Rochester Higher Education Development Committee Projections of Economic Impact The Role and Impacts of a Signature Research University in Southeast Minnesota

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Rochester Higher Education Development
CommitteeProjections of Economic ImpactThe
Role and Impacts of a Signature Research
Universityin Southeast Minnesota
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The Assignment
The Rochester Higher Education Development
Committee recommends that the State of
Minnesota Establish a world-class signature
research and higher education institution focused
on programs that complement and capitalize on
southeast Minnesotas existing leadership roles
in health sciences, bio-sciences, engineering and
technology.

• Impact Economics, LP retained to calculate the
  projected economic impact and potential return on
  investment to the State of following this
  recommendation.

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The Basic Structure of University Impacts
Business Formation
Labor
Business Growth/Retention
RD
Business Attraction
Supplies
Multiplier Effect (Local Re-spending)
Forward Effects
Backward Effects
Local Spending
Utilities
Education
Private returns
Social returns
Building
Extension
Outreach Service
Volunteerism
Consulting
Total Impact (Backward Linkage)
Q of L Events
Image
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Impact Classifications

• Backward Linkage (Spending) Impacts
• Input/output analysis based
• Impact on output (business volume) and employment
• Forward Linkage (Functional) Impacts
• Research Development
• Higher Education
• Outreach and Service

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Research Assumptions

• The basic parameters used are those specified in
  the RHEDC report delivered to Governor Pawlenty
  and the State Legislature on January 25th, 2006.
  The RHEDC report details the size, scope and
  mission of the expanded university and serves as
  the foundation for developing impact estimates.
• The specific characteristics of national
  universities known to be productive in
  stimulating regional technology-based economic
  development have been evaluated, and the impact
  projections assume the expanded university will
  be developed similarly. The university should be
  state-of-the-art in terms of incentives and
  support for entrepreneurial and economic
  development activity.
• It is assumed that education gained at the
  University of Minnesota Rochester will not simply
  be a substitute for education available elsewhere
  within Minnesota. It is expected that the
  majority of students will be achieving
  specialized degrees specific to the health
  science, biomedical, bioscience, computer science
  and technological focus contained in partnering
  institutions such as the Mayo Clinic, IBM and
  other public/private sector partners.
• The rate of retention in the State of Minnesota
  of students graduating from the University of
  Minnesota Rochester is projected to be similar to
  the national average for land grant colleges and
  universities.

Various forces impacting the university and its
operating environment will serve to affect
(upwards or downwards) the impacts that are
ultimately achieved. Market forces, capital
availability, actions by competing universities,
state revenue and its impact on state spending,
and the unpredictable nature of innovation and
scientific discovery are variables that are
subject to change and thus will affect the
ultimate impacts achieved.
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Economic Assumption

• Impact Economics understands that the intension
  is to create a signature research university with
  specialized programs designed to link the
  university to the research and skilled human
  capital needs of key economic entities in the
  state within target industry sectors.
• Because of its highly specialized focus, the
  university will not be in direct competition with
  other state higher education institutions.
• Technology-based economic development will expand
  the economy of the State and SE Minnesota region,
  thereby increasing demand for the more
  broad-based educational services of other
  regional and state higher education institutions.

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University Parameters

• Will be an expansion of the University of
  Minnesota Rochester
• Will be a highly focused signature research
  institution with programs focused in
• Biosciences and Health Sciences
• Engineering, Computer Sciences and Informatics
• Business Studies and Entrepreneurship

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University Development

• The RHEDC report envisions expansion of the
  University of Minnesota Rochester in two primary
  phases.
• The first phase covers years one through five of
  university operations and assumes that the
  university will be initially accommodated in
  30,000 sq. ft. of leased space in Downtown
  Rochester.
• Once established at this leased location,
  planning would begin for development of a
  purpose-built campus in close proximity to the
  Mayo Clinic (again in Downtown Rochester).
• Construction of the first phase of the permanent
  new campus is anticipated to begin in Year 4 with
  development on a two city-block site with a newly
  constructed 60,000 sq. ft. facility (with
  occupancy anticipated in Year 6).

