< Previous78 M I C H I G A N E C ONOM I C DE V E L OP ME N T G UI DE new jobs. “Both of these companies are betting on Michigan and doubling down on our state because of our strong network of talent and quality of life,” says Gov. Whitmer. “Together, let’s keep growing our professional services industry and competing against other states and nations to bring advanced manufacturing home.” Michelle Grinnell, chief communications and attraction officer for the MEDC, says the Team Michigan approach is actually a philosophy. “We want to make sure that when companies are looking at Michigan, it is as easy as possible for them,” she says. “A lot of these site selection projects are complex. There are a lot of permitting and workforce questions. Companies should not have to figure out who is the right person to talk to at the state. We sort all of that out for them. We work very collaboratively by providing a concierge service for companies. That way, when they receive an answer, they know that it is a comprehensive response from the State of Michigan.” Garrett Anderson, marketing content strategist for the MEDC, says that the Team Michigan approach is driven from the top down. “The governor and lieutenant governor are the leaders of this effort,” he says. “They really set the tone. It goes from top to bottom throughout the state.” Grinnell adds that “we also ensure that we work very closely with all of our regional partners.” In Grand Rapids, that means there is close coordination with The Right Place Inc., the economic development organization for greater Grand Rapids in Western Michigan. “We make sure there is alignment at all levels on these projects,” says Grinnell. “We also make sure that each project is the right fit for that community.” THE STRONG BUSINESS CASE FOR MICHIGAN Grinnell says this Team Michigan approach works because so many companies want to invest in the state. “When you consider the numerous factors that make Michigan such a strong state for investment, it is clear why we are moving up the rankings for overall economic development performance,” she notes. An overall low cost of doing business, lower cost of living and housing, expedited permitting processes, and a well-established and well-connected supply chain for manufacturing all make Michigan one of the most competitive places in the nation for business. With a 6% corporate income tax rate and a 4.25% flat personal income tax, Michigan investors know exactly what to expect when they enter the state. Taxes and other factors contribute to a cost of living that is 10% below the national average, making Michigan the fourth most affordable place to live in the country. For businesses, these cost differentials are quantifiable. For example, living in Washington, D.C., is 42% more expensive than living in Detroit. Chicago costs 17.3% more. San Francisco is 62% higher. Brooklyn costs 53% more, and Seattle costs 39% more. “Our rankings are a good indicator to show that we are on track and that we are aligned with the needs of the business community. We are making decisions that are positively moving the needle to put Michigan on the short list. We are absolutely a state that all executives should be thinking about. ” — Michelle Grinnell, chief communications and attraction officer, Michigan Economic Development CorporationM I C H I G A N E C ONOM I C DE V E L OP ME N T G UI DE 79 In fact, it is far cheaper to live in Michigan than in Illinois, South Carolina, New York, California, and the nation’s capital. But savings alone are not the main reason Michigan tops competing states in attracting jobs and industry. Talent is. “We have a long history of innovation,” says Grinnell. “From the creation of the production line to the establishment of the Arsenal of Democracy, Michigan has positioned itself as the world leader in manufacturing. To achieve this, you need a talented, highly trained, and highly adaptable workforce. Companies know that when they choose to invest in Michigan, they gain access to a workforce that will get the job done efficiently and with incredible quality. We deliver the highest value due to the breadth and diversity of our manufacturing prowess. Whether it’s automotive production, life sciences, aerospace and defense, or other high-tech fields, Michigan is the undisputed leader in advanced manufacturing.” The MEDC and The Right Place Inc. assisted Buell Motorcycles in an $18.5 million corporate facility expansion in Cascade Charter Township in the Grand Rapids area of Western Michigan. The project was announced on May 20 and will create 162 new jobs in the community. Photos courtesy of Buell and The Right Place80 M I C H I G A N E C ONOM I C DE V E L OP ME N T G UI DE HOW THE CORNING DEAL GOT DONE One success story that perfectly illustrates these advantages is the Corning project. In 2024, Gov. Whitmer announced that Corning Inc. had chosen Michigan for a new manufacturing plant dedicated to producing U.S.