ANN ARBOR – Michigan has moved up three spaces in the annual top 10 ranking of micro and nanotechnology states for 2005, tying Texas for fifth place, according to a survey released Monday night by Small Times Magazine.

Michigan jumped into the top five for the first time thanks to a strong showing in three key categories ? industry, innovation and venture capital.

?Making the move from eighth to fifth displays Michigan?s tradition of invention, innovation and integration,? said John Bedz Director of the Michigan initiative. ?As new technologies move faster from research through commercialization, Michigan?s industries new and old will continue to benefit.?

Leading this move for Michigan was the state?s performance in three key categories:

Industry – Michigan moved up from sixth to fourth place in this category, which measures the business environment for companies working with small tech.

Innovation – Michigan came in fifth in this category after not being recognized in the category last year. The innovation category measures how effectively a state is at converting ideas into inventions.

Venture Capital – Michigan made a strong move here from ninth to third. This category measures the number and amount of VC deals in the state. Michigan displayed increased activity in a category that showed a decrease in activity nationally.

Small tech enabled products have application in every industrial sector. Michigan?s strong history with technology research, development and integration makes it fertile ground for continued improvement in technology rankings.

?Economic development groups need to examine their region?s micro and nanotechnology activity closely because states taking an early lead will reap the economic rewards over the next five to 10 years,? said Patti Glaza, Small Times Media CEO. ?Because micro and nanotechnology are platforms that are utilized in almost all industries, states can capitalize on the sectors they have already worked hard to build. Industries as diverse as life sciences, energy, automotive, textiles, consumer products, and agriculture, to name a few, are already benefiting.?

The complete rankings follow:

1: California 2004 ranking – 1; 2003 ranking – 1 California keeps growing with new companies, research and venture capital dollars.

2: Massachusetts 2004 ranking – 2; 2003 ranking – 2 Amherst, Lowell and other regions have joined Boston as Massachusetts marches toward dominance.

3 New Mexico 2004 ranking – 3; 2003 ranking – 3 Despite its two national labs, New Mexico remains in third without enough private investment.

4 New York 2004 ranking – 4; 2003 ranking – 7 Holding its own, New York gets more companies and venture capital dollars to support them, but falls in business grants.

5 Michigan 2004 ranking – 8; 2003 ranking – 9 Known for all things automotive, Michigan may be diversifying. Growth in industry and commerce helps offset a dip in research funding.

5 Texas 2004 ranking – 5; 2003 ranking – 5 Texas shares its fifth-place title after losing ground as a research and industry leader. Some venture capital success nudged it back.

7 Illinois 2004 ranking – 6; 2003 ranking – 8 Its outstanding research institutions have propped up Illinois? standing in past years but can?t remain a crutch for much longer.

8 Maryland 2004 ranking – 11; 2003 ranking – 6 Maryland returns to the top 10 after just missing the cut last year, thanks in part to a new $235 million federal lab.

9 North Carolina 2004 ranking – 17; 2003 ranking – 20 The pieces fall into place for North Carolina, whose universities and workers are beginning to attract attention from venture capital firms.

10 Ohio 2004 ranking: 10 – 2003 ranking – 17 Ohio stays on course with modest but respectable gains on its academic and industrial fronts.