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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Triangle Tech-Chambersburg |
Triangle Tech Inc-Sunbury |
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Pennsylvania State University-Penn State Mont Alto |
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Central Penn College |
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Wilson College |
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Dickinson College |
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Messiah University |
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Harrisburg University of Science and Technology |
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Pennsylvania State University-Penn State Harrisburg |
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Shippensburg University of Pennsylvania |
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Harrisburg Area Community 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
3,477
9,403
12,880
62
10
5
13
0
0
4
3
2
12,880
20
49
31
0
0
13
6,758
6,870
7,088
7,373
NA
NA
NA
24,588
26,133
28,615
15,128
16,673
19,155
1,707
NA
NA
NA
NA
NA
672
0
0
15
65
64
81
62
41
0
42
12
136
0
0
1,190 |
86
20
4,163
1,021
5,184
75
11
2
7
0
0
4
1
1
4,421
5
90
5
0
763
18
13,544
13,544
13,544
13,544
31,078
31,078
33,332
29,530
29,530
31,784
18,126
18,126
20,380
0
933
253
0
13
0
255
0
0
11
1
40
113
22
35
4
58
0
74
32
0
645 |
96
12
4,187
464
4,651
47
9
13
8
0
0
4
2
18
4,164
2
91
7
0
487
15
15,216
15,586
15,904
15,944
38,442
38,442
49,166
36,020
36,020
46,744
21,888
21,888
32,612
6
729
187
6
0
0
299
1
0
6
9
41
31
28
50
1
85
1
65
17
1
635 |
82
14
3,297
261
3,558
9
6
2
4
0
0
1
1
78
718
10
74
16
0
2,840
17
23,900
23,900
23,900
23,900
37,800
37,800
37,800
37,800
37,800
37,800
28,900
28,900
28,900
0
104
686
6
0
0
202
0
2
3
72
13
8
11
11
0
4
32
6
12
0
376 |
78
32
2,532
812
3,344
76
5
4
8
0
0
4
1
2
2,586
11
88
2
0
758
12
37,180
38,370
39,490
40,640
56,770
56,770
56,770
58,090
58,090
58,090
45,750
45,750
45,750
0
550
213
0
42
0
240
0
0
10
31
43
34
34
75
9
114
0
89
17
4
700 |
43
17
2,176
41
2,217
64
4
5
7
0
0
4
1
14
2,204
2
97
0
0
13
9
56,523
58,733
61,351
63,475
83,227
83,227
83,227
83,290
83,290
83,290
66,490
66,490
66,490
0
371
3
0
0
0
240
0
0
13
43
95
44
45
67
8
134
0
102
29
8
828 |
90
20
652
1,042
1,694
81
6
1
5
0
0
2
4
1
1,180
4
55
41
0
514
12
26,090
26,200
26,200
27,000
41,967
41,967
41,967
37,773
37,773
37,773
30,673
30,673
30,673
2
169
123
0
0
0
69
0
0
2
4
26
11
9
24
0
5
1
18
1
0
170 |
26
61
191
636
827
48
16
3
9
0
0
6
15
3
806
0
48
51
0
21
8
18,714
18,714
19,404
19,404
30,320
30,320
30,320
27,854
27,854
27,854
22,204
22,204
22,204
107
129
10
0
0
0
48
0
0
1
13
17
3
3
15
0
7
0
5
2
0
114 |
90
24
501
87
588
78
4
4
7
0
0
4
1
1
587
4
86
10
0
1
9
13,720
14,052
14,340
14,380
33,030
33,030
42,522
34,456
34,456
43,948
20,324
20,324
29,816
55
76
0
0
0
0
61
0
0
1
0
13
7
2
10
1
26
0
11
3
0
135 |
NA
NA
64
0
64
80
8
0
11
0
0
2
0
0
64
3
72
25
0
0
7
17,933
18,665
18,701
18,700
NA
NA
NA
39,983
39,983
39,983
27,303
27,303
27,303
30
NA
NA
NA
NA
NA
8
0
0
0
3
2
0
0
0
0
1
0
1
0
0
15 |
NA
NA
63
0
63
87
0
0
11
0
2
0
0
0
63
6
70
24
0
0
13
19,183
18,799
18,961
18,961
NA
NA
NA
40,327
40,327
40,327
27,647
27,647
27,647
31
NA
NA
NA
NA
NA
5
0
0
0
2
1
0
0
0
0
0
0
1
0
0
9 |
Sources: STI: PopStats and STI: Colossus
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