Virginia Is for Lovers, Thriving Businesses and a Dynamic Economy

Why This Matters to You

Whether you’re an individual community member, business owner, leader, or policy maker, there are numerous benefits to understanding these regional pronouncements within the vibrant economic ecosystem throughout the Commonwealth of Virginia:

• Community Members can take pride in living in a state that continues to give its citizens the best opportunity for innovation, employment, and business success within a thriving economy.
• Business Leaders can feel confident knowing that when starting a business in Virginia, there are a multitude of regional strengths to leverage and numerous resources for support.
• Policy Makers can access insights on how to continue to invest and advocate for future policies that build on the momentum of the growing regional clusters.

Regional Industry Clusters

Northern Virginia – Cybersecurity, Data Warehousing & Government Contracting

The Northern Virginia region is a powerhouse of economic activity driven by its leading cybersecurity industry, robust government contracting sector, and critical data warehousing capabilities. As home to the highest number of cybersecurity[1] companies in the nation, the region plays a pivotal role in national security and digital infrastructure protection, creating high-paying jobs and fostering technological innovation. Its proximity to Washington, D.C. has cultivated a thriving government contracting environment, injecting billions into the local economy and providing a wealth of employment opportunities. Further, with 70 percent of global internet traffic[2] flowing through its data warehousing facilities, Northern Virginia is a key player in global digital connectivity and data management, supported by advanced infrastructure and a diverse, skilled workforce. These regional characteristics played a major role in Amazon[3], one of the world’s leaders in enterprise cloud infrastructure, selecting Arlington, Va. as its newest East Coast headquarters location.

Shenandoah Valley – Food Production & Logistics

A significant part of the Shenandoah Valley’s economic value to Virginia rests in its poultry/livestock and logistics capabilities. Employing over five percent[4] of the Valley’s 175,000-strong labor force, major companies like Hershey, Molson Coors, McKee Foods, Perdue, and Cargill drive the region’s food and beverage production, with Danone’s largest facility in the world located here. Logistics is equally significant, with Interstate 81, Virginia’s longest interstate, rated as one of the top eight truck routes in the U.S., connecting the state to the rest of the East Coast.

Greater Roanoke & New River Valley Region – Autonomous Vehicles, Data Science & Nuclear Energy

In the Greater Roanoke and New River Valley region, significant investment has been placed in cutting-edge technologies for the future. Much of this effort is led by Virginia Tech, one of the nation’s top higher education institutions, which is at the heart of major developments in autonomous vehicles[5], data science, and one of the nation’s leading efforts of technology transfer from the university into industry. One example is Torc Robotics, an industry-leading autonomous truck company based in the area.

This region demonstrates the aforementioned collaboration among clusters as we note the relationship between the major data industries moving to Northern Virginia and Virginia Tech, including Virginia Tech opening a campus in the Northern Virginia area[6]. There is no doubt that this region of the state will play a major role not just in the future of Virginia, but the nation at large.

Greater Lynchburg Area – Nuclear Energy

The greater Lynchburg area is home to Framatome’s Center of Operational Excellence for Nuclear Products and Services, and as a result, boasts the second-highest concentration of employees in Virginia’s nuclear industry. The region’s focus on energy collaborates with other major energy efforts in the Southwest Virginia region such as development of The Energy DELTA Lab [7] in Wise County and with the wind energy efforts taking place in Hampton Roads and Eastern Shores areas.

Southwest VA – Agriculture & Energy

Known for its beauty and low cost of living, the Southwest region has and continues to make waves in energy and agricultural industries. As noted previously, The Energy DELTA Lab in Wise County is an exciting initiative with purpose to become an “energy testbed and deployment strategy defining Virginia as a hub of innovation.” This facility with pioneer research and development of sustainable energy methods. The region’s foundation is its strong agricultural presence, which is supported by the Southwest Virginia Agricultural Research and Extension Center, which focuses on innovative practices in livestock and forage production.

Charlottesville to Richmond Corridor – Biotech/Health Tech & Life and Health Science

The Charlottesville to Richmond Corridor is a stellar example of a region that has effectively identified and capitalized on its assets. The presence of two top public universities with renowned education and healthcare programs – the University of Virginia and Virginia Commonwealth University – has resulted in one of the nation’s most innovative ecosystems. The biotech and health environment in the Charlottesville to Richmond area is burgeoning with more than 145 companies at the forefront of advancing human health and innovation. Over 70 companies based in the greater Charlottesville area alone are receiving more than $183 million[8] in current funding.

The region is also home to multiple organizations including the CvilleBioHub and the Charlottesville Business Innovation Council, which are dedicated to championing and supporting these types of firms to great success. A recent example is AgroSpheres[9], a biotech startup driving innovation in sustainable pesticides, that received $25 million in its Series B round of investment to expand its manufacturing capabilities locally in Albemarle County. Another is Babylon Micro-Farm whose novel vertical farming and machine learning shows dramatic decreases in water consumption compared to traditional farming. In May 2023, Vice President Kamala Harris[10] visited Babylon Micro-Farm where she delivered official remarks on the importance of investing in small business manufacturing during National Small Business Week.

Hampton Roads and Eastern Shore – Maritime Logistics, Military & Offshore Wind/Energy

The coastal region of Virginia is a state and national leader in military, maritime logistics, and offshore wind energy. Home to every branch of the U.S. Armed Forces, the area supports over 120,000 active-duty, reserve, and civilian personnel. The Port of Virginia, the deepest harbor on the East Coast, is put to good use by the likes of Huntington Ingalls Industries, America’s largest military shipbuilding company, highlighting the region’s strength in maritime logistics. In addition, the future of sustainable energy will be directly influenced by the recently approved Coastal Virginia Offshore Wind Commercial (CVOW-C) project[11], located approximately 23.5 nautical miles east of Virginia Beach. This will generate about 2,600 megawatts of clean energy, powering over 900,000 homes.

