A new study concludes that the total economic impact created within the state by the ºÚÁϳԹÏÍø is $9.1 billion annually.
The ºÚÁϳԹÏÍø also supports 69,803 jobs in the state. The ºÚÁϳԹÏÍø is the Puget Sound region’s third largest employer; total direct and indirect employment attributable to the ºÚÁϳԹÏÍø represents more than 6 percent of King County’s labor force.
Since 1999, direct employment at the ºÚÁϳԹÏÍø has increased by 34.5 percent or about 7,600 new jobs, attributable almost entirely to growth in the ºÚÁϳԹÏÍø’s research enterprise, which is primarily funded from federal sources. State and local government revenue attributable to the presence of the ºÚÁϳԹÏÍø totaled $618.1 million. For every dollar in state funding, the ºÚÁϳԹÏÍø returned $1.48 in tax revenue to the state.
These are among the conclusions of a study conducted by the consulting firm of , commissioned by the ºÚÁϳԹÏÍø.
“The ºÚÁϳԹÏÍø is a major force in the Washington economy in terms of employment, innovation, and economic development,” says Paul Umbach, senior principal with Tripp Umbach. “The true impact of the ºÚÁϳԹÏÍø goes far beyond the $9.1 billion in annual economic impact, as the University is a magnet for attracting fresh dollars and human capital from outside of the state.”
The study measured both the direct and indirect business volume generated by the ºÚÁϳԹÏÍø. The direct impact occurs when the ºÚÁϳԹÏÍø spends money in salaries, goods and services. These expenditures have their own secondary, or indirect, economic impacts.
“This comprehensive analysis demonstrates clearly that the ºÚÁϳԹÏÍø is a major contributor to the success of our state’s economy — from dollars and jobs to leadership and innovation,” says ºÚÁϳԹÏÍø President Mark Emmert. “By educating smart people and generating great ideas, the ºÚÁϳԹÏÍø will play a crucial role in helping Washington state recover and build a global economy in the post-Great Recession era.”
ºÚÁϳԹÏÍø spending amounted to just over $4 billion in fiscal year 2008-09. The businesses and individuals who received direct expenditures and re-spent money within the state created $5.1 billion in economic activity, according to standard models used to measure economic impact. In this same year, the ºÚÁϳԹÏÍø received $401.7 million in state appropriations. For every dollar the state invests in the University, $22.56 is added to the state’s economy.
The ºÚÁϳԹÏÍø’s research effort is responsible for a major share of the University’s economic impact — a total of $3 billion and more than 22,000 jobs annually. “The University’s research operations make tangible and quantifiable economic contributions,” the report notes. “Along with creating jobs for research staff and support personnel, the ºÚÁϳԹÏÍø scientists are contributing to new product development and technology commercialization…. As one of the most successful public research universities, both in total funding and in faculty talent, ºÚÁϳԹÏÍø is a global leader in research and technological breakthroughs that transform the community.”
The ºÚÁϳԹÏÍø is a leader in the commercialization of innovations that occur through ºÚÁϳԹÏÍø research. The ºÚÁϳԹÏÍø has a portfolio of more than 2,200 issued and pending patents. More than 250 companies have been started by ºÚÁϳԹÏÍø students and faculty or with ºÚÁϳԹÏÍø technology. In fiscal year 2008-09, the ºÚÁϳԹÏÍø executed 220 commercialization agreements with private companies. Overall the ºÚÁϳԹÏÍø has the largest number of commercial licenses among U.S. universities. It is also the most efficient university in this regard, executing the most commercialization agreements per research dollar.
On average, three-quarters of ºÚÁϳԹÏÍø graduates live and work in Washington. People with bachelor’s degrees have an average income of $68,000, compared with $39,000 for high school graduates. The report estimates that ºÚÁϳԹÏÍø alumni living in Washington earned $14.5 billion in 2007, compared to approximately $8.3 billion they would have earned with only high school diplomas. “The additional $6.2 billion in earnings represent not only personal material benefits to individuals but also higher tax payments to federal, state and local governments…” the report states.
In addition to the economic and job impacts, the ºÚÁϳԹÏÍø is also a source of tremendous charitable care, providing over $395 million in community benefits. ºÚÁϳԹÏÍø Medicine provided over $267 million in charitable care to Washington state residents.
The ºÚÁϳԹÏÍø plays an important role in preparing the citizens of Washington, which is the most trade dependent state in the U.S., for the globalized economy of the 21st century. The ºÚÁϳԹÏÍø is seventh in the nation in student participation in study abroad; approximately a quarter of ºÚÁϳԹÏÍø undergraduates study outside of the U.S. at some point. In addition, for four years in a row, the ºÚÁϳԹÏÍø has led the U.S. in total alumni volunteering for the Peace Corps.
The full report is available .