-made solar components with support from the Michigan Strategic Fund. The company said it would invest $900 million in Saginaw County to create a facility that will employ 1,100 Michiganders. Michigan is supporting the investment with a $68 million performance-based Critical Industries Program (CIP) grant, a 15-year state essential services assessment exemption valued at $12.3 million, and a $29 million Strategic Site Readiness Program (SSRP) grant to Thomas Township for public infrastructure, road improvements, and related expenses. “We are grateful for the strong leadership, collaboration, and support from Gov. Whitmer, the Michigan Legislature, and the State of Michigan,” said Scott Forester, Corning division vice president and program executive for solar, at the time of the announcement. “These approved incentives helped confirm Michigan as the natural choice for this new endeavor. The planned facility will create thousands of local jobs and advance the goal of expanding access to U.S. renewable energy solutions.” Grinnell says the Corning investment “builds on the ecosystem that we have been developing. It builds on the success of Hemlock Semiconductor in Saginaw County, which created the opportunity for Corning to invest in Michigan. It shows the arc of these projects and how we are working over a long period to establish a comprehensive semiconductor manufacturing ecosystem in the state. To accomplish that, we are adding resources to our toolbox and leveraging those resources to bring more production onshore to Michigan. In the case of Corning, this is a project we worked on for a considerable amount of time. We worked closely with our local partners to ensure alignment. This deal was the culmination of many moving parts. It all came together into an incredible project for Michigan.” Because of success stories like Corning and many others, Michigan has been rapidly ascending the charts of top-performing states. For example, Site Selection Magazine recently named Michigan the No. 10 state for overall best business climate, up two spots from 2023 and 10 spots from 2022. In 2024, Michigan moved up to No. 9 on CNBC’s ranking of Top States for Business, and Site Selection ranked Michigan No. 7 in its annual ranking of most competitive states in 2024. Meanwhile, Michigan also climbed to its highest ranking ever in the Area Development Magazine list of Top States for Doing Business, moving up three spots to No. 10 in 2024. Anderson says site selectors are taking notice of the rapid improvement in Michigan’s business climate. “Just look at our rankings over the last few years,” he says. “We have a long-term plan. We are not rising and then dropping. Our climb is a constant progress forward. Because we align with our core industries, companies are noticing this and choosing to invest more capital and hire more workers in Michigan.” Grinnell adds that “our rankings are a good indicator to show that we are on track and that we are aligned with the needs of the business community. We are making decisions that are positively moving the needle to put Michigan on the short list. All we have to do is close the deal. We are absolutely a state that all executives should be thinking about.” Site Selection recently named Michigan the #10 Best State Business Climate in the nation — an improvement of 20 spots from just three years ago. Source: Site Selection MagazineM I C H I G A N E C ONOM I C DE V E L OP ME N T G UI DE 81 E C ONO M I C D E V E L OP ME NT T O OL K IT The new year wasn’t even two weeks old when Gov. Gretchen Whitmer signed bills into law on Jan. 13, 2025, creating the $60 million Michigan Innovation Fund and an R&D Tax Credit. The Michigan Innovation Fund will infuse five evergreen, nonprofit, and university-backed funds supporting startups with early-stage capital, so they need not look outside the state for such funding. The five funds set to see Michigan Innovation Fund capital are the Michigan State University (MSU) Research Foundation, ID Ventures at Invest Detroit, Ann Arbor SPARK, the University of Michigan’s Accelerate Blue Fund, and Western Michigan University’s Biosciences by M ARK AREN D New and Improved Incentives for Startups and R&D Operations Gov. Gretchen Whitmer announces the Make It in Michigan economic development strategy for her state at a press conference Photos courtesy of MEDC82 M I C H I G A N E C ONOM I C DE V E L OP ME N T G UI DE Research and Commercialization Center. The Michigan Innovation Fund will also help establish and grow three new, early-stage emerging evergreen funds in Grand Rapids, Traverse City, and the Upper Peninsula. ‘SUSTAINABLE FUNDING PATHWAYS’ “This is an exciting moment for our state’s entrepreneurial future,” said Jeff Wesley, executive director of ventures at the MSU Research Foundation, at the bill signing. The foundation manages Red Cedar Ventures and Michigan Rise Pre-Seed Fund III. “This bipartisan achievement is the first step toward establishing sustainable funding pathways for Michigan’s most promising startups and innovators. By leveraging our existing ecosystem and creating new evergreen funds, we’re investing in Michigan’s long-term economic growth and innovation leadership.” House Bills 5100 and 5101, also signed into law on Jan. 13, 2025, established a Research and Development (R&D) Tax Credit. It allows taxpayers and authorized businesses with 250 or more employees to claim up to $2 million per taxpayer or business, respectively, per