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.
|
Hartwick College |
SUNY Morrisville |
|
Colgate University |
|
SUNY Broome Community College |
|
Binghamton University |
|
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
|
38
17
16,601
1,855
18,456
50
5
16
12
0
0
4
2
12
14,409
2
97
2
0
4,047
18
10,014
10,390
10,363
10,363
30,657
30,657
49,747
30,657
30,657
49,747
15,108
15,108
34,198
0
3,573
1,229
138
86
0
935
33
0
55
131
86
268
208
163
76
327
0
257
165
2
2,706 |
NA
NA
2,462
2,967
5,429
61
11
6
11
0
0
4
7
0
5,429
39
44
18
0
0
19
6,136
6,332
6,704
7,470
25,870
25,870
31,342
21,155
21,155
26,627
12,382
12,382
17,854
670
NA
NA
NA
NA
NA
172
0
0
6
65
30
27
16
13
1
44
0
48
2
8
432 |
12
32
3,120
26
3,146
65
4
5
9
0
0
6
2
8
3,131
2
98
0
0
15
9
60,015
61,966
64,290
67,024
87,070
87,070
87,070
NA
NA
NA
NA
NA
NA
0
746
10
0
0
0
355
1
0
17
38
67
81
51
130
16
129
3
128
46
1
1,063 |
91
16
1,700
340
2,040
55
26
1
10
0
1
3
1
2
2,030
15
75
10
0
10
13
8,740
8,741
8,741
8,769
27,539
27,539
37,959
27,539
27,539
37,959
11,899
11,899
22,319
257
163
0
0
0
0
135
0
8
3
19
35
29
9
36
27
67
0
37
36
0
441 |
69
12
1,094
19
1,113
61
12
2
11
0
0
3
8
3
1,112
5
93
2
0
1
10
48,364
49,814
51,309
52,849
68,896
68,896
68,896
60,049
60,049
60,049
54,049
54,049
54,049
0
249
3
0
0
0
114
0
0
4
34
28
16
14
51
4
19
0
30
0
0
314 |
Sources: STI: PopStats and STI: Colossus
|