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Innovation
Economy Scorecard
Innovation has always been central to Michigan’s story, turning big ideas into lasting impact. In today’s fast-moving global economy, Michigan needs new areas of growth, new ways of doing more with less, and new solutions to its toughest problems.
The Innovation Economy Scorecard is a first-of-its-kind analysis that includes an assessment of the full range of stakeholders in a dynamic economy, from universities and startups to established companies. It highlights strengths and opportunities, setting a baseline to guide action and track progress for long-term growth and prosperity.
Without a strong innovation economy, Michigan risks seeing the future designed and built elsewhere.
At the University of Michigan, researchers investigate RNA virus evolution mechanisms.
A Framework for Action
The Innovation Economy Scorecard is a strategic tool to measure Michigan’s progress. It provides a clear, structured way to assess our innovation strengths and pinpoint areas for improvement. The scorecard allows leaders to create targeted action plans that strengthen Michigan’s innovation ecosystem.
Michigan's Innovation Economy Rankings vs. Other States
Defining Innovation
Innovation is the process of developing and implementing new ideas that solve problems and create value.
These new ideas generate products, services, processes and business models that can drive economic growth, transform society and enhance quality of life. Innovation ranges from incremental improvements to radical transformations—from refining existing products or entering new markets to creating new categories, disrupting entire industries, or catalyzing change on a global scale.
Why the Innovation Economy Matters for Michigan
Business Leaders For Michigan has benchmarked the state’s performance against the nation’s Top 10 states for more than a decade. We’ve made real progress since the Great Recession; our 2024 Top 10 Benchmarking Report shows we currently rank 27th. But we also recognize that maintaining that progress and moving from the middle of the pack into the Top 10 demands even more. Strengthening our innovation ecosystem can make the difference.
Top-performing states don’t leave that process to chance. They foster innovation ecosystems that make it easier to create jobs, boost incomes and grow. Michigan’s economy already relies on innovative jobs, engineering know-how, and R&D to fuel growth. Corporate and university R&D activities alone inject $29 billion into Michigan’s economy, representing 4.7% of the state’s GDP.
The Evolution of Innovation
Innovation has always been central to Michigan’s story and to America’s. From the industrial revolution to today’s advanced manufacturing, Michigan has helped lead the way in turning big ideas into lasting impact.
In the 19th and early 20th centuries, Michigan became a national innovation hub. Visionaries like Henry Ford reimagined mobility, built the middle class and redefined global industry. During World War II, the state earned the title “Arsenal of Democracy” by rapidly scaling production to support the Allied victory.
That spirit of ingenuity continued to grow. In the postwar decades, federal R&D investments sparked breakthroughs in aerospace, materials science and other fields—many of them emerging from Michigan. These advances lifted families, strengthened communities and helped position the state as a leader in both innovation and opportunity.
Today, Michigan continues to shape the future. Our world-class research universities, business leadership, strong public-private partnerships, and growing startup ecosystem are driving innovation across industries. From mobility and advanced manufacturing to healthcare, clean energy and finance, innovation remains a powerful force for economic growth and competitiveness.
The Innovation Ecosystem
The innovation ecosystem is a dynamic and interconnected network of stakeholders, each contributing vital expertise and perspective. From entrepreneurs and researchers to investors and policymakers, every participant plays a distinct role and can either nurture creativity, drive transformative change or make it harder to achieve. When working well, this collaborative environment can accelerate the journey from bold ideas to real-world impact. Lasting success comes from a united effort to challenge the status quo, knock down barriers and create something better, together.
- Business
- Government
- Universities
- Startups
- Entrepreneurial Support Organizations
- Risk Capital
![Gratiot LSB 02[73]](https://businessleadersformichigan.com/wp-content/uploads/2025/05/Gratiot-LSB-0273-1024x575.jpg)
Conceptual rendering of Bedrock’s Gratiot Innovation District in Detroit, which will focus on fostering innovation in life sciences, including partners BAMF Health, MI-HQ, Ferris State University, and TechTown.
