Universities key to Michigan turnaround?
by Derek Fabry
TechTown in Detroit is an example of efforts to lure high-tech businesses to our state. |
Michigan’s economic woes continue as more news of job cuts and lose revenue come out of Detroit. But signs of hope exist for the future of the state and the city.
The 2007 State New Economic Index ranked Michigan 19th overall in job growth in the information technologies sector, and innovation and global markets, which was some welcome news after being ranked 34th in 1999 and 22nd in 2002.
The report listed the education level of workers as one of its 26 indicators, and Michigan ranked 11th in the country in its percentage of managers, professionals, and technicians.
But some questioned whether the report shows the reality of Michigan’s economy.
Representative Pete Hoekstra, R-Holland, expressed some doubts to the Detroit News. “The ultimate measurement is whether people are coming into Michigan and investing dollars and creating jobs,” Hoekstra said. “For the report to have any credibility, you would expect that Michigan would start to excel in terms of certain measurements – employment and investment. And we’re not seeing either.”
Michigan’s three research universities, the University of Michigan, Michigan State University and Wayne State University, must play a large role in the state’s economic turnaround, according to Peilei Fan, a professor of urban planning at MSU.
“High-tech job growth definitely depends on a good university system, providing a well-educated workforce,” Peilei said.
Although Michigan ranked 37th in new business start-ups and failures, a neighborhood in Detroit called TechTown is a haven for entrepreneurs in information technology and research and development. TechTown’s principal funding comes from Wayne State, according to TechTown’s Web site.
“There needs to be a connection with industry and the university,” said Peilei.
Wayne State and TechTown have programs that give students opportunities for gaining quality experience and leadership skills right next to campus, important factors in retaining an educated workforce in the state. TechTown is also helping new businesses get off the ground, according to its Web site.
Other organizations are trying to spur job development in the Detroit area. The Detroit Economic Growth Corporation (DEGC) has played an integral role in much of the downtown rebirth, such as the Book-Cadillac Hotel renovation, the riverwalk, Campus Martius, and the new stadiums. “We work to attract new businesses to retain jobs here. We do trade missions mostly overseas, such as China” to attract new jobs, said Wendy Hill, a representative from the DEGC.
An important part for job growth, particularly high-tech jobs, is to have a vibrant downtown to attract visitors and new residents. “Development sparks more development,” Hill said, citing the new Griswold – Capitol Park building that will break ground soon right next to the Book-Cadillac Hotel renovation as an example.
“The entertainment district has grown a lot. There’s much more for people to do downtown, with the new stadiums, theatres, and casinos,” Hill said.
The state of Michigan is offering incentives for job growth in emerging technologies. “The governor has gone overseas to attract new jobs. The state also offers the 21st Century Jobs Fund,” Hill said. The $2 billion, 10-year initiative is designed to attract jobs in high-tech sectors and other growing industries.
Hill had a positive outlook on the future of Michigan and Detroit. “It’s our turn,” she said.
