The Clusters of Innovation report might well have looked at the territory of National Governors Assoc. Chairman and Michigan Gov. John Engler, whose state -- no stranger to leadership in global industries -- has taken seriously the charge to innovate in the life sciences.
      A recent study by the Michigan Economic Development Corp. (MEDC) found that the state retained 79 percent of 30,000 life sciences, engineering and IT graduates over a four-year period. And they'll all be needed to fill the types of quality jobs being created near their alma maters.
      The biggest bio-headline in Michigan was the announcement in November 2001 of a $600 million to $800 million investment by Pfizer, the world's largest pharmaceutical manufacturer, in its Ann Arbor facilities over the next six years.
      "Two years ago, we launched the Michigan Life Sciences Corridor initiative with the vision of being one of the nation's premier life sciences centers," said Gov. Engler at the announcment cermonies. "Today's announcement by Pfizer is a welcome confirmation that Michigan is attracting the important companies and investments that will make the Life Sciences Corridor vision a reality."
      Among the major incentives was a 20-year single business tax credit awarded by MEDC. Central to the deal was a 50 percent tax abatement encompassing property and buildings to be added over the next six years to Pfizer's Ann Arbor campus. Real property will be abated for 12 years and personal property for six, saving Pfizer about $55 million while also pumping $75 million to $90 million in new taxes into the city, county and Washtenaw Community College.
      "Pfizer will now have the land we need to flourish," said Pfizer Senior Vice President and Ann Arbor Laboratories Director David Canter. Plans call for up to 14 buildings to be constructed on a 145-acre (59-ha.) plot.
      "This opens what should be a great new chapter in our ongoing partnership with Pfizer," said Ann Arbor Mayor John Hieftje, who was a key player in getting the city to approve a property tax abatement, as well as getting the University of Michigan to sell the company 55 acres (22 ha.) for future expansion.
      "We were pleased to work with Pfizer on its purchase of the land that will enable the company's expansion," said University President Lee C. Bollinger. "We look forward to future collaboration that will bring promising research and scientific discovery, career opportunities for our graduates and technology transfer initiatives benefiting the state's economy and the well-being of its residents."
      Among the plan's economic impacts: 988 total jobs created; more than $89 million in net positive state revenue; and a projected $1.44 billion in personal income generated over the life of the tax credit agreement.
      The state's leadership in stem cell research, controversial as it is, is attracting its share of companies, too, with Aastrom and Nephros both locating in Ann Arbor to take advantage of the ongoing work. And Aastrom has teamed with the Karamanos Institute of Wayne State University to found the Center for Cell Therapy, which will be funded in part by a $2.2 million grant from MEDC.
      The state has encouraged Life Sciences Corridor development in part because of a total of 31 tax cuts during the 1990s. In his 2001 State of the State address, Gov. Engler noted the role of life sciences in creating the "Next Michigan," calling for an outright exemption for certain businesses from the state business tax, now at 1.9 percent.
      "We want to strengthen further our foothold in these emerging fields -- life sciences, micro-systems and information technology," he said. "With the proper tax and regulatory climate and the right education and legal strategies, investment and job creation potential in these sectors is enormous."