Business
Businesses drive innovation by turning ideas into market-ready solutions that shape industries and improve lives. Michigan companies like Ford, GM, Stryker, Rocket and Dow continue this legacy with breakthroughs in manufacturing, healthcare, technology and sustainability.
$25.8B
- in Business R&D investment, representing 4.1% of state GDP
Michigan State Capitol
Government
Government can play a key role in fostering innovation when it improves access to capital, provides strategic investments and maintains efficient and easy-to-navigate policy and systems. The Michigan Economic Development Corporation (MEDC) enables programs for research commercialization and startup development, as well as funding corporate innovation pilots.
90%
- retention rate in Michigan for the 193 startups launched with business mentorship from MEDC-funded Tech Transfer Talent Network (T3N)
A Michigan Medicine radiologist performs an ultrasound on a liver cancer patient prior to an innovative cancer treatment procedure.
Universities
Academic institutions are key drivers of innovation, advancing research and developing top talent through industry collaboration in fields like machine learning, precision medicine, and plant science. Michigan’s four R1 universities—MSU, Michigan Tech, U-M, and Wayne State—anchor the state’s research ecosystem.
$3.4B
- in University R&D annually
A blueflite drone demonstrates water sampling and rescue capabilities as part of an aerial mobility showcase in Traverse City.
Startups
Startups embody the spirit of innovation, frequently disrupting traditional markets with their agility and fresh perspectives. In 2022, Startup Genome recognized Detroit as a top emerging startup ecosystem. Michigan is home to a growing group of $1 billion+ unicorns, including StockX, OneStream Software, Duo Security, and Llamasoft, as well as rising stars like BAMF Health, Slate Auto, and May Mobility.
207
- startups receiving venture capital funding in 2024
20Fathoms, Traverse City’s innovation and entrepreneurship hub, provides startup services, a community workspace, and resources for business growth.
Entrepreneurial Support Organizations (ESOs)
Incubators, accelerators, and support organizations help Michigan entrepreneurs grow through mentorship, funding, and connections. The state’s 20 SmartZones–like TechTown, Ann Arbor SPARK, Centrepolis, and Start Garden–fuel high-growth ventures, alongside groups like Michigan Central, Black Tech Saturdays, Michigan Founders Fund, and Startup Zoo.
20
- SmartZones funded through local tax capture to support commercializing R&D and growing companies
UnDemo Day, run by Renaissance Venture Capital, is a semi-annual event that connects Midwest startups with venture capital investors from around the U.S.
Risk Capital (Venture Capital and Angel Investors)
Venture capitalists and angel investors play a crucial role by providing the necessary funds to bring innovative ideas to life. Their willingness to invest in high-risk opportunities enables startups to innovate and scale, often leading to significant breakthroughs.
$1.1B
- in VC investments in Michigan companies in 2024
Michigan's Innovation Economy Rankings vs. Other States
Michigan Innovation Economy Scorecard
Venture313 — a collaboration between TechTown Detroit, Invest Detroit Ventures, and the Detroit Development Fund — hosts a 24-hour Innovation Bootcamp at TechTown in partnership with ACT House.
The Innovation Economy Scorecard assesses Michigan’s current innovation performance in comparison with other states. This strategic tool provides a structured, measurable framework to assess and track progress across key areas of building a thriving innovation economy. By identifying strengths and weaknesses and tracking progress over time, the Innovation Economy Scorecard is intended to spark debate, promote collaboration and encourage stronger accountability and policymaking. The goal is to create a more dynamic, innovative and diversified economy that drives growth and prosperity.
We analyzed over 120 indicators from existing reports on the innovation economy, selecting 21 that are most relevant, replicable, and frequently updatable for state-level use. Each metric is linked to its corresponding pillar in the innovation framework, normalized by real GDP or population where applicable to allow direct comparisons, and scaled from 0 to 100. For instance, in patent creation per capita, the state with the lowest output scores 0, while the highest scores 100. This approach not only ranks states but also quantifies the gaps between them, providing clear comparisons.
