Unlocking industrial innovation across states and industries

Western Pennsylvania and West Virginia have all the ingredients needed to be a powerhouse of industrial innovation: grid infrastructure, strong industrial bases, and the presence of research universities with deep expertise in artificial intelligence (AI), energy systems, robotics, and automation. The challenge is how to ensure the region leverages these strengths to lead in—and, importantly, benefit from—the next wave of economic opportunity, spurred by the development of new industries such as manufacturing and data centers and their energy demands. 

The Resilient Energy Technology and Infrastructure (RETI) Consortium, led by West Virginia University, the University of Pittsburgh, and Carnegie Mellon University, represents an effort to innovate and implement critical energy technologies and resilient infrastructure in ways that contribute to regional growth and prosperity. 

Pennsylvania ranks 23rd and West Virginia ranks 50th in the country in venture capital funding relative to GDP. The area has over the past decades lost jobs and investments, and has also seen a long-term population decrease. 

“Our goal is to gain a better understanding of what actions could help to accelerate regional economic growth and opportunity at the intersection of energy, manufacturing, and technology entrepreneurship,” said Valerie Karplus, associate director of CMU’s Scott Institute for Energy Innovation who also serves as the RETI Consortium’s director of policy. 

Our goal is to gain a better understanding of what actions could help to accelerate regional economic growth and opportunity.

Valerie Karplus, Associate Director, Scott Institute for Energy Innovation

The RETI Consortium recently published a discussion paper, “Unlocking Opportunities in the Industrial Innovation Economy for West Virginia and Western Pennsylvania,” that breaks down six key challenges facing innovation and industrial growth in the region. The findings are based on an interactive discussion hosted by RETI at the Scott Institute in July 2025 that invited local business and thought leaders to contemplate factors that might inhibit or support energy and infrastructure modernization. 

The half-dozen categories identified by the group illustrate the range of factors, from policy to funding, that interact with entrepreneurship and industrial innovation. Importantly, a category of barriers related to institutions and culture at the systems level emerged as important for many participants. 

The group also recognized that solutions were likely to be different across populations and contexts within the region. Recommendations for boosting innovation focused on workforce readiness and specialized training; early access to capital for startups; and site selection and permitting processes. 

“Policy touches every aspect of our economy and energy sectors. Our future success as a region in securing reliable energy and ensuring that energy can power the future of American industry relies on having aligned policy approaches,” said Erienne Olesh, CEO of the RETI Consortium. “Working across various groups and including multiple perspectives will ensure that developed policy approaches have the greatest benefit to the region.” 

A second workshop in October 2025 gave participants an opportunity to comment on the next iteration of the paper, ensuring that everyone’s input and feedback were reflected. This session also allowed participants and members of the policy community to discuss the major takeaways and the feasibility of suggested actions to overcome barriers. 

“At the convenings, participants led the discussions, brainstorming actions to overcome the barriers identified. The RETI team hopes these recommendations will empower regional leaders with a portfolio approach to address diverse, evolving needs and enable sustainable growth,” said Karplus.