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Size Parameters(at new campus)
2011 2012 2013 2014 2015
Sq. Ft. 60,000 60,000 60,000 60,000 60,000
Students 842 968 1,162 1,395 1,673
Faculty 21.1 28.4 36.8 49.7 65.2
Staff 63.3 85.2 110.5 149.2 195.7
RHEDC financial projections for the University
expansion show a state investment of 45.4
million for developing new facilities (including
debt service). Annual operating costs, by the
year 2015, are projected to be 61.5 million.
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Structuring for Technology Based Economic
Development

• Economic impact projections assume that the
  University of Minnesota Rochester will be
  structured to be state-of-the-art in terms of
  industry-partnering, faculty entrepreneurship,
  technology transfer and new business formation.
• The state has the opportunity to be innovative,
  creating a research university focused on
  biosciences, information technology and other
  advanced technological disciplines that is
  structured to facilitate the local
  commercialization of research discoveries and
  innovation.
• This opportunity should not be missed, and it is
  imperative that the state does not allow just
  another traditional academic community to
  develop, devoid of a formal commercialization
  imperative and mission.

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Structuring for Technology Based Economic
Development

• Entrepreneurial institutional culture and rewards
  system
• Hiring entrepreneurial faculty
• Institutional financial structures that favor
  industry research
• IP protection fund
• Liberal IP licensing and royalty policies
• Industry research partnerships and
  industry-university advisory boards and councils
• Pre-seed and seed capital fund
• Entrepreneurial development courses, assistance
  and mentoring programs
• Business incubator program
• Industry education and training programs
• Industrial extension and technical assistance
• Career and Internship Services and Placement

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University Research, Development and
Education Structuring for Technology-Based
Economic Development
Private Sector
Industry-University Advisory Boards
Partnering Business Development
Industry Research Partnerships
Institutional Focus
Impact Outcomes for Minnesota
Industry Education Training Programs
Research Niches and Core Competencies
New Technology and Products for Existing MN
Business
Industry Extension Technical Assistance
Technology Process Improvement for Existing MN
Business
IP Protection and Technology Transfer
Applied and Translational Research Imperative
Creation of New MN Technology Businesses
Entrepreneurial Training Development
Attraction of Businesses to MN
University Entrepreneurial Culture (Incentives
and Awards)
Pre-Seed/Seed Capital Fund
Licensing and Royalty Revenues from Out-of-State
Projects
Business Incubator and Services
Trained Personnel for MN Businesses and Increased
Personal Incomes
Career and Internship Services/Placement
Partnerships with Economic Development
Organizations
State Local Government
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Economic Impacts
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Impact Highlights

• Backward Linkage Impacts
• Construction of expanded facilities 121 jobs and
  98.3 million in total economic impact (2.2 ROI)
• Operations 2015 (full size) 261 direct jobs and
  375 indirect jobs via institutional spending.
  90.4 million in annual spending impacts. (1.5
  times ROI on operating expenditures).
• Forward Linkage Impacts
• Between 30 and 60 million (per year of higher
  education) for the Minnesota Economy through net
  present value of productivity increases realized
  through higher education gained at the
  university. (Added to spending impacts this
  increases operational ROI to between 2.0 and 2.5)
• The University is estimated to attract between
  18 million and 22 million in external funds to
  support advanced research programs on campus.
  (276,000 to 337,400 per faculty member).
• Research to produce innovations expected to
  generate between 8 and 13 start-up enterprises in
  2015, with direct employment ranging from 240 to
  380 jobs. Employment and output multiplier
  effects will be significant. At the 240 direct
  jobs level between 642 and 1,331 total jobs would
  be generated in Minnesota and between 105.7 and
  345.3 million in total economic output. This
  increases the operational ROI to between 3.7 and
  8.1.
• Advanced education will provide graduates with a
  two-times increase in their average annual
  lifetime earnings, equating to an increase of
  between 0.66 billion and 1.32 billion in
  personal lifetime earnings capture for
  Minnesotans occurring on an annual graduating
  class basis.

