The University Research Corridor, or URC, — comprised of MSU, the University of Michigan and Wayne State University — contributes to the state’s ability to foster job creation, retain graduates and spur competition among other national and worldwide research “clusters,” said Jeff Mason, executive director of the URC. The URC is Michigan’s top research and academia alliance formed to positively benefit the state.

The universities share faculty and research projects, and out of that comes growth. Research topics range from Great Lakes climate studies to stem cells.
In the 2010 Empowering Michigan report, the net economic impact to the state of the alliance reached about $14.8 billion — an increase of about 15 percent since 2006’s about $12.9 billion.

“The pace of research and development taking place within the URC and the three universities (is) actually accelerating,” Mason said. “Things are very positive despite a very struggling economy.”

When globalization is key to university research, large and complex problems require partnerships, said Steve Webster, MSU’s vice president for governmental affairs.

“No one institution is going to be able to solve these challenges in front of us,” he said. “We have an opportunity to gain access to intellectual property, faculty and students where necessary.”

Bang for the buck

Since the URC’s establishment, the alliance has contributed more than $10 billion to the state’s economy each year, resulting in numerous factors for growth.

Net financial impact is measured as a combination of operating expenditures, URC alumni earnings, student expenditures and faculty staff wages and benefits.

In the 2010 report, Michigan’s alliance was rated and compared to other “clusters” across the country, including Massachusetts’ “cluster” of Harvard University, Massachusetts Institute of Technology and Tufts University, for example.

Out of the seven “clusters,” Michigan’s ranked high in undergraduate and graduate student enrollment with 137,152 students as well as cultivating an average of 14 start-up companies, said Patrick Anderson, founder of Anderson Economic Group, which led the 2010 Empowering Michigan report.

Ranking No. 1 in student enrollment and No. 5 in start-up companies both contribute to having a large student base that might stay in the state post-graduation, he said.

“It’s important for people to realize the whole is larger than the sum of the parts,” Anderson said. “Having three great research universities in the state of Michigan is a big advantage.”

But institutes themselves cannot hold the state’s own except to instigate progress.

“It would be a mistake to view universities by defining using universities only in terms of economic growth,” Anderson said.

A ripple effect

Many companies, such as DNA Software in Ann Arbor, can greatly benefit from an educated workforce within the state, said Joseph Johnson, vice president of business development at the company.

DNA Software’s employees perform their own research and create software projects to model the interactions of nucleic acids, according to the company’s website. Dr. John SantaLucia of Wayne State University developed intellectual property now used by the company.

SantaLucia was not available for comment Tuesday.

“If we intend to keep our skilled workforce, then we need companies to be here, ready to attract and hire the graduates (of the URC),” Johnson said.

Although a university’s goal is to create an educated workforce, a state cannot prosper if the workforce packs up and leaves its borders, said Charles Ballard, an economics professor at MSU.

The latest report cited 550,595 living alumni in Michigan, down from 556,338 in 2006. And for every dollar of taxpayer money, $16 is contributed to the state, thanks to the URC.

Still, those who choose to stay not only have the opportunity to work at a new company, but the dollars spent in the community can provide other sources of employment for those across the state.

“The research universities (are) one of the brightest spots in the whole at a time (where) much of our state’s economy has struggled,” Ballard said.

Cultural additions can be established in-state if it shows potential of economic progress, he said. Institutions of research and advancement contribute to a prosperous society and attract business venues.

“The fact that there’s the Wharton Center here and the Hill Auditorium in Ann Arbor — those places didn’t get put where they are because someone didn’t throw darts at a map,” Ballard said.

Student impact

Even when the URC might be the state’s silver lining in positive economic news, students might be more willing to jump ship if job opportunities do not start to exist in the future. The URC will not be the single entity for job creation in the state — it’s a combination of development and political maneuverings.

“Pretty much the only thing (that would make me stay) is if I got a really good job opportunity, but that’s about it — I want to get out,” said Jacob Sutton, a mathematics sophomore.
And when the political winds shift direction after Election Day, having a new governor — in addition to waiting it out — might be the best course of action.

“To stay (in the state), I don’t think the state needs to do anything, (and) the last thing they need to do is to ship out more money to people,” said Mike Chapman, an athletic training senior.

“I think once we get a new governor in office and have some time to recover, I think we’ll be fine.”

Staff writer Kyle Campbell contributed to this report.