Startup Success in a Leading Mobility State

Michigan's legacy and continued focus on automotive innovation positions the state as a leader in mobility for businesses of all sizes.

March 27, 2024

4 Min Read
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Over a century ago, Michigan’s engineers and innovators put the world on wheels and laid the foundation for the state to become the epicenter of all things mobility. Today, a new generation of automotive and mobility visionaries are continuing this legacy, developing the technologies and solutions that pave the way for the future of transportation. Michigan’s mobility startups are a key component of the state’s robust business ecosystem, which includes major contributions from the Big Three automakers, OEM suppliers, semiconductor manufacturers and an eager and qualified talent pool focused on what’s next in mobility – now and in the future.

The most successful startups have systems of support and a range of partnerships, and to empower these businesses, Michigan launched its Office of Future Mobility and Electrification (OFME) in 2020. OFME is focused on reaffirming Michigan’s position as a global leader by identifying and supporting the companies making the next generation of transportation technology. OFME’s Michigan Mobility Funding Platform, which supports Michigan’s public and private mobility companies through grant opportunities, can help with anything from testing for advanced aerial mobility and smart parking systems to piloting mobility and electrification technologies in public spaces.

Michigan has been referred to as the “next Silicon Valley” for automotive technology, so it is no surprise that the state is considered a powerhouse for mobility startups. In addition to the contributions of Ford Motor Company, Stellantis and General Motors, companies of all sizes and areas of focus are moving mobility forward in Michigan. Cavnue, a leading developer of connected roadway and infrastructure technology founded in Michigan, partnered with the State for a first-of-its-kind connected and automated vehicle, or CAV, corridor, spanning nearly 40 miles of one of Southeast Michigan’s busiest motorways. East Lansing, Michigan-based ADASTEC, an autonomous bus and commercial vehicle startup which has received support from the Michigan Mobility Funding Platform since 2020, recently launched the world’s first SAE Level-4 automated bus service. Through mobility grants, Detroit-based Airspace Link, a startup assessing airspaces for commercialized drone use, has grown from its initial beta test to a fully operational company, complete with a partnership with the Federal Aviation Administration.

To help mobility companies see their innovations to fruition, Michigan also has several world-class testing sites strategically positioned throughout the state. Whether you need to test on the road, in the air or on the Great Lakes themselves, there is a testing facility that can help. Mcity at the University of Michigan (U-M) is a full-scale outdoor laboratory with a next-generation test track, real-world road environments, a connected infrastructure and more. Before being used as automated shuttles in Detroit, May Mobility had U-M test their vehicles in Mcity to ensure competency for both ordinary scenarios and a diverse set of dangerous, extraneous ones.

Aerospace startups can leverage the Michigan Unmanned Aerial Systems Consortium’s Flight and Ground Test Center at the Alpena County Regional Airport, consisting of 11,000 square miles of airspace dedicated to research and development, certification and systems testing. Further north, Houghton, Michigan – part of the state’s Upper Peninsula on the Keweenaw Waterway, just miles from Lake Superior – is home to the Great Lakes Research Center. Operated by Michigan Technological University, the center has tested under-ice robots, autonomous subsurface vehicles, clean energy and more. This entire ecosystem of testing resources is located in-state, making it accessible for the local and regional startups and companies to conduct research, development and testing efforts.

In addition to individual support, OFME is bridging the gap for Michigan startups to work alongside global collaborators. Michigan Central, an innovation hub created in partnership between the state and OFME, Detroit and founding partners Ford Motor Company and Google, is helping startups bring innovations to market. Entrepreneurs can also look to the North American International Auto Show in Detroit, one of the industry’s largest mobility showcases, for highlighting partnerships between Michigan’s leading corporations and up-and-coming tech companies and university programs. At the show, OFME hosts its AutoMobili-D startup pitch competition, match-making events, industry panels and more.

Michigan's legacy and continued focus on automotive innovation positions the state as a leader in mobility for businesses of all sizes. Driven by a diverse lineup of visionary startups, Michigan is at the forefront of transportation technology. The state's commitment to fostering innovation through private-public partnerships ensures its pivotal role in shaping the future of mobility, continuing a century-long tradition of automotive excellence.

Learn how to leverage the Office of Future Mobility and Electrification and grow your business at: https://www.michiganbusiness.org/ofme/

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