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Backward Linkage Impacts
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Impact of the University on the Minnesota
Economy (all data in millions, except
employment)
Output Income Employment (ftes) State Personal Income Taxes
Construction
Direct 39.5 -- -- --
Indirect 58.8 25.2 121 0.8
Total 98.3 25.2 121 0.8
Operations (2015)
Direct 44.6 9.9 261 0.7
Indirect 45.8 13.0 375 0.5
Total 90.4 22.9 636 1.2
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Forward Linkage Impacts

• Research
• Higher Education
• Outreach Service
• Other Impacts

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Function
Benefits
Impacts
University RD Functional Economic Impacts
Licensing of intellectual property
Jobs, output, income and govt revenue
Minnesota-based licensees. Open new markets,
generate new revenue streams, enhance
competitiveness.
Incubation and generation of new Minnesota
businesses
New Minnesota business enterprises. Open new
markets, generate new revenue streams, enhance
competitiveness.
Jobs, output, income and govt revenue
External research funds attracted to Minnesota
Enhanced income streams, product lines,
productivity and income for Minnesota businesses
New products for Minnesota industry
Jobs, output, income and govt revenue
Commercial research funding from external industry
Improved products for Minnesota industry
Enhanced income streams, product lines,
productivity and income for Minnesota businesses
Jobs, output, income and govt revenue
New products, discoveries and solutions to
problems
University Research and Development
Improved production technologies
Enhanced income streams, product lines,
productivity and income for Minnesota businesses
Jobs, output, income and govt revenue
Commercial research funding from Minnesota
industry
Enhanced position of Minnesota in rapidly
emerging biotechnology sector. New products,
companies and associated potential.
New bio-based products/ biotechnology
Jobs, output, income and govt revenue
Improved more cost effective healthcare
Enhanced public health, social welfare and
reduced healthcare/medical costs for business and
society
Productivity and reduced negative costs
State of Minnesota research funds
Jobs, output, income, govt revenue, reduced costs
Environmental protection and remediation
Enhanced environment, reduced remediation costs,
marketable technologies and processes
Enhanced rural and urban quality of life
Maintain social fabric, reduce poverty, sustain
quality of life and traditions
Reduced negative costs
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Research Funds

• University of Minnesota Twin Cities generates
  211,546 in external research per faculty member.
  
• 65.2 new faculty projected to be required when
  University of Minnesota Rochester at full
  operational level (2015)
• At 211,546 in research per faculty this equals
  13,792,799 in total projected research funds.
  Using 3 inflation, by 2015 research funding
  would be 276,020 per faculty member
  (17,996,504.)
• Expect the majority of research funding will come
  from federal and other major sources external to
  the State of Minnesota, thereby providing a
  proportionate expansion in the states economic
  base.
• The advanced bioscience and technology focus is
  likely to result in higher volumes of research
  funding per faculty member than experienced for
  the whole of the University of Minnesota Twin
  Cities. Thus Impact Economics projects the 65.2
  faculty will generate between 18 to 22 million
  in research (276,000 to 337,400 per faculty
  member) annually by 2015.

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Licensing Tech Transfer

• By 2015 the University of Minnesota Rochester
  would be expected to generate between 8 and 10
  invention disclosures per year, resulting in
  between 1.5 and 2 issued patents.
• University expected to be managing a total of 21
  to 26 accumulated license agreements by 2015 with
  gross revenues to the University of between 1.2
  and 1.5 million.
• The disclosure and patents data represent just a
  single year (2015) and there would have been
  further activity accumulating prior to this (as
  the university begins its projected development
  in 2006).
• National data show that biomedical research lends
  itself to the highest volume of IP generation,
  together with research in computer science and
  associated data and communications equipment,
  These strong areas of IP generation are a direct
  match for the intended areas of University focus.
  Impact Economics thus believes that the IP
  generation potential of the university will
  likely be higher than the numbers quantified
  above.