year, according to a Michigan Economic Development Corporation (MEDC) overview of the new incentive. Companies with fewer than 250 employees can claim up to $250,000 per taxpayer or business, respectively, per year. The credit also allows taxpayers or employers to claim up to $200,000 in additional credit for expenses if they collaborate with a research university, says the MEDC, noting that these bills will help leverage the state’s universities, making Michigan a hub for innovation and providing a vital boost to local economies across the state. Michigan joins 36 other states with an R&D tax credit. RENAISSANCE ZONES 2.0 In May 2024, Gov. Whitmer signed into law measures that facilitate companies’ investing in Michigan’s Renaissance Zones — traditionally underinvested communities that are less equipped to participate in the state’s Make It in Michigan blueprint for statewide economic development. Announced in May 2023, the strategy focuses on making Michigan a top state for talent through the following methods: training and upskilling; honing the state’s competitive edge in R&D, advanced manufacturing, and clean tech; cultivating entrepreneurship and startups; and investing in communities’ housing, childcare, high-speed Internet, and other lifestyle amenities. House Bill 5096 removes specific business categories that companies needed to fall under when attempting to establish in a Renaissance M I C H I G A N E C ONOM I C DE V E L OP ME N T G UI DE 83 Zone, according to the governor’s office. This bill simplifies the process for using the zones and encourages the development of more businesses in the reduced tax areas. Gov. Whitmer called for this measure, along with the R&D Tax Credit, the Michigan Innovation Fund, and a payroll tax credit, in her 2024 State of the State address. The latter is the High-Wage Incentive for Regional Employment (HIRE) Michigan program, where companies with at least 25 workers would be eligible for up to 100% wage withholding tax capture for up to 10 years. “Our current toolkit limits our ability to attract small and second-stage businesses,” said Gov. Whitmer in her 2024 State of the State address. “Let’s start the HIRE Michigan Fund to lower overall payroll taxes for these firms. The value here is simple: The more you hire in Michigan, the more you should save in Michigan. We had a similar, bipartisan program years ago that worked well. So, let’s bring it back — because everyone loves a throwback.” A 10-year extension of a Renaissance Zone in Midland was among Michigan Strategic Fund (MSF) measures announced in July 2024 that will allow Dow to modernize its Michigan Operations Industrial Park in the city and the Auburn Operations facilities in nearby Williams Township. The measures protect approximately 5,000 jobs in the Great Lakes Bay Region. The MSF is Michigan’s grants and loans approval and authorization board. Another component of the MSF plan for Dow is a $120 million Critical Industry Program (CIP) grant. Launched in December 2021, the CIP makes funds available to qualified businesses for deal closing, gap financing, and workforce creation or retention due to a technological shift in production, acquisition of heavy equipment, infrastructure improvements, and other factors. In March 2025, the MSF approved a series of updates to the Michigan Innovate Capital Fund (MICF) program, launched in June 2023. The program supports high-tech startups by awarding incentives to nonprofit fund programs that support startups requiring early-stage financing. The MEDC says the updates include (1) an allocation of $5 million from the Jobs for Michigan Investment Fund to the MICF program; (2) an amendment to the investment criteria, allowing MICF investment fund managers to increase the exposure limit per company to a total of $500,000; and (3) an amendment to the grant agreement between the MSF and the Invest Detroit Foundation ID Ventures to fund the continuation of investments in the form of loans and equity financing under the MICF program. “Let’s st art the HIRE Michigan Fund to lower overall payroll taxes for firms. The value here is simple: The more you hire in Michigan, the more you should save in Michigan. We had a similar, bipartisan program years ago that worked well. So, let’s bring it back — because everyone loves a throwback. ” — Gov. Gretchen Whitmer in her State of the State Addressichigan’s universities are among the most respected in the nation, consistently earning top rankings for academic excellence and research impact. The University of Michigan in Ann Arbor ranks among the top 25 universities globally, producing world-class research in fields ranging from engineering to artificial intelligence. As the nation’s pioneer land-grant university, East Lansing’s Michigan State University is a leader in agriculture, supply chain management, and engineering, with programs that are globally influential and vital to industries worldwide. Wayne State University, a research institution in Detroit, excels in medicine, law, and business, playing a key role in the region’s economic resurgence. These institutions and others across the state have produced Nobel laureates, MacArthur “Genius” grant recipients, and