Michigan’s Research Universities for Michigan (RU4M) generated $15.5 billion in economic impact statewide, exceeded $2 billion in annual research expenditures and awarded more than 31,600 degrees in one year, placing it at or near the top of seven university innovation clusters nationwide, according to a new report released Wednesday, Jan. 23.

RU4M'S statewide impact exceeds $15B
RU4M’S statewide impact exceeds $15B

The RU4M – consisting of Michigan State University, the University of Michigan and Wayne State University – saw its research and development spending grow by 43 percent from 2007 to 2011, when it topped $2 billion for the first time.

Its R&D growth rate topped six other major university research clusters in five states, including well-known hubs such as North Carolina’s Research Triangle Park, California’s Innovation Hubs and Massachusetts’ Route 128 Corridor.

The 6th annual RU4M Economic Impact Report, prepared by East Lansing, Mich.-based Anderson Economic Group (AEG), showed that the RU4M universities conferred 31,683 graduate and undergraduate degrees in 2011, more than any of the university innovation clusters the RU4M has benchmarked itself against since 2007.

The RU4M also granted the second-highest number of high-demand degrees overall.

“Michigan’s RU4M is making a real difference in creating talent for Michigan companies, and doing more research and development every year,” said RU4M executive director Jeff Mason. “The report shows the RU4M stacks up well against its peers.”

The $15.5 billion in state economic activity the RU4M contributed in 2011 was up $2.6 billion — 20 percent — over the 2007 report. Activity attributable to the RU4M boosted state tax revenue by $375 million in 2011, an increase of $24 million since the benchmarking series began.

The RU4M also was responsible in 2011 for more than 74,000 direct and indirect jobs statewide, with the impact being felt in regions ranging from the Upper Peninsula to Michigan’s southern border with Indiana and Ohio.

“Our graduates are key to strengthening and expanding Michigan’s economy,” said University of Michigan President Mary Sue Coleman. “Equally powerful are the inventions and technologies developed by faculty from a diverse range of fields.”

For every dollar the state invested in the three RU4M universities, it saw $17 in economic benefits, according to the report.

Michigan State University President Lou Anna K. Simon said the universities are working hard and effectively to assist in accelerating Michigan’s economic growth.

“Michigan’s economic success is vital to our students’ ability to get good jobs when they graduate,” she said. “We’re deeply committed to continuing our efforts to help Michigan’s businesses innovate and grow by providing the research and talent they need.”

Since 2002, the three RU4M universities have cultivated 149 start-up companies, including 18 in 2011, when the RU4M ranked behind only university innovation clusters in Southern California and Massachusetts.

“The three RU4M universities constantly are striving for excellence in their joint goals of educating students, attracting talented workers to Michigan, supporting innovation and encouraging the transfer of technology to the private sector,” said Wayne State University President Allan Gilmour. “Our efforts should encourage even more start-ups in the future.”

Since 2007, the RU4M has commissioned Anderson Economic Group to provide an annual report that calculates the economic impact of the RU4M’s activities on Michigan’s economy and compares its performance to peer university innovation clusters nationwide. The report matches up Michigan’s RU4M against clusters in Northern California, Southern California, Illinois, Massachusetts, North Carolina and Pennsylvania.

“R&D expenditures by the RU4M helps bring talented and creative people to the state. The RU4M’s ability to compete on the national stage helps make Michigan a place where highly productive people want to live and work,” said Patrick Anderson, principal and CEO of AEG, an economic and research consulting firm. “AEG has compared universities across the country, and Michigan’s RU4M is in the lead on many measures.”

The report also includes a breakdown of the RU4M’s economic impact in 10 regions statewide, including the effect of the additional money RU4M alumni living in Michigan earn because of their university degrees. Michigan has 589,840 RU4M alumni living in the state.

Every region of Michigan benefits from the RU4M. The impact ranges from $64 million and 60 direct and indirect jobs in Michigan’s Upper Peninsula to $5.6 billion and more than 17,000 direct and indirect jobs in southeast Michigan.

Spending by students attending one of the three RU4M universities also contributed to the RU4M’s economic impact. Nearly a quarter of all of all higher education students in Michigan last year attended Michigan State University, the University of Michigan or Wayne State University.

The RU4M’s main goals include educating students, attracting talented workers to Michigan, supporting innovation and encouraging the transfer of technology to the private sector.