$1.6 million will be awarded to the winners of MIT’s Inclusive Innovation Challenge (IIC) on November 8, 2018. Developed from the MIT Initiative on the Digital Economy, the IIC is aimed at finding and promoting startups and entrepreneurial organizations who are using technology to provide financial opportunities for low and moderate income earners. For the first time, the IIC has adopted a global tournament model this year. They have hosted the challenge in five cities across the world. Detroit is the host for the North American region, where MIT has partnered with the Ralph C. Wilson Jr. Foundation.

As stated by the event’s producer, Susan Young, the Inclusive Innovation Challenge was started three years ago, with the belief that people are living in one of the greatest ages of innovation in human history. However, not many people are benefiting despite the fact that they are trying so hard. Jobs that in most cases lead to prosperity are disappearing fast. As such, technological innovation can be used to solve the problems that are being currently faced by creating more opportunities.  The vice president of programs at the Ralph Wilson Foundation stated that the organization has informed MIT that the city is currently transiting from manufacturing to a technology-based economy.

Businesses of any size, type or nationality can compete in the challenge. Twenty regional finalists have been selected from around the world from over 1,500 entrants. Academics, entrepreneurs, investors and industry experts will attend the invite-only event where the $1 million prize will be announced.

A lightweighting research and development machine is headed to Detroit. Manufactured by Manufacturing Technology Inc. (MTI) of South Bend, the machine will be delivered to the Lightweight Innovations for Tomorrow (LIFT) facility.

The LF35-75 linear friction welder will be stationed at LIFT’s training and testing facility. Both LIFT and MTI are to share this 122,000-pound piece of equipment for the purposes of research and development in the automotive and aerospace industries. As such, LIFT will be looking to construct lightweighting blisks as well as rotors for automotive and aircraft engines. Nigel Francis, the CEO and Director at the company, states that the deployment of a machine of this capacity will significantly expand the R&D capabilities of the company.

The machine was built in approximately one and a half years. It is 22 feet in height and 14 feet in width. Although the original price of the machine is not yet disclosed, LIFT’s Vice President of Sales and Marketing stated that his company contributed around $4 million to build it with the help of MTI. The machine is regarded as a unique tool in friction welding as it is capable of producing very large, full-scale parts. Previously, customers in industries such as rail, mining, aerospace and defense would have to get expensive parts imported from Europe. Now they can get these parts made in Detroit.

MTI will be responsible for the running and maintenance of the machine and will also assist LIFT’s projects. Once installed, the machine will be commissioned and operational by the first quarter of 2019.

Asking a simple question such as what mobility means in Detroit could leave you with numerous answers. Some would say it is the transport system that consists of bikes, cars, air, bus or foot. Others may mention financial mobility or even how the city could be a leader in the transport sector globally.

To that effect, Mobility Week Detroit took place from the 7th to the 12th of October, 2018. This event aimed at showcasing the city’s leading role in technology as well as the future of mobility in Detroit and the world at large. Mobility Week constituted various gatherings and summits, including the renowned annual Tech Stars Demo Day, “The Eye, The Brain and The Auto” conference and the Michigan Auto Summit.

Numerous mobility entities exhibited at the event, such as Maven, Chariot, May Mobility, DDOT and Airspace. Mobility-related start-ups offered demonstrations and the chance for people to try their technologies. Glenn Stevens, the vice president of automotive and mobility initiatives for the Detroit Regional Chamber, stated that the city is a leader in the development and innovation of the next generation mobility technology. Through events such as Mobility Week, entities are offered the perfect opportunity to showcase their emerging technologies and at the same time connect with industry professionals. Other cities should aim to follow in Detroit’s steps.

An innovation hub has been launched in Detroit by professional services company Accenture. The hub is aimed at helping companies in the automotive, technology, industrial equipment, energy and utility industries to address the move towards digital products and services in a move known as Industry X.O. It is estimated that by the end of 2020 the company will add 200 skilled technology jobs to the local market.

Michigan’s Governor, Rick Snyder, welcomed Accenture’s decision in expanding its commitments in Detroit. He said that Accenture’s investment is a testament to Michigan’s history of innovation and growing talent base. The Detroit innovation hub includes a state of the art Industry X.0 innovation center in Livonia, which is aimed at helping clients explore, co-create, test and gauge digital solutions that will improve product development, manufacturing, engineering, customer experience and cyber security. With this innovation in place, clients will be able to develop and test proficiencies to see how an idea could work in real-life.

Accenture’s CEO, Julie Sweet, also spoke to say that bringing innovation to the client’s doorstep in Detroit will not only create success in today’s digital economy, but will also help the clients achieve concrete and leading-edge results faster than ever. The leader of Accenture’s industrial practice in North America, Brian Irwin, said that the new innovation hub in metro Detroit will complement their other Industry X.O innovation centers, including those that have a strong focus on automotive.