Research & Development
Growth Funding
Do businesses start & sustain in the state?
Business Ecosystem
What is the state’s capacity to secure capital to scale?
Talent
Does the state have the right talent?
Economic Impact
Is the state getting real economic value from innovation?
What we found: Michigan is strong in R&D and showing momentum in other areas. Michigan has many strengths, including engineering, advanced manufacturing, mobility, and regional innovation hubs that are raising our national profile. What’s missing is an intentional approach to strengthen and connect talent, capital, government support and business—because when these elements are strong and linked, they can supercharge Michigan’s growth and bring solutions to the world.
Research & Development
Scale and impact of research activity.
9th
Overall
Michigan’s strength in research and development is driven by robust patent creation, significant corporate research investments, and high R&D activity. However, the state struggles to translate R&D into commercialized opportunities that drive economic value.
9th
Inventions Created
Description / Rationale / Source
Description: Quantity of patents issued in U.S. across industries and geographies, normalized per capita.
Rationale: Reflects the strength and quality of Michigan’s innovation pipeline for broader scientific and technological progress.
Source: USPTO – Last Update: 2024
13th
University Research Investment
Description / Rationale / Source
Description: Total R&D funding spent by universities from all sources (state or federal government, and public/private funding), normalized by state GDP.
Rationale: Captures a critical source of innovation input for universities; strong funding attracts talent and drives tech transfer opportunities.
Source: NCSES HERD Survey – Last Update: 2023
35th
Startup Research and Tech Transfer Funding
Description / Rationale / Source
Description: Total annual value of federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) grants awarded by state, normalized by state GDP.
Rationale: Provides a proxy for early-stage, high-potential innovation funding. These grants support small businesses engaged in cutting-edge R&D with commercialization potential.
Source: U.S. SBA – Last Update: 2024
6th
Corporate Research Investment
Description / Rationale / Source
Description: Total corporate R&D spending based on where the R&D is performed, expressed as a percentage of GDP.
Rationale: Shows the corporate commitment to innovation at a macroeconomic level, measuring the innovative activities of companies in the state.
Source: NCSES BERD Survey – Last Update: 2022
5th
Economic Value of Research
Description / Rationale / Source
Description: Share of a state’s GDP that is directly attributable to research and development activities, including both public and private sector contributions.
Rationale: Captures the economic return on R&D investment by measuring how innovation activities contribute to overall economic output.
Source: BEA – Last Update: 2021
Growth Funding
Access to early and growth-stage funding.
32nd
Overall
Michigan’s angel, seed, and venture capital funding has grown significantly, from $704 million in 2019 to over $1 billion annually from 2021-2023. The progress shows the evolution of the state’s startup ecosystem. However, in a recent survey of startup founders in Michigan, over half described the overall quality of funding opportunities negatively. At the same time, investors need strong ideas and potential worth investing in. This funding gap demonstrates a challenge in translating Michigan’s strong R&D capabilities into successful, market-ready products and scalable companies.
28th
Startup Deals Completed
Description / Rationale / Source
Description: Total number of funding deals completed by startups annually, normalized per capita.
Rationale: Reflects capital access and investor engagement in the startup ecosystem.
Source: Pitchbook – Last Update: 2024
36th
Seed Startup Funding
Description / Rationale / Source
Description: Total investment in startups at the earliest funding stages, including angel investments, pre-seed, and seed rounds, normalized by state GDP.
Rationale: Captures the depth of early capital availability, which is essential for idea-stage companies to validate concepts, build MVPs, and reach product-market fit.
Source: Pitchbook – Last Update: 2024
23rd
Early Stage Startup Funding
Description / Rationale / Source
Description: Total venture capital investment between seed and late-stage deals, when companies have a proven concept and little revenue (typically Series A and B), normalized by state GDP.