Southern Virginia – Agriculture Tech, Advanced Manufacturing & Logistics

Advanced manufacturing and agriculture tech are at the forefront of Southern Virginia’s economy with 17 percent of the region’s workforce[12] employed in these sectors. Growth of these industries is the work of the Institute of Advanced Learning and Research (IALR) and its Controlled Environment Agriculture Innovation Center that prioritizes the diversification of agribusiness and the increase of net farm income and profitability for both the region and organizations throughout the Commonwealth. 

Supporting much of this tech-fueled growth, major IT and data center companies [13] have selected this area due to its strategic location and state-of-the-art broadband infrastructure. Another great example of cross–regional collaboration is IALR’s support of both the AgTech firms in the Charlottesville-Richmond area and the defense industry in the Hampton Road and Eastern Shore area. This industry cluster also directly benefits from its central location on the border of North Carolina and its advantageous logistics position for any Mid-Atlantic destination.  

Tourism Throughout the Commonwealth

One of the most special and unique industries that touches nearly every part of the state is tourism, which generated $26B in economic impact for the Commonwealth in 2018[14] and supports over 207,000 jobs annually[15]. Virginia is ranked 15^th overall in the nation for visitor spending[16]. What is most impressive is the diversity and distribution of various types of tourism throughout the Commonwealth, starting with Washington, D.C. — a must-visit destination for both American and international tourists. While not technically part of Virginia, it is a close neighbor whose proximity benefits charming communities like ‘old town’ Alexandria and surrounding military sites like Arlington Cemetery.

Nearby, the Chesapeake Bay and riverways offer a unique vacation experience highlighted by the fabled Chincoteague wild ponies[17] that still swim the bay as they have done for centuries. Just south, there are the boardwalks of Virginia Beach and the secluded beaches of Sandridge, marking  the northern edge of the Outer Banks.

Virginia’s rich history is everywhere. Yorktown, Charlottesville, and Colonial Williamsburg offer glimpses into our nation’s beginning as do numerous presidential estates throughout the state such as Mount Vernon, Montpelier, and Monticello. Battlefields from both the American Revolution and Civil War such as Yorktown, Appomattox, and Manassas are scattered across Virginia.

The southeast part of the state is home to unique geological sites such as the Great Dismal Swamp, while the western part of the state showcases some natural caverns. Most notably, the grandeur of the Appalachian Mountains draws people throughout the western border with the Blue Ridge Parkway and Appalachian Trail standing out as notable attractions. The foothills of the mountains are blessed with one of the world’s top wine regions, which was rated Wine Region of the Year in 2023 by Wine Enthusiast[18].

Towns like Floyd and Galax in the southwest both host festivals and everyday experiences which claim the town as the ‘Old-Time Music Capital of the World.’  Other cities like Richmond are cultural hubs for music, festivals, sports, and entertainment for all. Busch Gardens and Kings Dominion, both located near Richmond, provide family fun for all seasons. From the diversity to the distribution of tourism sitesVirginia is abundant in attractions for visitors of all ages and interests.

How is This Happening?

Virginia’s economic success is a testament to the collaborative efforts of numerous organizations dedicated to fostering growth and innovation across the state. The Virginia Economic Development Partnership (VEDP)[19] has been pivotal in attracting businesses and facilitating economic development. Virginia’s approach to economic development incorporates these elements and continuously builds on its strengths. This is exemplified by its $550 million investment in “shovel ready sites”[20] and the $74 billion in capital committed by outside companies for future expansion. As a result, a dynamic, diverse array of regional industry clusters have formed throughout the state, creating a robust economic infrastructure.

Further, the Virginia Innovation Partnership Corporation (VIPC) provides significant capital investment and support for startups and just celebrated 10,000 new high-growth startups in Virginia[21]. Similarly, GO Virginia[22] provides essential grants for programs designed to foster economic activity in each region.

Not all efforts are statewide, but there is a collection of efforts in nearly all parts of the Commonwealth. For example, startups raise additional capital throughout the region from angel funding networks such as the Charlottesville Angel Network (CAN), named the 8^th most active angel group in the United States by number of transactions[23], CavAngels, and 757 Angels. These and other firms provide essential capital and support to startups and growing enterprises. Similarly, the vast network of innovation centers throughout Virginia plays a crucial role in nurturing cutting-edge research and entrepreneurship. Finally, dynamic associations like CvilleBioHub and Charlotteville Business Innovation Council are present in many communities and work tirelessly to support the business ecosystems in their areas.

Informed Perspective 

At MindSalt, we’ve had the unique opportunity to do work both in the commercial and nonprofit sectors in many states across the U.S., particularly here in the Commonwealth of Virginia. Here at home, we have partnered with numerous companies, organizations, and economic development entities that have allowed us to dive in to research the economic ecosystem, support implementation of vital infrastructure investments, and conduct in-depth interviews with key partners in the economic landscape. These opportunities have helped us better understand and analyze important factors in business innovation, academic research, economic development, and child development and education.

All these efforts provide us with a comprehensive perspective at the various industries statewide that fuel our state’s thriving economy and the nuances of each. Not only does this knowledge enable us to better understand the environment in which we and our clients work, it also helps us assist our partners in identifying opportunities for success and making smarter, more informed decisions to critical issues they are facing.