Accenture employs over 850 people in Detroit and works together with local companies in industries such as automotive, consumer goods and services, education, health, insurance and retail. The company is also expanding its metro Detroit apprenticeship program in partnership with Grand Circus, an organization that helps to develop Michigan’s tech workforce.

American Axle & Manufacturing Holdings, Inc. (AAM) is a Detroit-based manufacturer of automobile systems. The company is representing the city in the IZB International Suppliers Fair to be held from October 16th to 18th 2018 at Wolfsburg Germany.

AAM will showcase its lightweight and fuel efficient powertrain technology. The company is renowned for its innovative technologies in the designing, engineering and production of sustainable technologies. The following technologies will be showcased at IZB:

• QUANTUM AXLE Technology – This collection of axles focuses on increasing performance and overall efficiency, while at the same time reducing the weight of systems. Additionally, QUANTUM delivers increased power density, reduced mass and improved noise vibration, regardless of the size of the vehicle. The gears in this case are set in optimal positions while the bearings are arranged in a more efficient manner. The performance of the vehicles is significantly boosted through such innovative components.
• EcoTrac Disconnecting AWD – This is a framework that grants drivers the performance of AWD vehicles with the fuel economy of a front wheel drive. This technology also makes it possible for the driveshaft to have less spinning, translating to fewer emissions and less fuel consumption. This technology was introduced first by the company in 2013.
• e-AAM Hybrid and Electric Driveline Technology – This powers both electric and hybrid vehicles with one or two electric motors. The technology is able to reduce tail pipe emissions and facilitate a high-performance, all-wheel drive (AWD) experience. Through this technology, a vehicle is able to reach up to 100kph in approximately 4 seconds. The maximum speed is over 300kph.

It is encouraging to see Detroit-based AAM soaring high on the global scene. Through its innovations, the city, state, country and world at large can benefit today and in the future.

Foxconn Technology Group, which is best known as an iPhone manufacturer, is planning a multi-billion dollar R&D site in Michigan, dedicated to developing self-driving cars.

This announcement came shortly after the company said it will build a $10 billion facility in Wisconsin that would make LCD displays and could generate as many as 13,000 jobs.

Foxconn founder, Terry Gou, says that automotive development in the US is still more advanced than in China. In addition to self-driving technology, Gou is also interested in artificial intelligence and deep learning technology.

While Foxconn is an established and successful company, it also has plenty of competition in Michigan with other automakers such as General Motors, Ford Motors and Chrysler also having their headquarters in Michigan. Due to this close competition it is essential to remain competitive in the market, therefore Foxconn establishing the following R&D center will greatly assist the company to remain at the forefront of the competition.

While Foxconn’s plans for the R&D facility seem promising, there is still some uncertainty as to whether they will come to fruition. Foxcomm have previously announced plans to build a $30 million facility in 2013, however these plans were never executed.

Now seems like a more urgent time than ever for Foxcomm to open their R&D center as Japanese car makers Mazda and Toyota have also announced a partnership to build a $1.6 billion plant close by. Additionally, American tech giants like Google parent company Alphabet and ride-hailing company Uber are also deep in the field.

Innovative automotive development in the US is taking off with several companies investing into developing similar advanced technologies. Investment into R&D allows for a company to distinguish itself from others that are pursuing similar projects, and this is what Foxconn is aiming to achieve.

For companies in Michigan that are investing into R&D, the State research and development tax credit is a valuable tool. If you would like to discuss the R&D Tax credit further, please contact a Swanson Reed’s R&D tax advisor today.

The multinational chemical corporation, Dow Chemicals, has announced construction to begin for a $100 million research and development center in Midland, Michigan. The 100,000 square foot R&D facility will accommodate for approximately 200 employees and will consist of research labs and office spaces.

Dow’s new R&D center will generate approximately 100 new jobs in the fields of silicone science and organic chemistry and the facility is projected to be completed in 2019.

CEO of Dow Chemicals chose the location of Michigan, as the state is proving to be a vibrant research, development and manufacturing sector, which is showing great potential and continuously creating new opportunities.

Dow recently also celebrated the grand opening of its 184,000 square foot, six story global headquarters in Midland, which is located only 5 miles from the future R&D center. The headquarters houses approximately 470 employees and had a construction focus on sustainability, which will be replicated in the upcoming construction of Dow’s R&D center.

Dow has definitely established itself as a global company, employing 56,000 people worldwide and having reported sales of $48 billion in 2016. This signifies the importance of investing into R&D as it will allow the company to focus on innovation and remaining competitive on a global scale.

For companies that are investing in R&D, the research and development tax credit is a valuable tool.  If you would like to discuss the R&D Tax credit further, please contact a Swanson Reed’s R&D tax advisors today.