Translating Innovation into Jobs
The Innovation Works (I-Works) Initiative consists of programs being developed for campus faculty, staff and students, and outreach to engage the community. The overarching goal is translating innovation into local economic development opportunities and jobs.
INNOVATION: A CORE VALUE
"Innovation" is one of six core values listed in the MSU Strategic Plan, and a major driving force in economic development. Innovation Works (I-Works) will be a new technology transfer and entrepreneurship (E-Ship) initiative, engaging the campus and external communities to foster local economic development. I-Works will focus on providing opportunities for establishing new tech startup companies, enhance job opportunities and provide experiential learning opportunities for students. As such, many of the programs will be joint programs with the School of Business and Management.
ECONOMIC DEVELOPMENT AND SOCIETAL VALUE
Value Proposition for the Local Community
As an Urban University, MSU impacts the local economy through education, research and public service. One aspect of public service is to translate the results from the research laboratory to the public mainstream to generate societal value though new and improved products and services. This is accomplished through university technology transfer - integrating the research and public service activities of the University.
One of the unique aspects of technology transfer is the opportunity to facilitate the startup of new technology companies, and thus the creation of new jobs in the high-tech sector. Currently, AUTM reports that over 800 startup companies are formed each year from university tech transfer licensing - greater than two per day - while the Science Coalition, states "Companies spun out of research universities have a far greater success rate than other companies, creating good jobs and spurring economic activity." A 2015 report prepared for the Biotechnology Industry Organization (BIO); The Economic Contribution of University/Nonprofit Inventions in the United States: 1996-2013, states "the total contribution of these academic licensors to gross industry output ranges from $282B to $1.18T, in 2009 U.S. Dollars; and contributions to GDP range from $130B to $518B, in 2009 U.S. Dollars. Estimates of the total number of person years of employment supported by U.S. universities' and hospitals' and research institutes' licensed-product sales range from 1,130,000 million to over 3,824,000 million over the 18 yr period."
Job Multiplier: The Value of High-Tech Jobs
Recent studies have assessed the regional economic benefit of adding high-tech jobs. The work of U.C. Berkley economist Enrico Moretti is provided in his 2013 book The New Geography of Jobs. Moretti studied 320 Metropolitan Statistical Areas (MSAs) and found a likely job multiplier effect of 5x stemming from high-tech jobs. His analysis: in the long run, for every new high-tech job, five jobs are also created locally outside of the technology sector, in both professional (2 jobs) and non-professional (3 jobs) sectors. Traditional manufacturing has a multiplier effect of 1.4 jobs.
Business Incubators: Local Economic Development
Furthermore, the National Business Incubator Association (NBIA) has shown that for every one dollar of public operating subsidy, incubators, clients and graduates generate $30 in local tax revenue alone, and that 84% of incubator graduates stay in their communities. Publicly supported business incubators create jobs at 1/10 the cost (~$1,000/job) of other supported jobs creation mechanisms (>$10,000/job). Incubators also reduce the risk of small business failures as 87% of all graduate companies are still in business after 5 years.