Rationale: Indicates the availability of capital to help startups scale after initial traction; strong early-stage VC market is critical to converting concepts into growth companies and attracting follow-on investment.
Source: Pitchbook – Last Update: 2024
35th
Late-Stage Startup Funding
Description / Rationale / Source
Description: Total venture capital investment in final period (typically after Series C), when companies have increased revenue and are near exit, normalized by state GDP.
Rationale: Measures the strength of the ecosystem in supporting mature startups as they approach exit readiness; signals a healthy pipeline of scalable companies and drives economic impact through jobs, innovation, and returns.
Source: Pitchbook – Last Update: 2024
24th
Corporate Investments in Startups
Description / Rationale / Source
Description: Total investment from corporate venture capital (CVC) arms into startups, normalized by state GDP.
Rationale: Indicates the willingness of corporations to partner with and invest in new companies, signaling knowledge transfer between industries and collaboration within the business ecosystem.
Source: Pitchbook – Last Update: 2024
Business Ecosystem
Culture and connectivity of business environment.
27th
Overall
Michigan’s new business applications and survival rates are similar to a broad range of states in the middle, but the density of startups is a challenge to address. A higher concentration of new companies indicates a resilience and ability to grow an economy in new directions that is vital in a fast-changing market, with the potential to build a positive feedback loop and drive stronger economic growth and prosperity in the state.
28th
Startup Density
Description / Rationale / Source
Description: Total number of active startups that have received venture capital investment, normalized per capita.
Rationale: Serves as a proxy for the density and connections within the innovation ecosystem; associate higher count of VC-backed startups with high growth potential, investor confidence, and ecosystem momentum.
Source: Pitchbook – Last Update: 2024
22nd
Likelihood of Business Survival
Description / Rationale / Source
Description: Share of new businesses that remain active after one year.
Rationale: Signals ecosystem health to support business momentum through early-stage growth.
Source: U.S. Census Bureau – Last Update: 2024
21st
New Business Applications
Description / Rationale / Source
Description: Number of new business registrations or incorporations in the state annually, normalized per capita.
Rationale: Signals willingness to take entrepreneurial risk and policy enablers/barriers for new businesses.
Source: U.S. Census Bureau – Last Update: 2024
Talent
Availability, readiness, and reallocation of talent.
33rd
Overall
A strong innovation ecosystem can tap into a highly educated workforce and has a density of entrepreneurs. Worker mobility means skills and ideas can spread across the economy. For example, Acrisure’s success in Grand Rapids has drawn additional insurance companies to the region, where there is a concentration of talent in the industry.
30th
Founder Density
Description / Rationale / Source
Description: Number of individuals who have founded startups (typically venture-backed or high-growth potential) per 1,000 residents.
Rationale: Serves as a proxy for the density and dynamism of the entrepreneurial ecosystem, reflecting stronger startup activity, and greater innovation output.
Source: Pitchbook – Last Update: 2024
32nd
College Educated Population
Description / Rationale / Source
Description: Percentage of the population with post-secondary education (Bachelor’s degree or higher).
Rationale: Indicates long-term talent pipeline strength and education infrastructure quality.
Source: U.S. Census Bureau – Last Update: 2024
26th
Advanced Degree Population
Description / Rationale / Source
Description: Percentage of population with advanced degrees (e.g., master’s, PhD).
Rationale: Represents depth of specialized talent critical for basic and applied research and scaling innovation.
Source: NCES IPEDS – Last Update 2023
28th
Worker Mobility
Description / Rationale / Source
Description: The magnitude of shifts in labor among employers as firms open, close, expand, and contract, measured annually as the job creation rate plus the job destruction rate minus the absolute value of the net change in jobs.
Rationale: Indicates flexibility and retainment of talent within the labor market, which spreads skills and ideas across the economy.
