1. The Value of Investment in University Research and Innovation Arizona’s Research Universities Drive State Economic Growth 1.Workforce development - provide bachelor’s and graduate-level education to increasing numbers - develop professional workforce for high-tech leadership 2. Wealth creation - serve as a research engine for high-tech economy - create high-wage jobs by attracting and building new companies based on new knowledge generated by university innovation

2. Workforce Development Meeting Educational Goals: Increase the number of college graduates overall and in priority areas - advanced learning experiences (P-20) - bachelor’s degrees – science, math, engineering, education - Master’s and doctoral degrees - professional degrees (law, medicine, nursing…)

3. Value to Arizona of Investment in Education: Raise average income and general welfare/standard of living Increase income and sales tax revenues Provide leaders who will develop a knowledge-based economy Workforce Development

4. $10M invested  268 more AZ degrees. 268 more degrees  more money in Arizona's pockets Using 2006 bachelor’s/graduate/professional-degree proportions: $4,535,500 in additional annual earnings for 193 bachelors degrees awarded $2,038,960 in additional annual earnings for 70 Masters/doctoral degrees awarded $273,215 in additional annual earnings for 5 professional degrees awarded What Does Arizona Get in Return for the Investment? A Rising Standard of Living of Citizens

5. UA has over 8500 graduate and professional students 65% of UA graduate students are Arizona residents 60% of UA non-resident graduate students remain in Arizona Master’s degrees in 117 fields and Doctoral degrees in 85 20 percent of our Ph.D. programs rank in national top-20 Graduate Degrees for Leadership in the Workforce

6. As reported for FY2004, UA’s overall economic impact statewide: 41,300 jobs $1.2 billion in earnings a total dollar impact of $2.3 billion (ROI on State $$ of ~5.3) Value to Arizona of Investment in Research and Innovation: For every $1.00 of State funds invested, the university attracted an additional $1.45 in grants, contracts, and gifts in FY2004. For UA’s BIO5, financial ROI is approximately $7 for every dollar invested. Beyond Degree Production: The Economy Is Fueled by Research and Innovation

7. Total R&D Expenditures at Top 10 Public Universities in FY2006 (dollars in 000’s) 1U. WI Madison831,895 2U. CA, Los Angeles811,493 3U. MI all campuses800,488 4U. CA, San Francisco796,149 5U. WA778,148 6U. CA, San Diego754,766 7OH State U. all campuses652,329 8PA State U. all campuses644,182 9U. MN all campuses594,877 10U. CA, Davis573,002 13U. AZ535,847 $37M (NSF Rankings)

8. Gold, Silver, Bronze Projections for R&D Expenditures Top ten in 5 years Top ten in 10 years Gold: 6.0% growth Silver: 5.0% growth Bronze: 4.5% growth UA Total R&D Expenditures (in $millions)

9. What State Investment Is Needed to Achieve Silver Level? To move from #13 to #10 among publics in 10 years will require $100M/year additional in federal research grants and contracts by 2018. Rough calculation: This external funding could be won by 200 new researchers each bringing in $500K/year. If 1/3 of those are senior @ $300K (salary plus fringe) and 2/3 are junior @ $150K (salary plus fringe)  $40M, plus appropriate support for research facilities, is needed over 10 years.

10. FY 2007 – Federal R&D Expenditures – UA Distribution by Funding Source $ in 000’s HHS 100,097 37% 45% NASA 65,017 24% 20% Other 43,650 16% 10% NSF 38,060 14% 15% DoD 12,068 4% 5% USDA 7,184 3% 3% DoE 3,865 1% 2% TOTAL 269,941100% 100% *New buildings for biosciences (BIO5, Medical Research Building, CoM-Phoenix), chemistry, and optical sciences, and planned buildings for environmental sciences and engineering will provide new facilities to drive the projected positive changes. NASA’s new emphasis on manned flights will have a negative impact on UA’s NASA funding, with a concommitant shift to NSF, DoE, and DOD. Goal for 2020*

11. What Does Arizona Get in Return for the Investment? UA Contributing to a Knowledge-Based Economy Research Spending: Each $4M additional for researchers  additional $10M in research expenditures  more jobs, more new knowledge Knowledge Transfer: More knowledge transferred through county extension services, telemedicine, Native Peoples Technical Assistance, … More start-ups: 75% of all UA start-ups are AZ-based More licensing: 25% of all licenses & options are to AZ companies More income to UA: have received ~$6M in royalties over past 5 years

12. ENROLLMENT 35-40% Creating access to degrees DEGREES 35-40% Assuring pathways to success RESEARCH 21-26% Assuring impact of innovation SERVICE 2-5% Disseminating new knowledge Target range: What Formula for State Investment in Universities Will Provide Incentives for Economic Development? 100%