Last modified: Thursday, December 14, 2006
IU's economic impact on the state totals more than $3.2 billion, report says
FOR IMMEDIATE RELEASE
Dec. 14, 2006
Editors: The complete report, "IU: Transforming Indiana," is available online at http://www.indiana.edu/~pres/docs/impact_report_1206.pdf.
BLOOMINGTON, Ind. -- While the total value of an Indiana University education to more than 78,000 in-state students annually may be incalculable, the economic impact that IU had on the state of Indiana totaled more than $3.2 billion in 2005-06.
IU's economic impact equaled that of Indiana's four other public four-year universities combined, in fact, according to a new report -- "IU: Transforming Indiana" -- issued by the university.
IU President Adam W. Herbert presented the report late Wednesday (Dec. 13) to members of the Indiana State Budget Committee in Indianapolis, during a hearing supporting the Indiana Life Sciences Initiative. It also is being distributed to members of the state legislature.
"In terms of research, last year IU faculty once again attracted more grants and contracts to fund research than all of the state's other four-year public universities combined," Herbert said. "This impact report illustrates how IU is helping Indiana improve the lives of its citizens through excellent, accessible higher education, and cutting-edge research and creative activity. You can expect even greater things to come."
IU is seeking a special state appropriation of $80 million over two years to fund its Indiana Life Sciences Initiative, a plan that is expected to bring an additional $2.4 billion in research funding to the state, and create 14,000 new, high-paying jobs and at least 100 new companies. IU also plans to generate at least $100 million in intellectual property revenue by 2019.
Preparation of the 18-page report was coordinated by Victor M. H. Borden, IU associate vice president for university planning, institutional research and accountability.
According to the report, IU directly poured $1.6 billion into the state's economy in the last fiscal year through resident payroll and in-state purchases, which represented about half of the in-state spending generated by all of the state's public four-year universities. When the secondary effects of this spending -- by others who receive this money and spending by non-residents -- are added, the annual economic impact of IU increases to $3.2 billion.
In his report, Borden found that for every dollar the state invested in IU through its appropriation, there was a $6 return on investment. When the hospitals, clinics and other services affiliated with the IU School of Medicine are factored in, the per-tax-dollar return on investment increases to more than $15.
Here are other highlights in the report:
- IU conferred nearly 150,000 bachelor's, master's, first professional and doctoral degrees between 1996 and 2005, which accounted for more than one-third (36 percent) of all degrees conferred by all of the state's public and private colleges and universities.
- IU continues to be the main producer of degree-holders in Indiana's "Top 10 Hot Jobs." It conferred 67 percent of all degrees awarded in Indiana in human services and public administration, 47 percent of all degrees in education, 42 percent of all degrees in health and life sciences, and 33 percent of all degrees in business, natural science and mathematics.
- IU's research enterprise already yields intellectual property that has had an economic development impact in the form of new products and new businesses. The IU Emerging Technologies Center in Indianapolis is home to more than 20 life sciences and information technology business spin-offs from such discoveries.