U. research money helps Utah's economy

SALT LAKE CITY – Research at the University of Utah pumps millions of dollars and thousands of jobs into Utah's economy, according to a recent study.

As a defining characteristic of the U., the thousands of hours of research conducted there contribute to the state's economic base in a number of ways, including supporting and creating jobs, increasing wages for Utah residents and providing tax revenue for state and local governments.

Data collected at the U. business offices and released in a report, " The Economic Impact of Sponsored Research at the University of Utah," estimate that for every dollar spent by the university, an additional 95 cents is generated, and for every two jobs supported by research at the U., three jobs are created in other industry sectors.

"Based on this analysis, it is apparent that the University of Utah is an engine of economic growth, pumping millions of dollars into the state's economy each year," said Jan Crispin, the report's author and a senior research economist at the Bureau of Economic and Business Research at the U.'s David Eccles School of Business.

Crispin estimates that every million spent on sponsored research at the university supports 20 jobs in Utah, generates approximately $849,450 in earnings for Utah workers, contributes $1.4 million in gross state product and provides $86,135 in state and local tax revenue.

"Research conducted at the University of Utah not only advances science, technology and medicine, but also has positive economic effects that are felt broadly outside of academia," she said.

In the past year, the university collected $354.7 million in research funding, the power of which is now easier to translate, "not only for students and research outcomes on campus, but also on the economy of the entire state," said U. Vice President for Research Tom Parks. Research is something that sets the U. apart from many other higher-education institutions in the state.

Research spending in 2008 totaled $525.3 million in gross state product, which is about 160 million more than the university spent on research that year. Those dollars supported 2,920 jobs at the U. and 4,380 jobs not directly connected to campus. The total employment impact was 7,300 full- and part-time jobs, with wages totaling $310 million. The resulting tax revenue was $31.4 million.

"This is new money flowing into the state from sources such as the National Science Foundation and National Institutes of Health," Crispin said. "These are important dollars for Utah." In relation to the total economic activity in the state, the report found that the impacts of the U.'s sponsored research accounted for slightly more than four-tenths of a percent of both Utah's total employment and total earnings during the 2008 fiscal year that was studied. The complete report can be found online at www.bebr.utah.edu.

e-mail: wleonard@desnews.com