Michigan's Programs Having Significant Impact

Since 2006, Michigan's economic development programs designed to transition its economy from the traditional manufacturing-based economy to an economy driven by clusters of innovative manufacturers and service providershave led to more than 24,407 direct and indirect jobs created or retained, the creation of approximately 1,500 new companies and almost 900 patents. A Foundation for the New Michigan Economyprepared by the Michigan Economic Development Corporation details the initial results of three programs —the 21st Century Jobs Fund (21st CJF), the Michigan Life Sciences Corridor (MLSC) and the Michigan Technology Tri-Corridor (MTTC) —that are designed to commercialize new technologies and increase access to capital for new and existing businesses.

The 21st CJF is comprised of several different programs (e.g., the Centers of Energy Excellence, the Michigan Suppliers Diversification Fund, the Michigan Pre-Seed Capital Fund) that provide funding support and services to every aspect of the entrepreneurial ecosystem, including funding available at every step of the capital life cycle. At the earliest stage in the cycle, the Michigan Pre-Seed Capital Fund has led to the creation of 43 companies and nearly 500 direct and indirect jobs. The 21st Century Investment Fund has enabled 13 emerging companies to leverage an additional $257.4 million in private investments from a modest $33.9 million in initial investments. However, the increasing budget restraints have led to budget cuts to the 21st CJF every year since 2006. In 2010, 21st CJF received $28.5 million in funding, almost 80% less than the appropriations received in 2008 ($125 million).

The MLSC and MTTC have successfully attracted, retained or created thousands of jobs in the science and technology sectors, according to the report. Since 2006/2007, the MLCS has helped to create 51 new companies and 238 new patents. The MTTC also has been successful in creating new businesses and creating or retaining businesses with more than 700 direct and indirect jobs created or retained due to the MTTC program. Read the Report