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May 30, 2012

Michigan’s top research universities fuel 21st–century auto industry

MACKINAC ISLAND, Mich. — Michigan’s three research-intensive universities power the state’s resurgent automotive industry with more than 3,600 science, technology, engineering and mathematics, or STEM, graduates annually, and have spent more than $300 million on auto-related research during the last five years.

An analysis conducted by Lansing-based Anderson Economic Group for the University Research Corridor's annual technology sector study outlines the contributions of URC members Michigan State University, Wayne State University and the University of Michigan and highlights the competitive pressures facing the American auto industry. The study was jointly released at the Detroit Regional Chamber’s annual Mackinac Policy Conference by URC member presidents Lou Anna K. Simon of MSU, Mary Sue Coleman of U-M and Allan Gilmour of WSU.

"In order to respond to industry challenges, automakers have continually innovated to improve their products and operations," said AEG CEO Patrick Anderson. "Michigan has been home to much of this innovation due to the clustering of auto manufacturers and their suppliers in the state.

“These top institutions have created and sustained a pool of talent that has attracted both domestic and international companies to locate their research centers here. Michigan still accounts for fully 28 percent of all jobs in the U.S. automotive sector, with more than 136,000 Michigan residents employed in the industry. This report shows how Michigan State, the University of Michigan, and Wayne State are supporting innovation in our cornerstone industry."

Some highlights from the report:

  • The auto industry faces ever-higher demands to improve performance and quality at a lower cost. The URC universities are involved in every step of the innovation process to meet these challenges.
  • The URC universities supply talented workers to the auto industry, conferring more than 3,600 degrees annually in auto-ready STEM disciplines.
  • Universities play a direct role in auto industry innovation by spending $60 million of their research and development dollars annually on auto-related R&D.
  • Between fiscal year 2007 and 2011, the URC universities spent $300 million on more than 1,400 auto projects. Nearly two-thirds of this research was funded by federal and state governmental agencies.
  • Private industry funded 28 percent of all auto research at the URC universities within the last five years, which is nine times the average share of industry funding for all university R&D at these institutions.
  • URC researchers have helped automakers improve vehicle quality and safety, improve engine efficiency and performance, and reduce fossil fuel use through new auto approaches. Michigan State, for example, is a leader in biofuel research and operates the Composite Vehicle Research Center and the Energy and Automotive Research Laboratories through its College of Engineering, among many other automotive and transportation-associated programs and facilities.

“Universities are critical to Ford and the rest of the auto industry as they provide an additional talent pipeline and aid us in early stage research and development,” said Bill Ford, executive chairman of Ford Motor Co. and chairman of the New Michigan Initiative of Business Leaders for Michigan. “The partnering of universities and companies provides students with real-world problems to research and solve, while allowing companies to leverage external expertise in new technical areas.”

To view the full report, and to access prior URC technology sector and benchmarking reports, go to www.urcmich.org.

Michigan State, U-M and WSU formed the URC to leverage their collective assets, encourage collaboration and increase business partnerships, with an overarching goal of accelerating statewide economic development. The URC has a net economic impact on Michigan's economy of $15.2 billion.

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Michigan State University has been working to advance the common good in uncommon ways for more than 150 years. One of the top research universities in the world, MSU focuses its vast resources on creating solutions to some of the world’s most pressing challenges, while providing life-changing opportunities to a diverse and inclusive academic community through more than 200 programs of study in 17 degree-granting colleges.