global michigan
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GLOBAL MICHIGAN Opportunity
Upper Peninsula – Region 1
Marquette May 24, 2012
Fastest Growing Cities – IT Sector
Detroit: 101%Cincinnati: 75%Cleveland: 62%Columbus: 57%
Seattle: 54%Pittsburgh: 45%
Miami: 43%Jacksonville: 41%
Chicago: 40%Silicon Valley: 40%
Share of All High Tech Firms Started by Immigrants
From 1995-2005, researchers found the following:
National Rate = 25.3%Silicon Valley Rate = 52.4%Michigan Rate = 32.8%
Michigan ranked #3 in the country, behind only California and New Jersey.
Global Michigan Vision“We will establish an exciting new initiative to encourage immigrants with advanced college degrees to come to Michigan to live and work. . . Immigration made us a great state and country. It is time we embrace this concept again as a way to speed our reinvention.”
--Governor Rick Snyder State of the State Address January 19, 2011
Global Economy
• Foreign Direct Investment
• Talent
Job Growth• Export
and Trade
Creating Prosperity
“The richest regions are those with the highest proportion of immigrants.”
President’s Commission on Immigration, 1953
Great Lakes Movementand Global Initiative
• Global Pittsburgh• Global Cleveland• Welcome Dayton• Chicago Council
Global Affairs’ Midwest Immigrat. Task Force
• North Dakota / NW Minnesota EB-5 Regional Center
• Iowa Immigration Education Coalition
• Idaho Project 60• Global St. Louis
Great Lakes Movementand Global Initiative – Iowa
• CJ (Korea) invested $325M in Ft. Dodge corn processing facility resulting in 200 jobs
• In 2011, Iowa exported over $13B in global exports products
• Machinery - $3.8B and Agriculture - $2.9B are top export products
Great Lakes Movementand Global Initiative – Iowa
Great Lakes Movementand Global Initiatives – Dayton, OH
• 2011 Welcome Dayton plan spearheaded by City of Dayton’s Human Relations Council.
• Goal to officially make Dayton an “immigrant friendly” city.
• Strategy to inventory and coordinate in-place efforts through city-endorsed Welcome Dayton Committee.
Roadmap
I. Global Michigan Menu1. Business Attraction and
Retention2. Quality of Place3. Talent Attraction/Retention
II. “American Success Stories”
Global Michigan Menu
I. Business Attraction/Retention: Attract international investment and businesses that create jobs.
– EB-5 Investor Visa Programs– Nearshoring– Homeshoring
EB-5 Individual Investors• In order to obtain an EB-5 green card, investor
must:– invest $1,000,000. Alternatively; and– create or preserve at least 10 jobs for U.S. workers.
• Investment can be in new or existing "Troubled Business“, which is an enterprise that has been in existence for at least two years and has incurred a net loss during a two year period—must be at least 20 % of its net worth.
EB-5 Regional Centers• Connecting existing EB-5 regional centers
to Upper Peninsula investment opportunities.
• Identify Targeted Employment Areas (TEAs) in Upper Peninsula.
• Other Rural Models to emulate:– Vermont– Idaho
EB-5 Rural Models – Vermont
• Jay Peak resort secured $250M of foreign equity capital to transform struggling ski-only facility to year round resort.
• Investment represented 330 investors from 55 countries.
• 3,000 direct and indirect jobs through life of the program.
EB-5 Rural Models – Idaho• Idaho has access to a global
market for a variety of industries, including: – Agriculture/food processing,
wood products, machinery, chemicals, electronics manufacturing, silver and other mining.
– High tech outfits include Micron, Sun Microsystems and Hewlett-Packard.
Nearshoring Opportunity in the Upper Peninsula?
• Nearshoring = Hiring of international talent in a nearby country
• Microsoft 2007• Sault St. Marie• Logistics, healthcare,
IT, shipping?
Homeshoring• Homeshoring = New
or returning manufacturing or service sector jobs that were or would otherwise be located overseas.
• Michigan is uniquely positioned.
