Economic impact of the University of Minnesota exceeds $8.6 billion annually
Tripp Umbach, a national research firm based in Pittsburgh, Penn., announced that the University of Minnesota contributes more than $8.6 billion a year in economic activity to the state of Minnesota—supporting more than 77,000 jobs across Minnesota and generating more than $470 million in state taxes.
“This research confirms what we’ve known to be true: The University of Minnesota—with a presence in every county in the state— is critical to the economic and cultural vitality of our state,” said University President Eric Kaler. “We are unquestionably one of the state's most powerful economic drivers through our 356,000 alumni in the state, our 32,000 full- and part-time employees and the innovative startups we launch, all contributing every day to Minnesota’s prosperity.”
Tripp Umbach’s calculations included combined impacts from the University of Minnesota’s five campuses, schools and colleges; University research; outreach initiatives; U of M Extension; M Health; and U of M Research and Outreach Centers across the state.
Each year, more than 16,000 graduates from across the University system enter the workforce, the vast majority of whom (historically 61 percent) stay in Minnesota. The University has five campuses (Crookston, Duluth, Morris, Rochester and the Twin Cities) and provides undergraduate, graduate and professional degrees (including medicine, law, veterinary science, business, etc.) for nearly 68,000 students.
Each year, the graduating class (both undergraduate and advanced degrees) adds more than $189 million in annual earning to the state's economy, powering communities throughout the state. Over a lifetime of employment (assuming 40 years of employment), all U of M alumni currently living in Minnesota will have contributed more than $256 billion in impact.
Competing against higher education institutions across the country, and indeed around the world, the University in 2017 generated more than $1.2 billion in research impact, the highest amount of which (more than $400 million) was in medical and healthcare research advancing human health. This research spun out 18 companies alone in 2017, for a total of 119 companies launched since 2006. Three out of four startups are based in Minnesota, and 78 percent remain active.
Additionally, the University operates 10 Research and Outreach Centers throughout the state. The centers enhance the quality of agricultural production, renewable energy, water quality, wildlife management and more. In fiscal year 2017, the economic impact of the Research and Outreach Centers totaled $74.2 million.
University of Minnesota health providers, working under the M Health banner, generated more than $1.2 billion in impact for the state in fiscal year 2017 and directly and indirectly supported more than 8,000 jobs. In addition, this activity generated more than $64 million in state taxes for Minnesota. These healthcare providers work to keep Minnesotans across the state healthy and strong.
U of M employees
With more 33,207 employees statewide (both full- and part-time), the University is the state's fifth largest employer. These employees boost the vitality of the state and bolster their respective local economies.
For more information on the University’s economic impact and the Tripp Umbach survey, visit: https://z.umn.edu/economic-impact.