Southfield (WWJ)  -- The University of Michigan is reporting record spending on research.
   
Spending at the Ann Arbor school reached $875.8 million in its 2007-08 fiscal year. That is an all-time high and a 6.4 percent increase from the previous year.

The federal government provided nearly 70-percent of the funds.  The University said while the federal commitment edged up 2.7 percent last year, industry sponsorships surged 11 percent, following a nearly 15 percent jump the previous fiscal year.
 
Those numbers suggest that U-M's drive to forge stronger ties with industry---and to help resuscitate the Michigan economy---is finally bearing fruit, said Stephen Forrest, vice president for research, in a statement.
 
"I think we're seeing the start of a trend, a hint that things are moving in the right direction," said Forrest. 
 
"What we can say with confidence is that this effort to strengthen ties with industry has been a steady push for several years now, and the word is out that we strongly support this from the highest levels of the university," Forrest said. "And it's finally starting to take hold."

U-M is usually among the nation's top five research universities, based on R&D expenditure statistics compiled by the National Science Foundation.

Fiscal Year 2008 ended June 30 and the university says research numbers don't reflect the impact of the new U-M Business Engagement Center, which officially opened its doors in mid-May.

The center, at 1214 S.University Ave., provides one-stop shopping for businesses seeking student talent, university expertise, professional development for employees, and research partnerships.