The Statewide Economic Impacts of the University of Missouri Tom Johnson August 2007.
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The Statewide Economic Impacts of the University of Missouri Tom Johnson August 2007
What is Economic Development? 1.Temporal dimension –Short-run versus Long-run 2.Spatial dimension –Where development occurs 3.Quality dimension –Stability, sustainability, and quality of life
Short-run Versus Long-run Short Run Spending Consumption Consumer confidence Stability Long Run Saving Investment Productivity Change Short and Long run often confused Very different causes and consequences
Spatial Dimension of Development Local development Spending Inward investment Industry attraction In-migration Exports and local multipliers Global development Saving Investment Industry creation Population growth Specialization & trade Quite distinct local, regional, state, national and global causes of economic development These, too, are often confused
How does the University contribute to development? It contributes on all these dimensions and in all these ways.
In the short-run the University: Is a very large economic engine, employing and producing, selling and buying Contributes to the state and national income and production Is a major exporter, selling its education product nationally and globally
In the local, regional and state economy the University: Contributes thousands of high quality, high paying jobs directly and indirectly. Indirectly pays taxes that provide public services to all residents. Generally offers continued growth and stability to the local economy Attracts new employers and residents
Economic Impacts of UM Operations and Capital Investments Because of its strong linkages with the state economy and its creation of good jobs and income UM has a strong multiplier effect Over 60,000 jobs created $2.4 Billion contributed to GDP 1.1% of the Missouri economy
Economic Impacts including Students 62,000 students $.6 Billion non-tuition expenditures annually Total Impacts 68,000 jobs $2.7 Billion contribution to GDP 1.3 % of total economy Almost 4 times the state appropriations to the University
But it is the long-run developmental impact that is the university’s greatest contribution
In the long run The only real long run investments are in knowledge and our ability to generate knowledge –Knowledge is generated by research –Knowledge resides in people –Knowledge is made available through education and extension –Knowledge results in productivity –Knowledge comes from every discipline, from every art, and from every science
In terms of quality of economic development the University: Prepares people for change Foments innovation Encourages diversity and mobility Enriches quality of life These are all part of the quality dimension of economic development
What role do Universities play in economic development? Universities are clusters of talent, tolerance and technology from which creativity emerges to lead to high quality regional, state and global economic development
At the local level the University Attracts creative people and offers them a nurturing social and intellectual environment. It supports the local economy, providing direct and indirect jobs, income and tax base with which the community can provide amenities demanded by creative people.
At the regional level the University Provides knowledge spillovers, technical assistance, trained labor force, innovative graduate students, research facilities, learning facilities, and much more.
At the state level the University Provides regionally appropriate technology, educational programs, educated labor force, and cultural experiences for residents. Provides an in-state node in a global network of research and learning. A source of intercultural experience for residents which will prepare them for a global economy.
Economic development is more than: Local jobs and income Rising research budgets Technological breakthroughs and patents or Growing numbers of graduates
The University’s contribution to economic development is also Creative and entrepreneurial students and faculty. Students and faculty that are engaged in local, national, and international learning and creative networks. Graduates familiar with interdisciplinary research and learning. Graduates who are comfortable with change. A diverse, national and international student body, learning and creating together.
Every college, school, department, center, institute, and program at the University has a role to play in economic development. Thank you