As Virginia continues to make strides in the technology industry, many are looking towards the potential of Blacksburg, Charlottesville and Lynchburg as potential tech hubs. The reasons why these cities should be given serious consideration can be explored on a number of levels.
First, Blacksburg and Charlottesville both have highly respected universities, Virginia Tech and University of Virginia respectively. As two of the most prestigious colleges in the region, these institutions bring a large number of talented people to the area who are looking for job opportunities in the tech world. Not only do these students bring their knowledge, but also the potential for new and innovative ideas.
Second, the overall cost of living in cities like Blacksburg, Charlottesville and Lynchburg is lower than in the larger tech hubs such as San Francisco and New York City. This cost savings can be beneficial for startups, as it allows for more resources to be devoted to other aspects of their business. Additionally, numerous tax incentives are available in the area which further encourages tech companies to set up shop.
Finally, cities like Blacksburg and Charlottesville offer a great quality of life. The area has seen a surge in cultural activities and events in recent years, making it an attractive option for professionals looking to settle in one of the country’s most vibrant regions. Moreover, the downtown areas of each city are becoming increasingly dynamic and diverse. These changing demographics have resulted in a rich array of experiences and activities to explore, drawing potential tech hub entrepreneurs and entrepreneurs looking to capitalize on the start-up ecosystem.
As Blacksburg, Charlottesville and Lynchburg develop their tech hubs, there is no doubt that the area as a whole will benefit greatly. With a strong combination of highly respected universities, cost savings, and a vibrant quality of life, there is no doubt that these cities could be the epicenter of Virginia’s tech industry for years to come.
3 towns in Virginia – Blacksburg, Charlottesville and Lynchburg – would make very good candidates for a single of the 20 “regional engineering hubs” that the federal federal government will designate for a share of $10 billion in research pounds.
Which is the conclusion of two individual experiences that try to review which communities would be the very best recipients for all this federal largesse. Now for the tricky section: Not all three will be selected. There is no warranty that any of them will be, though these reports give encouragement that at least a single of them will be.
So, the speedy dilemma: What are these communities executing to place on their own in the functioning?
Right before we deal with that, nevertheless, let’s back up and reveal just what all this is about.
The major-image worry is that the nation’s engineering sector is as well concentrated in just a handful of spots. Nearly 70% of the nation’s enterprise capital goes to just 5 towns, in accordance to Pitchbook: San Francisco, New York, Boston, San Jose and Los Angeles, in that order. The prime 10 soak up 81.2% of the undertaking funds. Framed a further way: If you think about San Francisco and San Jose to be basically the similar metro area, then more than 36% of the nation’s enterprise cash goes to just that 1 spot. Is it wholesome to have the nation’s heartland hollowed out economically when a few towns on the coasts prosper far more wildly than any one can ever have imagined?
That basic issue has animated a great deal of policy discussions about the past 10 years on the two still left and appropriate. For some, the answer has been to check out to rebuild the nation’s manufacturing sector. For other folks, it is been to “spread the electronic wealth” by advertising and marketing a a lot more widely distributed know-how sector. These two factors are not always mutually distinctive, of training course, and the distinction involving what is producing and what is technology is progressively challenging to determine. (This was a subject that the congressman from Silicon Valley – Rep. Ro Khanna, D-California – tackled when he spoke in Blacksburg final June as portion of the Cardinal News Speaker Collection.)
One idea that has captivated all those on the remaining has been to direct federal exploration dollars to areas other than “the standard suspects.” Additional especially, to have the federal govt designate some towns as regional technological know-how hubs wherever funding would be centered as a way to establish up far more tech capitals across the region. Throughout the 2020 Democratic presidential primaries, the candidates vied with one another above just how lots of technological innovation hubs they would develop. (Pete Buttigieg proposed 1,000.) I doubt any of those people proposals swayed most important voters, but it exhibits why you ought to pay out consideration to specifics because all those plan suggestions surfaced final year – and became legislation as portion of the CHIPS and Science Act that Congress passed and President Joe Biden signed into regulation.
