Publication: THE CHARLESTON GAZETTE
Published: 11/13/2004
Byline: THE ASSOCIATED PRESS

Although there is a risk, West Virginia should concentrate its economic development efforts on a few specialized industries, a consultant from the Massachusetts Institute of Technology says.

Because West Virginia is a small state, a broad range of industries cannot excel. Economic success hinges on companies that specialize in a few fields "and public resources must be mobilized in support of those activities if the state is to succeed in growing and/or attracting internationally competitive firms," consultant Richard Lester wrote in report to The Council for Community and Economic Development.

"The future areas of economic specialization are uncertain, but the state cannot afford to wait for them to become clear before committing itself," he said. "West Virginia must in effect place strategic bets on a few areas of economic activity."

Lester acknowledged that the strategy contains risk, but said "there are also risks of not acting."

The council, a public-private organization that sets state economic development policy, hired Lester to study the outlook for innovation-driven economic growth in West Virginia. Council Chairman Ralph Bean said the study cost $50,083.

Sectors the state could target include energy; biometrics; chemicals, plastics and polymers; and forestry, wood and paper products, Lester said.

He said tourism and hospitality provide jobs but the average pay lags behind mining, chemical manufacturing, construction, metal manufacturing and utilities.

Lester also said building on existing industries and developing new industries are both important.

"A dynamic economy cannot be sustained solely by improving on existing industrial practices and processes. The capacity to introduce new products and develop new markets is also essential.

"Equally, however, West Virginia cannot afford to turn its back on its existing industrial base," he said.

"Many of the industries of today will also be the industries of the future."

Bean said he hopes Lester can hold a working session with the council and the Vision Shared implementation team "to see if we can come to some agreement on priorities and get Lester's thoughts on how we proceed."

Vision Shared is the council's economic development strategy.