1.

Stevens Institute of Technology, located in Hoboken, New Jersey, is one of the nation’s premier technology universities – a leading educator of undergraduate and graduate engineers, a leading center for research on issues of critical importance to New Jersey communities and a long-time source of technological innovation. At the same time, Stevens has long been a major contributor to the economic vitality of the City of Hoboken, Hudson County and the State of New Jersey, and since 2011 its impact has by several measures grown significantly.

However, to maintain its role as a major contributor to the life of the city, the region and the state, Stevens will need to grow – to continue expanding its educational programs, its research enterprise, its role in the development of new businesses and its partnerships with local communities. To support this growth, the university will be investing more than $420 million over the next five years in the construction of new and renovation of existing facilities.

This report assesses Stevens’ current economic impact, both locally and at the state level, the impact of its projected growth, and how that growth will benefit both the local community and the state.

Stevens is a significant enterprise in its own right – one of Hoboken’s largest employers, a buyer of goods and services and a sponsor of campus construction projects. The university also attracts thousands of students who through their day-to-day spending off-campus, also contribute to the strength of the local economy. Moreover, the projected growth associated with the Stevens 10-year Strategic Plan (2012-2022) will ensure that the benefits Hoboken derives from university and student spending will continue to grow as well. For the most recent fiscal year, 2016, Stevens’ economic impact locally, in Hudson County, and statement is delineated below.

Taking into account the impact of university spending on non-student payroll, purchasing and construction, along with off-campus spending by students and visitors, we estimate that in fiscal year 2016, Stevens directly and indirectly accounted for:

 1,434 full-time-equivalent (FTE) jobs in Hoboken (8.1 percent of the city’s private-sector jobs), with earnings totaling nearly $110.4 million; and  $135.6 million in citywide economic output.

In Hudson County (including Hoboken), spending by the university, students and visitors directly and indirectly accounted for:

 1,696 FTE jobs in Hudson County, with earnings totaling nearly $122.4 million; and  $171.5 million in countywide economic output.

Statewide, spending by the university, students and visitors directly and indirectly accounted for:

 2,351 FTE jobs in New Jersey, with earnings totaling $156.3 million; and  Nearly $269.1 million in statewide economic output.

The impacts of university, student and visitor spending in Hoboken, in Hudson County and in New Jersey are summarized in the table below.

Total impact of spending by Stevens, students and visitors in Hoboken, Hudson County and New Jersey, FY 2016 (jobs in FTE, wages and output in $000s)

Jobs Wages Output Hoboken Direct 1,291 $101,735.3 $112,584.9 Indirect/induced 143 $8,639.7 $23,016.0 Total impact in Hoboken 1,434 $110,375.0 $135,600.9 Hudson County Direct 1,446 $107,212.1 $130,954.4 Indirect/induced 250 $15,138.8 $40,557.5 Total impact in Hudson County 1,696 $122,350.9 $171,511.9 New Jersey Direct 1,695 $118,361.4 $165,407.2 Indirect/induced 656 $37,972.8 $103,672.5 Total impact in New Jersey 2,351 $156,334.2 $269,079.7

 With 1,111 full- and part-time employees (excluding students) as of the fall of 2015, Stevens is the fourth-largest private employer in the City of Hoboken, directly accounting for 6.3 percent of all private-sector jobs in the city.

 In fiscal year 2016, Stevens spent more than $35.1 million on purchases of goods and services and construction from companies and contractors in New Jersey, directly supporting 84 FTE jobs in Hoboken; 104 FTE jobs in Hudson County (including Hoboken); and 220 FTE jobs throughout New Jersey (including Hudson County).

 Taking into account both the direct and indirect and induced (or “multiplier”) effects of university spending on non-student payroll, purchasing and construction, we estimate that that in fiscal year 2016, Stevens accounted for:

o 1,307 FTE jobs in Hoboken, with earnings totaling $105.1 million; and o $121.1 million in citywide economic output.

In Hudson County (including Hoboken), university spending directly and indirectly accounted for:

o 1,394 FTE jobs in Hudson County, with earnings totaling nearly $110.6 million; and o $135.0 million in countywide economic output.

Statewide (including Hudson County), university spending directly and indirectly accounted for:

o 1,868 FTE jobs in New Jersey, with earnings totaling $139.1 million; and o $209.6 million in statewide economic output.

 Off-campus spending by Stevens students and by visitors to the university also contributes to the local economy. We estimate that in fiscal year 2016, off-campus spending by students and visitors directly and indirectly accounted for:

o 127 FTE jobs in Hoboken, with earnings totaling nearly $5.3 million; and o Nearly $14.5 million in citywide economic output.

In Hudson County (including Hoboken), off-campus spending by students and visitors directly and indirectly accounted for:

o 302 FTE jobs in Hudson County, with earnings totaling nearly $11.8 million; and o Nearly $36.5 million in countywide economic output.

In an increasingly knowledge-driven economy, human capital – the totality of knowledge, skills and experience accumulated over time by a community’s or a region’s workforce – plays a central role in determining whether cities and states flourish or falter economically. Stevens has long been a major contributor to the development of Hoboken’s and New Jersey’s human capital, especially in science, engineering and technology. By continuing to expand its programs in these critical areas, and by increasing the number of highly educated graduates it produces, Stevens can help during the years ahead to build an even stronger base of human capital, both in Hoboken and beyond.

 In the fall of 2015, Stevens enrolled a total of 6,359 full- and part- time students, including:

o 2,976 undergraduates, of whom 57.3 percent were New Jersey residents; and o 3,383 graduate students, of whom 14.6 percent were New Jersey residents.

 Stevens is notable for the extent to which on-campus learning is combined with opportunities to gain practical experience.

o In the fall of 2015, 868 undergraduate and graduate students participated in the university’s cooperative education program. The majority of co-op students worked for companies in the New York metropolitan area.

o In the summer of 2016, 302 Stevens undergraduate students worked as interns – nearly half of them with New Jersey companies.