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Business Formation (Start-Ups)

• Impact Economics projects that by 2015 the
  University may generate between 8 and 13 start-up
  enterprises (that year) with direct employment
  ranging from 240 to 380 jobs.
• This depends, however, on the university being
  structured in a manner conducive to innovation
  and entrepreneurship.
• The upside potential for job creation will be
  higher for several reasons
• The university will be an ongoing operation so
  the above figures represent only an annual
  snapshot.
• The above figures are for direct employment and
  the university, its research and spin-off
  companies will also generate substantial indirect
  employment in the economy via the multiplier
  effect.
• If one or two of the university-related start-ups
  achieves a high level of success (as has occurred
  with some previous University of Minnesota
  start-ups), then impacts will likely be many
  orders of magnitude higher.

• The Star Tribune newspaper publishes a list of
  the 100 largest public companies in Minnesota.
  Nineteen of these 100 companies were founded by U
  of M IT alumni, including
• ADC Telecommunications
• ASV Inc.
• August Technology
• CNS Inc.
• Ceridian
• Compex Technologies
• CyberOptics Corp.
• Datalink Corp.
• Digital River
• Donaldson Company
• Fastenal
• Hawkins Inc.
• MGI Pharma
• MTS Systems
• Medtronic
• Pemstar
• Pentair

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Business Formation (Start-Ups)

• Start-up Employment, Output and Indirect Impacts
• IMPLAN input/output multipliers used for
  projections
• Two sectors modeled relevant to the Minnesota and
  Rochester-area economies that are likely to see
  spin-off activity Sector 302 Electronic
  Computer Manufacturing and Sector 375 Surgical
  and Medical Instrument Manufacturing
• For computer manufacturing the employment
  multiplier is 5.5 and the output multiplier is
  2.0.  For medical devices the employment
  multiplier is 2.7, and the output multiplier is
  1.8

• Top US Corporate Patent Classes are Well Matched
  to the Planned Focus of the University in
  Rochester
• 1 Surgical instruments
• 2 Biology of multi-cellular organisms
• Surgery light, thermal and
• electronic applications
• 4 Surgery application, storage and collection
• 5 Prostheses
• 6 Computer and digital processing
• 7 Data processing
• 8 Special receptacle or package
• 9 Telephone communications
• 10 Communications directive radio wave
• 11 Chemistry molecular biology and microbiology