Source: Bureau of Labor Statistics – Last Update: 2025
Economic Impact
Income, productivity, and successful startup impact.
28th
Overall
Indicators showing the impact of innovation on an economy focus on the long term, where new technology and ways of working drive productivity that can create growth and higher wages. Michigan’s relatively high share of jobs in science and technology roles is a good building block toward a broader innovation economy that can also support greater startup success, increased productivity, and the high wages that come with faster-growing, innovation-driven sectors.
16th
Share of Jobs in Science and Tech Roles
Description / Rationale / Source
Description: Percentage of a state’s workforce employed in STEM (science, tech, engineering, math) jobs.
Rationale: Indicates strength of knowledge-economy needed to scale startups and attract investment.
Source: NCSES – Last Update: 2022
30th
Earnings in Tech-Related Jobs
Description / Rationale / Source
Description: The average annual income for workers in STEM (includes computer & mathematical occupations, architecture and engineering occupations, life, physical, and social science occupations, and select managerial roles such as computer and information systems managers, architectural and engineering managers, and natural sciences managers).
Rationale: Signals a strong, high-value job market, which both attracts and retains top talent; elevated incomes also reinforces a virtuous cycle of economic growth.
Source: BLS – Last Update: 2023
22nd
Successful Startup Economic Impact
Description / Rationale / Source
Description: Total dollar value of startup exits, including IPOs, M&A, buyouts, and reverse mergers.
Rationale: Shows maturity of innovation ecosystem and capability to recycle wealth into new ventures and local economy.
Source: Pitchbook – Last Update: 2024
35th
Labor Productivity
Description / Rationale / Source
Description: A ratio of the total value-added output from a state, divided by the total hours worked by residents of that state.
Rationale: A key indicator of innovation-driven economic performance, reflecting how effectively the state transforms inputs (e.g., talent, capital, technology) into economic output.
Source: BLS – Last Update: 2023
Technology Focus Area Rankings - Michigan vs. Other States
Successful regions build innovation economies around key technologies—linking research, startup activity, and business strengths. The federal government identifies a set of emerging technologies that will be critical for global competitiveness in the coming years—shaping new industries, supply chains, and markets that the United States wants to ensure are designed and built here.
For instance, Massachusetts has built a strong advantage around biotech, with Top 10 research funding and the strongest growth funding in the sector. Utah has built similar strengths in cybersecurity, as a leader in both research funding and growth funding, backed by strong startup activity and government investments like the NSA’s largest data center in the country.
Michigan has deep technology strengths, with leading research investments in energy and mobility, as well as a greater density of venture capital in advanced materials and climate than most other states. Gaps between research and commercialization in biotech and advanced communications indicate areas where building greater startup and corporate presence in the region could create the kind of strengths that then multiply.
AI is already transforming jobs and companies and is likely to be a major driver of competitiveness across industries. While Michigan currently ranks in the middle for AI research and commercialization, the upcoming University of Michigan and Los Alamos AI Research Center is poised to enhance the state’s AI R&D funding landscape. Michigan’s strengths in manufacturing and engineering also offer opportunities for leadership in AI tied to the physical world.
Technology Focus Areas
Research (NSF Funding)
Commercialization (VC Funding)
Robotics / Advanced Manufacturing / Mobility
7th
6th
Advanced Energy Tech
8th
N/A
Biotech / Medtech
9th
23rd
Advanced Materials
11th
14th
Artificial Intelligence
12th
20th
Communications / Immersive Tech
13th
26th
Quantum Computing
14th
N/A
Climate / Infrastructure
14th
12th
Semiconductors / Computing
17th
N/A
Data Management / Cybersecurity
27th
24th
Top 15
Top 25
Bottom 25
Methodology: State rankings out of 50 are not normalized by state GDP. VC Funding is a sum of the 3-year rolling averages of each Growth Funding indicator. Certain focus areas do not have an applicable mapping due to data reporting. Technology Focus Areas use federal statutory definitions from NSF.