 Stevens is a major source of engineering and other technical talent for New Jersey. In 2014-2015, Stevens ranked:

o Third among all New Jersey colleges and universities in the number of bachelor’s degrees awarded in engineering; and o First in the number of graduate degrees awarded in engineering in New Jersey.

In 2014-2015, Stevens accounted for 36.4 percent (642 of 1,766) of all master’s and doctoral degrees in engineering awarded in New Jersey.

 As of the summer of 2016, 53.0 percent of all Stevens alumni whose addresses are known – 17,550 Stevens alumni – lived in New Jersey.

 According to PayScale’s annual reports on the earnings of college graduates of more than 1,000 U.S. colleges and universities, in 2016 Stevens:

o Ranked 12th in the U.S. when measured by students’ return on investment, with an average net return after twenty years of $889,000 (for students living on campus with financial aid); o Ranked 14th in the U.S. when measured by the average early career salary of its alumni who only received a bachelor’s degree ($65,600); and o Tied for 17th in the U.S., measured by the average mid-career salary of its alumni who only received a bachelor’s degree ($117,000).

Since the mid-twentieth century, university research has been an important source of economic growth in the United States. Stevens is one of New Jersey’s leading research universities – and just as important, a leader in translating the results of university research into new products, processes and services, new businesses and new jobs, and into practical solutions to some of the local community’s (and the broader society’s) most pressing problems.

 During fiscal year 2016, research spending at Stevens totaled $32.7 million, 89.2 percent of which was funded by federal agencies. Corporate and other private for-profit funding accounted for 4.4 percent; private non-profit, institution of higher education and foundation funding for 3.1 percent; state and local government funding for 2.7 percent; internal funding for less than 1.0 percent.

 The university’s research enterprise is especially strong in several areas that are of particular importance to the New Jersey economy and to New Jersey communities, including:

o The security and resilience of maritime commerce; o Marine and coastal engineering; o Health systems analysis and health information technology; o Information security; and o Environmental sustainability and resilience.

 In recent years Stevens has significantly increased the rate at which the results of university research are made available for commercial use, providing a basis for development of new products, new businesses and new jobs. For example:

o The number of invention disclosures filed by researchers at Stevens rose from 18 in fiscal year 2008 to 57 in fiscal year 2016; o The number of patents issued rose from three in fiscal year 2008 to 15 in fiscal year 2016; and o Between fiscal year 2008 and fiscal year 2016, 26 new ventures were started for the purpose of further developing and bringing to market technologies first developed at Stevens.

 Stevens offers an extensive array of programs and services for aspiring student, faculty and alumni entrepreneurs – including the Stevens Venture Center, opened in 2016 in an off-campus office building in Hoboken. The Stevens Venture Center nurtures the promising concepts and technologies of Stevens-affiliated entrepreneurs into thriving businesses through technology support, opportunities to share best practices and experiences, networking with investors and experts in legal and accounting, and education in building a successful business. Located in a high-rise building on River Street, the Venture Center’s space includes 29 work stations, a conference room and prototyping equipment. The Venture Center also hosts workshops, speakers and networking events; and through its “entrepreneurs in residence,” provides its members with advice, counseling and valuable connections.

Stevens contributes to the vitality of the City of Hoboken and the surrounding communities in economic and non-economic ways through its investment in and engagement with the community in which it operates. As the university grows in accordance with its Strategic Plan, the human, intellectual, financial, physical and cultural resources that it can bring to its engagement with Hoboken and surrounding communities will grow as well.

 Since 1988, the university’s Center for Innovation in Engineering and Science Education (CIESE) has secured grants totaling $50 million to support programs aimed at improving science, technology, engineering and math education in elementary and high schools, both in New Jersey and elsewhere.

Since its founding, CIESE’s programs have served 30,000 teachers throughout New Jersey (and more than 250 in Hoboken alone), in 22 other states and in a dozen countries. CIESE has worked with school districts, school administrators and teachers in every county in New Jersey.

 STEM-a-thon, launched in 2015, is a one-day program hosted at Stevens designed to engage students from Hoboken’s public, private and charter schools in fun, STEM-based learning activities guided by Stevens student and faculty volunteers. During the 2016 event, STEM-a-thon: Discovery, Innovation & Success for Hoboken’s 8th Grade Students, 150 Hoboken 8th grade students explored innovation, engineering design and STEM college majors through hands-on, team-based STEM activities, a student panel and a campus tour.

 Stevens offers scholarships for students from Hoboken and underserved New Jersey communities to attend summer programs like the Center for Innovation in Engineering and Science Education’s Waterbotics® or one of the many pre-college programs offered to rising high-school juniors and seniors.

 Stevens periodically makes its facilities available for a variety of community uses, including municipal, civic and non-profit organization events, small business innovation programming, graduation and school programs, and others.

 Stevens Campus Police work closely with the Hoboken Police and Fire Department on crime prevention and law enforcement including compiling crime statistics; coordinating emergency response and law enforcement assistance with the City of Hoboken during major public events and crises; and routinely providing mutual aid on an average of 50 calls per year when the Hoboken Police Department is undermanned. Stevens Campus Police sponsor annual barbecues for Hoboken Police and Fire Departments on campus, and provide campus space for police recruits conducting endurance runs prior to their departure to the police academy.

 Stevens is deeply involved in efforts to help New York and New Jersey coastal communities recover from the effects of Hurricane Sandy and to better equip them against future extreme weather events.

o In the aftermath of Hurricane Sandy, 300 Stevens students performed more than 2,000 hours of volunteer work in Hoboken and other affected communities.

o Stevens’ Maritime Security Center is working alongside several state and national agencies to help develop new solutions and technology to mitigate the effects of future extreme weather events on coastal urban infrastructure.

