UPDATE 3-GE sets Michigan research site, calls for renewal

* GE to invest $100 mln in site

* State tax incentives totaling $74 mln over 12 years

* 1,200 initial jobs, hiring to start later in 2009

* Michigan governor: high-paying jobs at facility

* GE's Immelt calls for U.S. industrial renewal (Adds Immelt quotes, details)

By David Bailey and Soyoung Kim

DETROIT, June 26 (Reuters) - General Electric Co (GE.N) plans to open a research center in the economically ailing U.S. state of Michigan, in a bid to boost its technology and software presence in its home country.

The $100 million site will eventually employ more than 1,100 people, who will develop new manufacturing techniques and software to be used in the largest U.S. conglomerate's jet engines and electricity-producing turbines.

The move came on a day that Chief Executive Jeff Immelt said the United States needs to refocus its economy on manufacturing and technology, rather than counting on consumer spending and financial wizardry to drive growth.

"This allows us to be lower cost, faster and build great capability right here in Michigan," Immelt told reporters.

Michigan, home to the nation's auto industry, faces high unemployment as a result of the car makers' struggles. The bankruptcies of General Motors Corp GMGMQ.PK and Chrysler LLC and troubles at their suppliers have cost the state thousands of jobs.

Michigan Governor Jennifer Granholm said the facility would receive state tax incentives totaling $74 million over 12 years, but was expected to generate income taxes and other revenue totaling about $146 million over that period.

"These are jobs that will pay around $100,000 a year; these are high-paying jobs," Granholm said.

The facility will be built in Van Buren Township, about 25 miles (40 km) outside Detroit. Immelt said hiring for the facility would start by the end of this year.

The announcement by GE comes on the same day that GM announced that it will build a small car at an existing plant in Orion, Michigan. [ID:nN26327931]

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