Sources: Pitchbook, NSF HERD Survey, NSF BERD Survey, NCSES, U.S. Census Bureau, Bureau of Labor Statistics, BCG Analysis
Robotics / Advanced Manufacturing / Mobility
Research (NSF Funding)
7th
Commercialization (VC Funding)
6th
Advanced Energy Tech
Research (NSF Funding)
8th
Commercialization (VC Funding)
N/A
Biotech / Medtech
Research (NSF Funding)
9th
Commercialization (VC Funding)
23rd
Advanced Materials
Research (NSF Funding)
11th
Commercialization (VC Funding)
14th
Artificial Intelligence
Research (NSF Funding)
12th
Commercialization (VC Funding)
20th
Communications / Immersive Tech
Research (NSF Funding)
13th
Commercialization (VC Funding)
26th
Quantum Computing
Research (NSF Funding)
14th
Commercialization (VC Funding)
N/A
Climate / Infrastructure
Research (NSF Funding)
14th
Commercialization (VC Funding)
12th
Semiconductors / Computing
Research (NSF Funding)
17th
Commercialization (VC Funding)
N/A
Data Management / Cybersecurity
Research (NSF Funding)
27th
Commercialization (VC Funding)
24th
Top 15
Top 25
Bottom 25
Methodology: State rankings out of 50 are not normalized by state GDP. VC Funding is a sum of the 3-year rolling averages of each Growth Funding indicator. Certain focus areas do not have an applicable mapping due to data reporting. Technology Focus Areas use federal statutory definitions from NSF.
Sources: Pitchbook, NSF HERD Survey, NSF BERD Survey, NCSES, U.S. Census Bureau, Bureau of Labor Statistics, BCG Analysis
State Comparisons
Top 10 states such as 1st-ranked Utah, 2nd-ranked Colorado, and 7th-ranked Washington have built robust innovation economies, which not only boosts their economic output but also enhances resilience against economic fluctuations. Learning from these examples, Michigan can leverage its existing resources to further integrate innovation, which in turn leads to productivity enhancement and economic growth.
Utah
Utah’s development as the “Startup State” has been an intentional marketing and streamlining effort by government, combined with a set of industry and talent strengths that have been carefully built over time.
Data centers have been a priority for Utah, with the NSA’s largest data center in the country developed there in 2011, and attractive tax incentives helping to spur data center investments by Meta, Oracle, and eBay.
A growing corporate technology presence helped build the sector, including in 2009 Adobe’s purchase of Omniture and establishment of a base in Salt Lake City, and Microsoft opening an office in Lehi, halfway between Salt Lake City and Provo. Utah’s strong talent base, business-friendly environment, and proximity to West Coast hubs has encouraged others to open offices in the state.
Universities in Utah are particularly focused on the startup mission, with Brigham Young University ranked first in startups launched and invention disclosures received when scaled for research expenditures in a 2022 report by Heartland Forward, indicating an efficient focus on commercialization.
Growth funding has been a priority for Utah for decades, going back to the Utah Venture Capital Enhancement Act, a 2003 law that established a $120 million fund of funds using private capital backed by state tax credits—later expanded to $300 million—that would invest in venture capital funds with a commitment for them to spend considerable time in the state meeting with Utah companies. Now defunct, some returns from that fund of funds were put into the newly-formed Utah Innovation Fund in 2023 to make further startup investments. Significantly larger than the government support is private capital, with accessible angel networks and successful founders reinvesting in early-stage local startups. That activity means that today, Utah is 10th for overall growth funding, and 8th for the number of completed funding deals per capita.
Scorecard
Research & Development
Growth Funding
Business Ecosystem
Talent
Economic Impmact
Colorado
Colorado’s recent growth as an innovation hub comes from a combination of long-standing assets, collaborative culture, and concerted efforts to build the ecosystem.
