Nearly $45 billion in economic activity in Michigan is driven by the state’s public universities, according to an economic impact study the Michigan Association of State Universities published Jan. 13.

The state’s 15 public universities support tens of thousands of jobs in today’s economy and educate the workforce of tomorrow, while driving innovation and providing a 28-to-1 return on the $1.6 billion state lawmakers appropriated for higher education.

“Public universities are a great investment for students, their families, and the state,” said Chris Kolb, U-M’s vice president for government relations. “This study shows that the state’s investment in higher education yields a massive dividend: fueling innovation, supporting local businesses, fostering more opportunities for students, and creating a more resilient economy for every Michigander.”  

Collectively, public universities in Michigan enroll more than 250,000 students each year and employ nearly 100,000 full- and part-time faculty and staff members. Overall, the universities produce more than $7.1 billion in state tax revenue annually.

U-M’s three campuses play a leading role in converting public funding from the state and federal governments into new jobs, new companies and an increased knowledge base that leads to economic growth.

As the largest research institution in the state, U-M consistently generates outsized returns on the investment, creating a pipeline of new jobs and local investment. In a single fiscal year, the university received 673 invention reports and facilitated the launch of 31 start-up companies. 

Driven by grants from the National Institutes of Health, the National Science Foundation and other sources, U-M researchers continue to develop the new technologies, advancements in artificial intelligence and medical treatments that define Michigan’s innovation economy. 

One of the state’s largest employers, U-M provides more than 50,000 jobs in Ann Arbor, Dearborn, Flint and the rest of the state, generating $11 billion in wages and benefits.

At UM-Dearborn, 44% of first-year students are the first in their families to attend college. Nearly all undergraduates on the campus — 94% — are Michiganders. And with a hands-on, practice-based curriculum, UM-Dearborn prepares undergrads for careers in computer science, cybersecurity and other growing fields and industries. The vast majority of undergraduates — nearly 95% — remain in-state and begin their careers in Michigan after graduation.

On the UM-Flint campus, where research programs continue to expand, the fiscal impact has scaled accordingly, growing from $1.3 million three years ago to more than $6.4 million in the most recent fiscal year.

The university’s economic reach extends beyond its academic mission as a premier destination for sports fans. For instance, each home football game at Michigan Stadium contributes approximately $28 million in visitor spending to the local economy, providing a significant seasonal boost to Michigan’s hospitality and retail sectors.

The Michigan Association of State Universities partnered with Anderson Economic Group to analyze economic data for the report.