“If we’re going to pay for your research and development, you need to manufacture it here. If the seed was planted here, the tree should grow here. There’s going to be strings attached when you benefit from taxpayer dollars,” Ms. Granholm said. While large companies frequently have unique funding agreements that set limits on how they might outsource manufacturing, smaller grant recipients usually don’t, and over the years have frequently used the law’s exemptions, according to the department.