University and corporate assets
- University of Colorado Boulder’s engineering and research strengths pair with federal research labs including NOAA, NIST, and NCAR; the US Air Force Academy; and the aerospace industry anchored by Lockheed Martin and Ball Aerospace (now BAE Systems).
Collaborative culture
- An outdoor lifestyle-driven culture helped create organic connections that have turned into big business, with new entrants like Crocs and OtterBox and the relocation of established companies like VF Corporation (The North Face, JanSport, Smartwool) supported by government job growth incentives.
Building an ecosystem
- TechStars was created by a set of serial founders in Boulder in 2006 (including Jared Polis, the future congressman and governor), and was an early success in the startup accelerator model of small cohorts receiving deep resources, connections, and coaching to get investment and scale. The model builds a virtuous cycle of successful founders investing back into the ecosystem, a pattern that can continue even after TechStars moved its headquarters to New York in 2024.
Scorecard
Research & Development
Growth Funding
Business Ecosystem
Talent
Economic Output
Regional Spotlights
Detroit-Ann Arbor has the scale and density to compete globally, and Michigan’s other regions have the opportunity to support innovation as a driver of the regional economy while offering products that compete globally. Increasing regional efforts to intentionally build on these strengths—from corporate investment funds to early-stage venture funds, angel groups to innovation districts—is helping to build connections and a sense of purpose. Each regional innovation economy shows positive progress and strengths in some areas, with Grand Rapids a hub for health sciences, the Lansing region a leader in nuclear physics and advanced materials, and Houghton showing strengths in engineering unusual for a town of its size.
Detroit - Ann Arbor
Detroit-Ann Arbor is known for its auto and mobility sector and two R1 universities, University of Michigan and Wayne State University. It also is strong in financial services, life sciences and advanced manufacturing.
In the last decade, the region has seen the growth of several technology-focused $1 billion+ companies, including StockX, OneStream Software, Duo Security, and Llamasoft. In 2022, Detroit was named as the #1 emerging startup ecosystem in the country by Startup Genome—demonstrating both great progress and a need to advance into the ranks of top tier innovation economies. The region’s progress on innovation continues, with efforts in Ann Arbor like the planned Innovation District on U-M’s North Campus, and five distinct projects in Detroit aiming to create the density of researchers, founders, companies, and investors that can develop new industry strengths: the long-established TechTown, Michigan Central, the U-M Center for Innovation, Bedrock’s Gratiot site focused on life sciences, and the Henry Ford Health + MSU Health Sciences Research Center.
- By the Numbers: The region’s growth funding shows strong growth from 2020-2022, with particularly strong development in early-stage funding, but 2024 was a down year for the region’s startup funding. Steady growth in the share of the population with post-secondary degrees and the share of jobs in STEM indicate development of a stronger innovation economy but would need faster growth to catch up with competitors.
University Research & Development Funding
Growth Funding
Talent - % with Post-Secondary Degrees
Economic Impact - % STEM Jobs
Business Ecosystem - Quantity of VC-Backed Startups
426
Data Notes: Funding and startup data are not normalized by regional size in the regional spotlights, to allow comparison on the scale of activity in each region. Includes data for the 10 counties in the Detroit-Warren-Ann Arbor Combined Statistical Area: Washtenaw, Wayne, Oakland, Genesee, Lapeer, Lenawee, Livingston, Macomb, Monroe, and St. Clair.
Sources: Pitchbook, NSF/NCSES HERD Survey, U.S. Census Bureau, Bureau of Labor Statistics
Grand Rapids
Historically the furniture capital of the world, Grand Rapids has strengths in health sciences, advanced manufacturing, and technology. Grand Rapids Medical Mile includes MSU’s College of Human Medicine and Innovation Park, the Van Andel Institute’s more than 500 scientists, educators and staff focused on cutting-edge biomedical research, and the headquarters of Corewell Health, the largest healthcare provider in Michigan. In advanced manufacturing, the region is home to global leaders in furniture innovation and design Steelcase and MillerKnoll, a strong presence in agribusiness as the second most agriculturally diverse state in the country, and a growing medical device industry.