The headline merchandise out of that was legislation to endorse additional domestic production of microchips, but down in the monthly bill was a provision to authorize up to $10 billion for “at minimum 20 technologies hubs” all over the region. The language further more specified how these hubs need to be distributed – at least a few in just about every Economic Advancement Administration’s six regions, which usually means at least two areas might get far more. The act also goes on to say that “no fewer than one-third” of these hubs must “significantly advantage a tiny or rural local community.” The definition of “small or rural community” is “a noncore region, a micropolitan location, or a small metropolitan statistical location with a populace of not additional than 250,000.” That policies out the Roanoke (314,496) and Lynchburg (262,258) metro parts but regulations in the New River Valley (165,293) and virtually all of Southwest and Southside. (Bristol’s in a difficult condition it is counted as aspect of the more substantial Bristol-Kingsport-Johnson City MSA, which has a inhabitants of 308,661.)
I ran some tough calculations very last drop and concluded that the New River Valley stood a fairly good prospect of getting picked. I built my layman’s evaluation by way of a political lens: We’re in an EDA area that runs from Virginia to Maine. If this area gets only three hubs, politics will likely dictate they be spread out – 1 in New England, a person in the New York-New Jersey-Pennsylvania space, and one in Maryland-Virginia-West Virginia. That narrows the competition. Due to the fact the goal in this article is to distribute the technology sector close to, it seems secure to say that Northern Virgina will not get picked – they’re just one of the “haves.” On the other hand, the intention in this article isn’t to create a know-how hub from scratch it’s meant to establish on what’s presently there, which is why the legislation talks up leveraging institutions of larger education and learning, in particular individuals working with so-referred to as STEM fields – science, technological know-how, engineering and arithmetic. That guaranteed seems like Virginia Tech to me.
The monthly bill also says the secretary of commerce really should “encourage proposals” from areas “whose economic system substantially relies on or has recently relied on coal, oil or purely natural gas production or development.” That is absolutely Southwest Virginia. And even though Virginia Tech is not in coal country, it doesn’t take way too a great deal creativeness to photograph a proposal that, whilst centered in Blacksburg, can make some provision for coal region.
In any case, individuals were my again-of-the-envelope political calculations. Now come two various teams who have done genuine facts-crunching and arrive to additional scientific conclusions. Let’s consider a seem.
The initial of those is the Middle for American Progress, a still left-of-middle imagine tank in Washington. It has operate the math and has appear up with 30 proposed regional tech hubs – five in each and every EDA zone. You will discover that the laws calls for “at minimum 20” so there’s no reason why “at the very least 20” just can’t truly suggest 30 – besides that does distribute the money a very little thinner. (Keep that thought.) These rankings are significantly like when computer programs are utilized to rank higher education football groups – the output is dependent a great deal on the input. How significantly weight do you give to wins over creampuff groups and how substantially pounds do you give to a near loss towards a tough opponent? Identical below. The CAP formulation is based mostly on education and learning and competencies (40%), housing (30%) and life-style (30%), and each and every of these categories has its have method. For instance, half the education rating is based mostly on academic attainment in the location, a quarter on the quantity of patents already being generated. Half the way of living percentage is based on commuting time (the more quickly the much better). For the complete formulation you can see the CAP web site.
For individuals who just want to know the final score, in this article it is: In our individual zone, the CAP components recommended Blacksburg and Charlottesville as well as Albany, New York, and Erie and Pittsburgh, Pennsylvania.
There is no commentary supplied, so we don’t know how these communities rated. I’ll just say that politically I really do not assume this record will fly. Senate The vast majority Leader Chuck Schumer, D-New York, who was one particular of the primary movers behind this portion of the legislation, has regularly talked up how he thinks Buffalo would be a great pick – and Buffalo isn’t on this list. We can chat neutral range all we want but I have taken it as a offered that Buffalo will get picked. I also discover it really hard to believe that, politically, that two college or university towns in the exact same point out – Blacksburg and Charlottesville – would get specified. It would be a superb matter if they ended up, but, again, I’m wanting at this politically. And though CAP proposes 5 cities per zone, what if the secretary of commerce decides to take the “at minimum 20” directive as “exactly 20” and picks three towns per zone, with two wild playing cards? If this were being the record of five she’d be picking from, I suspect at minimum just one of all those Virginia metropolitan areas would have to go.
In any situation, here’s some even further validation that Blacksburg would be a sturdy contender for just one of these hubs. I really do not know who is the particular person to acquire the lead on this – Virginia Tech? the Onward New River Valley economic enhancement team? – but it absolutely sure appears like somebody need to. The official application course of action has not opened yet, but we’d want to be completely ready.
