As seen in Crain’s Detroit Business
May 22, 2025
A new report shows Michigan ranks ninth-best in the country among states investing in research and development, but lags in access to early and growth-stage funding, talent and its business ecosystem.
Business Leaders for Michigan released its Innovation Economy Scorecard on Thursday, an analysis and assessment of aspects of the state’s innovation economy.
The Detroit-based nonprofit partnered with Boston Consulting Group in 2023 to collect the data for the report, which was supported by funding from the Davidson Foundation.
“The importance of a well-functioning innovation ecosystem can be the difference between Michigan really succeeding in the future or lacking,” Jeff Donofrio, president and CEO of Business Leaders for Michigan, told Crain’s.
The top-performing states across the country “clearly have a thriving innovation ecosystem that’s interconnected, that’s helping fuel GDP growth, economic growth, job growth, helping diversify their economies, attract and retain highly educated talent, create new companies, new industries,” Donofrio said.
The report found that R&D activities inject $29 billion directly into Michigan’s economy, representing 4.7% of its GDP. Of that, $25 billion goes toward corporate R&D, making Michigan sixth in the nation.
But while corporate R&D thrives, Michigan struggles to commercialize its new technologies. It sits at 13th in the country for university R&D investment, but 32nd overall for growth funding.