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Leading Patent Generating Entities in Minnesota
Entity Primary Industry 2000 2001 2002 2003 2004 Total
3M Innovative Products Company Multiple (diversified), including health and biomedical 308 313 377 410 371 1779
Individually Owned Patents Multiple 335 295 293 322 254 1499
IBM Computing and related equipment 206 219 209 204 214 1052
Medtronic Biomedical devices and equipment 131 101 103 109 105 549
Seagate Technology LLC Computing and related equipment 18 89 121 122 129 479
Sci-Med Life Systems Biomedical devices and equipment 80 71 75 85 68 379
Cardiac Pacemakers Biomedical devices and equipment 41 65 86 93 74 359
Honeywell International Automation and control equipment 11 69 74 81 124 359
ADC Telecommunications Telecommunications infrastructure equipment 15 23 46 74 75 233
Micron Technology Computing and related equipment 19 46 56 39 34 194
Ecolab Commercial cleaning services 27 36 42 45 41 191
University of Minnesota Multiple 43 36 37 36 38 190
Unisys Computing and related equipment 20 23 26 28 53 150
Imation Removable data storage products 27 32 26 30 32 147
General Mills Food processing 25 32 29 15 20 121
Rosemount Measurement instrumentation 17 13 22 43 21 116
Donaldson Company Filtration and exhaust systems 23 25 21 21 15 105
Mayo Foundation Biomedical research, products and devices 17 20 21 26 20 104
Augustine Medical Biomedical devices and equipment 22 27 20 16 1 86
Honeywell Inc. Multiple, electronics and controls 38 24 11 8 5 86
Eastman Kodak Company Biomedical imaging equipment 13 8 27 12 22 82
Parker Hughes Institute Biomedical, cancer drug development 3 18 27 16 12 76
Seagate Technology Inc. Computing and related equipment 57 10 4 4 1 76
Cargill Inc. Agricultural and food processing 18 14 15 10 9 66
LSI Logic Corporation Computing and related equipment 13 6 10 11 17 57
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Business Formation (Start-Ups)
Impact of Business Start-Ups Based on Employment
Projections Sectors Computer Manufacturing and
Medical Device Manufacturing Direct Employment
Projected at the 240 and 380 Job
Levels Employment (Jobs) Impact
Sector Direct Employment Generated Employment Multiplier Total Employment (Direct Indirect Induced)
Computer Mfg. 240 5.547461 1331.4
Medical Device Mfg. 240 2.673865 641.7
Computer Mfg. 380 5.547461 2108.0
Medical Device Mfg. 380 2.673865 1016.1
Output (Economic) Impact
Sector MN Output (millions) MN Employment Output Per Job New Jobs in Sector New Output in Sector (millions) Output Multiplier Total Additional Output
Computer Mfg. 5,735.509 8,136 704,964 240 169.189 2.040719 345,267,321
Medical Device Mfg. 1,655.351 6,862 241,234 240 57.896 1.826062 105,722,188
Computer Mfg. 5,735.509 8,136 704,964 380 267.883 2.040719 546,673,259
Medical Device Mfg. 1,655.351 6,862 241,234 380 91.669 1.826062 167,393,464
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Research impacts have the potential to vary from
those estimated. Impact Economics estimates that
the following impacts of the expanded University
of Minnesota Rochester are reasonable for 2015
University research volume (annual) 20 million
Faculty conducting research 65
Support staff 196
Invention disclosures (annual) 9
Patents issued (annual) 4
Start-up enterprises (annual) 6-8
Direct jobs in start-up enterprises (annual) 180
Total jobs related to start-ups (including indirect) 600
Total output related to start-ups (direct and indirect) gt 100 million
These are point in time impacts for a single year
(2015). Economic impacts would be cumulative,
accruing year after year as additional research
funds are brought in, innovations made, and
businesses started.
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Impact of Higher Education

• Skilled human capital has been identified by
  economists as the most important determinant of
  economic growth in the 21st century economy.
• The key economic impact of higher education comes
  via productivity increases.
• By gaining advanced education (especially in
  technical and scientific disciplines) an
  individuals knowledge and skills are enhanced.
• When applied in the workplace this enables higher
  levels of productivity to be achieved (in
  addition to other key benefits such as higher
  levels of creativity and innovation).

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Impact of Higher Educationon Productivity

• Impact Economics used net present value analysis
  to project the potential impact of productivity
  increases in the Minnesota economy likely to be
  driven by the Universitys programs. Based on
  the projected size of the University of Minnesota
  Rochester, it is reasonable to expect that the
  net present value of productivity gains to the
  Minnesota economy generated by graduates of the
  institution will likely be in the range of 30-60
  million per year of higher education gained (for
  the total enrollment).

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Private Returns to Education

• In addition to generating societal economic
  returns, higher education also provides economic
  benefits for individual Minnesotans. These
  personal economic benefits can be clearly seen
  through the earnings differentials that increase
  as higher education level increases, and in the
  internal rate of return (IRR) on a university
  education.