- By the Numbers: Despite increasing R&D funding—which rose from $81 million in 2021 to $98 million in 2023—risk capital levels remain low and fluctuate year over year. Continued efforts to bolster early-stage risk capital are essential to sustain this momentum and translate research investment into commercial growth and regional economic prosperity.
University Research & Development Funding
Growth Funding
Talent - % with Post-Secondary Degrees
Economic Impact - % STEM Jobs
Business Ecosystem - Quantity of VC-Backed Startups
68
Data Notes: Funding and startup data are not normalized by regional size in the regional spotlights, to allow comparison on the scale of activity in each region. Includes data for the 8 counties in the Grand Rapids Combined Statistical Area: Kent, Barry, Ionia, Montcalm, Ottawa, Muskegon, Allegan, and Mecosta.
Sources: Pitchbook, NSF/NCSES HERD Survey, U.S. Census Bureau, Bureau of Labor Statistics
Houghton
With a population of 39,000, the Houghton region’s innovation economy is primarily driven by Michigan Technological University, which achieved R1 status as an institution with very high research activity in 2025 and joined the University Research Corridor. The university’s 7,000 students have a strong STEM focus, with over half enrolled in the College of Engineering. Focuses include aerospace and defense, led by Orbion Space Technology; outdoor recreation, supported by the Michigan Outdoor Innovation Fund; manufacturing; and contract engineering.
- By the Numbers: Consistent and growing university R&D funding is a good base to grow from, while the low level of venture capital reflects the small scale of the region.
University Research & Development Funding
Growth Funding
Talent - % with Post-Secondary Degrees
Economic Impact - % STEM Jobs
Business Ecosystem - Quantity of VC-Backed Startups
4
Data Notes: Funding and startup data are not normalized by regional size in the regional spotlights, to allow comparison on the scale of activity in each region. Includes data for the 2 counties in the Houghton Micropolitan Statistical Area: Houghton and Keweenaw
Sources: Pitchbook, NSF/NCSES HERD Survey, U.S. Census Bureau, Bureau of Labor Statistics
Lansing
Home to Michigan State University, the Lansing region’s strengths are driven by university facilities and research, including:
- The Facility for Rare Isotope Beams (FRIB), a $770M investment that is part of MSU’s #1 nuclear physics graduate program
- MSU’s #1 supply chain management and packaging programs
- AgTech, building off the work of MSU’s 300+ researchers in AgBioResearch
- By the Numbers: Lansing’s university R&D funding has grown significantly in recent years, climbing 19% from 2021 to 2023. Deals for growth funding have meanwhile been sporadic, demonstrating that startup activity is not yet meeting the full potential of translating local research into commercialized products—though some MSU research is successfully commercialized with large companies, such as EV battery technology with GM and Ford.
University Research & Development Funding
Growth Funding
Talent - % with Post-Secondary Degrees
Economic Impact - % STEM Jobs
Business Ecosystem - Quantity of VC-Backed Startups
41
Data Notes: Funding and startup data are not normalized by regional size in the regional spotlights, to allow comparison on the scale of activity in each region. Includes data for the 4 counties in the Lansing-East Lansing-Owosso Combined Statistical Area: Ingham, Clinton, Eaton, and Shiawassee
Sources: Pitchbook, NSF/NCSES HERD Survey, U.S. Census Bureau, Bureau of Labor Statistics
Innovation Case Studies
Creating Michigan's Innovation Future
Michigan stands at a pivotal moment in its innovation journey. To achieve the vision of becoming a Top 10 state for jobs, talent and a thriving economy, Michigan can harness its strengths in R&D, create robust commercialization pathways and foster a culture of skilled collaboration and risk-taking.
The time to act is now. Together, we can position Michigan as a national leader in innovation, driving economic growth, creating opportunities and improving the lives of all Michiganders.
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