Michigan’s universities contributed $23.9 billion to Michigan’s economy in 2023

The University Research Corridor, an alliance between the University of Michigan, Michigan State University and Wayne State University, reported an estimated $23.9 billion in state investments for 2023. The 2023 URC Economic Report detailed that for every dollar invested in the three Michigan universities, $24 was returned to Michigan’s economy.

Founded in 2006, the URC united the three universities into an established research group focused on academic research and economic development in Michigan. The URC has driven developments in industries such as sustainability, artificial intelligence, life and health sciences, and advanced manufacturing.

In 2022, the universities conducted $1.64 billion in life sciences research and development initiatives. Over the past five years, these institutions have conducted over $565 million in mobility-related research and development projects. In total, URC’s annual research and development expenditures total $2.87 billion, placing Michigan among the top 10 states with the highest academic research and economic development rates.

According to a press release from URC, this economic impact was greater than the revenue from the 2024 NFL Draft hosted in Detroit.

“For comparison, the NFL Draft had an estimated net economic impact of $165 million in Detroit,” the statement said. “The economic impact of the URC would be as if the NFL Draft were held across Michigan more than 144 times a year. Together, the URC universities employ nearly 71,000 people – more than GM and Ford, the state’s two largest employers.”

In preparing its annual economic analysis, the URC examines the three universities’ diverse expenditures in areas such as operations and research, student resources, income from university employees and alumni who live in Michigan. However, the expenditures of businesses founded by university alumni are not included in the revenue calculation.

According to the press release, the universities within the URC produce more medical professionals than any other university research cluster, outperforming other clusters in Massachusetts and California. The URC’s universities awarded more than 2,500 medical degrees last year for the fourth year in a row, representing a 21% increase in the number of medical degrees awarded over the past decade. In the press release, Brian Peters, CEO of the Michigan Health & Hospital Association, said he believes healthcare in Michigan has improved significantly thanks to the URC.

“The URC is a critical partner in strengthening the health workforce both in our state and across the country,” Peters wrote. “The URC’s contributions are critical not only to meet immediate workforce needs, but also to shape the future of health care and innovation through research partnerships with hospitals across the state.”

In an interview with The Michigan Daily, URC executive director Britany Affolter-Caine said the universities’ research extends beyond local communities to the entire state.

“I was very interested and committed to showing how everyone in the state benefits from our facilities and how we benefit the people of Michigan,” Affolter-Caine said. “If you live in Grayling, you may never visit one of our campuses, but you are likely either directly impacted or have a loved one impacted by our discoveries.”

Affolter-Caine said the URC serves as a public service provider for Michigan, supporting various research projects and developing the state economically and academically.

“By listening to the needs of communities and how they have evolved over time, I think what is unique to our cluster, which is one of the leading university innovation clusters in the country, is that we are in service to the public,” Affolter-Caine said. “We are here for the state of Michigan, and while some people don’t always agree, it’s my job to convey that on behalf of these three institutions.”

Marissa Sweeney, a junior at LSA and participant in the UM Undergraduate Research Opportunity Program, told The Daily that research is helpful because of the job opportunities it can create.

“Research impacts the surrounding areas,” Sweeney said. “Research also creates a lot of jobs, so it was helpful for me to be paid for it.”

Summer news editor Andrew Baum can be reached at [email protected].

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