Michigan SmartZones were launched in 2000 to accelerate economic activity in distinct geographical locations of the state and increase the number of jobs and business starts in the high-technology sector. The Michigan Economic Development Corporation (MEDC) describes the districts as areas where technology-based firms, entrepreneurs, and researchers locate in close proximity to enhance collaboration.
SmartZones are funded primarily through tax increment revenue (TIR), which is detailed in a tax increment financing (TIF) plan that describes tax capture and development goals. SmartZones also receive small grants from the MEDC to provide business incubation and acceleration.