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Iron Chef Michigan

Dug Song
December 08, 2022

Iron Chef Michigan

Keynote for the 2022 MICHauto Summit, on startup innovation in Michigan

Dug Song

December 08, 2022
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  1. © 2022 Song Foundation
    Iron Chef
    Michigan
    A Recipe for
    Economic
    Competition

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  2. © 2022 Song Foundation
    From industrial to digital revolution
    Rank Metropolitan Statistical Area State Avg Earnings Metropolitan Statistical Area State Avg Earnings
    1 Bridgeport-Stamford-Norwalk CT $54,194 Bridgeport-Stamford-Norwalk CT $83,470
    2 Flint MI $53,463 San Jose-Sunnyvale-Santa Clara CA $81,541
    3 Detroit-Warren-Dearborn MI $53,290 San Francisco-Oakland-Hayward CA $76,697
    4 Midland MI $51,043 Washington-Arlington-Alexandria DC-VA $69,890
    5 Washington-Arlington-Alexandria DC-VA $50,093 Seattle-Tacoma-Bellevue WA $65,580
    6 Saginaw MI $49,469 Boston-Cambridge-Newton MA $65,131
    7 Midland TX $49,319 Trenton NJ $64,939
    8 Casper WY $49,310 New York-Newark-Jersey City NY-NJ $64,055
    9 Monroe MI $49,107 Boulder CO $61,161
    10 Bremerton-Silverdale WA $48,987 Baltimore-Columbia-Towson MD $60,418
    Source: Jonathan Gruber & Simon Johnson, Jump-Starting America
    1980 2016

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  3. © 2022 Song Foundation
    The jobs we need to grow
    Small Main St
    Businesses
    Medium Main St
    Businesses
    Early Tech
    Startups
    Growth &
    Scale Startups
    Large
    Enterprises
    Typical Employees < 10 10 – 50 3 – 50 50 – 1000 1000
    Typical Wages Annual:
    $10k – 30k
    $8 – $15 per hour,
    often only part-time
    Annual:
    $10k – $75k
    Annual:
    $40k – $250k+
    + equity ownership
    Annual:
    $40k – $500k
    + equity ownership
    Annual:
    $25k – $1m
    Widely varied,
    based on sector
    Wage Mobility Extremely limited Limited Strong Generally yes
    Depends on type
    of company
    Often yes
    Depends on type
    of company
    Employee Benefits Rarely Sometimes Generally yes Generally yes Generally yes
    Source: Upsurge Baltimore 2022

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  4. © 2022 Song Foundation
    Startups create jobs at higher rates

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  5. © 2022 Song Foundation
    Top 20 global startup ecosystems: 2022
    Source: Startup Genome Global Startup Ecosystem Report 2022

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  6. © 2022 Song Foundation
    Detroit #1 emerging startup ecosystem: 2022
    Source: Startup Genome Advancing Greater Detroit’s Startup Ecosystem, 2022

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  7. © 2022 Song Foundation
    Ingredients to startup ecosystems
    Source: Jerome Engler, Global Clusters of Innovation

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  8. © 2022 Song Foundation
    Potential Tech Hubs
    Source: Jonathan Gruber & Simon Johnson

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  9. © 2022 Song Foundation

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  10. © 2022 Song Foundation
    Innovation Hub Strategy
    SSBCI 2.0: $10B via American Rescue Plan -
    Michigan allocated $236.9m, $75m going to
    Michigan Strategic Fund (toward VC, etc.)
    NSF Engines: $6.5B over 5 years:
    Up to $160m per hub to fund 10 years of R&D,
    translation, workforce development
    CHIPS and Science Act: $280B over 10 years:
    $11B in R&D, $39B in incentives, e.g.
    Intel $20-100b fab in OH,
    Micron $40-100b fab in Central NY
    Also authorized $10 billion for regional
    innovation and technology hubs
    Placemaking? Transit?
    Attracting / supporting / retaining
    high-growth founders?
    Build Back Better Regional Challenge:
    $1B via American Rescue Plan -
    Michigan awarded $52m for Global
    Epicenter of Mobility (GEM)

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  11. © 2022 Song Foundation
    Source: Vitaly Golomb, Ukraine Financial Forum 2018

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  12. © 2022 Song Foundation
    Source: Vitaly Golomb, Ukraine Financial Forum 2018

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  13. © 2022 Song Foundation
    Source: Vitaly Golomb, Ukraine Financial Forum 2018

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  14. © 2022 Song Foundation
    Source: Vitaly Golomb, Ukraine Financial Forum 2018

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  15. © 2022 Song Foundation
    Source: Vitaly Golomb, Ukraine Financial Forum 2018

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  16. © 2022 Song Foundation
    Source: Vitaly Golomb, Ukraine Financial Forum 2018

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  17. © 2022 Song Foundation
    Source: Vitaly Golomb, Ukraine Financial Forum 2018

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  18. © 2022 Song Foundation
    Source: Vitaly Golomb, Ukraine Financial Forum 2018

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  19. © 2022 Song Foundation
    MICHIGAN (POP: 10M, GDP: $568B)
    CHALLENGES
    ENTREPRENEURS: 165 VC-BACKED STARTUPS, ONLY +17% OVER 5 YEARS
    VENTURE CAPITAL: $3.7B UNDER MANAGEMENT, -31% OVER 5 YEARS
    EDUCATION: 18.2% RESIDENTS WITH BA DEGREES, VS. 20.3% NATIONALLY
    BRAIN DRAIN: 30% OF 2010-2018 GRADS LEFT, 60% AT UM
    Source: MVCA 2021 Annual Report, US Census 2019 American Community Survey, Detroit News Sept 2022

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  20. © 2022 Song Foundation
    MICHIGAN (POP: 10M, GDP: $568B)
    PRIORITIES
    ENTREPRENEURS: FUND FOUNDER-LED PROGRAMS & ORGS, SMART ZONES
    VENTURE CAPITAL: REINVEST IN VC FUND-OF-FUNDS, SUPPORT ANGEL INVESTING
    EDUCATION: MAKE COLLEGE AFFORDABLE, FUND EDUCATION (+$1B, 2000-LEVEL)
    BRAIN DRAIN: INVEST IN CITIES, PUBLIC INFRASTRUCTURE, REGIONAL TRANSIT

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  21. © 2022 Song Foundation
    2018

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  22. © 2022 Song Foundation
    Transit
    Walkable retail & entertainment
    Public safety
    Cultural amenities
    Housing options
    Public spaces & infrastructure
    Place Matters

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  23. © 2022 Song Foundation
    Silicon Valley works because there is such a high
    density of people working on startups and they
    are inclined to help each other…
    One of the biggest misconceptions about us is that
    you need to have pre-existing connections to get
    value from the network.
    Remarkably, you don’t. Silicon Valley is a community
    of outsiders that have come together.
    If you build something good, people will help you.
    – Sam Altman (YCombinator)
    Culture Matters

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