Online search and advertising giant Google
The new technology center will house much of the AdWords division, which is vital to Google's revenue generation. Microsoft
In addition, Google's library-digitizing project will move to Michigan, only miles from one of its biggest partners at the University of Michigan. That school also just happens to be Google co-founder Larry Page's alma mater. Whether Page's hometown ties or the state's generous tax credits sealed the deal, we'll never know for sure, but they both surely had an impact.
The expansion may be huge in Google's terms, but it's a mere drop in the ocean for Michigan. Home to troubled automakers like Ford
Apart from the 1,000 direct Google employees, the Michigan Economic Development Corporation (MEDC) says that the addition will create another 1,200 jobs to build out support services for the new tech central and its employees. In all, the whole enchilada is expected to enrich local Michiganians by more than $2 billion over the 20-year life of the tax credit. Not a bad return on $38 million, the amount of the tax credits Michigan is offering the company -- on condition that its state employment reaches 2,000.
The state government is clearly hoping that Google's leap of faith will attract more new business to the area. It could work, and it sure would be nice to see this once-great state rise anew from the carnage brought on by Toyota
Further Foolish reading:
- Michigan isn't alone in hitting hard times.
- But the state has been taking it especially hard.
- Maybe some of Motown's giants are good values now.
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