U of M Generates More Than $8.6B in Economic Activity in Minnesota, Report Finds
The University of Minnesota, with its workforce in the thousands and numerous patents and research arms, annually creates billions of dollars in economic activity, a new report has found.
The study by Tripp Umbach, a national research firm based in Pittsburgh, found that the University of Minnesota contribution to the State of Minnesota totals more than $8.6 billion a year.
The public university generates more than $470 million in state taxes, according to the report, and supports more than 77,000 workers accross the state. With more than 32,000 full- and part-time workers on its payroll, the University is also the fifth-largest employer in Minnesota.
“We are unquestionably one of the state's most powerful economic drivers…” said University President Eric Kaler, noting that the school’s alumnus, employees and the startups it launches, “[all of which contribute] every day to Minnesota’s prosperity.”
Tripp Umbach’s calculations are based off combined impacts from the University of Minnesota’s five campuses, schools and colleges; University research; outreach initiatives; U of M Extension; M Health; and U of M Research and Outreach Centers across the state. Given these various measurements, the tangible impact of the school system is multi-faceted.
Regarding its contribution to the state workforce, an estimated 61 percent of the more than 16,000 graduates the University churns out each year remain in Minnesota upon completion of their degree.
Members of each graduating class (undergraduate and advanced degrees combined) add more than $189 million in annual earning to the state’s economy. Assuming they stay employed in Minnesota for 40 years, each class contributes more than $256 billion to the state over a lifetime.
The University has also made its mark through research. It operates 10 research and outreach centers throughout the state, which are focused on environmental-related issues and solutions, and had a $74.2 million impact in fiscal year 2017.
Overall, the University generated more than $1.2 billion in research impact last year. Much of its research efforts have resulted in patents and licenses that rake in millions for the University of Minnesota itself.
MinnPost reported recently that in 2017, 273 technologies — including varieties of fruit, cancer treatments, and a virtual driving mirror — produced about $22.8 million for the school system. Patents and licenses over the last decade have generated more than $542 million.
Meanwhile, the University has a significant health provider arm as well. Its health care activity has resulted in more than $1.2 billion for the state in fiscal year 2017, supported more than 8,000 jobs and brought in more than $64 million in state taxes for Minnesota.
“This research confirms what we’ve known to be true,” said Kaler in prepared remarks. “The University of Minnesota — with a presence in every county in the state — is critical to the economic and cultural vitality of our state.”