Research Boost Nets $164M for Michigan Businesses

University of Michigan

University of Michigan federal grants supported more than 16,000 jobs and generated nearly $396 million in research-related spending nationwide in fiscal year 2025.

According to a recent report produced by the Institute for Research on Innovation and Science, spending reached vendors in more than 600 U.S. counties and more than 400 congressional districts, highlighting the nationwide footprint of the university's research enterprise.

Michigan-based businesses received more than $164 million, with companies in Washtenaw County accounting for the largest share at $78.5 million for materials, equipment and specialized services that support U-M research.

U-M's research spending continues to benefit communities across Michigan, supporting businesses in all 13 congressional districts through direct purchases tied to federally sponsored projects. Michigan's Sixth Congressional District saw the greatest economic impact, receiving more than $79 million in research-related spending.

"IRIS data show that federal investment in the university's research enterprise does more than support discovery. It invests in opportunities and well-being for communities across Michigan," said Jason Owen-Smith, executive director of the Institute for Research on Innovation & Science.

"Research funding doesn't stay on campus. It ripples through the economy as investigators buy the goods and services, build the industry partnerships, and hire and train the research teams needed to get their projects done. IRIS reports show how the purchases, partnerships and people needed to research work support an innovative supply chain reaching across our state and national economy."

Federal research funding helps train the next generation of scientists and engineers. In 2025, federal grants supported more than 16,000 individuals at U-M, including faculty, staff, postdoctoral researchers and students. Students made up 43% of the research workforce, continuing to represent the largest share of those supported by federal awards.

Federal agencies remain central to expanding research opportunities for students. The National Science Foundation supported one of the highest concentrations of student researchers, with students making up 59% of its funded workforce. Meanwhile, National Institutes of Health grants supported more than 9,100 employees, including nearly 700 postdoctoral researchers, underscoring the role of federal investments in sustaining the nation's research talent pipeline.

Federal agencies such as the National Institutes of Health, National Science Foundation, U.S. Department of Energy, NASA and U.S. Department of Defense fund U-M research that advances medical treatments, energy technologies, space exploration and national defense. These investments strengthen the nation's innovation economy while delivering tangible economic benefits for businesses and communities across the country.

"Research universities like U-M are not only engines of discovery, they are also powerful drivers of economic opportunity across Michigan and beyond," said Arthur Lupia, U-M vice president for research and innovation. "Federal investments in research create ripple effects that support businesses, strengthen communities and prepare the skilled workforce our state and nation need to stay competitive. These investments are essential not only to advancing knowledge, but to building a stronger future for all of us."

As one of the nation's leading public research universities, U-M continues to generate economic activity far beyond campus while advancing discovery and preparing the skilled workforce that will drive the next generation of innovation.

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