The University of Michigan is poised to receive about $10 million in new state funding for research commercialization, as part of a package of bills recently signed by Gov. Gretchen Whitmer.
The bipartisan legislation establishing the Michigan Innovation Fund and Research and Development Tax Credit is designed to bolster Michigan-based startups and attract potential investments to the state.
Notably, a second bill offers an additional incentive — a $200,000 tax credit for companies that collaborate with a research university, further encouraging partnerships that leverage academic research and expertise.
This influx of funding at U-M will go to the Accelerate Blue Fund, an early-stage venture fund that invests in university-licensed startups. A focus of the fund is to bridge the critical gap between a startup company’s launch and the ability to attract venture capital funding.
“Innovative startups have the power to change lives — whether through medical breakthroughs or cutting-edge technologies — and they play a crucial role in driving Michigan’s economy forward,” said Kelly Sexton, associate vice president for research – innovation partnerships and economic impact.
“The University of Michigan is proud to be ranked second in the nation for startup company formation — a testament to the creativity and drive of our researchers and our commitment to empowering groundbreaking ideas. Gov. Whitmer’s signing of this bill into law demonstrates our state’s dedication and foresight in supporting Michigan-founded startups.”
The Accelerate Blue Fund is managed by Innovation Partnerships, a unit within the Office of the Vice President for Research that serves as the nexus of research commercialization at the university. Innovation Partnerships works with U-M researchers and faculty to advance their innovations and bring them to market.
The Michigan Economic Development Corp. will determine a final amount to be received by U-M after issuing a request for proposals.
This initiative is part of a broader strategy to retain high-potential startups in Michigan, Sexton said, adding that the university is looking forward to seeing the transformative projects that will emerge from this effort.
“Michigan is now making a bold statement,” she said. “We are committed to fostering an innovation ecosystem where companies aren’t just founded here — they grow, thrive and create jobs right here in our communities.”
Chris Kolb, vice president for government relations, lauded the governor and state legislators for the “forward-thinking support” in establishing the new innovation fund and tax credit.
“This bipartisan initiative not only highlights the vital role of public-private partnerships in driving economic development but also reaffirms Michigan’s commitment to becoming a national leader in innovation,” Kolb said.
“The investment in the Accelerate Blue Fund represents a significant step forward in our shared vision to foster a thriving economic ecosystem right here in Michigan, enabling our most promising startups to flourish and contribute to our state’s economic vitality.”