Global Michigan Menu
II. Quality of Place: Make the region more welcoming to immigrants and foreign investment.
– Cultural Ambassadors– Welcoming America/Michigan– Welcome Mat– Exporting
Cultural Ambassadors
• Modeled after program developed by Ann Arbor SPARK
• Goal - to leverage existing international populace to attract international talent and businesses, and promote integration
Marquette County Ambassadors
• Government relations arm of Lake Superior Community Partnership
• Group of business and community leaders from Marquette
• Dedicated to advancing the basic principles upon which the United States was founded, establishing the equality and dignity of all people, including immigrants.
• Creating opportunities for neighbors to get together and learn about each other.
• Use of mass communications, as well as targeting receiving communities.
Welcoming America Campaigns
Immigrant Impact on Exports• 10% increase in immigrant population from a
specific country was linked to a 6% increase in exports to home country.
• Immigrants lower transaction costs by removing cultural and communication barriers. Exporters can make global connections locally, rather than having to travel abroad or rely upon overseas contacts.
State Trade Export Promotion (STEP)
• Eligible companies can request up to $25k in assistance to expand export operations
• Funds can be used for – Overseas trade missions and trade show
participation– Foreign market sales trips– Foreign language translation services for
marketing materials
Upper Peninsula Market
• Recent 2012 MSU Center for Community and Economic Development study found majority of Eastern UP small/medium enterprises wanted to expand exports
• Lack of market knowledge and financial barriers most common reason for failure to export
Export Strategy
• Utilizing Cultural Ambassadors and cultivating international student retention
• Taking advantage of STEP and similar programs
Global Michigan Menu
III. Talent Retention: Keep international student talent in the region.
– International Student Retention– Other Welcoming Efforts
• Cultural Ambassadors• Welcoming Michigan• Connecting with Leadership Programs• Welcome Mat
Rank in US TotalFOREIGN STUDENTS IN MICHIGAN #8 24,668
(up 3.3%)ESTIMATED FOREIGN STUDENTS EXPENDITURE IN MICHIGAN (in millions of dollars)
--- $705.7
Intl. Students in Michigan, National Rank and Economic Impact
Institution City Total
University of Michigan Ann Arbor 5,995Michigan State University East Lansing 5,748
Wayne State University Detroit 2,263Western Michigan University Kalamazoo 1,390
Michigan Tech. University Houghton 1,114
Michigan Institutions with the Highest Number of Foreign Students
Percent of Michigan’s Foreign Students in STEM Fields of Study: 38.4%Percent of U.S. Undergraduate Students in STEM Fields of Study: 13.7%
International Students in the U.P.
• Northern Michigan University: 119 (2011-2012)
• Michigan Technological University: 1,114 (2010-2011)
• Lake Superior State University: 359 (2005-2006)
In the U.P. Alone: International Student Economic Contribution
Institution Tuition & Fees Living Expenses
U.S. Support Total
Northern Michigan U.
$1,159,100 $1,695,600 ($379,900) $2,474,800
Michigan Tech $23,140,600 $18,511,800 ($12,911,100) $28,741,300
*LSSU $4,229,400 $5,394,900 ($22,378,700) $7,315,600
Community Colleges
$30,600 $86,200 ($5,300) $111,400
TOTAL: $38,643,100
International Students at Michigan Tech:
Bachelors
International StudentsDomestic Students
MastersInternational StudentsDomestic Students
PhDInternational StudentsDomestic Students
A123 Systems
Immigrant Founded Companies
Kanwal Rekhi – MTU, MS ‘69
Tom Friedman – “World is Flat”
“Dear America, please remember how you got to be the wealthiest country in history.
…the formula was very simple: build this really flexible, really open economy, tolerate creative destruction so dead capital is quickly redeployed to better ideas and companies,
Pour into it the most diverse, smart and energetic immigrants from every corner of the world and then stir and repeat, stir and repeat, stir and repeat.”
Global Michigan MenuEB-5
NearshoringHomeshoring
Cultural AmbassadorsWelcoming America/Michigan
Welcome MatExport
International Student Retention