NEWS

New, First-of-Its-Kind Study from Baltimore Collegetown Reveals: Baltimore’s Colleges and Universities Contribute More than $17 Billion to Regional Economy

Study Sheds Light on Higher Education as a Major Economic Force, Creator of More Than 162,000 Jobs in Region Baltimore, Md. – February 26, 2008 –

Baltimore Collegetown Network (BCN), a consortium of 16 public and private schools in the region, today announced that area colleges and universities contribute $17.2 billion in economic activity to the regional and state economy. The figure is one of many enlightening details revealed today in a new report released by BCN based on data provided by 15 regional colleges and universities,* including two major teaching hospitals, Johns Hopkins Hospital and the University of Maryland Medical Center.

As a business sector, the economic contribution of colleges and universities ranks sixth in the region, between the Port of Baltimore and tourism. The report is believed to be the first of its kind in the nation, an ambitious attempt to understand the role that Baltimore’s diverse colleges and universities play in the regional economic landscape. The institutions analyzed create more than 162,000 jobs and represent an important source of spending in the Baltimore Metropolitan Area and state economy.

“This report emphasizes the role of higher education as an industry and its importance to regional economic, workforce, social and cultural development,” said Kristen Campbell, Executive Director of Baltimore Collegetown Network. “Colleges and universities are major and significant drivers in the Baltimore economy and important partners in the future growth of the region.”

The study also highlights how higher education, business and government have successfully collaborated in other areas of the country and how Baltimore might use these models to capitalize on the region’s strength.

"We all recognize that Baltimore's colleges and universities are critical in training our future workforce. This study reinforces their vital role as contributors to the bottom line of our economy," stated Baltimore County Executive Jim Smith.

"When it comes to intellectual, cultural, and economic impact, our colleges and universities are unrivaled. Thanks to the Baltimore Collegetown Network for conducting this important study," said Mayor Sheila Dixon.

Key findings of the report include (all figures are for fiscal year 2006):

- $17.2 billion in total economic activity ($8.0 billion direct and $9.2 billion indirect) of BCN colleges, universities, and hospitals in the Baltimore metropolitan area, including:

     $4.5 billion dollars spent in payroll, non-payroll, endowment and other related expenditures;

     $5.6 billion in direct and $12.0 billion in total economic activity from college and university-related spending (operating, capital, student, and visitor expenditures);

     $2.3 billion in direct and $5.2 billion in total economic activity from university-related hospital spending (Johns Hopkins Hospital and University of Maryland Medical Center);

     $502.0 million spent on capital expenditures;

      $639.3 million spent in living expenses by students attracted into the region;

      and $51.4 million spent on local purchases by more than 300,000 out-of-state visitors to BCN colleges and universities.

- Colleges, universities and academic medical centers employ or support 162,918 jobs. Direct employment of 67,084 ranks as the sixth-largest sector in the regional economy.

- Baltimore Collegetown Network members conduct more than $2.1 billion in research and development activities and make a vital contribution to Maryland’s national ranking as the state with the second-highest level of R&D intensity.

- Three Baltimore Collegetown Network members (JHU, UMB and UMBC) accounted for 88 of Maryland’s 133 start-up companies created to commercialize university-developed technologies.

- Baltimore Collegetown Network members play a vital role in the state’s effort to develop high technology businesses.