May 3--Times are tough, but even in a downturn, Tennessee has scored some eye-popping economic development victories in recent months.

But as the state has lured high-profile businesses that promise to bring hundreds of jobs, there's one problem -- the biggest victories aren't happening in Knoxville.

Don't believe it? Check out German carmaker Volkswagen, which currently is building the paint shop for a new $1 billion plant that could employ some 2,000 people -- in Chattanooga.

Or take a look at German chemical firm Wacker Chemie, which in February announced plans to invest $1 billion in a plant that will employ about 500 people to make polycrystalline silicon -- near Cleveland, Tenn.

And then there's Hemlock Semiconductor, a firm that in December announced plans to build a $1.2 billion polycrystalline silicon plant and add up to 800 jobs -- in Clarksville, Tenn.

Local officials expect to see a ripple effect from those deals, which could be a shot in the arm for suppliers throughout East Tennessee, and the Knoxville area has notched significant deals of its own in recent months. Compared to the biggies, though, local successes have lacked a certain "Wow!" factor -- a $50 million Sysco Corp. distribution center that opened in May 2008 was slated to add 150 new jobs, for example, while a $55 million Green Mountain Coffee Roasters plant has the potential to add more than 300 jobs.

In the face of super-deals like VW, it's worth asking why the Knoxville area has missed out -- and if the lack of splashy announcements is an important economic barometer in the first place.

Tackling the hills

When it comes to economic development in East Tennessee, one issue that crops up frequently is geography. Both VW and Hemlock are building on "megasites" -- available tracts of at least 1,000 acres that have been certified as development-ready by a consulting firm -- while Wacker Chemie picked a 550-acre tract near a chlorine supplier. The only remaining megasite in Tennessee is located in Haywood County near Memphis.

Ask local economic development officials about those deals, and they point out that this area's hilly topography isn't conducive to giant manufacturing sites. Rhonda Rice, executive vice president of the Knoxville Chamber, said the VW site was an old munitions plant where the land had already been assembled, while she said it took Clarksville officials three years to assemble the Hemlock site.