Big Three universities' research aids economy

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Tweet MSU could play a key part in keeping the state's economy afloat, with cuts being made to higher institution education in Michigan and a heavy reliance on a worsening domestic auto industry.

The University Research Corridor, an alliance comprised of MSU, Wayne State University and the University of Michigan, recently released preliminary data from a study stating the collaboration generated $6.5 billion - 2 percent of the state's entire economic activity.

The independent analysis was conducted by the East Lansing-based Anderson Economic Group and outlines how the URC has contributed to the state's economy. A complete analysis will be released in the fall.

As a result of the study, the state's Big Three universities are posing the "big three questions," MSU spokesman Terry Denbow said.

"Do we invest or disinvest in higher education?" Denbow asked. "Do we look at higher education as an expense to be cut, or an investment to be made? Do we look at what higher education can do to the current state budget, or (its) relation to the state's economic and cultural future?"

Michigan lags when it comes to supporting higher institution education, he said.

"We aren't there in funding," Denbow said.

The study shows how large an economic role the URC is playing, said Patrick Anderson, principal and CEO of Anderson Economic Group.

"It's a tremendous bargain for the state to have the university here," Anderson said.

The URC is stepping up to the plate when it comes to spending its own money, he said.

Compared with other research alliances, URC spends a significant amount from its own pockets to keep up research and development - 25 percent of their institutional money is spent, in relation to the national average of 18 percent.

"The state has been cutting research and development funding for higher education," Anderson said. "These institutions have been putting their own money where their mouth is."

The URC has outshone two of its counterparts in patents granted. The alliance has an average of 126 patents per year, whereas in North Carolina and Pennsylvania, only 111 and 123 patents are granted each year respectively. The study's purpose was to "record, or quantify the direct economic benefit of the research universities," he said.

Compared with heavy hitters like North Carolina's Research Triangle, Boston's Route 128 Corridor and Penn State/Pittsburgh/Carnegie Mellon in Pennsylvania, URC was neck and neck with some of the nation's top research groups, and in some instances, surpassed them.

About six months ago, the institutions in the state allied to help revitalize Michigan's economy.

The URC has 46,938 full-time and 617,957 alumni whom live in the state. The alumni earned 7.1 percent of the state's personal income last year.

"(URC) is a huge asset that is being underutilized," U-M spokesman Joe Serwach said. "It's like a sports car in your garage that you hardly ever drive."

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