During the next five to ten years, the benefits (both economic and non-economic) that Stevens provides to its local community, the region and the state are likely to be even greater than they are today. This increased impact will result from:

 A projected increase in undergraduate enrollment from 3,115 in the fall of 2016 to approximately 4,000 in the fall of 2023. We estimate that off-campus spending by these additional students would directly and indirectly support 20 additional FTE jobs in Hoboken.

 Projected growth in the scale of the university’s research enterprise, from $32.7 million in fiscal year 2016 to $55 million annually. This growth will enable Stevens to play an even greater role in the search for solutions to some of the community’s (and the broader society’s) most pressing problems.

 As a result of growth in enrollment and research activity, we estimate that the number of people directly employed by Stevens would grow to approximately 1,185 – an increase of approximately 75 jobs.

 A heightened emphasis on teaching innovation and entrepreneurship, producing steady increases in the number of new businesses emerging from the university each year. Based on experience both at Stevens and at other entrepreneurial universities, a significant number of these are likely to stay “close to home.”

 A projected investment of more than $422.8 million in campus facilities during the next five years. This investment would directly and indirectly support an average of 653 FTE jobs in New Jersey each year through 2021, and would significantly enhance the university’s ability to fulfill its mission of education, research, innovation and community service.

These factors combined will help ensure that Stevens Institute of Technology continues to be a major contributor to the economic vitality and quality of life of the City of Hoboken, the State of New Jersey and the New York-New Jersey region.

Stevens Institute of Technology is an independent, not-for-profit research university located in Hoboken, New Jersey. Founded in 1870, Stevens is one of the nation’s oldest universities specializing in engineering and technological innovation.

Stevens offers bachelor’s, master’s and doctoral degrees through three schools and one college:

 The Charles V. Schaefer Jr. School of Engineering and Science;  The School of Business;  The School of Systems and Enterprises; and  The College of Arts and Letters.

As one of the nation’s leading technology universities, Stevens has been a major contributor to the economic vitality of the City of Hoboken, Hudson County and the State of New Jersey. Moreover, as Stevens continues its projected growth associated with its 10-year Strategic Plan, the benefits that the university provides to Hoboken and surrounding communities and to New Jersey will also be further enhanced.

To better understand and explain the nature and extent of its contribution, Stevens asked Appleseed – a consulting firm with extensive experience working with colleges and universities – to assess the university’s economic and community impact, and how it might grow in the future. This report presents the results of Appleseed’s analysis.

Part One of the report discusses the university’s impact as an enterprise – as an employer, a buyer of goods and services and a sponsor of construction projects – as well as the impact of off-campus spending by students and visitors to Stevens. Part Two examines the university’s contribution to the development of New Jersey’s human capital – the accumulation of skills, knowledge and experience so essential to the continued growth of the state’s economy.

Part Three of the report describes Stevens’ research enterprise, and discusses how research at Stevens contributes to the vitality of the region’s economy; and Part Four highlights the university’s role in technological innovation, entrepreneurship and new business development. Part Five describes the university’s engagement in efforts to serve and strengthen its local community in Hoboken, as well as other New Jersey communities.

Part Six examines the potential impact of the university’s projected growth through 2023, including the impact of increased enrollment and employment, a growing research enterprise, and planned investments in construction and renovation of campus facilities.

As a major institute in its own right, Stevens Institute of Technology contributes to the economic vitality of Hoboken, Hudson County and New Jersey – as one of the largest private employers in Hoboken, a buyer of goods and services from companies in Hoboken, Hudson County and elsewhere in New Jersey, and a sponsor of construction projects. This part of the report assesses the university’s impact as an enterprise, as well as the impact of off-campus spending by its students and by visitors to Stevens.

Taking into account Stevens’ spending on payroll, purchasing and construction, along with spending by students and by visitors to the university, we estimate that during fiscal year 2016, Stevens directly and indirectly accounted for:

 1,434 full-time-equivalent (FTE) jobs in Hoboken, with earnings totaling nearly $110.4 million; and  $135.6 million in citywide economic output.

Based on data published by the New Jersey Department of Labor and Workforce Development, we estimate that in 2015, Stevens directly and indirectly accounted for approximately 8.1 percent of all private-sector jobs in Hoboken.

In Hudson County (including Hoboken), university, student and visitor spending directly and indirectly accounted for:

 1,696 FTE jobs in Hudson County, with earnings totaling nearly $122.4 million; and  $171.5 million in countywide economic output.

Statewide (including Hudson County), university, student and visitor spending directly and indirectly accounted for:

 2,351 FTE jobs in New Jersey, with earnings totaling $156.3 million; and  Nearly $269.1 million in statewide economic output.

These combined impacts in Hoboken, Hudson County (including Hoboken) and New Jersey (including Hudson County) are summarized below in Tables 1, 2 and 3.

Table 1: Total impact of spending by Stevens, students and visitors in Hoboken, FY 2016 (jobs in FTE, wages and output in $000s)

Jobs Wages Output Impact of university spending Direct 1,195 $98,385.2 $103,210.3 Indirect/induced 112 $6,722.3 $17,926.1 Subtotal, university spending impact 1,307 $105,107.5 $121,136.4 Impact of student spending Direct 80 $2,841.7 $8,369.9 Indirect/induced 27 $1,662.3 $4,410.5 Subtotal, student spending impact 107 $4,504.0 $12,780.4 Impact of visitor spending Direct 16 $508.4 $1,004.7 Indirect/induced 4 $255.1 $679.4 Subtotal, visitor spending impact 20 $763.5 $1,684.1 Total impact 1,434 $110,375.0 $135,600.9

Table 2: Total impact of spending by Stevens, students and visitors in Hudson County, FY 2016 (jobs in FTE, wages and output in $000s)

Jobs Wages Output Impact of university spending Direct 1,215 $99,819.9 $106,188.2 Indirect/induced 179 $10,742.3 $28,828.8 Subtotal, university spending impact 1,394 $110,562.2 $135,017.0 Impact of student spending Direct 199 $6,375.3 $22,756.8 Indirect/induced 63 $3,886.3 $10,369.8 Subtotal, student spending impact 262 $10,261.6 $33,126.6 Impact of visitor spending Direct 32 $1,016.9 $2,009.4 Indirect/induced 8 $510.2 $1,358.9 Subtotal, visitor spending impact 40 $1,527.1 $3,368.3 Total impact 1,696 $122,350.9 $171,511.9

