Cutting Innovation: Michigan Risks Losing $15.7M Innovation Budget
The Michigan Senate’s proposal to eliminate the $15.7 million Innovation and Entrepreneurship budget line threatens to dismantle the very foundation of Michigan’s innovation ecosystem. This budget supports a portfolio of high-impact programs that have consistently delivered strong returns on investment (ROI), created high-wage jobs, advanced cutting-edge technologies, and catalyzed private capital formation. Its elimination would be a major step backward for a state striving to become a national leader in research commercialization and high-tech economic development.
Among the most critical programs at risk are the Michigan Translational Research and Commercialization (MTRAC) program and the Technology Transfer Talent Network (T3N). These initiatives serve as pillars of Michigan’s commercialization infrastructure—translating university-based research into market-ready innovations and supporting entrepreneurial talent that brings these innovations to life.
The Proven Value of MTRAC and T3N
MTRAC, a matching-fund initiative administered by Michigan’s public universities in partnership with the Michigan Economic Development Corporation (MEDC), has an impressive track record. It has supported hundreds of early-stage technologies with commercial potential, leading to startup creation, product launches, and the attraction of millions in follow-on funding. It not only accelerates the pace of innovation from lab to market but also positions Michigan’s academic institutions as engines of economic growth.
T3N complements this work by funding critical talent—such as entrepreneurs-in-residence and commercialization fellows—who help identify, nurture, and advance promising technologies toward market readiness. Together, these programs help bridge the persistent “valley of death” that separates basic research from viable business ventures.
These programs are not theoretical experiments; they are demonstrably effective. ROI studies consistently show that for every dollar invested through these mechanisms, the return in terms of leveraged private capital, job creation, licensing deals, and company formation far exceeds the initial public investment. The programs have enabled startups to raise tens of millions in follow-on capital, directly contributing to Michigan’s growing high-tech economy.
A Strategic Misstep in a Competitive Environment
The elimination of this modest but impactful budget line—$15.7 million in a multi-billion-dollar state budget—would be a strategic misstep with long-term consequences. As other states ramp up their innovation investments, Michigan risks falling behind. States like Ohio, Massachusetts, and North Carolina have continued to fund and expand their innovation pipelines, understanding that the future of economic development lies in knowledge-driven sectors and homegrown commercialization.
Without these programs, Michigan startups would lose access to essential early-stage capital, technical support, and commercialization resources. Universities would struggle to attract entrepreneurial talent and corporate partnerships. And the state would see a decline in the conversion of research breakthroughs into businesses and jobs.
Moreover, these cuts would come at a time when Michigan is striving to diversify its economy, attract federal funding (such as from the CHIPS and Science Act and ARPA-H), and build a robust talent pipeline. The Innovation and Entrepreneurship line item is precisely the kind of public investment that signals to the private sector that Michigan is serious about innovation-led growth.
An Urgent Call to Restore Funding
Policymakers must recognize that the Innovation and Entrepreneurship budget is not a cost—it is a catalyst. It is a seed investment that enables Michigan to compete for national and global innovation leadership. Without it, the state risks losing its momentum and the tangible gains achieved over the past decade.
Stakeholders across Michigan’s innovation ecosystem—universities, research institutes, entrepreneurs, venture capitalists, and economic developers—urge the legislature to restore and protect this vital funding. It is essential not only for the continuity of programs like MTRAC and T3N but for the long-term economic health, competitiveness, and prosperity of Michigan.
In an era defined by innovation, Michigan cannot afford to turn its back on the very programs that drive it.
