BusinessTN

According to a recent survey of members of the National Venture Capital Association, 2009 will be a difficult one for the capital markets and venture industry, characterized by a slowdown in investing across most sectors as the global financial crisis takes its toll on the entrepreneurial ecosystem. But apparently, this will not be the case in all sectors. According to a February analysis by Ernst & Young, based on data from Dow Jones VentureSource, investments by venture capitalists in "clean tech" companies such as solar providers actually hit historic levels in 2008—experiencing a 68% leap in annual capital invested.

A recent report in the San Jose Mercury News found that the state of California increased its number of "green" jobs by 10% between 2005 and 2007, a period of time in which overall statewide job growth was about 1%. (Green jobs are defined as those white- and blue-collar jobs geared toward environmental goals, such as solar and wind power.) California has long been the leader in alt-energy investment and job creation, a fact made clear by the amount of private capital investment that has flowed into such ventures in the Golden State over the years. But recent announcements by competitors Hemlock Semiconductor and Wacker Chemie that they would build billion-dollar-plus polysilicone manufacturing facilities in Tennessee—polysilicone is the key element used in the manufacture of solar panels—reflect a shift in the green spectrum. The moves have placed Tennessee squarely on the radar of investors when it comes to alternative energy development and related green initiatives, right alongside established alt-energy havens such as California, Oregon, Washington and Michigan.

Tennessee's emergence as a player in green industry recruitment stems from more than just its recent successes with companies like Hemlock and Wacker. The Volunteer State already boasts alt-energy stalwarts such as the UT system, Oak Ridge National Lab, the Tennessee Valley Authority and automaker Nissan North America. The state also boasts a governor in Phil Bredesen who "gets it" on clean energy, evidenced most recently by his recent call for the creation of a state institute to lead the nation’s research efforts in the emerging solar sector. Having such assets and decision-makers already in place has positioned the state to become a hotbed for green-based economic development in areas like renewable energy, alternative fuels, and electric and hybrid vehicles. Bolstering that claim, a recent report by the Tennessee Department of Labor and Workforce Development found that Tennessee has the opportunity to create over 44,000 new green jobs over the next few years, as long as the state is willing to make proper new investments.

But amidst all the green giddiness, there remains the pressing need to continue the push to build a work force able to meet the needs of the coming clean energy economy. There are efforts underway, including the amending of high school coursework and the fast-tracking of certificate programs at technology centers to emphasize associate, bachelor's and master's degree programs related to green technologies. (Witness the success of Cleveland State Community College's burgeoning green-energy majors.) Will such core governmental investments continue (and, for that matter, increase)? Sadly, when it comes to higher education, the state has made more news of late for the mulling of massive budget cuts as a consequence of the economic downturn.

In a recent report to the governor, the UT Center for Business and Economic Research concluded that the "best hedge" against rising unemployment was "a well-educated population." At the same time, UT-CBER economists pointed out that Tennessee's spending on education remains "lower than the nation’s." Landing green companies and fostering a green-friendly identity is certainly laudable. What Tennessee needs now is a work force preparedness rescue to match the momentum it has achieved on green industry recruitment.