groundbreaking research that shapes entire industries. Their graduates lead Fortune 500 companies, launch innovative startups, and drive scientific and technological How Michigan’s university partnerships fuel industry and innovation. by LIN DSAY LOPP M I NTE L L E C T U A L A S S E TS 84 M I C H I G A N E C ONOM I C DE V E L OP ME N T G UI DE The Power of Collaboration Students at Michigan Tech are researching and creating a robot to harvest the Lucky Clover Farm’s lavender plants Photo courtesy of Michigan TechM I C H I G A N E C ONOM I C DE V E L OP ME N T G UI DE 85 breakthroughs that change the world. These achievements are a direct reflection of the caliber of talent being cultivated throughout the state. From engineers and designers to skilled tradespeople and cybersecurity experts, Michigan’s talent pool is as multifaceted as they come, making it a top destination for businesses. The state ranks No. 1 for concentration of engineers and has the nation’s fourth-largest engineering, design, and development workforce. Michigan also ranks in the top 10 for STEM degree completions, tech job growth, and cybersecurity leadership. But Michigan’s higher education institutions aren’t just excelling in talent production — they are also at the forefront of collaborative research that drives innovation and industry transformation. Research in mobility and autonomous vehicles ensures that the state remains a leader in transportation innovation. Collaborations in health care and life sciences drive medical breakthroughs, from AI-assisted diagnostics to cutting-edge pharmaceutical development. Advanced manufacturing, AI, and sustainability are also at the forefront, with universities working alongside industry leaders to develop the next wave of technological progress. RESEARCH UNIVERSITIES FOR MICHIGAN A prime example of Michigan’s commitment to collaboration is the Research Universities for Michigan (RU4M), a partnership initially developed between three R1 universities: the University of Michigan, Michigan State University, and Wayne State University. Since its inception in 2006, the RU4M has served as a driving force for innovation and economic development, harnessing the collective research capabilities of these institutions to tackle some of the most pressing challenges facing the state, the region, and the world. Together, these universities conduct more than $3 billion in research and development annually. The Michigan Tech Great Lakes Research Center is a national leader in marine science Photo courtesy of Michigan Tech86 M I C H I G A N E C ONOM I C DE V E L OP ME N T G UI DE “The whole purpose of the RU4M is to help raise awareness of the value proposition these institutions present and to align our assets with economic development across the state,” says Brittany Affolter-Caine, RU4M executive director and Michigan Strategic Fund board member. “Thankfully, America is competitive — we have some of the top university innovation clusters in the world, and the RU4M is certainly one of those.” The RU4M’s combined expertise and resources have helped transform Michigan into a national leader in research and innovation. Through industry partnerships with major companies like Ford, GM, Pfizer, and Google, the the RU4M universities are at the forefront of developing groundbreaking technologies in mobility, sustainability, advanced manufacturing, semiconductors, AI, and life and health sciences. Research in AI-driven diagnostics and next-generation pharmaceuticals is just the beginning of what these collaborations produce. Beyond research, the RU4M also drives economic growth by fostering a dynamic innovation ecosystem that supports startups, creates jobs, and fuels the commercialization of new technologies. Now, the RU4M is expanding to the state’s Upper Peninsula. Michigan Technological University (MTU), the state’s newest R1-designated research institution, officially joined the RU4M in March 2025, marking the first addition to the partnership since its formation in 2006. MTU’s inclusion further strengthens Michigan’s role as a leader in research and innovation. “It was a no-brainer to bring them into the group,” Affolter-Caine says. “Michigan Tech is smaller than the other three institutions, but it has had the same focus on research that a research-intensive university does, and they’ve been doing amazing things for many years. In February, when the Carnegie Foundation and the American Council on Education designated Michigan Tech as an R1, that really enabled our presidents to say, ‘this is fantastic, this is great for Michigan, and this is great for RU4M.’” MTU’s elevation to R1 status reflects its growing research capacity, with $106.9 million in research expenditures for FY 2024 and 300% growth in funding since 2004. As a member of the RU4M, MTU will YOUR TICKET TO TOP-TIER TALENT In 2022, the Michigan Economic Development Corporation (MEDC) launched a groundbreaking statewide talent attraction and retention strategy to strengthen Michigan’s position as a leader in industries such as electric vehicles (EVs), mobility, and semiconductor manufacturing. This first-of-its-kind initiative brought together major Michigan employers, public