The Michigan Economic Development Corporation (MEDC) has a long tradition of promoting economic development. Through the Michigan Careersite web page, economic development and job training programs are outlined. The mission of MEDC is to work with businesses, state government, and local communities to make Michigan more business-friendly. MEDC is a corporation, not a traditional government agency. As of 2003, Michigan had ranked first in the country for new plants and expansions for five years in a row, according to Site Selection magazine.
Michigan is part of the so-called Rust Belt, the region of the country dominated by steel-based industries from the 1940s to the 1980s. To focus economic development on new industries, Michigan has taken a number of steps, including cutting taxes for individuals and businesses. In the 1990s, Michigan taxpayers, both individuals and businesses, benefited from 21 tax cuts. The result has been the 13th-lowest tax burden in the country for 2000 and a robust economy with unemployment levels lower than the national average since 1995.
Michigan's Economic Growth Authority offers generous tax breaks to firms that locate a facility in Michigan, and offers substantial employment opportunities to Michigan workers. The state's Renaissance Zone program exempts companies and individuals within designated areas throughout the state from all state and local taxes as an incentive to rebuild and revitalize specific areas. Renaissance Zones include urban, rural, and former military installation sites. In 2003, Michigan also had eleven designated Smart Zones, which are collaborations between universities, industry, research organizations, government, and other community institutions to stimulate growth of technology-based businesses, particularly those focused on commercializing ideas and patents that result from R&D efforts.