said. "Certainly, in terms of aggressively seeing both the problem and opportunity side of it and acting on it, [Virginia] has been a leader."

Several of Virginias major "digital opportunity" initiatives -- the state avoids the term "digital divide" -- will flow through the Center for Innovative Technology (CIT), a non-profit, government-funded company responsible for creating a fertile environment for technology businesses.

For instance, CIT will help create the community e-government blueprints that form the cornerstone of Virginias e-communities initiative. CIT and the newly formed E-communities Task Force are now confronting the task of assembling step-by-step guides for building Web-connected communities.

"Were making this up as we go along," admitted CIT President Anne Armstrong. "One of the challenges is being specific enough to be helpful, but not so specific that the blueprints dont scale or generalize well."

The organization also administers Virginia Link, a multivendor contract offering competitively priced broadband telecommunications services to businesses throughout the state. Under the program, CIT aggregates telecom demand from Virginia businesses, negotiates discount pricing from vendors and passes the savings on to participating local companies, according to Armstrong.

Armstrong expects Virginia Link to hold strong appeal for small firms. "If youre Newport News Shipbuilding, you can probably negotiate pretty aggressive telecom prices," she said. "But if youre Sams Florist, you may not be in the same position. This is an effort to help smaller businesses take advantage of aggressive prices."

Virginia Links contract offerings and marketing efforts just recently reached full strength. But the program already has reduced the cost of high-speed connectivity, despite the small number of current users. "Just the presence of this contract is bringing prices down in the competitive marketplace," said Armstrong. "We consider it a success if everybody gets lower prices. And its having that effect."

Furthermore, CIT holds e-business seminars throughout the commonwealth designed to help local companies gain the knowledge they need to compete in the Internet marketplace. The organization conducted five seminars in 2000 -- covering wireless and XML technology, security and other topics -- under what is known as Virginias Main Street to e-Street program.

The programs goal, said Armstrong, is to expose small businesses to new technology and to vendors that can show them how to use it -- all in a non-threatening environment. "You can get this information [elsewhere], but it usually comes with a sales pitch," she said.

Taking the Stage

Armstrong sees CITs efforts as vital to retaining employers in an Internet economy that allows companies to operate from virtually anywhere. "We need to continue to offer businesses what they need to succeed because we want them to stay here," she said. "We are in a global marketplace, and we have to stay competitive. We need to realize that we can steal somebodys lunch, but they can also have us for lunch."

Indeed, one of the greatest impacts of Virginias government IT initiatives -- everything from making state agencies easier for citizens and businesses to deal with, to giving local communities and companies a hand in connecting to the digital economy -- is being felt far from home. According to Upson, who regularly conducts international trade missions aimed at improving the competitiveness of Virginia-based firms, the aggressive technology agenda has helped boost the commonwealths stature before a worldwide audience of investors, customers and potential employers.

"Whats happened in very short order is Virginia has gotten quite a bit of attention, and its paying off for us," he said. "People dont ask, Why Virginia? anymore."

Steve Towns, Editor Steve Towns  |  Editor

Steve Towns is editor of Government Technology, and executive editor for e.Republic Inc., publisher of GOVERNING, Government TechnologyPublic CIO and Emergency Management magazines. He has more than 20 years of writing and editing experience at newspapers and magazines, including more than 15 years of covering technology in the state and local government market.