Photo courtesy of Michigan Tech

HOUGHTON – Last Monday, Michigan Tech News reported Michigan Technological University generated over $972 million in total economic impact during fiscal year 2024, calling it “a significant contribution to a robust public university ecosystem in Michigan that delivers exceptionally high returns on state investments.”

The findings are according to a study from the Michigan Association of State Universities (MASU).

The study, titled Economic and fiscal impact of the state universities of Michigan, reported that the 15 public universities serving as members of MASU collectively contribute to the state’s economy through world-class education, research, and public service.

The MASU study shows that Michigan’s public universities generate economic activity far exceeding the state’s annual investment in higher education, Michigan Tech News reported. In fiscal year 2024, the nearly $45 billion in net new economic activity generated by Michigan’s public universities was almost 28 times the state’s $1.6 billion appropriation for those institutions.

The study showed Michigan’s public universities are integral and indispensable to the states’ economy as well as the financial well-being of its residents. Michigan universities as a whole support more than 127,000 jobs statewide and contribute more than $7 billion in state tax revenue, according to the study.

At the same time, the study found that alumni from the states’ universities generated more than $15 billion in incremental earnings, believed to be due to their graduation from one of the institutions.

The key drivers behind this economic impact, the study says, include university payroll and non-payroll operating expenditures, spending by students, and alumni incremental earnings.

In the fall of 2024, nearly 260,000 students enrolled in Michigan’s public universities. These students generated an estimated total of $1.47 billion in net new spending, further supporting local economies across the state.

On Feb. 13 2025, Michigan Tech was designated as an R1 research institution by the Carnegie Classification of Institutions of Higher Education, formally placing Tech among the top research universities in the United States.

According to the American University at Washington D.C.’s Kogod School of Business, this status is a reflection of a school’s commitment to advancing knowledge through rigorous research across various disciplines. Institutions classified as R1 demonstrate a strong output of scholarly research, which includes publications in top-tier academic journals, contributions to industry practices, and impactful research that addresses critical societal challenges. R1 universities attract substantial research funding from both public and private sources. These resources enable faculty and students to pursue ambitious research agendas, conduct experiments, gather data, and develop innovative solutions.

Michigan Tech is the fourth R1 university in Michigan to be designated by the Carnegie Classification of Institutions of Higher Education–joining the University of Michigan-Ann Arbor, Michigan State University, and Wayne State University–and Tech is the only R1 institution in Michigan located in a rural area. Michigan Tech’s research expenditures have grown steadily for the last decade, surpassing $100 million in each of the last two years.

In the most current data from 2022, the university had the most invention disclosures per $10 million in expenditures out of all other Michigan universities and also outpaced Stanford and Georgia Tech.

The four research universities for Michigan (RU4M), collectively contribute significant economic impact to the Michigan economy every year. The most recent report estimated nearly $30 billion annually, Research Universities for Michigan reported in May, 2025. In 2024, the RU4M’s economic impact was reported to have reached every Michigan county, and totals nearly $24 billion annually. Accounting for $2.7 billion and 90% of academic R&D in the state, the RU4M propels Michigan into the top 10 across the U.S, Research Universities for Michigan reported.