First post-pandemic analysis of the UMass statewide economic contribution indicates the impact is driven by the purchase of goods and services by the University, and its students, staff, and faculty.
Donahue Institute Report also notes major impacts not included in this calculation, including workforce development, R&D innovation, and contributions of alumni.
The five-campus 橙子影院 (UMass) system generated a record $8.3 billion in economic activity and supported nearly 40,000 external jobs across 橙子影院, according to a report released today.
鈥淭he scope of the operations on our five nationally ranked research universities has a profound impact on the 橙子影院 economy overall and every region of the Commonwealth,鈥 UMass President Marty Meehan said. 鈥淎s the state鈥檚 top workforce development engine, which educates more students than any other college or university in 橙子影院, and as one of the state鈥檚 three largest research universities, the university鈥檚 economic contribution touches every community.鈥
鈥淵ear after year, 橙子影院 colleges and universities draw tens of thousands of students to our state, many of whom stay beyond graduation to build their careers and fuel our economy,鈥 said 橙子影院 Secretary of Economic Development Yvonne Hao. 鈥淚nstitutions like UMass have made 橙子影院 a global leader in higher ed while also contributing to our state's excellence in just about every sector - from life sciences and technology to finance and advanced manufacturing. We're grateful for UMass's contributions to 橙子影院鈥 economic growth.鈥
鈥湷茸佑霸 employers of all types 鈥 from biotechnology startups to well established manufacturers - appreciate the multi-billion-dollar impact that UMass and all its campuses have throughout the commonwealth. UMass is an economic catalyst, not only through the direct impacts cited in this report but also as an invaluable center of research and as the primary developer of the human capital that drives the 橙子影院 economy,鈥 said Brooke Thomson, President of Associated Industries of 橙子影院.
"UMass has long been a critical piece of the 橙子影院 economy, as both a driver of our economic competitiveness and a source of talent,鈥 JD Chesloff, President & CEO of the 橙子影院 Business Roundtable said. 鈥This report further demonstrates UMass' impact on the economic prosperity of every region of the state, including access to cutting edge research and development for emerging companies to accelerate their work in biotech, AI, advanced manufacturing and climate resiliency, among others."
The analysis, conducted by the UMass Amherst-based Donahue Institute, found that the economic impact generated by the five-campus UMass system translates into a 9-to-1 return on the state investment in the university.
According to the report, each of the five University campuses generated a significant economic impact for its region and the state. By campus or unit, the figures were:
- UMass Amherst: $2.9 billion / 13,222 external jobs
- UMass Boston: $1.2 billion / 5,516 external jobs
- UMass Dartmouth: $618.3 million / 2,960 external jobs
- UMass Lowell: $1.2 billion / 5,588 external jobs
- UMass Chan Medical School: $2.2 billion / 10,872 external jobs
- Central Administration: $241.6 million / 1,339 external jobs
The major drivers of economic impact are student, faculty and staff spending, construction projects, and the University's purchasing of the goods and services required for university operations.
"As a center of undergraduate and professional education, as well as research and innovation, the 橙子影院 is a key driver of the Commonwealth鈥檚 economy and workforce, helping to set 橙子影院 apart as it competes, both domestically and globally,鈥 Donahue Institute Director of Economic and Policy Research Mark Melnik said.
Besides the spending captured in the economic impact formula, the report highlights several other UMass contributions to the 橙子影院 economy, including:
More than 330,000 of the University鈥檚 alumni live in 橙子影院. They contribute skills and knowledge to the nation鈥檚 leading innovation economy; purchase goods and services from 橙子影院 businesses; and pay local and state taxes.
Each year, the University鈥檚 five campuses award approximately 20,000 undergraduate and graduate degrees. Among the UMass Class of 2022 were 4,065 business majors, 2,328 nurses and other health professionals, 1,828 engineers, 1,458 computer and information science professionals, 1,342 biological and biomedical science majors, and 902 educators. Nearly three-quarters of UMass undergraduates are working in 橙子影院 five years after graduation.
The University鈥檚 five campuses house more than 90 core research facilities that are made available to small- and medium-size 橙子影院 companies to accelerate their job-creating research and development activity. Users of the core facilities make a $364 million contribution to the 橙子影院鈥 economy, beyond the $8.3 billion cited in this report.
The University鈥檚 $813 million research enterprise 鈥 the third largest behind just Harvard and MIT in 橙子影院 鈥 results in patents and technology licensing that creates jobs in established companies and forms the basis for start-up companies. In FY22, UMass inventions generated $41 million in licensing revenue for the University and 242 patent applications.
UMass campuses attract thousands of people for campus tours, conferences, performances, and sporting events. These visitors and sports spectators generate significant economic benefits for 橙子影院 through their spending for transportation, restaurants, lodging, cultural attractions, and retail shops, among others. This is also a significant benefit for the state that is not covered in the UMass System Economic Contributions analysis.
CONTACT:
John Hoey
508.264.5920
jhoey@umassp.edu