May 30, 2024
Since the first day of my administration, I have been focused on growing Michigan’s economy. That’s why I set our Sixty by 30 goal to have 60% of working adults earn a post-secondary degree or credential by 2030. It’s why I have worked across the aisle on economic development, bringing tens of thousands of good-paying jobs home. Last year, we sharpened our Make it in Michigan strategy, and since then we’ve been breaking ground on new projects, investing in people, and revitalizing places.
Michigan has a rich heritage of innovation, especially in automotive manufacturing. Recently, however, too many entrepreneurs are choosing to leave Michigan to grow their business elsewhere, and too few out-of-state start-ups are coming to our state. Entrepreneurship remains out of reach for too many Michiganders, and too costly for those focused on building next generation technologies in emerging industries. Machinery and equipment are expensive, testing facilities are inaccessible, and specialized talent is hard to find.
In my State of the State address, I outlined four new tools we need to bolster our economic competitiveness: (1) a research and development tax credit, (2) a payroll tax cut for small-and second-stage businesses, (3) simplified Renaissance Zones to lower taxes for business and entrepreneurs, and (4) a new Innovation Fund to launch hundreds of new Michigan-based start-ups and create thousands of jobs.
But to boost entrepreneurship and innovation, we need even more tools in our toolkit. To drive economic prosperity and vitality across the state, Michiganders need to be able to start, build, and make it in Michigan. Growing our economy, attracting leading innovators, and dominating the future of manufacturing requires us to take action to lower the barriers to innovation. We must build the infrastructure for innovation.
Michigan institutions, including state agencies, universities, cities, and business support organizations own some of the most advanced physical assets, which remain underutilized and out of reach for many early-stage companies. In other instances, while industry has access, only the incumbents—not the upstarts—can take advantage. Making these tools more publicly accessible will not only support emerging technologies, but also make full, productive use of otherwise-idle resources.
To win the future of emerging sectors like climate, mobility, and advanced manufacturing, we must make the infrastructure and assets we already have more accessible to entrepreneurs. Additionally, we should consider building and investing in new assets, further driving innovation and economic growth.
Acting pursuant to Article 5, § 1 and § 8 of the Michigan Constitution of 1963, I therefore direct the following:
1. All departments and agencies shall, within 90 days of the effective date of this directive, meet with the Executive Office of the Governor and the Michigan Economic Development Corporation (“MEDC”) to discuss the department or agency’s innovation capacity.
2. For purposes of this Directive, “innovation capacity” means resources that could, in the agency’s judgment, accelerate emergent technologies or early-stage innovation and could be made available for temporary public use under the law. This includes resources like facilities, testing equipment, and collaborative research and development, but not resources earmarked for surplus sale by the Department of Technology, Management & Budget.
3. All departments and agencies shall, within 120 days of the effective date of this directive, inventory the department or agency’s existing innovation capacity.
4. All departments and agencies shall, within 120 days of the effective date of this directive, transmit the inventory list of existing innovation capacity to MEDC. The inventory list shall include a description of the resource, where it is located, on what terms and conditions it is available for public use, the approximate cost for use, and any other pertinent information.
5. MEDC should, before January 1, 2025, create a master inventory list of the State’s existing innovation capacity. MEDC should make this list available to the public online. The public listing should include a description of the resource, where it is located, on what terms and conditions it is available for public use, the approximate cost for use, and any other pertinent information.
6. MEDC should work with departments and agencies to update the master inventory list and make the updated list available to the public at least once per year.
7. All departments and agencies shall, within 120 days of the effective date of this directive, appoint a liaison, who will be charged with (a) updating MEDC about changes to the inventory list at least once per year, (b) creating a standardized process for use of innovation capacity, (c) working with the Department of Attorney General to obtain any legal documents necessary to facilitate the use of innovation capacity, and (d) interfacing with MEDC and the public regarding use of innovation capacity.
8. Departments and agencies shall, by January 1, 2025, make the items on their inventory list available to the public to the extent permissible under the law for the purposes of developing emergent technologies or for early-stage innovation where similar resources are cost-prohibitive. Departments and agencies may not profit from public use of innovation capacity but may recoup the actual cost of making the resources available. Departments and agencies must prioritize State use of State resources.
9. Non-State partners are encouraged to make their innovation capacity available to the public to the extent permissible under the law. Non-State partners are encouraged to provide an inventory list of their innovation capacity to MEDC. MEDC may include, in the master inventory list, the innovation capacity that non-State partners have made available. Non-state partners include, but are not limited to, colleges, universities, and other higher learning institutions; local governments; federal agencies; and non-government organizations.
10. This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party.
11. The provisions of this directive are severable and if any provision, or portion thereof, is held unconstitutional or otherwise invalid, such unconstitutionality or invalidity does not affect the remaining provisions, which remain in force.
This directive is effective immediately.
Thank you for your cooperation in its implementation.
Click to view the full PDF of the executive directive.
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