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CO-LABS ECONOMIC IMPACT STUDY Economic and Fiscal Impacts of Federally Funded Research Facilities in Colorado, FY2011−FY2013

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CO-LABS ECONOMIC IMPACT STUDY Economic and Fiscal Impacts of Federally Funded Research Facilities in Colorado, FY2011−FY2013 CO-LABS ECONOMIC IMPACT STUDY Economic and Fiscal Impacts of Federally Funded Research Facilities in Colorado, FY2011−FY2013 Conducted by: Business Research Division Leeds School of Business University of Colorado Boulder 420 UCB Boulder, CO 80309-0420 Telephone: 303.492.3307 leeds.colorado.edu/brd Final Report August 2013 i TABLE OF CONTENTS Table of Contents ........................................................................................................................................................ i Acknowledgements .................................................................................................................................................... ii Executive Summary .................................................................................................................................................... 1 Study Overview .......................................................................................................................................................... 2 Research and Development ....................................................................................................................................... 3 Federal R&D Rankings ............................................................................................................................................ 3 Colorado R&D Rankings ........................................................................................................................................ 3 Economic and Demographic Overview of Area ......................................................................................................... 5 Methodology .............................................................................................................................................................. 6 Model Input Data and Assumptions .......................................................................................................................... 7 Economic and Fiscal Impact of Research Facilities .................................................................................................. 13 Impact by Facility ..................................................................................................................................................... 18 Bureau of Reclamation Technical Service Center (BUREC TSC) ........................................................................... 18 Centers for Disease Control and Prevention, Division of Vector-Borne Diseases (CDC-DVBD) ........................... 20 Cooperative Institute for Research in the Atmosphere (CIRA) ............................................................................ 23 Cooperative Institute for Research in Environmental Sciences (CIRES) .............................................................. 26 Department of the Interior North Central Climate Science Center (NC CSC) ...................................................... 30 Federal Railroad Administration Transportation Technology Center (TTC) ........................................................ 31 JILA ....................................................................................................................................................................... 34 Laboratory for Atmospheric and Space Physics (LASP) ....................................................................................... 37 National Ecological Observatory Network (NEON) .............................................................................................. 39 National Institute of Standards and Technology (NIST) ....................................................................................... 41 National Oceanic and Atmospheric Administration (NOAA) ............................................................................... 44 National Renewable Energy Laboratory (NREL) ................................................................................................... 48 National Telecommunications and Information Administration (NTIA) .............................................................. 51 National Wildlife Research Center (NWRC) ......................................................................................................... 53 Rocky Mountain Research Station (RMRS) .......................................................................................................... 56 United States Department of Agriculture − Agricultural Research Service (ARS) ............................................... 59 U.S. Geological Survey (USGS) ............................................................................................................................. 65 University Corporation for Atmospheric Research (UCAR) ................................................................................. 67 UNAVCO Inc. ........................................................................................................................................................ 70 Conclusion ................................................................................................................................................................ 71 Sources ..................................................................................................................................................................... 72 Appendix 1: Literature Review ................................................................................................................................. 77 Appendix 2: Related News Articles .......................................................................................................................... 84 Appendix 3: Economic and Demographic Overview of Area ................................................................................... 86 Appendix 4: Assessed Valuation, Revenue, and Average Levies by County .......................................................... 103 Appendix 5: NCAR Case Study................................................................................................................................ 105 Appendix 6: NREL Case Study #1 ........................................................................................................................... 110 Appendix 7: NREL Case Study #2 ........................................................................................................................... 113 Appendix 8: CDC Case Study .................................................................................................................................. 116 Business Research Division • Leeds School of Business • University of Colorado Boulder Page i ACKNOWLEDGEMENTS We wish to thank the individuals with the federal research facilities and their university counterparts for their contributions to this report. Without their participation, we would not have the details to estimate and highlight the impacts of the federal research facilities and their university counterparts. Business Research Division • Leeds School of Business • University of Colorado Boulder Page ii EXECUTIVE SUMMARY Federal laboratories have long been coveted members of Colorado’s economy owing to the numerous jobs and federal dollars infused in the local and state economies. However, given the nature of the research and development conducted at the various facilities, employment and expenditures represent only a fraction of the true benefits of federal research facilities in Colorado. These auxiliary benefits include the emergence and existence of high-tech firms that locate near the facilities, collaborations with Colorado universities on cutting-edge research, experience for higher-education students through internships and part-time jobs, world-renowned research conducted in the state, and the economic stability common to federally supported programs. This study quantified the economic impacts that federal research facilities and their university affiliates have on Boulder, Jefferson, and Larimer counties, and on the state of Colorado. This report estimates the economic benefits and fiscal impacts associated with these facilities, and identifies the intangible benefits, including spin-off companies, commercialized research, research awards, and strategic affiliates that contribute to the uniqueness of the federal research presence in the state. Primary data on operating and capital expenditures were collected from the facilities using a survey. The economic benefits of federal research facilities and their affiliates totaled $2.3 billion in FY 2011 and in FY 2012 in output in Colorado. Given moderate employment declines and completed construction projects, this impact decreased to an estimated $2.0 billion in FY 2013. In total, these facilities accounted for 7,966 full-time, part-time, contract, and student jobs in Colorado in FY 2012, and an additional 7,716 indirect jobs. Economic activity in Boulder, Jefferson, and Larimer counties totaled $743.2 million, $733.3 million, and $148.2 million, respectively, in FY 2012. Federal research facilities occupy 6.3 million square feet of leased and owned real estate in Colorado. Construction at the facilities topped $173 million in FY 2012. Activity in the FY 2011−FY 2013 period included new space and renovations, such as NREL’s Research Support Facility and NIST’s Precision Measurement Laboratory, and resulted in an estimated 2,500 total construction and related jobs. Overall, Colorado federal lab employees are a highly educated group, with 29% having attained
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