Universities play a crucial role in shaping local economies by driving employment, fostering business growth, attracting investment, and enhancing the overall quality of life in their host communities. Their economic impact extends beyond direct spending to include long-term benefits such as workforce development, innovation, and cultural enrichment. Below, we explore the key ways in which a university influences a local economy.
- Direct Employment and Spending
A university is often one of the largest employers in a local area, providing jobs for faculty, administrative staff, maintenance workers, and other professionals. These employees spend their salaries on housing, groceries, transportation, and entertainment, injecting money into the local economy. Additionally, universities spend significant amounts on construction, utilities, and local services, further stimulating business activity.
Students also contribute to local spending. Many bring outside money into the community through tuition payments, federal aid, and personal expenditures on rent, food, and retail. A large student population can sustain businesses such as bookstores, coffee shops, restaurants, and housing providers.
- Business Development and Entrepreneurship
Universities often serve as hubs for innovation and entrepreneurship. Research institutions, business incubators, and technology transfer offices help commercialize academic research, leading to startup formation and industry partnerships. For example, Stanford University's role in Silicon Valley's growth demonstrates how academic institutions can spur regional economic development.
Local businesses benefit from university partnerships, including procurement contracts for supplies, catering, and maintenance services. Furthermore, universities attract conferences, sporting events, and cultural activities that generate tourism revenue for hotels, restaurants, and transportation services.
- Human Capital and Workforce Development
A well-educated workforce is essential for economic competitiveness. Universities produce graduates with specialized skills that attract high-paying industries, such as technology, healthcare, and finance. Many graduates remain in the area, filling critical roles in local businesses and government.
Universities also offer continuing education programs, professional certifications, and workforce training initiatives that help upskill local employees, making the regional labor market more adaptable to industry changes.
- Real Estate and Infrastructure Growth
The presence of a university can drive demand for housing, both from students and faculty. This often leads to the development of new apartments, condominiums, and mixed-use commercial spaces. Over time, universities contribute to urban revitalization by investing in campus expansions, public transit improvements, and community amenities like libraries and parks.
However, rapid growth can also lead to challenges, such as rising housing costs and gentrification, which may displace long-term residents. Local governments must balance economic expansion with policies that ensure affordable housing and equitable development.
- Cultural and Social Contributions
Beyond economics, universities enrich local culture through arts programs, public lectures, and athletic events. These activities improve residents' quality of life, making the area more attractive to businesses and skilled workers. A vibrant university town often sees increased property values and a more diverse, engaged community.
Conclusion
The economic impact of a university on a local economy is multifaceted, encompassing job creation, business growth, talent development, and infrastructure investment. While challenges such as affordability and displacement must be managed, the long-term benefits-including innovation, increased tax revenues, and a more dynamic workforce-make universities vital engines of regional prosperity. By fostering collaboration between academia, government, and industry, communities can maximize these advantages while ensuring inclusive growth.
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The Landing School |
Institute for Doctoral Studies in the Visual Arts |
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Maine College of Health Professions |
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Maine College of Art & Design |
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Bates College |
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York County Community College |
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Bowdoin College |
