but perhaps risky areas that exist at only an embryonic stage of development. This question is discussed in light of the deliberations of the West Virginia Science and Technology Advisory Council, which selected new areas for state strategic investment rather than existing areas of strength (Calzonetti, Allison, & Gatrell, 1999). 1 The areas are information technologies, identification technologies, and workforce development.…”