Table 3: Total impact of spending by Stevens, students and visitors in New Jersey, FY 2016 (jobs in FTE, wages and output in $000s)

Jobs Wages Output Impact of university spending Direct 1,331 $108,198.3 $125,028.8 Indirect/induced 537 $30,937.4 $84,605.1 Subtotal, university spending impact 1,868 $139,135.7 $209,633.9 Impact of student spending Direct 332 $9,146.2 $38,369.0 Indirect/induced 111 $6,525.2 $17,708.5 Subtotal, student spending impact 443 $15,671.4 $56,077.5 Impact of visitor spending Direct 32 $1,016.9 $2,009.4 Indirect/induced 8 $510.2 $1,358.9 Subtotal, visitor spending impact 40 $1,527.1 $3,368.3 Total impact 2,351 $156,334.2 $269,079.7

In the fall of 2015, Stevens directly employed a total of 1,111 people, 76.1 percent of whom worked full-time. In addition to these regular employees, the university also employed 1,176 students in a variety of part-time, on-campus jobs.

Between the fall of 2007 and the fall of 2015 (as shown in Figure 1), total non-student employment at Stevens increased by 25.7 percent.

Figure 1: Total non-student employment at Stevens, fall 2007 – fall 2015

According to data published by the Hudson County Economic Development Corporation (as shown in Table 4), Stevens is the fourth-largest private employer in Hoboken. Based on data published by the New Jersey State Department of Labor and Workforce Development, we estimate that in 2015, the university directly accounted for 6.3 percent of the city’s private-sector jobs.1

Table 4: Largest private employers in Hoboken, by number of employees

Number of Employer employees John Wiley & Sons Inc. 1,519 Marsh USA Inc. 1,500 Hoboken University Medical Center 1,300 Stevens Institute of Technology 500 Academy Bus Tours Inc. 250 Guy Carpenter & CO. Inc. 250 Mindlance Inc. 225 Starwood Hotels & Resorts Worldwide 180 Sumitomo Hotels & Resorts Worldwide 156

Source: Hudson County Economic Development Corporation, Major Employer’s List, January 2015

1 New Jersey Department of Labor and Workforce Development, Quarterly Census of Employment and Wages.

In fiscal year 2016, Stevens paid a total of nearly $92.6 million in salaries and wages to its regular full- and part-time non-student employees.

As shown in Figure 2, 184 Stevens employees (excluding students) lived in Hoboken in the fall of 2015 – 16.6 percent of all non-student employees. An additional 207 (18.6 percent of all non- student employees) lived elsewhere in Hudson County; and 530 (47.7 percent) lived elsewhere in New Jersey.

Figure 2: Stevens non-student employees by place of residence, fall 2015

In fiscal year 2016, salaries and wages paid by Stevens to New Jersey residents totaled $76.6 million (82.8 percent of the total payroll for non-student employees), including nearly $15.8 million (17.0 percent of total non-student payroll) to Hoboken residents and nearly $13.5 million (14.6 percent) to non-student employees living elsewhere in Hudson County.

In addition to the people it employs directly, Stevens supports Hoboken’s and New Jersey’s economies through its purchases of goods and services from local businesses, and through its investments in campus facilities.

In fiscal year 2016, Stevens spent nearly $89.2 million on the purchase of goods and services. As shown in Figure 3, nearly $11.8 million (13.2 percent of total spending on goods and services) was spent on goods and services provided by businesses in Hoboken, an additional $3.2 million (3.6 percent) was spent on goods and services provided by businesses located elsewhere in Hudson County, and $17.6 million (19.8 percent) was spent on goods and services provided by businesses located elsewhere in New Jersey.

Leading categories of goods and services purchased from businesses located in New Jersey include professional and technical services, employee health insurance, utilities, and building services and facilities support.

Figure 3: Stevens spending on purchases of goods and services by location of vendor, FY 2016

Using the IMPLAN input-output economic modeling system – a modeling tool commonly used in economic impact analyses – we estimate that in fiscal year 2016, Stevens spending on purchases of goods and services directly supported:

 84 FTE jobs in Hoboken;  104 FTE jobs in Hudson County (including Hoboken); and  209 FTE jobs in New Jersey (including Hudson County).

In addition to its spending on the purchase of goods and services, Stevens spent nearly $2.9 million in facility construction and renovation in fiscal year 2016, of which 84.5 percent ($2.4 million) was paid to contractors located in New Jersey. Using IMPLAN, we estimate that in fiscal year 2016, Stevens spending on facility construction and renovation directly supported 10 FTE jobs with New Jersey contractors.

As noted previously, Stevens’ investment in construction of new and renovation of existing facilities will increase sharply beginning in fiscal year 2017. The impact of this increased investment is discussed below in Part Six.

The jobs and economic activity generated by the Stevens Institute of Technology’s spending on payroll, purchasing and construction are not limited to the direct impacts cited above. Using a tool of economic analysis called an input-output model, we can also estimate the indirect and induced (or “multiplier”) effects of spending by Stevens – the economic activity resulting from:

 Spending within New Jersey by the local suppliers and contractors from whom Stevens buys goods and services (the indirect effect); and  Household spending within New Jersey by Stevens employees, and by employees of the university’s suppliers and contractors (the induced effect).

