Not even the shrewdest private equity gurus on Wall Street can expect a 700 percent return on investment. But that's what Michigan gets with its Big Three research universities, according to the universities' latest economic study. The study, by Anderson Economic Group in Lansing, calculates a $12.8 billion annual economic impact by University of Michigan, Michigan State University, and Wayne State University. All that for an annual state budget appropriation of less than $1.8 billion (and shrinking).

Turning all those bright minds and research dollars into "tech transfers" that directly grow and diversify the economy remains one of the univesities' biggest challenges and responsibilities. The Big Three had 14 business startups in 2005, compared to only 6 in 2002, according to the report. The Big Three had $39 million in licensing revenues from business startups in recent years. That lagged way behind California ($200 million) and Massachusetts ($59 million) but well ahead of they highly touted research triangle in North Carolina ($10 million).

As the budget talks plodded along in Lansing, there was little prospect of good news for college students who've banded to form an organization called SUPERSEED and are lobbying loudly for better state investment in higher ed: "As participants in the knowledge creation industry, we are concerned about Lansing's inability to address future needs of the state. Funding for higher education is essential to bring Michigan's economic transformation to fruition. Other states are competing hard. This is the worst time in Michigan's history to deplete the higher education storehouse. It is the best time for us to invest in the power of the future."