Transforming research breakthroughs into startup companies that benefit society is a monumental challenge. The process involves refinement, regulatory hurdles, and intense competition, all compounded by significant funding concerns. Over the past decade, the University of Michigan has excelled nationally in converting ideas into thriving businesses. This success is attributed to strategic investments aimed at easing the transition from academic discoveries to commercial applications.
U-M’s Innovation Partnerships has established a supportive research environment, fostering partnerships to create programs and funding opportunities that translate lab work into significant economic and community impacts. In fiscal year 2025, U-M achieved record commercialization: 31 startups, 673 invention reports, and $31.4 million in licensing revenue. National surveys rank U-M second for startups and invention reports, a notable feat given its distance from traditional startup hubs like Seattle, San Francisco, New York, and Boston.
U-M crafted an innovation ecosystem in the Midwest to attract venture capitalists and major corporations, emphasizing the public good. “We believe that public investments in university research are essential to improving our nation’s health and economic prosperity,” stated Kelly Sexton, associate vice president for research. The systematic commercial support has significantly boosted U-M’s economic output, akin to an infusion of investment capital into a budding business.
“We stand on a remarkable legacy of positive impact through commercialization,” Sexton noted, citing innovations like the bladeless Intralase Lasik eye procedure and OLED displays. U-M’s intellectual property has improved global living standards.
The blueprint
Innovation Partnerships has developed a platform connecting entrepreneurial talent and funding with promising U-M research. Collaborating across schools and external expertise, the program supports commercialization in corporate research alliances, licensing, and ventures. Corporate alliances help diversify faculty research funding, while the licensing team manages one of the largest university intellectual property portfolios. The ventures team facilitates the launch of startups, providing mentorship and connecting founders with investment capital.
“Innovation Partnerships represents a cornerstone of our research ecosystem,” said Arthur Lupia, vice president for research and innovation. The program accelerates U-M’s mission to transform ideas into impactful solutions.
Keeping entrepreneurs here
Retaining talent in Michigan is crucial. Innovation Partnerships collaborates with investors, industry leaders, and the state to create a supportive ecosystem for startups. The Technology Transfer Talent Network (T3N), funded by the Michigan Economic Development Corp., supports research commercialization across all state public universities. U-M’s mentors-in-residence pair experienced entrepreneurs with research teams to aid commercialization planning.
“This investment ensures we keep our top talent at the early stage,” said Ben Marchionna, MEDC chief innovation ecosystem officer. “If we can keep them in the early stages, that’s better for the state.”
Funding the future
Launching a successful startup requires substantial funding. U-M’s Accelerate Blue Fund, an early-stage venture fund, invests in UM-licensed startups. “Accelerate Blue operates as an evergreen fund, recycling returns for future investments,” Sexton explained. Since its inception, the fund has unlocked over $460 million in capital for startups. Additional support comes from the Michigan Innovation Fund and the Michigan Translational Research and Commercialization program, which provides translational funding.
U-M ranks second nationally for invention reports and is among the top universities for startups, thanks to its robust commercialization ecosystem. “Innovation Partnerships is the tip of the spear,” Marchionna said. “That is what matters to economic development.”
Seeding new success
Researchers and faculty aim to positively impact society through commercialization, supported by U-M programs. Startup GripFusion exemplifies this drive, having developed an instrumented baseball providing analytics on grip and flight performance. Co-founded by Mason Ferlic, a Ph.D. candidate, and Michael Freehill, an orthopedic surgeon, GripFusion benefits from U-M’s resources beyond financial support.
“Credit to Michigan, they were believers from day one,” Ferlic said. The company delivers technology to elite clients, supported by U-M’s mentors-in-residence program.
Innovation Partnerships also aids General Orbit, a U-M startup using magnetometers for positioning hardware. The team benefitted from the Accelerate Blue Foundry. “Innovation Partnerships has been great to work with,” said CEO Parker Boundy.
General Orbit won $375,000 in the Detroit regional PitchMI startup competition, advancing to the state championship. “The biggest challenge is turning research into a product,” Boundy noted. Innovation Partnerships provides coaching, mentoring, and tools to succeed.
Benefiting all residents of Michigan
For Michigan residents, startups boost quality of life and the economy. “Younger companies are responsible for net new jobs,” Marchionna said. U-M startups have created over 8,000 jobs, including more than 2,500 in the state. “The return on investment in university-based innovation programs is among the highest of any state-based investments,” Marchionna noted.
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