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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College of the Atlantic |
Beal University |
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Washington County Community College |
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Northern Maine Community College |
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Maine Maritime Academy |
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University of Maine at Fort Kent |
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University of Maine at Presque Isle |
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Kennebec Valley Community College |
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Eastern Maine Community College |
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Husson University |
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University of 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
|
96
14
8,079
3,681
11,760
78
2
2
4
0
1
3
4
5
9,267
7
83
10
0
2,493
15
11,738
11,986
12,136
12,606
28,572
28,572
51,312
28,572
28,572
51,312
15,876
15,876
38,616
5
1,828
648
62
0
0
611
20
36
25
144
65
348
222
180
11
213
2
268
143
10
2,298 |
86
27
2,227
906
3,133
83
5
2
1
0
0
4
3
2
2,525
5
83
12
0
608
17
19,772
20,430
21,090
22,194
37,108
37,108
37,108
36,794
36,794
36,794
25,794
25,794
25,794
9
509
234
0
58
0
170
0
0
2
58
39
17
19
38
8
88
0
34
0
0
473 |
NA
NA
1,067
1,464
2,531
76
1
1
3
0
1
3
14
1
2,531
20
55
24
0
0
18
3,877
3,865
3,877
3,877
21,817
21,817
24,607
17,359
17,359
20,149
10,885
10,885
13,675
275
NA
NA
NA
NA
NA
89
0
0
1
13
17
9
1
3
0
9
0
11
2
0
155 |
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 |
97
18
898
1,289
2,187
68
7
2
7
0
2
3
5
6
2,152
31
27
41
0
35
28
8,585
8,638
8,750
8,990
22,690
22,690
27,970
18,490
18,490
23,770
12,390
12,390
17,670
16
359
13
0
0
0
47
0
0
0
15
8
8
2
28
1
12
0
14
10
0
145 |
99
13
342
1,064
1,406
77
5
1
3
0
0
4
4
5
1,357
48
25
27
0
49
19
8,475
8,505
8,805
9,045
21,577
21,577
26,857
18,937
18,937
24,217
12,837
12,837
18,117
10
207
0
0
0
0
36
0
0
2
8
7
5
4
13
1
12
0
16
4
0
108 |
61
33
877
36
913
82
3
1
5
0
1
2
5
1
889
0
95
5
0
24
10
14,058
14,338
14,562
14,746
31,172
31,172
46,652
31,172
31,172
46,652
19,246
19,246
34,726
4
127
6
0
0
0
83
0
0
3
13
13
22
15
32
2
31
0
14
15
17
260 |
NA
NA
376
396
772
88
2
0
3
0
1
2
2
1
772
20
53
27
0
0
12
3,830
3,830
3,730
3,880
19,620
19,620
22,500
17,496
17,496
20,376
11,022
11,022
13,902
106
NA
NA
NA
NA
NA
48
0
0
1
10
9
7
1
4
0
7
0
8
3
0
98 |
NA
NA
268
417
685
76
4
0
4
0
5
3
7
1
685
21
40
39
0
0
10
3,850
3,859
3,687
3,687
13,495
13,495
16,375
15,919
15,919
18,799
10,100
10,100
12,980
44
NA
NA
NA
NA
NA
33
0
0
1
10
10
3
0
1
0
6
0
4
2
0
70 |
NA
NA
516
4
520
77
6
2
3
0
0
3
9
0
512
0
21
79
0
8
15
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
91
4
1
0
0
0
30
0
0
1
5
5
7
3
0
0
0
7
2
2
0
62 |
65
28
351
16
367
68
0
1
6
0
0
2
2
21
360
0
94
6
0
7
10
43,542
43,542
44,829
46,179
58,266
58,266
58,266
53,937
53,937
53,937
48,165
48,165
48,165
0
93
1
0
0
0
31
0
0
4
0
5
8
4
8
0
12
0
18
6
0
96 |
Sources: STI: PopStats and STI: Colossus
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