DETROIT, Mich. – Business Leaders For Michigan today released its Innovation Economy Scorecard. The first-of-its-kind analysis includes an assessment of the full range of stakeholders in a dynamic economy, from universities and startups to established companies. It highlights strengths and opportunities, setting a baseline to guide action and track progress for long-term growth and prosperity.
The scorecard emphasizes that Michigan’s long-term prosperity depends on a robust innovation ecosystem—one that drives job creation, income growth and business development. It fuels problem-solving and generates real economic value—powering high-growth sectors, creating new industries and opening entirely new markets.
Highlights of findings include:
- Michigan ranks 9th in the nation for overall research and development (R&D) activity. R&D activities inject $29 billion directly into Michigan’s economy, representing 4.7% of our GDP.
- From 2019-2023, Michigan venture capital deal values grew over 50%.
- Michigan has the highest concentration of engineering and architecture jobs in the nation, a key driver of innovation, problem-solving and tech sector growth.
- Michigan ranks 32nd in early- and growth-stage funding—reflecting challenges in building and financing a strong startup pipeline.
- Michigan ranks 32nd in advanced degrees per capita—highlighting challenges in the long-term talent pipeline and education infrastructure.
- Leading innovation states like Washington, California, and Colorado have grown at twice the rate or more of Michigan in the last decade.
“Innovation fuels economic growth and improves lives, and top-performing states don’t leave that process to chance,” said Jeff Donofrio, president and CEO of Business Leaders For Michigan. “Without a strong innovation economy, we risk seeing the future designed and built elsewhere.”
States with strong innovation ecosystems have worked to nurture them and offer lessons for Michigan: Utah (#1) and Colorado (#2) in BLM’s Top 10 Benchmarking Report have built resilient economies through holistic ecosystem-building, strategic government action, and targeted investment in talent and industry. Colorado is a national leader in importing top talent from other states and Utah has earned its reputation as the “Startup State.”
“Michigan has strong assets,” said Dr. Kimberly Andrews Espy, president of Wayne State University. “And to unlock the jobs and growth an innovation economy can deliver, businesses, universities, policymakers and funders must work together.”
The Innovation Economy Scorecard was developed with generous support from the William Davidson Foundation and BCG. The full scorecard is available here.
Stakeholders across Michigan’s innovation ecosystem recognize the need for a unified vision and collective action that draws more talent, drives investment and creates a healthy pipeline of scalable companies.
“Michigan possesses many of the most important—and difficult to create—elements necessary to become a top-tier innovation state. But what we need to get there is a collective, comprehensive approach supported by businesses, universities, policymakers and funders. It can be done,” said Chris Rizik, Managing Partner, Renaissance Venture Capital.
“As we work to shape the future of health and prosperity in Michigan, innovation must be at the heart of our strategy,” said Bob Riney, President and CEO of Henry Ford Health. “At Henry Ford Health, we’re proud to be part of a statewide movement that’s driving bold ideas, investing in talent, and creating opportunities that lift communities. The Michigan Innovation Economy Scorecard provides insights that are critical to helping our state remain competitive in a rapidly changing world.”
“Understanding where Michigan stands today is an important first step toward transforming innovation potential into tangible economic results. We are excited to have contributed to this first-of-its kind objective scorecard that allows for a clear-eyed look at metrics across several key aspects of a strong innovation and entrepreneurship ecosystem. The numbers tell a clear story – a strong innovation economy has potential to drive significant benefits to jobs, income and productivity across entire state economies,” said Jonathan Nipper, Managing Director and Partner, Boston Consulting Group.
“This scorecard confirms what we experience every day at Michigan Central – there is incredible potential in Michigan’s innovation ecosystem, but it also demonstrates that unless we move with urgency and unity, others will seize the opportunities that should be ours,” said Josh Sirefman, Chief Executive Officer, Michigan Central.
“Right now, Michigan is losing innovators to places like Austin and Columbus. Our innovation scorecard tells us that story today, but data is not destiny—it’s a launchpad. We can change that narrative and become a big-league innovation hub by fully investing in and committing to our incredible talent and groundbreaking discoveries right here,” said Britany Affolter-Caine, University Research Corridor Executive Director.
“This Innovation Economy Scorecard highlights the immense potential Michigan can realize through deeper cross-sector collaboration,” said Ben Marchionna, Chief Innovation Ecosystem Officer at the Michigan Economic Development Corporation. “Over the past year, we’ve forged important new partnerships, bringing the state directly into innovation ecosystem conversations. I’m optimistic about the collaborative energy we’ve sparked, and I look forward to further building these connections alongside Business Leaders For Michigan and stakeholders statewide to accelerate our innovation-driven economy.”
“Michigan’s deep manufacturing roots make it ideal for building the high-tech vehicles satellites have become. The infrastructure, the talent, and the production mindset are already here. With support from the MEDC and the state’s entrepreneurial ecosystem, we’ve grown quickly and shown that non-traditional hubs of innovation can lead in aerospace,” said Brad King, CEO of Orbion Space Technology in Houghton, Mich.
About Business Leaders For Michigan
At Business Leaders For Michigan, we are united by an ambitious goal: making Michigan a Top 10 state for jobs, talent and a thriving economy. Our impact is driven by the direct involvement of CEOs from the state’s leading employers. Member companies employ more than 540,000 Michiganders, generate over 1 trillion in economic activity and educate more than half of Michigan’s public university students. Guided by research and diverse perspectives, we develop strategies, shape public policy and drive initiatives that bring people and ideas together to ignite change – for growth, shared prosperity and lasting progress. For all of us. For Michigan.
