The convergence of manufacturing and software development in the Great Lakes State creates an environment for the technology sector to grow.
Michigan's reputation as a manufacturing state extends far beyond the automotive industry and into software-focused technology industries such as computer programming and computer hardware manufacturing. Combined with the state's historic dominance in R&D and hardware manufacturing and a strong pipeline of talent, Michigan offers a unique value proposition for technology companies looking to expand and grow in the Midwest and across the nation.
“The strongest evidence of a state's commitment to building its technology industry lies with the companies that actively seek to do business there,” said MEDC Chief Business Development Officer and Executive Vice President Josh Hundt. “From tech giants like Amazon, Microsoft and Google, to homegrown tech startups like Orbion Space Technology and Duo Security, companies of all sizes are showing a willingness to locate and grow here in Michigan thanks to top talent and our research leadership. and development”.
In fact, with Michigan's impressive advantages—including a deep high-tech talent pool with the highest concentration of engineers in the country, a pipeline full of top-educated tech students, a friendly business climate with an affordable cost of doing business, and an unparalleled quality of life— it's hard to imagine why a tech company or startup looking to locate or expand would go anywhere else.
Michigan offers a dense engineering talent pool, with the highest concentration of engineers in the country.
Michigan has the third highest concentration of electrical engineers in the country and ranks fourth in the number of workers in this profession. Many of these engineers work doing what Michigan has long done very well: innovating. The state's commitment to innovation is strong enough that Business.org ranks Michigan fourth in the nation for most innovative statesbased on the amount of R&D expenditure per 100,000 people.
Michigan is also a leading state for net technology employment, with more than 80,000 workers employed in technology industries across the state.
Of course, every company wants, expects and plans to grow. And growing companies need to feel confident that, along with available talent, new talent well versed in the latest technologies will be available when needed. Michigan has both.
Michigan is among the top ten states nationally for graduates with degrees in computer science, engineering and mathematics. In particular, the University of Michigan's computer science programs are consistently ranked among the top programs annually for their focus on computer engineering, artificial intelligence, and electrical engineering, among others.
Michigan is also looking to develop tech talent earlier in the education stage.
For example, the Michigan Statewide Educational Network (MISEN) is bringing 10-gigabit capacity to Michigan middle school districts, giving educators the tools they need to educate K-12 students in technology, cybersecurity and other technology areas.
Michigan also has more FIRST Robotics teams than any other state and hosts the 2018-2020 world championship robotics competitions. FIRST Robotics is a non-profit organization that encourages students to enter STEM fields.
Leadership in cyber security.
In particular, at a time when cybersecurity is critical for governments and companies across industry lines, Michigan is taking the lead in developing innovative solutions to protect the security of systems and people nationally, nationally and internationally.
The Michigan Cyber Range offers the nation's largest unclassified range, providing virtual training to help students and professionals learn to deal with the most dangerous known cyber threats. Cyber Range hubs are located across the state and offer more than 40 industry-recognized certifications, exercises and workshops to develop cybersecurity talent.
Michigan's efforts to develop a strong cybersecurity community focused on connecting the interests of the cyber, automotive, defense and aerospace industries led Business Facilities magazine to recognize its strengths in IT and cybersecurity, ranking the 9th-ranked state for both tech job growth and cybersecurity leaders.
Consider Michigan's own startup unicorn, Duo Security, which was born and raised in the state. Even after its acquisition by Cisco, Duo remains committed to staying in Michigan and hiring and training talent here, thanks to the state's efforts to further strengthen its pipeline of technology and cybersecurity talent.
An ecosystem that supports growth.
Michigan's high-tech ecosystem offers a number of assets that are of particular interest to tech companies and startups looking to grow. For example, Michigan is home to many business incubators and technology innovation hubs that facilitate the commercialization of technology and technology ideas. Resources include 21 SmartZones and five innovation hubs through the Michigan Translational Research and Commercialization (MTRAC) program.
Information technology startups received 32% of venture capital invested in Michigan in 2020 and accounted for nearly half of the startup companies receiving venture capital funds. Meanwhile, the state as a whole continues to make national headlines for its venture capital growth, as the fastest-growing state for VC investment, with venture dollars growing from $300 million in 2016 to $3.1 billion in 2020. Given this support, plus Michigan's historically friendly business climate, it's no surprise that Michigan is home to five Unicorn companies, including OneStream Software, Rivian, Duo Security, Llamasoft and StockX.
More broadly, Michigan offers a favorable business tax structure to businesses in general, contributing to its position as one of the top states for doing business, according to the State Tax Foundation's 2021 Business Tax Index.
A wide range of technology companies are discovering for themselves how much opportunity awaits them to grow and thrive in Michigan. For example:
Nexient, LLC offers a product-driven approach to software development focused on revenue growth and customer experience. Its clients include Fortune 500 and high-tech clients in utilities, retail, financial services, healthcare, hospitality, and entertainment and media companies.
Nexient's Michigan experience began in 2010 when it founded the Ann Arbor Product Development Center, which has grown from a few dozen coders to hundreds of software professionals. It expanded its presence in 2018, pledging to create an additional 300 tech jobs, pledging an investment of $4.1 million.
It recently announced a second expansion into Michigan, this time with a project in Scio Township that will generate a total of $12.45 million in private investment and create 100 new jobs as it continues to grow Michigan's tech footprint.
Lineage Logistics, ranked by Fast Company magazine as the No. 1 Data Science company on its 2019 list of the World's Most Innovative Companies, is a global warehousing and logistics company. It works with clients such as Amazon, Walmart and PepsiCo to revolutionize temperature-controlled supply chain and logistics for food movement, storage and preparation. When the company decided to move its headquarters from Irvine, CA, the outstanding supply chain and logistics programs at the University of Michigan and Michigan State University helped Michigan stand out against competitors such as Chicago and Dallas, along with a rich high-tech talent series.
With the Hall-effect plasma thruster Aurora, Orbion Space Technology has done what seemed almost unthinkable not long ago: It has shown that it is possible and affordable for a startup company to launch satellites into space. Dr. Brad King and Dr. Jason Somerville started the homegrown company and approached the Michigan Technical Education Center (MTEC) SmartZone in Houghton, Michigan, with more than just a business idea. State-funded, SmartZone provided Orbion with a wealth of business development support and resources. They also received MEDC support through the Tech Transfer Talent Network's (T3N) Mentors-in-Residence program, where they worked with experienced tech entrepreneurs to identify business opportunities and programs. Later, funds raised through MEDC-backed pitch competitions helped the company raise $10 million in an early round of venture funding, and today it continues to make a name for itself across the industry.
The Pure Michigan Advantage.
Of course, companies in the tech industry are drawn to Michigan for many of the same reasons that companies in other industries are: with a cost of living 10% lower than the national average, Michigan is the fourth most affordable state in the country, which means a dollar goes farther when invested in Michigan. And with remote work becoming a bigger concern for more tech companies and the tech industry workforce, Michigan offers a Pure Michigan playground in addition to the tech-friendly business environment to support the jobs and companies that navigate them. the new realities in the workplace.
To learn more about how Michigan is driving the next generation of high-tech industry innovation, go to michiganbusiness.org/tech.
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