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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Zane State College |
Ohio University-Zanesville Campus |
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Mount Vernon Nazarene University |
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Kent State University at Tuscarawas |
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Muskingum University |
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Kenyon College |
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Denison University |
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Ohio State University-Newark Campus |
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Central Ohio Technical College |
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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
530
2,360
2,890
64
13
6
3
0
0
8
6
0
2,890
42
33
25
0
0
16
4,776
4,896
5,016
5,136
NA
NA
NA
19,088
19,088
21,848
10,440
10,440
13,200
354
0
0
0
0
0
82
0
0
1
5
25
10
5
17
0
13
0
19
0
0
177 |
NA
NA
2,013
409
2,422
59
19
7
6
0
0
5
2
0
2,422
9
86
5
0
0
28
8,237
8,550
8,944
9,212
25,278
25,278
50,784
24,660
24,660
50,166
17,062
17,062
42,568
351
100
0
0
0
0
78
0
2
1
0
19
9
5
18
0
8
0
12
3
0
155 |
17
26
2,391
14
2,405
60
5
4
7
0
0
4
2
17
2,405
2
98
0
0
0
9
56,680
57,500
60,000
64,000
81,900
81,900
81,900
81,900
81,900
81,900
66,500
66,500
66,500
0
509
0
0
0
0
256
0
0
20
2
175
40
35
65
15
108
4
84
15
3
822 |
31
18
1,752
432
2,184
58
3
5
6
0
0
5
13
9
2,184
8
92
0
0
0
9
55,020
63,310
66,490
69,330
87,590
87,590
87,590
NA
NA
NA
NA
NA
NA
0
495
0
0
0
0
222
0
0
20
23
88
51
7
38
7
92
8
77
27
1
661 |
82
17
1,460
648
2,108
68
5
1
2
0
0
3
20
0
1,524
7
83
10
0
584
13
29,490
30,090
30,690
31,440
46,630
46,630
46,630
45,748
45,748
45,748
38,170
38,170
38,170
0
288
91
0
0
0
122
1
4
3
20
61
9
6
37
2
35
0
20
0
0
320 |
NA
NA
410
1,475
1,885
84
5
1
4
0
0
3
2
0
1,885
18
59
23
0
0
20
6,229
6,758
7,058
7,272
NA
NA
NA
26,410
26,410
35,882
13,452
13,452
22,924
186
66
0
0
0
0
71
0
0
0
6
12
11
2
18
0
11
0
6
2
0
139 |
84
28
1,597
248
1,845
86
2
1
4
0
0
3
3
1
1,631
16
68
16
0
214
12
31,610
32,864
34,168
35,524
51,420
51,420
51,420
50,624
50,624
50,624
42,724
42,724
42,724
14
344
136
0
0
0
161
0
0
3
9
66
10
13
56
4
34
0
39
6
3
404 |
NA
NA
431
1,368
1,799
84
4
1
3
0
0
4
4
0
1,799
8
76
17
0
0
12
5,674
5,774
6,004
6,178
NA
NA
NA
17,320
17,320
20,312
10,326
10,326
13,318
53
53
0
0
0
0
42
0
0
0
1
1
0
0
0
0
0
0
3
0
0
47 |
NA
NA
536
1,083
1,619
88
3
1
2
0
1
4
2
0
1,619
54
33
13
0
0
15
5,456
5,556
5,706
5,856
NA
NA
NA
18,168
18,168
23,778
12,092
12,092
17,702
252
5
0
0
0
0
62
0
0
1
0
15
12
3
11
0
3
1
11
4
0
123 |
Sources: STI: PopStats and STI: Colossus
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