Using IMPLAN, we estimate that in fiscal year 2016, spending by Stevens on non-student payroll, purchasing and construction indirectly accounted for:

 112 FTE jobs in Hoboken, with earnings totaling $6.7 million; and  $17.9 million in citywide economic output.

In Hudson County (including Hoboken), Stevens spending indirectly accounted for:

 179 FTE jobs in Hudson County, with earnings totaling $10.7 million; and  $28.8 million in countywide economic output.

Statewide (including Hudson County), Stevens spending indirectly accounted for:

 537 FTE jobs in New Jersey, with earnings totaling $30.9 million; and  $84.6 million in statewide economic output.

When we combine these indirect and induced effects with the direct effects cited previously, we estimate that in fiscal year 2016, spending by Stevens on non-student payroll, purchasing and construction directly and indirectly accounted for:

 1,307 FTE jobs in Hoboken, with earnings totaling $105.1 million; and  $121.1 million in citywide economic output.

In Hudson County (including Hoboken), Stevens spending directly and indirectly accounted for:

 1,394 FTE jobs in Hudson County, with earnings totaling nearly $110.6 million; and  $135.0 million in countywide economic output.

Statewide (including Hudson County), Stevens spending directly and indirectly accounted for:

 1,868 FTE jobs in New Jersey, with earnings totaling $139.1 million; and  $209.6 million in statewide economic output.

Tables 5, 6 and 7 summarize the total impact of Stevens’ spending on non-student payroll, purchasing and construction in Hoboken, Hudson County (including Hoboken) and New Jersey (including Hudson County).

Table 5: Direct, indirect and induced impact of Stevens spending in Hoboken, FY 2016 (jobs in FTE, wages and output in $000s)

Jobs Wages Output Direct spending impact Payroll 1,111 $92,590.9 $92,590.9 Purchasing/construction 84 $5,794.3 $10,619.4 Subtotal, direct impact 1,195 $98,385.2 $103,210.3 Indirect and induced effects Employee spending 65 $3,717.7 $10,304.4 Contractor and vendor spending 47 $3,004.6 $7,621.7 Subtotal, indirect/induced effects 112 $6,722.3 $17,926.1 Total impact 1,307 $105,107.5 $121,136.4

Table 6: Direct, indirect and induced impact of Stevens spending in Hudson County, FY 2016 (jobs in FTE, wages and output in $000s)

Jobs Wages Output Direct spending impact Payroll 1,111 $92,590.9 $92,590.9 Purchasing/construction 104 $7,229.0 $13,597.3 Subtotal, direct impact 1,215 $99,819.9 $106,188.2 Indirect and induced effects Employee spending 120 $6,893.4 $19,106.2 Contractor and vendor spending 59 $3,848.9 $9,722.6 Subtotal, indirect/induced effects 179 $10,742.3 $28,828.8 Total impact 1,394 $110,562.2 $135,017.0

Table 7: Direct, indirect and induced impact of Stevens spending in New Jersey, FY 2016 (jobs in FTE, wages and output in $000s)

Jobs Wages Output Direct spending impact Payroll 1,111 $92,590.9 $92,590.9 Purchasing/construction 220 $15,607.4 $32,437.9 Subtotal, direct impact 1,331 $108,198.3 $125,028.8 Indirect and induced effects Employee spending 385 $21,515.5 $59,627.5 Contractor and vendor spending 152 $9,421.9 $24,977.6 Subtotal, indirect/induced effects 537 $30,937.4 $84,605.1 Total impact 1,868 $139,135.7 $209,633.9

In addition to the impact of its spending on non-student payroll, purchasing and construction, Stevens contributes to the economic vitality of Hoboken and elsewhere in New Jersey through off-campus spending by Stevens students and by out-of-town visitors to the university’s campus.

The impact of student spending is determined in part by whether students live on campus, in off- campus University housing, or elsewhere in Hoboken and the surrounding communities. During the fall of 2015, approximately 67 percent of undergraduate students lived in university-owned or leased housing on and around the Stevens campus, while nearly all graduate students lived off-campus in Hoboken and the surrounding communities.

Based on data provided by Stevens on the average annual cost of living for students, we estimate that during fiscal year 2016, off-campus spending by full-time undergraduate and graduate students – on housing, food, personal expenses, transportation, books, entertainment and other purposes – totaled nearly $28.3 million in Hudson County, including $11.1 million in Hoboken. This figure includes off-campus spending by full-time undergraduate and graduate students from outside of Hudson County who reside in Hoboken and elsewhere in Hudson County.

Using IMPLAN, we estimate that in fiscal year 2016, off-campus spending by students from outside of Hudson County who reside in Hoboken directly and indirectly accounted for:

 107 FTE jobs in Hoboken, with earnings totaling $4.5 million; and  Nearly $12.8 million in citywide economic output.

In Hudson County (including Hoboken), off-campus spending by students from outside of Hudson County who reside in Hudson County directly and indirectly accounted for:

 262 FTE jobs in Hudson County, with earnings totaling nearly $10.3 million; and  $33.1 million in countywide economic output.

At the state level, we estimate that during fiscal year 2016, off-campus spending by full-time undergraduate and graduate students totaled $46.3 million in New Jersey (including Hudson County). This figure includes off-campus spending by full-time undergraduate and graduate students from outside of New Jersey who live in Hudson County (including Hoboken) or elsewhere in New Jersey.

Using IMPLAN, we estimate that in fiscal year 2016, off-campus spending by students from outside of New Jersey who reside in Hudson County or elsewhere in New Jersey directly and indirectly accounted for:

 443 FTE jobs in New Jersey, with earnings totaling nearly $15.7 million; and  Nearly $56.1 million in statewide economic output.

Stevens also attracts out-of-town visitors to its campus who then spend money within the local economy. As shown in Table 8, Stevens estimates that during the 2015-16 academic year, approximately 52,647 people visited the Stevens campus – for pre-admissions visits, academic conferences, commencement, athletic events, alumni events and other purposes.