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Central Maine Community College |
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Unity Environmental University |
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University of New England |
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Southern Maine Community College |
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University of Southern Maine |
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Percent admitted - total Admissions yield - total
Full-time enrollment Part-time enrollment
Total enrollment % White % Black % Asian % Hispanic % Native Hawaiian or Other Pacific Islander % American Indian or Alaska Native % two or more races % Race/ethnicity unknown % U.S. Nonresident
Undergraduate enrollment % under 18 % 18-24 % 25-64 % over 65
Graduate enrollment
Student-to-faculty ratio
Tuition and fees, 2020-21 2021-22 2022-23 2023-24
Total price for In-district students living on campus 2023-24 In-state students living on campus 2023-24 Out-of-state students living on campus 2023-24
In-district students living off campus (no family) 2023-24 In-state students living off campus (no family) 2023-24 Out-of-state students living off campus (no family) 2023-24
In-district students living off campus (w/ family) 2023-24 In-state students living off campus (w/ family) 2023-24 Out-of-state students living off campus (w/ family) 2023-24
Associate's degree Bachelor's degree Master's degree Doctor's degree - research/scholarship Doctor's degree - professional practice Doctor's degree - other
Instructional FTE Research FTE Public Service FTE Librarians, Curators, and Archivists FTE Student/Academic Affairs and Other Education Services FTE Management FTE Business and Financial Operations FTE Computer, Engineering, and Science FTE Community Service, Legal, Arts, and Media FTE Healthcare FTE Service FTE Sales and Related FTE Office and Administrative Support FTE Natural Resources, Construction, and Maintenance FTE Production, Transportation, and Material Moving FTE Total FTE staff
|
79
16
4,016
3,512
7,528
78
6
2
4
0
1
3
4
1
5,520
18
63
19
1
2,008
14
9,528
9,904
10,120
10,920
26,812
26,812
42,996
26,812
26,812
42,996
15,162
15,162
31,346
0
934
570
11
84
0
392
6
0
19
58
47
207
43
93
8
67
0
138
44
0
1,122 |
NA
NA
2,941
4,264
7,205
76
9
2
5
0
0
3
3
1
7,205
20
57
23
0
0
19
3,880
3,874
3,797
3,797
18,065
18,065
20,945
18,983
18,983
21,863
11,163
11,163
14,043
684
NA
NA
NA
NA
NA
213
0
0
2
59
29
12
9
14
2
25
0
21
6
0
392 |
89
13
4,389
2,084
6,473
74
5
8
2
0
0
1
8
1
3,863
1
75
24
0
2,610
12
38,750
39,820
40,950
42,550
63,690
63,690
63,690
60,250
60,250
60,250
48,750
48,750
48,750
0
549
461
52
329
0
384
42
0
16
157
70
54
43
59
27
105
0
131
28
0
1,116 |
82
10
5,776
583
6,359
69
6
1
12
0
1
5
6
0
5,655
0
41
58
0
704
36
12,640
12,640
12,640
12,640
26,876
26,876
26,876
23,480
23,480
23,480
14,720
14,720
14,720
0
225
226
0
0
0
144
1
0
1
53
25
16
0
14
0
11
2
21
8
0
296 |
NA
NA
1,667
2,454
4,121
69
8
1
4
0
1
3
14
2
4,121
28
51
21
0
0
21
3,844
3,864
3,760
3,864
17,624
17,624
20,504
18,428
18,428
21,308
9,714
9,714
12,594
378
NA
NA
NA
NA
NA
105
0
0
1
18
20
5
7
9
0
10
0
5
7
0
187 |
8
57
1,845
5
1,850
52
5
11
13
0
0
10
0
7
1,850
1
98
1
0
0
9
56,350
58,322
61,528
64,910
85,100
85,100
85,100
NA
NA
NA
NA
NA
NA
0
480
0
0
0
0
231
0
0
31
0
139
49
77
91
8
212
3
104
24
12
981 |
NA
NA
526
1,256
1,782
85
2
2
4
0
0
3
3
1
1,782
36
40
24
0
0
21
3,720
3,866
3,760
3,866
20,283
20,283
23,163
29,006
29,006
31,886
9,093
9,093
11,973
152
NA
NA
NA
NA
NA
58
0
2
1
22
8
5
1
8
0
4
0
1
0
0
110 |
13
43
1,753
0
1,753
61
4
7
9
0
0
8
1
10
1,753
1
99
0
0
0
10
57,353
59,062
61,066
63,478
83,532
83,532
83,532
NA
NA
NA
NA
NA
NA
0
439
0
0
0
0
180
0
0
25
51
81
54
38
38
12
147
7
60
26
8
727 |
78
17
456
18
474
73
2
3
7
0
0
9
6
0
422
0
93
6
0
52
8
38,310
38,690
39,830
41,398
60,398
60,398
60,398
52,848
52,848
52,848
44,748
44,748
44,748
0
80
33
0
0
0
55
0
0
5
26
14
7
2
6
1
10
0
12
0
0
138 |
33
100
122
106
228
86
5
1
0
0
1
2
5
0
228
0
33
66
0
0
13
13,905
14,911
16,238
17,827
NA
NA
NA
26,827
26,827
26,827
22,027
22,027
22,027
67
11
0
0
0
0
13
0
0
0
4
4
2
0
0
0
0
0
0
0
0
23 |
NA
NA
46
47
93
62
12
4
14
0
0
2
2
3
0
NA
NA
NA
NA
93
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
0
0
1
9
0
0
2
0
0
0
0
2
0
0
0
0
0
0
1
0
0
5 |
NA
NA
43
0
43
84
2
0
5
0
0
0
2
7
43
2
28
70
0
0
7
25,012
26,012
26,012
27,700
NA
NA
NA
46,043
46,043
46,043
33,343
33,343
33,343
10
NA
NA
NA
NA
NA
6
0
0
0
0
2
1
0
0
0
0
0
4
0
0
13 |
Sources: STI: PopStats and STI: Colossus
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