It’s great to see some progress on West Virginia State University’s Media Center project. Combined with the numerous marketing firms that line Capitol and Summers Streets in Charleston, we could ultimately incubate a nice little marketing-media industry cluster in downtown Charleston.

Economists have been learning a lot about the “cluster” dynamic of industries. Basically, independent but related businesses tend to pop up around a major research center of excellence, or beside a major player in a particular industry. For example, Silicon Valley exists because of the proximity of talent-laden Stanford University and Cal-Berkeley; the existence of the high-tech industry in the Seattle-area is a natural consequence of Microsoft’s growth and influence. Companies set up shop to be near the action.

What are West Virginia’s natural opportunities for building industry clusters? The Vision Shared Technology-Based Economic Development (TBED) working group announced during their meeting yesterday the availability of a statewide study by Battelle Science and Technology International, a scientific research and management firm based in Columbus, OH. The study basically documents West Virginia’s strengths and weaknesses from a high-tech industry perspective, and makes recommendations on which industry clusters would be most viable for investment and growth.

Outside documentation of strengths/weaknesses like this are invaluable for bringing dispassionate clarity to help map policy. Instead of broad initiatives to “attract talent,” these insights help define which specific industry clusters are potential strengths for our region. Battelle calls out the following opportunities for WV based on current strengths and assets:

• Advanced energy – energy technology such as developing fuels for high-efficiency burning and fuel conversion
• Advanced materials – electronics and semiconductors, advanced polymers, catalysts and catalytic materials, and nano materials
• Identification, security and sensing technology – biometric products
• Molecular diagnostics, therapeutics and targeted-delivery systems – pharmaceuticals 

In the Create WV initiative, we’ve highlighted how critical it is to invest in R&D centers of excellence as a key backbone to attracting top-notch scientific talent. These cutting-edge researchers want to be where the action is in their niche. The work commissioned by the TBED is extremely valuable for West Virginia, and we hope this provides needed ammunition to increase West Virginia’s paltry investment in scientific and technical R&D.

While states such as Kentucky have ramped up their R&D investments dramatically to attract top-notch research talent (to the tune of $350 million in a state only 2x the size of WV in population), West Virginia just recently approved $10 million. The return on investment for these R&D investments in terms of new companies and new jobs is becoming well-documented, and it should be a priority for our state leaders to understand this dynamic and to read the Battelle Report thoroughly.

Local leaders should be thinking along these lines as well. Are there mini-clusters that can be developed in partnership with a local college and university or industry leader? Are there niche arts clusters that can be developed that set your city/county apart from others? In many ways, cluster theory maps to the successful plannning and marketing strategy of choosing a niche and becoming better at something than anyone else.