Table 8: Non-local visitors to Stevens by purpose of visit, 2015-16 academic year

Purpose of visit Non-local visitors Prospective applicants 13,050 Commencement 1,400 Academic/other conferences 950 Summer programs 9,409 Varsity athletic events 28,910 Club sports 303 Performances, exhibits, etc. 1,500 Student Affairs events 1,800 Alumni & Development events 1,325 Total 52,647

In fiscal year 2016, we estimate that off-campus spending in the Hoboken and Hudson County area by out-of-town visitors to Stevens – on hotel accommodations, food, shopping, entertainment and transportation – totaled $2.6 million, including approximately $1.3 million in Hoboken. Using IMPLAN, we estimate that this spending directly and indirectly accounted for:

 20 FTE jobs in Hoboken, with earnings totaling $763,539; and  Nearly $1.7 million in citywide economic output.

In Hudson County (including Hoboken), off-campus spending by non-local visitors to Stevens directly and indirectly accounted for:

 40 FTE jobs in Hudson County, with earnings totaling $1.5 million; and  Nearly $3.4 million in countywide economic output.

Despite its tax-exempt status, Stevens Institute of Technology contributes in a variety of ways to state and local government finances. As shown in Table 9, state and local taxes and fees paid by Stevens in fiscal year 2016 included:

 $4.1 million in state income taxes withheld from the salaries and wages of Stevens employees;  $130,082 in unemployment insurance payments;  $249,706 in fees to various state agencies;  $488,918 in fees to the City of Hoboken;  $300,684 to the North Hudson Sewerage Authority; and  $6,080 in other payments to local governments.

Overall, in fiscal year 2016, Stevens directly accounted for nearly $4.5 million in New Jersey state taxes, fees and other payments, and $795,682 in taxes, fees and other payments to the City of Hoboken and other local governments in New Jersey – a total of nearly $5.3 million in state and local government revenues.

Table 9: Taxes and fees paid to New Jersey state and local governments, FY 2016

Type of revenue Amount State revenues State income taxes withheld $4,118,092 Unemployment insurance payments $130,082 Fees paid to NJ state agencies $249,706 Subtotal, state revenues $4,497,880 Local government revenues Fees paid to the City of Hoboken $488,918 North Hudson Sewage Authority $300,684 Other payments to local governments $6,080 Subtotal, local government revenues $795,682 Total state and local revenues $5,293,562

Human capital – the totality of knowledge, skills and experience accumulated over time by a community’s or a region’s workforce – plays a central role in determining whether cities and states succeed or fall behind in an increasingly knowledge-based global economy.

One of the most important measures of human capital is the level of education achieved by a city’s or a state’s residents. As shown in Figure 4, the median annual earnings of adult New Jersey residents who had completed four-year college degrees were 92.1 percent higher in 2015 than the median earnings of those who had only a high school diploma; and the median earnings of those with graduate or professional degrees were 161.8 percent higher than the earnings of those with no education beyond high school.

Figure 4: Median earnings by educational attainment (in 2015 dollars) for New Jersey residents age 25 and over, 2015

Source: ACS 2015 (1-Year Estimates), Social Explorer; U.S. Census Bureau

The economic benefits of higher education, however, are not limited to those who earn degrees. A study published by the Milken Institute in 2013 found that in U.S. metropolitan areas, adding one year of schooling to the educational attainment of workers who already had a high school

diploma increased average GDP per capita by 17.4 percent and average real wages by 17.8 percent.2

Even non-college educated workers benefit from this effect. University of California economist Enrico Moretti has shown that “the earnings of a worker with a high school education rise by about 7 percent as the share of college graduates in his [metropolitan area] increases by 10 percent.”3

In the fall of 2015, a total of 6,359 students were enrolled at Stevens, including 2,976 undergraduates and 3,383 graduate students. As shown in Table 10, 81.4 percent of all Stevens undergraduates were enrolled in the School of Engineering and Science, 11.9 percent were enrolled in the School of Business, 3.2 percent in the School of Systems and Enterprises, and 2.9 percent in the College of Arts and Letters. Among graduate students, 51.3 percent were enrolled in the School of Engineering and Science, 28.4 percent in the School of Business, and 20.2 percent in the School of Systems and Enterprises.

Table 10: Undergraduate and graduate enrollment at Stevens by school, fall 2015

Undergraduate Graduate School/College students students Schaefer School of Engineering and Science 2,422 1,734 School of Systems and Enterprises 95 683 School of Business 353 961 College of Arts and Letters 86 5 Non-matriculated 20 – Total 2,976 3,383

Between the fall of 2008 and the fall of 2016, total enrollment at Stevens grew by 14.0 percent – an increase of 813 students. However, as Figure 5 shows, this overall increase masks divergent trends. Undergraduate enrollment grew by 43.9 percent (an increase of 951 students) during this period. Graduate student enrollment in contrast decreased by 17.4 percent between the fall of 2008 and the fall of 2012 (a decrease of 635 students) before growing again by 16.5 percent between the fall of 2012 and the fall of 2016.

2Ross de Vol et al, A Matter of Degrees: The Effect of Educational Attainment on Regional Economic Prosperity, The Milken Institute, February 2013, p.1. 3 Enrico Moretti, The New Geography of Jobs (Houghton Mifflin Harcourt, 2012), p. 98.

Figure 5: Undergraduate and graduate enrollment at Stevens, fall 2008 – fall 2016

In the fall of 2015, 1,705 Stevens undergraduates (57.3 percent of total undergraduate enrollment) were residents of New Jersey, as were 494 graduate students (14.6 percent of total graduate enrollment). Figure 6 shows the distribution of Stevens undergraduate and graduate students by place of residence.

(Although most students come to Stevens from elsewhere in New Jersey or other states or countries, the majority of them live in the local area while they are enrolled at the university. These students thus contribute substantially, as described in Part One, to the impact of student spending on the local economy.)

Figure 6: Total enrollment by student’s permanent place of residence, fall 2015

During the 2015-16 academic year, Stevens awarded 563 undergraduate degrees, 1,593 graduate degrees and 565 graduate certificates. Approximately 57.5 percent of all undergraduate degrees and 12.2 percent of all graduate degrees and certificates were awarded to residents of New Jersey.

