Michigan Unveils Tech Incentives & Programs

The new Michigan Economic Development Corporation has released its strategic plan to increase the growth of technology-related jobs in the state. The report, State Smart: Michigan, outlines more than $6 million in new initiatives and several tax incentives to encourage technology-based growth in three key industry sectors: life sciences, information technology and advanced manufacturing.

The plan's initiatives are divided among three categories:

• "Smart Ideas" to develop a base of university research for commercialization and a marketing program to enhance Michigan's image as a high tech state;
• "Smart People" for technology-based workforce development; and,
• "Smart Capital," to encourage technology investments through R&D funding, tax credits and reforms, and infrastructure improvements.

Some of the specific "Smart Ideas" initiatives include: establishing a $2-million-per-year university research matching fund to help academic researchers leverage federal and private funding in information technology, electronics and emerging sectors; hiring marketing specialists and business development staff within the Michigan Economic Development Corporation for the three key industry sectors; and, establishing roundtables, clusters or councils in each sector to develop, promote and lead the state's efforts in the sectors.

Initiatives in the "Smart People" category include: establishing a Michigan Technology Center to provide small and medium-sized manufacturers with quality training and other technical services "similar to the current Manufacturing Extension Partnership;" funding Michigan Technical Education Centers to provide short-term tailored courses; revamping the state's job training programs so that at least 30 percent of training is provided via distance learning through the Michigan Virtual University; and, marketing local job opportunities to Michigan's recent technology graduates and out-of-state alumni.

The "Smart Capital" initiatives include $1 million annually for an Emerging Technologies Matching Fund to support university-industry partnerships' efforts to test new product applications. The funds will be available in exchange for the Michigan Economic Development Corporation taking an equity position in the ventures.

A state commercialization office will be created to provide matching funds to pay for additional technology transfer staff within each of the state's four research universities. The commercialization office also will establish a development fund linked to a privately financed seed fund to offset the R&D costs of promising projects. The seed fund would then take these ventures to market. The Michigan Economic Development Corporation estimates the annual cost of the new office and associated programs to be approximately $3 million.

Additional "Smart Capital" proposals include: establishing five technology research parks; targeting business recruitment efforts toward technology firms; and, implementing a series of tax reforms permitting technology-based businesses to take advantage of credits and incentives already in place for manufacturers.

The tax package also would allow all jurisdictions in the state to grant personal property tax abatements to technology firms. Previously, only economically distressed communities were able to offer this inducement to attract companies.

Smart State: Michigan can be downloaded at: http://medc.michigan.org/