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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Maine College of Health Professions |
Thomas College |
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Bates College |
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University of Maine at Farmington |
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Colby College |
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Kennebec Valley Community College |
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Central Maine Community College |
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University of Maine at Augusta |
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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
|
NA
NA
1,293
3,030
4,323
81
3
1
4
0
1
4
5
1
4,250
27
27
45
1
73
15
8,378
8,490
8,588
8,618
22,118
22,118
35,048
22,118
22,118
35,048
13,418
13,418
26,348
78
441
5
0
0
0
147
0
0
4
32
12
16
28
31
2
21
0
53
12
0
358 |
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 |
NA
NA
601
1,780
2,381
87
1
1
4
0
1
3
3
0
2,381
31
40
29
0
0
15
3,882
3,865
3,687
3,562
NA
NA
NA
17,202
17,202
20,082
10,692
10,692
13,572
243
NA
NA
NA
NA
NA
74
0
0
1
9
20
2
6
2
0
8
0
7
2
0
131 |
7
50
2,282
2
2,284
54
5
11
8
0
0
7
4
11
2,284
1
99
0
0
0
9
59,430
61,220
63,520
66,600
85,420
85,420
85,420
74,400
74,400
74,400
68,300
68,300
68,300
0
542
0
0
0
0
256
0
0
34
71
110
54
52
86
6
80
3
74
22
15
863 |
98
18
1,046
904
1,950
83
1
1
4
0
0
3
7
0
1,605
25
67
8
0
345
12
9,572
9,590
9,890
10,989
26,363
26,363
38,453
26,363
26,363
38,453
15,393
15,393
27,483
0
280
65
0
0
0
96
0
0
2
21
15
14
3
32
3
43
1
40
14
0
284 |
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 |
97
23
742
927
1,669
81
4
2
2
0
1
5
3
2
1,581
52
47
1
0
88
23
28,430
29,152
29,996
30,896
48,274
48,274
48,274
44,696
44,696
44,696
35,696
35,696
35,696
10
147
100
0
0
0
45
0
0
3
14
26
2
4
23
4
13
5
16
7
0
162 |
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 |
Sources: STI: PopStats and STI: Colossus
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