The route to job creation in Michigan is switching focus from assembly lines to laboratories.
State officials are increasingly investing money into university research in an effort to transfer the products of knowledge into high-paying jobs.
The latest example is the Governor's University Award for Commercialization Excellence that will be announced within the next few weeks.
Two researchers from Michigan's 15 public universities will be recognized with a cash award of $25,000 each, for projects that create jobs outside campus boundaries.
"Universities are looked at as a critical component to economic development in the state," said Kenneth Paulus, director of entrepreneurial affairs for the Michigan Economic Development Corporation. "We're trying to cultivate and create more of a streamline process to help them get universities out of the lab and into the market."
Ramani Narayan, an MSU chemical engineering professor, helped create a spin-off company from university research in 1997.
KTM Industries Inc. produces packaging foam made from natural materials, such as starch and soy. Narayan had a hand in creating the technology to make the foam.
Narayan said loan programs from the state are helpful because it takes at least two years for these kinds of companies to start making revenues on their products - and they are still difficult to finance.
About $1.3 billion was spent last fiscal year on research at the state's 15 public universities, according to the Presidents Council, State Universities of Michigan. Most of the funds came from the federal government.
Narayan said he likes the concept of creating jobs through research, but he is concerned that too much focus on life sciences will overlook new developments in environment-friendly materials.
The amount of inventions, licenses and company start-ups that come out of the state's public universities is higher than a decade ago, Paulus said.
With manufacturing jobs being relocated to overseas locations, state officials said they are trying to foster a culture shift from blue-collar to science. Michigan lost 170,000 manufacturing jobs from 2000 to 2004, said Gov. Jennifer Granholm in her State of the State address. And although most agree that the creation of jobs and a healthy economy are bi-partisan issues, others are concerned with the path Granholm is taking to build research and development. She has proposed investing $2 billion for research through universities and businesses.
Michigan residents would vote on the issue in the fall if it is passed through the state Legislature. Although Granholm said the bond wouldn't raise taxes, Sen. Nancy Cassis, R-Novi, said the plan puts taxpayer dollars at risk.
"Government creates a business environment that then allows for the creation of jobs," said Cassis, who is running for governor in 2006. "Let the private sector take the risk- not the taxpayers."
Cassis added that the government only should support research that can provide jobs and be applied in the real world.
Through initiatives such as Michigan's Technology Tri-Corridor and SmartZones, state officials said they are trying to close the gap in research funding.
Four MSU projects were given a total of $3.7 million in grants last July to create improved drugs and health products through the Tri-Corridor, a program that also aims to spur growth in areas such as the life sciences, homeland security and advanced automotive technology.
Dan Hurley, director of university relations for the Presidents Council said universities are encouraging professors to push research into the business world.
"Michigan is definitely in the top of the pack in the country for higher education systems," Hurley said. "But we know we can do better."
