SSTI Digest

The jury's still out on the appropriate role or effectiveness of most tax credits to encourage tech-based economic development (TBED), but most politicians and economic development practitioners believe their state is at a competitive disadvantage without at least a few breaks.

With Gov. Bob Wise's recent signature on two bills, West Virginia becomes the latest state to add two tax credits of potential value for the state's growing tech community. Both the High Growth Business Investment Tax Credit and the Strategic Research and Development Tax Credit offer incentives for investment in growth-oriented research and development (R&D) businesses and assisting R&D companies in the early stages of operation.

Guidelines for the High Growth Business Investment Tax Credit include:

A new energy initiative in West Virginia, Energy Village, aims to help grow the state's small and start-up energy and environmental technology businesses. Gov. Bob Wise announced $125,000 in funding for the initiative on Monday.

Energy Village is tasked with coordinating West Virginia’s emerging energy and environmental technology cluster of businesses. The funding provided to the Morgantown-based nonprofit organization will assist in the implementation of a strategic plan to grow these businesses. Energy Village will leverage state and federal resources, including the Department of Energy’s National Energy Technology Laboratory, in the research and development of fossil fuel technologies.

In its second attempt to distribute $225 million across the state to local economic development projects, after a lawsuit successfully challenged the initial selection process, the West Virginia Development office is poised to award nearly $47.5 million to directly benefit several technology-specific initiatives.

A grant committee of the West Virginia Development Office announced the awards among the sum of those made — $225.86 million to 48 projects in 27 counties. Technology-related awards include:

The Charleston Gazette reports Ron Hatfield, director of jobs development for the West Virginia University Institute of Technology's Technology Research and Development Corp., will also serve as the new executive director of the Upper Kanawha Economic Development Corp.

Wrapping up its 2003 session earlier this month, the West Virginia State Legislature passed three bills designed to help build a technology-based economy.

Each year, SSTI looks at the various addresses given by the nation's governors at the beginning of the year. While the aftermath of September 11 weighs heavily in the content of this year's State of the State addresses, the important role tech-based economic development plays for strengthening state and local economies during a recession has not been overlooked by many governors.

Not all news is positive, however. As nearly every state confronts less-than-anticipated revenues and the resulting budget deficits, tech-based economic development initiatives face fiscal challenges.

Over the next few weeks, the SSTI Weekly Digest will highlight those portions of the speeches concerning programs, policies, and issues immediately affecting the tech-based economic development community. This week's addresses include:

David Satterfield is the new Executive Director of the West Virginia Development Office. Mr. Satterfield was Gov. Bob Wise's chief of staff.