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Median Earnings and Tax Payments by Level of
Education, 2003.
95,700
79,400
59,500
49,900
37,600
35,700
30,800
21,600
Source US Census Bureau, 2004
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Expected Lifetime Earnings Relative to High
School Graduates, by Education Level
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Private Returns to Minnesotansof Higher
Education Gained

• Impact Economics used US Census Bureau figures
  for average lifetime earnings to estimate
  increased personal income potentials for
  Minnesotans enrolling in University of Minnesota
  Rochester programs.
• On a rolling year-to-year basis, it is found that
  those graduating from the Rochester university
  programs would likely increase their collective
  combined lifetime earnings by between 1 billion
  and 2 billion.
• National data for land grant universities
  indicate that 66 of students from state
  universities will stay and work in the
  universitys home state for a significant period
  of time based on this it may be assumed that
  the potential is there for between 0.66 billion
  and 1.32 billion in personal lifetime earnings
  capture for Minnesotans on an annual graduating
  class basis.
• Overall these data show that by enrolling in the
  new university students will gain a two-times
  increase in their annual lifetime earnings on
  average.

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Outreach and Public Service

• Research shows education level to be highly
  correlated with volunteerism and public service.
• Land grant university extension operations found
  to be especially relevant in 21st century
  innovation driven economy.

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Additional Impacts

• Increased retention of skilled high-school
  graduates
• Attraction of increased volumes of visitors to
  the community, coming to attend special events,
  seminars and educational programs at the
  university in its specialized subject areas
• Increasing the reputation and recognition of
  Rochester as a hotbed of not only technology
  development and application, but also advanced
  education in bioscience and technology.
• Recruitment of personnel to technology-based
  companies and institutions in Minnesota helped by
  having a high quality advanced and continuing
  education institution available.

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Additional Impacts

• With a strong focus on biosciences and biomedical
  research, combined with the local presence and
  collaboration of the Mayo Clinic, it is likely
  that the university will be at the forefront of
  advanced biomedical discoveries. Biomedical
  products have the potential to prevent or cure
  diseases and sustain human health, quality of
  life and worker productivity. Economic benefits
  result from this in terms of healthcare costs
  prevented and prevention of lost workforce
  productivity due to illness or injury.
• The university may also serve to help increase
  clinical care volumes at Mayo. A significant
  portion of Mayos patient population is attracted
  to the Clinic because of its research leadership
  and to access experimental clinical protocols.
  The universitys biosciences research,
  particularly in translational and clinical
  research, may add to Rochesters attractiveness
  for patients especially since it is expected that
  Mayo, the U of M Medical School and the Minnesota
  Partnership for Medical Genomics will be active
  partners in the universitys research programs.

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Conclusions

• The expanded University of Minnesota Rochester
  will be a positive investment for the state
  providing between a three and eight fold return
  on the states investment.
• The University will significantly strengthen and
  build Minnesotas position in the modern
  technology-driven 21st Century economy.
• The University effectively leverages, and builds
  upon, the existing strengths of the Minnesota and
  SE Minnesota economies. It emphasizes pragmatic
  RD aimed at generating innovation-based economic
  development, and will help to meet demand for
  skilled human capital in key technology growth
  fields and strategic employment sectors.
• By focusing on advanced RD and associated
  technological and bioscience education the
  University will fill a unique opportunity
  working to complement other higher education
  institutions in the state, rather than directly
  competing with them.