The role that Stevens plays in the development of New Jersey’s human capital – especially in engineering – is evident in statewide statistics. According to data published by the U.S. Department of Education (as shown in Table 11), in 2014-2015, Stevens ranked:

 Third among all New Jersey colleges and universities in the number of bachelor’s degrees awarded in engineering; and  First in the number of graduate degrees awarded in engineering in New Jersey.

In 2014-2015, Stevens accounted for 36.4 percent (642 of 1,766) of all master’s and doctoral degrees in engineering awarded in New Jersey.4

4 U.S. Department of Education. Institute of Education Sciences, National Center for Education Statistics. IPEDS: Integrated Postsecondary Education Data System.

Table 11: Undergraduate and graduate degrees in engineering awarded by New Jersey institutions, 2014-2015

Degrees Degrees Rank Bachelor’s degrees Rank Master’s/Doctoral degrees awarded awarded Stevens Institute of 1 Rutgers University 790 1 642 Technology New Jersey Institute of New Jersey Institute of 2 530 2 532 Technology Technology Stevens Institute of 3 330 3 Rutgers University 328 Technology 4 Princeton University 327 4 Princeton University 193 5 Rowan University 167 5 Fairleigh Dickinson University 29 6 The College of New Jersey 102 5 Rowan University 29 7 Monmouth University 14 7 Monmouth University 13 8 Fairleigh Dickinson University 5 Total 2,265 Total 1,766

Source: U.S. Department of Education. Institute of Education Sciences, National Center for Education Statistics. IPEDS: Integrated Postsecondary Education Data System.

Financial aid that the university provides from its own resources helps to ensure that students can get access to the educational opportunities Stevens offers. In fiscal year 2016, Stevens provided nearly $56.9 million in university-funded financial aid to undergraduate students, including more than $1.8 million to students from Hudson County and nearly $30.4 million to students from other New Jersey communities.

In addition, Stevens provided more than $7.0 million in university-funded financial aid to graduate students in fiscal year 2016, including more than $1.0 million to students from New Jersey.

The majority of Stevens students remain in New Jersey after they graduate. As shown in Figure 7, 53.0 percent of all Stevens alumni whose addresses are known – 17,550 Stevens alumni – lived in New Jersey as of the summer of 2016, including 693 who lived in Hoboken and 1,748 who lived elsewhere in Hudson County.

Figure 7: Stevens alumni by place of residence (for alumni whose addresses are known), as of summer 2016

As one of the nation’s leading technological universities, Stevens prepares students to work in professions and industries that are at the core of New Jersey’s economy today, and that could play a key role in its development during the next decade. Here we cite just a few examples.

 Combining studies in biology and physiology with fundamentals of engineering, the university’s undergraduate degree in Biomedical Engineering prepares students to meet the challenge of using the concepts and tools of engineering to solve problems affecting human and other living systems.

 Demand for qualified software engineers has for years exceeded the available supply, both in the New York-New Jersey area and nationwide. The university’s undergraduate program in Software Engineering prepares students to work in this high-demand field through a combination of classroom learning, internships and other opportunities for hands-on learning. Students can also choose to concentrate in areas such as financial systems, health care systems and sustainable energy systems.

 Events during the past year have provided powerful evidence on the importance of data protection for both personal and national security. Founded in 2006, the Stevens undergraduate degree in Cybersecurity was one of the first of its kind in the U.S. It combines studies in mathematics and computer science with more specialized courses on topics such as cryptography, information security and network forensics. Demand for graduates with cybersecurity degrees is extremely strong, and is likely to increase.

 As the accounting profession evolves, advanced skills in data analysis are becoming an essential complement to basic knowledge of accounting principles and methods. The Stevens undergraduate major in Accounting and Analytics provides these skills.

 Undergraduates in the Schaefer School of Engineering and Science can elect to complete a minor in Green Engineering, combining required courses in environmental policy, sustainable engineering and sustainable energy with electives on topics such as water resources, sustainable building technology and solar energy.

Graduate programs at Stevens are similarly geared to changing needs in business, engineering and technology. For example:

 The McKinsey Global Institute estimated in 2015 that by 2018, the U.S. would be facing a shortage of 190,000 data scientists and 1.5 million data managers and analysts. In the fall of 2015, the School of Systems and Enterprises began offering a master’s degree in Systems Analytics. The program is aimed at meeting the need for professionals who have the skills needed to pull data from multiple systems, analyze it and convert it into meaningful, actionable information, including skills in data extraction and visualization, management and analysis of large volumes of data, and the development of decision- making models that can use such data most effectively.

 Launched in 2012, the university’s master’s degree in Business Intelligence and Analytics provides students with the knowledge they need to apply “big data” technology and analytic techniques to business problems. The program has been consistently rated among the top ten of its kind in the U.S.

 Stevens offers a master’s degree in Sustainability Management, launched in the fall of 2016, that aims to bridge the gap between scientific and technical understanding of issues such as climate change and the effective implementation of practical solutions.

Stevens is also notable for the extent to which it offers opportunities for students to combine academic learning with professional experience. Perhaps the most notable example is the Stevens Cooperative Education Program (the Co-op program) – a five-year academic program, established in 1986, that combines on-campus learning with full-time paid work. Undergraduate engineering and science students in the Co-op program spend their first two semesters completing academic requirements on-campus, then alternate between full-time study and full- time professional work in areas related to their academic majors and career interests during the following three years. The fifth year is then spent back on campus.

From 25 students in its first year, the Co-op program has grown to include 831 undergraduate students in the fall of 2015 (approximately 33 percent of all undergraduate students enrolled in engineering and science programs). In addition, 37 graduate students participated in

cooperative education programs in the fall of 2015. Co-op employers range from small consulting firms to major international corporations – most located in the New York metropolitan area.

In 2015-2016, Co-op students’ salaries ranged from $14.00 to $40.00 per hour, with an average salary of $17.72 per hour. Even more important than their earnings, however, is the practical experience they gain, and the advantage that experience provides when they enter the job market.