universities, community colleges, and pre-K-12 education partners into a collaborative Talent Action Team. The goal is to create a robust tech talent pipeline, ensuring the state has the skilled workforce needed for long-term growth in its strategic industries. The Talent Action Team provides customized support to key employers across Michigan. Through this program, businesses can access a range of resources designed to support talent attraction, retention, and upskilling. By coordinating with educational institutions and regional workforce development boards, the Talent Action Team helps companies navigate the complex talent landscape, identifying and fostering the right skills through targeted workforce development programs. The program is tailored to meet the specific needs of industries such as EV manufacturing, mobility, and semiconductors, ensuring businesses have access to the skilled labor required for continued success. Employers looking to fill critical roles and expand their workforce in Michigan’s most innovative sectors can directly engage with the Talent Action Team for assistance. Whether it’s finding qualified candidates, upskilling existing employees, or working with educational institutions to develop industry-specific training programs, the Talent Action Team bridges the gap between talent and opportunity. The success of the Talent Action Team has already garnered global recognition. In 2024, Fast Company ranked the Talent Action Team No. 4 in business services on its Most Innovative Companies list, recognizing the program’s innovative approach to talent attraction and population growth. Further bolstering these efforts, the MEDC launched the “You Can in Michigan” talent attraction marketing campaign in October 2023. With a budget of $20 million, the campaign is designed to reach national audiences and grow Michigan’s population and talent pool. It includes television commercials, radio spots, print placements, and social media outreach, along with the launch of TheMichiganLife.org, a new website offering resources for job seekers to explore the state and advance their careers.M I C H I G A N E C ONOM I C DE V E L OP ME N T G UI DE 87 further enhance the collaborative network, contributing to the development of cutting- edge technologies and fostering new industry partnerships. This addition allows the RU4M to address critical challenges in sectors like environmental science, autonomous vehicle technology, and energy sustainability while driving even more economic growth throughout the state. A CATALYST FOR CHANGE With MTU joining the RU4M, the corridor’s impact is set to grow even further. This alliance already has a history of driving real change, such as its various projects with the Great Lakes Water Authority (GLWA), one of the largest utility providers in the nation, supplying roughly 40% of Michigan’s population with water. Wayne State has been instrumental in advancing drinking water research in collaboration with GLWA. One notable project focuses on enhancing a monitoring system that captures water quality data from Lake Huron to Lake Erie. Led by Dr. Carol Miller, this initiative compiles data into a central database, providing valuable insights for researchers and the public and serving as an early-warning system for water quality shifts. Another project, led by Dr. Yongli Zhang, investigates contaminants of emerging concern in the drinking water treatment process, addressing potential health risks associated with unregulated substances. INSIGHT AT YOUR FINGERTIPS As the RU4M expands its reach, it is also deepening its impact with a groundbreaking new platform designed to support economic development, business attraction, and industry growth. For more than a year, RU4M leaders have worked closely with economic development professionals statewide to identify the most valuable data and insights that businesses, investors, and policymakers need when making strategic decisions. Set to soft launch on May 1, 2025, this comprehensive data portfolio will provide a centralized hub for key information on Michigan’s top research universities. Users will have access to interactive tables, graphs, and maps, consolidating years of research into one easily navigable platform. This tool will allow economic development professionals and industry leaders to seamlessly integrate RU4M data into business pitches, policy discussions, and strategic growth initiatives. “I expect with a soft launch, we’ll learn a lot, and some things we’ll have to correct as we go,” Affolter-Caine says. “And I’m excited about that, but I’m also excited to get this data out and into the hands of the economic development professionals as well as industry leaders, who often need this kind of information as well.” More than just a database, this platform represents a new level of collaboration between Michigan’s universities and the industries they support. It will bridge the gap between academia and economic development, ensuring that decision-makers have the research-backed insights needed to attract new businesses, expand existing industries, and foster innovation statewide. Archway on the campus of the University of Michigan Photo: Getty ImagesNext >