Thursday, April 21, 2005
Michael Shore, MEDC
Awards to High-Tech Companies Jump 75 Percent in One Year
Governor Jennifer M. Granholm announced today that Michigan now ranks tenth in the nation for federal Small Business Innovation Research (SBIR) funding after posting a 75 percent increase between 2002 and 2003. The state's ranking is up from 16th in the nation in 2002, according to the latest data compiled by the U.S. Small Business Administration (SBA). The Governor expects further success as a result of the state's Emerging Business Fund, created last year to help Michigan companies attract SBIR awards.
"Michigan is fast becoming the hot spot for new ideas and cutting-edge technology," Granholm said. "We won't stop working until Michigan is recognized among the top places in the world to grow new, high-tech businesses and jobs."
More than $42 million in SBIR grants were awarded to 128 Michigan small businesses in 2003, compared to $23.9 million for 110 companies the previous year. Only Alaska, West Virginia and Vermont realized greater percentage increases than Michigan.
"The SBIR Program is a great resource to help Michigan small businesses develop the jobs of the future," SBA Michigan District Director Richard Temkin said. "I am delighted that an increasing number of our companies are using it, and that SBA is able to support the growth of Michigan's high-tech small businesses."
The Emerging Business Fund is administered by the Michigan Economic Development Corporation and is part of Governor Granholm's Technology Tri-Corridor initiative, which fosters growth in the Michigan high-tech industries through funding and resource collaboration. Targeted industries include life sciences, homeland security and advanced automotive technology. The Emerging Business Fund has a total of $1 million available for SBIR matching grants of up to $15,000 to Michigan companies creating innovative products and services within these sectors.
Since the Emerging Business Fund's inception in 2004, nearly $1 million in federal SBIR funding has been awarded to 10 Michigan companies and the MEDC has provided $149,056 in matching funds.
According to MEDC President and CEO Don Jakeway, the companies receiving SBIR funding show promising prospects for creating the high-tech jobs of Michigan's 21st century economy.
"The demand for coveted SBIR funding is an indication that Michigan has vast entrepreneurial resources just waiting to be tapped," he said. "Guaranteeing matching funds provides an additional incentive and resource for companies that are going through the process of securing federal funding for their projects. Their new ideas today will lead to new jobs tomorrow."
In her 2005 State-of-the-State address, Granholm proposed initiatives that include a $2 billion bond proposal that would provide funding for research and commercialization in the Tri-Corridor's targeted industries. The proposal would result in approximately 72,000 new Michigan jobs, according to a U.S. Dept. of Commerce factor that relates job creation to R&D spending.
For more information about the SBIR Emerging Business Fund or to submit an application electronically, please visit the TTC web site at www.medc.michigan.org/ttc.
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.