NEW FUNDING MODEL "Models OUR Practice!"

October 7, 2008

UM research hits a record $876 million

Research spending at the University of Michigan reached $875.8 million in 2007-08, an all-time high and a 6.4 percent increase over the previous year.

The federal government provided 69.8 percent of the funds. But while the federal commitment edged up 2.7 percent last year, industry sponsorships surged 11 percent, following a nearly 15 percent jump the previous fiscal year.

Those numbers suggest that UM's drive to forge stronger ties with industry -- and to help resuscitate the Michigan economy -- is finally bearing fruit, said Stephen Forrest, vice president for research.

"I think we're seeing the start of a trend, a hint that things are moving in the right direction," said Forrest, who cautioned against trying to draw too many conclusions from two years of data.

"What we can say with confidence is that this effort to strengthen ties with industry has been a steady push for several years now, and the word is out that we strongly support this from the highest levels of the university. And it's finally starting to take hold."

UM consistently ranks among the nation's top five research universities, based on R&D expenditure statistics compiled by the National Science Foundation. But Forrest believes that continued growth of the UM's world-class research enterprise will require what he calls "a new funding model."

Federal research funding is likely to stagnate in coming years, so the university must rely more heavily on partnerships with businesses, industry and foundations, he said.

By strengthening ties with the private sector, the University can secure its own future while helping Michigan move from a manufacturing-based to a knowledge-based economy.

"It's our responsibility to participate in the growth of the new economy, simply because we can," he said. "We have the essential expertise, so we're well-positioned to help make it happen."
One example of a thriving industrial partnership is the Ford-UM Innovation Alliance, launched as a $2 million endeavor in 2006.

The Alliance teams more than a dozen UM faculty members with some 20 Ford Motor Co. scientists and engineers to develop a host of new technologies -- in-vehicle Web-based services, new collision-avoidance systems, and techniques to improve hybrid vehicle mileage, for example.

Because the level of cooperation and the "breadth of expertise" at UM exceeded Ford's expectations, the Innovation Alliance has blossomed into a $5 million effort, said Ed Krause, Ford's external alliances manager.