Michigan State University and its public university peers are a powerful economic engine for the state, generating nearly $45 billion in net new economic activity each year, supporting more than 129,000 jobs and contributing over $7 billion in state tax revenue, according to a new independent economic impact study released by the Michigan Association of State Universities, or MASU.

MSU accounts for approximately $6.81 billion of that annual economic activity, underscoring its role as one of the state’s largest drivers of research, workforce development and innovation.

“Michigan’s research universities are critical engines for discovery, talent attraction and commercialization,” said Kevin M. Guskiewicz, Ph.D., president of MSU and chair of the Research Universities for Michigan board. “Our R1 institutions bring billions in federal and industry research funding into the state, translate discoveries into real-world solutions and help Michigan lead in areas like health care, mobility, energy and advanced manufacturing.”

Key findings from the study show that in fiscal year 2024:

• Michigan’s 15 public universities generated nearly $45 billion in net new economic activity, driven by university operations, student spending and alumni earnings. That’s nearly 28 times the state’s 2024 appropriation of $1.6 billion for these institutions.
• Public universities supported an estimated 129,311 jobs statewide, including nearly 64,000 net new jobs that would not exist without these institutions. These institutions collectively employed nearly 27,000 faculty and 70,000 staff, the majority of whom work and live locally around the state.
• The 1.6 million living alumni of Michigan’s public universities generated more than $15 billion in incremental earnings due to having graduated from one of these institutions. MSU has more than 306,000 alumni living and working in the state.
• University-related economic activity produced more than $7.1 billion in state tax revenue, from personal income tax, sales and use tax, and transportation tax paid by employees, students and alumni living in Michigan.
• Michigan public university graduates earn nearly twice as much as peers without a college degree, averaging $91,073 for ages 25–34, compared to $46,272 for high school graduates.

Research Universities for Michigan, or RU4M, shared additional analysis highlighting the distinct role of Michigan’s four R1 research universities — MSU, Michigan Technological University, the University of Michigan and Wayne State University — as statewide economic and innovation assets whose collective impact extends to every county in the state. RU4M institutions conducted more than $3.44 billion in academic research, attracting billions of dollars in federal and industry research funding from outside the state. This research generated more than $950 million in economic activity in Michigan.