LG NOVA

For far too long, West Virginia has had to fight negative stereotypes and prove itself as a place worth investing in. Fortunately, this endless hard work has not gone unnoticed by companies like LG Electronics.

“West Virginia has been extremely forward-thinking and is actively working to transform the state by creating a business-friendly environment, investing in digital technology, providing incentives and an environment that attracts high-skilled workers and partnering with leading companies to solve some of the challenges within the state,” says Joshua Di Frances, head of incubation and venture building for LG NOVA and LG Electronics.

In January 2024, Governor Jim Justice announced that the state of West Virginia and LG Electronics would be launching a strategic initiative to grow new business ventures in the Mountain State and advance the development of technologies for renewable energy, health care and industries of the future.

“When we began speaking with West Virginia leaders last year, I felt inspired by the commitment of the key stakeholders to bettering the state,” says Di Frances. “West Virginia was not only looking to create jobs, but the folks we worked with were dedicated to solving the key health care and energy infrastructure challenges within the state, which very much aligned with our areas of focus.”

The innovation model that comprises this initiative is new for both West Virginia and LG NOVA.

“LG is new to working with states in this fashion. In the past, we’ve collaborated on bringing new operations and factories to a particular state,” explains Maria Dayton, director of capital partnerships for LG NOVA and LG Electronics. “What we’re doing at LG NOVA is creating new ventures through public and private partnerships across the ecosystem, and in doing so, hoping to drive new industries to the state and throughout the region.”

Over the next five years, LG plans to launch several West Virginia-based businesses, which will collectively provide 275 high-skill jobs. To do this, LG will construct both a research and development and an engineering hub within the state that will hire software engineers, architects and developers.

“We also plan to create a beachhead for some of the growing businesses in health care, cleantech and emerging technology,” says Di Frances. “Within these offices, we will be hiring product leaders, designers, additional engineers and developers, data scientists and AI practitioners, project managers, operations leaders and other subject matter experts, including clinical teams and clean energy experts.”

LG NOVA is exploring different solutions to expand the availability of renewable energy and cleantech to support community resilience.

“The opportunity to partner with institutions in the state to deeply understand its needs, the infrastructure availability and ability to deploy solutions provides a great framework upon which LG NOVA can work to build solutions for the cleantech market,” says Limor Schafman, director of strategy and cleantech business lead for LG NOVA and LG Electronics. “We’re looking to explore partnerships and run pilot programs that will enable us to create solutions that will help deliver greater access to renewable energy to businesses and the community.”

Unfortunately, many of West Virginia’s rural populations do not have comprehensive medical facilities nearby. LG hopes to help improve health care access and outcomes through some of its digital offerings such as telehealth.

“Given the size of the state and the fact that West Virginia’s Peak Health covers much of the state and is an inclusive, provider-led health plan, there are unique opportunities to deliver more innovative care that may not be possible in other markets,” says Darren Sabo, head of commercialization and digital health ventures for LG NOVA and LG Electronics. “West Virginia is truly poised to be on the cutting edge of health care delivery, and we hope we can contribute to that mission.”

One of the major components of the partnership between LG NOVA and the state of West Virginia is a $700 million investment fund.

“We’ve set up an impact investment vehicle, the NOVA West Virginia Fund, to attract, mobilize and deploy $700 million in investments into startups, small businesses and infrastructure, including capital investments to support new business creation in the state,” says Ali Diallo, managing partner for NOVA West Virginia Development Fund. “The $700 million will be a mix of investments from LG and its public and private partners. The fund will focus on investments in technology businesses, but not all of the investments will be directly for technology.”

According to William Barkis, head of ecosystem and grand challenges for LG NOVA and LG Electronics, LG plans to extend this initiative beyond the Mountain State. The goal is to create a broad network of innovation across multiple states in Appalachia that will introduce new technologies, advancements in infrastructure and economic development. West Virginia will serve as the model for partnerships with other states.

“The Appalachian region is incredibly important to this country for many reasons, including the centrality within the East Coast, the opportunity to make a change by launching advanced digital technology in the market in a region ready for it, the robust industry that exists, the historical importance of the region and the natural beauty that attracts outdoor enthusiasts globally,” Barkis says.

This collaborative project between West Virginia and LG NOVA will not only transform the state’s economy but also pave the way for a healthier, more sustainable future for its people.
“We’re excited about the positive impact we can have on the local economy and in the long run our ability to create transformation in digital health, cleantech and other market areas,” says Di Frances.