A extra stunning outcome arrives from the Economic Innovation Group, a bipartisan Washington-centered believe tank. It set jointly its personal formulation that aimed to come across “the sweet spot” among “already higher-carrying out superstar metropolitan parts that are decidedly not the meant recipients of these federal investments” and “remote and chronically having difficulties locales the place hubs would have to be developed mostly from scratch.” It set a whole lot of emphasis on the amount of STEM graduates in a area furthermore, like CAP, the number of patent-holders. It also labored in some financial factors these as “economic complexity” and “agglomeration adjacency,” the latter being an economist’s way of declaring that the formula rewards standalone metro locations and those with a low price of residing. If which is the form of factor you groove on, knock by yourself out looking at the whole established of elements.
It also arrived up with 5 towns per EDA zone – do these believe tanks know a thing the relaxation of us really don’t? Curiously there’s really minimal overlap with the CAP list. In our zone, there’s only a person copy city – Pittsburgh. Nationally, there are only 5 other copy cites: Boise, Idaho Fayetteville, Arkansas Lincoln, Nebraska Madison, Wisconsin and Oklahoma City.
The actuality that two groups could arrive up with two these distinct lists tells me that a whole lot of the level of competition in this article is going to be extensive open up. What you want to know, nevertheless, is how EIG rated our zone so listed here it is, operating our way north to south: Providence, Rhode Island Springfield, Massachusetts Buffalo Pittsburgh and … Lynchburg.
I’ll confess that surprises me. Blacksburg and Charlottesville built correctly good sense on the CAP checklist – equally school cities that are home to major investigate universities. Lynchburg is also a college or university town, it just isn’t constantly considered that way. Fun truth: Concerning Liberty College, Randolph Faculty and the College of Lynchburg, the Hill City has practically as numerous whole-time faculty learners on campus (15,226) as Charlottesville does (16,238). None of those people Lynchburg colleges are seen as big investigate universities, and yet, here is Lynchburg beating out Blacksburg and Charlottesville (and plenty of other destinations) in these rankings.
Politically talking, the EIG listing will make much more feeling to me due to the fact it contains Buffalo. There is also much more geographical range, which I suspect will be crucial.
Lynchburg has taken some hits these days – a report by the Commerce Department’s Bureau of Economic Investigation found that the Lynchburg metro has recovered from the pandemic slower than any other in Virginia, a report by Outdated Dominion University showed how its gross domestic product has shrunk about the earlier decade, a condition report observed the Lynchburg sector much too small to aid a coveted inland port. This EIG report should to be a significant morale increase, and, preferably, the impetus for placing together a proposal.
Huge picture-smart: Here are two diverse studies, applying two various methodologies, that, indeed, arrived up with different success, but this is also akin to the Sherlock Holmes story about the puppy that did not bark. Neither examine encouraged a spot in the city crescent. Equally advised sites in the vicinity of the Blue Ridge.
Now, a dilemma: Each of these communities could go it by itself and check out the other individuals as prospective rivals. What, although, if they merged forces? I have no thought how that would do the job on the real application, but consider this: Each Blacksburg and Lynchburg are part of the very same GO Virginia region. That could deliver some rationale for them to join with each other – an alliance of the state’s major general public investigation university and its most important personal university. This should really benefit some discussion, at the extremely least. With the exception of GO Virginia, there is no actual historical past of the Blacksburg-to-Lynchburg area doing the job collectively (Roanoke and Blacksburg are joined on lots of points), but there’s a first time for anything. Might this be it?
Now for the kicker, really two of them. When the enabling legislation licensed $10 billion for these hubs, it didn’t really proper that funds. The federal expending invoice passed in late December did, however, involve $500 million for the hubs, which Schumer called “the initially significant down payment” towards their generation. “This implies authentic dollars to create the Silicon Valleys, the Silicon Forests, the Silicon Heartlands and Prairies of tomorrow,” he mentioned.
And now this: None of Virginia’s Republican associates voted for the first legislation or the spending prepare that consists of income to get them began. However the 3 cities recommended in these two research are all in Republican districts – 1 represented by Morgan Griffith, two represented by Bob Excellent. How strongly will they help force for 1 of their communities to get picked for a thing they voted in opposition to?