Case Study: Regional Transformation

Goal:

South Central “Southside” Virginia, anchored by the city of Danville, wanted to reinvent its economy and prepare its citizens for higher paying jobs.

Challenge:

The economic base of Southside Virginia – tobacco, textiles, and furniture – began to collapse in the 1990’s.  Unemployment was high.  Globalization was driving commodity manufacturing offshore, leaving much of the manufacturing base susceptible.  The region’s tradeable economy needed to be transformed.  Citizens who had been able to make a good living without a lot of formal education found they did not have the educational credentials or core in-demand skill sets for emerging jobs. 

 Solution:

When funds from the Master Tobacco Settlement reached Virginia, the legislature committed a significant percentage to economic revitalization projects in the tobacco-growing parts of the state. Leaders in Southside decided to establish an independent “intermediary” institution, the Institute for Advanced Learning and Research (IALR), as a strategy to bring university-affiliated applied research and education opportunities to the region. 

Process:

Virginia Tech was engaged by Southside leaders as a central partner in creating and managing the intermediary institution, the Institute for Advanced Learning and Research (IALR).  The IALR’s research was intended to stimulate growth in emerging economic sectors, and its education focus was expected to equip a workforce for jobs of the future.  In all the IALR reinvention model centered on six strategies:

• Fostering the Development of a New Economic Base through Research and Innovation – connecting new place-based university-led applied research and commercial testing centers to Southside assets through four areas of focus

• Attracting and Developing a 21st Century Workforce through Academic and Outreach Programs – providing formal and informal learning opportunities in STEM fields

• Preparing the Region to Leverage Leading-Edge Information Technology – creating a regional showcase and education platform associated with information technology

• Promoting Southside Virginia as a Destination Location – using the IALR meeting spaces to draw events and meetings connected to IALR’s engineering programs, creating a destination location for business and industry

• Ensuring Inclusion in Economic and Educational Opportunities – galvanizing local African American leaders
  around an education and leadership agenda by establishing the non-profit Southside Community Advocates for Learning and Education – Upward for Progress (SCALE-UP)

• Building an Agenda for Regional Collaboration – working collaboratively with leaders across six Southside counties and their respective communities to increase regional impact

Outcomes and Impacts:

The IALR garnered many awards during its start-up years, including: 

• 2007 C. Peter Magrath/W.K. Kellogg University Engagement National Award Winner
• 2006 Virginia Governor’s Award for Innovative Technology Use in Higher Education
• 2006 University Economic Development Association Partnership Award Winner
• 2005 U.S. Economic Development Administration Innovation Award Finalist
• 2005 U.S. Small Business Administration/Kauffman Foundation Entrepreneurship Award Finalist
• 2005 Southern Growth Policies Board Innovator’s Award
• 2005 International Communications Industries Association/Archi-Tech Audio Video Award Winner
• 2004 Southern Piedmont Technology Council Chairman’s Award

Research, commercialization, and entrepreneurship programs continue to produce returns.  Hemp is a new cash crop in the region, with IALR serving as a lynchpin to its growth.  The IALR’s footprint has doubled beyond the original 90,000 square foot building to encompass four additional buildings, the co-location of numerous businesses to the IALR facilities and adjacent properties in the Danville CyberPark, and the redevelopment of Danville’s historic tobacco warehouse district.

A Milken Institute study found that the Danville Virginia metro area’s educational attainment rose 1.1 years between 1990 and 2010, boosting GDP by 12.2 percent., citing Danville, Virginia, demonstrated that a region’s economic fortunes are closely tied to the quality of its workforce. “Average years of schooling in the (Danville) metro rose 1.1 years to 13.18 from 1990 to 2010.  This boosted real GDP by 12.2 percent or $3440.”[1] These data suggest that the IALR’s focus on creating a talent and innovation ecosystem is paying off.  

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