The University Research Corridor (URC) is an alliance of Michigan’s research universities, including the University of Michigan, Michigan State University, and Wayne State University. URC retained Anderson Economic Group to estimate the economic impact that URC universities have on Michigan’s economy. AEG has been conducting this economic benefit analysis for the URC since 2007.
Anderson Economic Group created a custom economic impact model to estimate the economic and fiscal impacts of URC institutions. Our model is based on a conservative methodology first developed by AEG consultants in 2006. This same model has been deployed consistently across time, allowing readers to compare the URC’s economic performance over time and ensuring continuity. For the 2019 report, experts at AEG used data from URC universities on university spending, employment, and enrollment, along with data on URC alumni to determine the net economic impact of the URC in Michigan.
In our 2019 benchmark, we found that URC universities contribute significantly to Michigan’s economy through university expenditures on payroll and non-payroll items, URC student spending, and incremental earnings by alumni. In FY 2019, URC universities generated $19.3 billion in incremental economic activity, and supported more than 81,000 jobs in Michigan that were directly or indirectly attributable to a URC institution. In addition, the URC increased tax revenues for the State of Michigan by $640 million in FY 2019, which was 20 times the state’s total appropriations across the three universities.
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See this year’s report for more details. |