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Conclusions

• Backward Linkage Impacts
• Construction of expanded facilities 121 jobs and
  98.3 million in total economic impact (2.2 ROI)
• Operations 2015 (full size) 261 direct jobs and
  375 indirect jobs via institutional spending.
  90.4 million in annual spending impacts. (1.5
  times ROI on operating expenditures).
• Forward Linkage Impacts
• Between 30 and 60 million (per year of higher
  education gained) for the Minnesota Economy
  through net present value of productivity
  increases realized through higher education
  gained at the university. (Added to spending
  impacts this increases operational ROI to between
  2.0 and 2.5)
• The University is estimated to attract between
  18 million and 22 million in external funds to
  support advanced research programs on campus.
  (276,000 to 337,400 per faculty member).
• Research to produce innovations expected to
  generate between 8 and 13 start-up enterprises in
  2015, with direct employment ranging from 240 to
  380 jobs. Employment and output multiplier
  effects will be significant. At the 240 direct
  jobs level between 642 and 1,331 total jobs would
  be generated in Minnesota and between 105.7 and
  345.3 million in total economic output. This
  increases the operational ROI to between 3.7 and
  8.1.
• Advanced education will provide graduates with a
  two-times increase in their average annual
  lifetime earnings, equating to an increase of
  between 0.66 billion and 1.32 billion in
  personal lifetime earnings capture for
  Minnesotans occurring on an annual graduating
  class basis.

37
Conclusions

• It is the opinion of Impact Economics LP that the
  University represents an eminently logical
  strategic move for Minnesota.
• The state is in competition with other
  technology-based economies in the US and overseas
  and it is critically important that Minnesota
  invest wisely to secure maximum returns from its
  current and developing assets.
• Organizations such as the Mayo Clinic and IBM
  have major operations in multiple states and they
  can choose to direct their RD and investment
  resources to where the best opportunities present
  themselves. A substantial volume of data support
  the fact that a research university is a
  critically important catalyst for building
  sustainable RD and innovation-based economies,
  and without the expansion of the University of
  Minnesota Rochester it is likely that existing
  assets in Rochester may be slowly lost to
  competing states and the substantial potential
  for technology-based economic development in SE
  Minnesota left unrealized.

38
What others say
Research centers and institutions are
indisputably the most important factor in
incubating high-tech industries. A side effect
of the technical capability and scientific
research activities is the training and education
of the skilled labor that will be critical to the
expansion and reinforcement of regional high-tech
industries. R. DeVol (1999) Americas High Tech
Economy. The Milken Institute
Few institutions have more to offer in propelling
economic development on both a national and local
basis that our nations colleges and
universities. They are the creators and
disseminators of knowledge and understanding that
can help address urban challenges. As leading
institutions in their communities, they are
powerful economic drivers, technology centers,
employers, developers and investors. R. Rosan,
2002. The Key Role of Universities in Our
Nations Economic Growth and Urban
Revitalization.
University research is a powerful stimulus for
economic development producing measurable
increases in GDP and employment. More
importantly, university research is shown to
exert a dynamic and continuing impact on
underlying productivity of the economy, which
carries forward into the future. F. Martin and
M. Trudeau. The Economic Impact of University
Research.
39
What Others Say

• Premier universities are at the heart of just
  about every high-tech success story
• Silicon Valley in California developed around the
  universities of Stanford and Berkeley. In 1996,
  more than half of the 100 billion income from
  the economy of Silicon Valley came from companies
  started by Stanford graduates and faculty.
• In 1997 the Bank of Boston Economics Department
  issued a report MIT The Impact of Innovation
  that described the economic benefits flowing from
  the university. The report emphasized the
  creation of 14,000 jobs in Cambridge alone at
  companies founded by MIT faculty and graduates.
  Throughout Massachusetts it was found that over
  1,000 businesses were started by MIT graduates
  employing more than 125,000.
• Research Triangle Park (supported by Duke
  University, University of North Carolina, and
  North Carolina State University is another
  success story. Today the park contains more than
  100 companies employing more than 36,000. Major
  companies located in the park now include
  Motorola, Nortel, DuPont, IBM, Harris
  Microelectronics and SAS.
• The University of Texas is credited with
  contributing to the development of more then 600
  high technology companies in the Austin area and
  the business corridor into Dallas.
• Statewide Office of Budget and Institutional
  Research, Alaska. July 2002.

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