Can Michigan Go High Tech? at Outside the Valley

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Can Michigan Go High Tech?

By Adam | April 18, 2007

Anyone that has read a newspaper or watched television the past few years is surely aware that it has been a tough decade for North American car companies. In the face of dominating foreign competition, sky rocketing operating costs, and an overstressed health insurance infrastructure – corporations like Ford and GM have begun abandoning the century long tradition of manufacturing vehicles on US soil.

For States like Michigan, once hot beds for manufacturing, the economic toll has been devastating. According to the U.S. Department of Labor, the unemployment rate in the State has been running at an astounding 7% for over a year. Long story short they are in trouble.

To diversify their economic capabilities, Michigan is implementing a concerted strategy to attract high-tech companies and talent to the region. From the Michigan.org website:

Michigan, today, is at a crossroads. Our economy is going through a transformation; the manufacturing industries that once guaranteed high-paying jobs are declining. To reshape our economy the 21st Century Jobs Fund will spark new investment, creating high-tech companies and jobs which will diversify our economy.

In addition to developing generous incentives for equity funds, mezzanine funds, and qualified venture capital funds, the State’s economic development body recently launched an advertising campaign to spur interest in the region. Narrated by actor turned spokesperson Jeff Daniels, “The Upper Hand” marketing initiative shares success stories of high tech companies operating in Michigan – all in the hopes of attracting future technology development in the region. Here’s one of the commercials:

Given their government backed investment fund and new marketing campaign, can Michigan foster a transition to the ‘new economy’? Can they make the giant leap from industrial manufacturing to high technology? Taking a look at the factors that go into recreating technology hubs like Silicon Valley, it’s going to be an uphill battle.

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