University of Michigan, Michigan State, Wayne State boosted state’s economy by $19.3 billion in 2019
Three of Michigan’s top research universities combined to boost the state economy by $19.3 billion in the 2019 fiscal year, according to an independent analysis. This is more than 20 times the funding University of Michigan, Michigan State University and Wayne State University receive from the state, according to a report by Anderson Economic Group released Monday, June 7. The three universities make up Michigan’s University Research Corridor (URC). While the report doesn’t account for losses during the pandemic, the billions in net economic impact demonstrate their continued importance to Michigan’s economy, said Patrick Anderson, CEO and president of AEG. “Over the past dozen years, Michigan went through the Great Recession, saw an extended period of job and income growth, then entered the pandemic year of 2020,” he said in a statement. “This report is based on data from just before the pandemic started, so it does not capture pandemic-related losses. But it does demonstrate conclusively the importance of the URC to jobs and income in this state, through good times and bad.” The economic impact includes providing qualified graduates for the workforce, innovating through research and local community contributions, according to the AEG release. The $19.3 billion is a 50% increase from $12.8 billion in 2007, when AEG first conducted its analysis for the three universities. The URC increased the state’s tax revenue by $640 million, and Michigan households earned about $10.8 billion more through university operations and capital spending, the report stated. There were 141,000 students enrolled in the URC in the 2019 fiscal year, which constitutes a growth of 16,600 over the last decade. With 70% of those students staying in Michigan, the state economy has benefited from the talent retention, the report stated. The three universities almost completely made up for all federal funding spent on their research, attracting 94 cents for every federal dollar spent in 2019, according to the report. URC schools conduct $2.7 billion in research and development annually, the release stated.
June 8, 2021