Stevens students also gain professional experience through the Stevens Summer Internship Program. In the summer of 2016, 302 undergraduate students (approximately 10 percent of enrolled undergraduate students) completed full-time internships. Approximately 42.1 percent of these internships were located in New York, 41.1 percent in New Jersey and 16.9 percent took place elsewhere. As shown in Figure 8, the financial services industry accounted for the largest share of summer internships (30.8 percent), followed by manufacturing and pharmaceuticals (17.5 percent), insurance (6.3 percent), media and entertainment (6.0 percent), technology and telecommunications (5.6 percent) and engineering services (5.3 percent).

Figure 8: Distribution of undergraduate summer internships by industry, summer 2016

The value of the education that Stevens provides is evident from the earnings of the university’s graduates. According to PayScale’s annual reports on the earnings of college graduates of more than 1,000 U.S. colleges and universities, in 2016, Stevens:

 Ranked 12th in the U.S. when measured by students’ return on investment, with an average net return after twenty years of $889,000 (for students living on campus and receiving financial aid);5  Ranked 14th in the U.S., measured by the average early career salary of its alumni who only received a bachelor’s degree ($65,600); and  Tied for 17th in the U.S., measured by the average mid-career salary of its alumni who only received a bachelor’s degree ($117,000).

Hoboken’s working-class roots have helped shape the city’s character. At the same time, with more than 77 percent of all residents age 25 and older having at least a bachelor’s degree, Hoboken today is one of New Jersey’s best-educated communities.6 Stevens graduates directly account for only 2.2 percent of Hoboken’s college-educated population; but the university’s presence in the community helps to sustain the kind of environment that makes the city an attractive place for highly-skilled young workers to live. Programs and partnerships that engage Hoboken and Hudson County residents – in areas ranging from technology and entrepreneurship to arts and culture – contribute to the vibrancy of the community.

5 PayScale, 2016-2017 College Salary Report; 2016 College ROI Report. 6 ACS 2015 (5-Year Estimates), Social Explorer; U.S. Census Bureau.

Since the mid-twentieth century, university research has been an important source of economic growth in the United States. Universities – with strong financial support from the federal government – account for about 55 percent of all spending on basic scientific research in the U.S.7

Scientific discovery, however, does not by itself drive growth. Economic growth occurs only as new knowledge is translated into new technologies, products, processes, services, businesses and jobs. In the last 30 years, universities have become more actively involved in this part of the process as well.

At the local and regional level, university research contributes to the strength of the economy in several ways:

 By attracting millions of dollars each year in external (primarily federal) research funding, most of which is spent within the local area;  By providing a better understanding of – and helping to craft solutions to – problems of critical importance to the local community;  By creating new knowledge in areas that are particularly relevant to local industries;  By providing students with opportunities for hands-on learning; and  By providing a basis for the development of new technologies, new businesses and new jobs.

This part of the report focuses on Stevens Institute of Technology’s contributions to local economic growth in the first four of these areas, while Part Four focuses on the development of new businesses that are based on the results of university research.

Between fiscal year 2010 and fiscal year 2016 (as shown in Figure 9), Stevens Institute of Technology spent a total of $235.6 million on research. In fiscal year 2016, research spending at Stevens totaled $32.7 million.

7 The Science Coalition, Sparking Economic Growth, April 2010, p. 3.

Figure 9: Stevens research expenditures, FY 2010 – FY 2016 (in $000s)

As shown in Figure 10, the federal government is by far the university’s leading source of research funding, accounting for 89.2 percent (nearly $29.2 million) of total research expenditures in fiscal year 2016. Corporate and other private for-profit funding accounted for 4.4 percent ($1.4 million); private non-profit, institution of higher education and foundation funding for 3.1 percent ($1.0 million); state and local government funding for 2.7 percent ($891,130); and internal funding for less than 1.0 percent ($199,815).

Figure 10: Stevens research expenditures by source of funding, FY 2016 (in $000s)

In fiscal year 2016, the Schaefer School of Engineering and Science accounted for 64.1 percent (nearly $21.0 million) of all research expenditures at Stevens; the School of Systems and Enterprises accounted for 28.9 percent (nearly $9.5 million); and all other divisions of the university for 7.0 percent (nearly $2.3 million).

Through a powerful combination of basic and applied research, Stevens is helping to develop solutions to some of society’s most pressing issues in diverse fields ranging from resiliency and sustainability, to healthcare and drug discovery, to energy. The following are just a few recent examples.

 Researchers at Stevens’ Davidson Laboratory received an award of $6.6 million from the Port Authority of New York and New Jersey for the development of an observation and forecast system to understand the potential risk and magnitude of overland flooding prior to and during significant storms.

 A new cancer research method developed by Stevens researchers Dr. Wenting Zhang and Dr. Woo Lee in collaboration with Hackensack University Medical Center promises to improve treatment of multiple myeloma (MM), a blood cancer. The method allows MM cells to be successfully cultivated outside the body, which enables the testing of patient- specific therapeutic medications to determine the most effective therapy for individual patients at different stages of MM.

 A group headed by Stevens Professor Stephanie Lee is pursuing several lines of research aimed at improving the capacity of solar cells to convert light into, and store,

electricity. Their work could significantly enhance the efficiency of solar cells, and thus strengthen the economics of solar power.

 In 2015 the CME Group Foundation – the philanthropic arm of the world’s largest electronic exchange – contracted with the university’s Financial Systems Center to undertake several projects, including:

o Research on applications of quantum computing technology to complex financial problems; and o A joint CME-Stevens effort to develop a new high-speed trading simulation platform that can test global markets and exchanges in real time in order to detect weaknesses and vulnerabilities.

Such research can help both market participants and government regulators enhance the safety and stability of the world’s financial markets.

As noted previously, undergraduate education at Stevens is notable for its emphasis on learning through hands-on, practical experience. Along with the university’s cooperative education and internship programs, participation in research projects is an integral part of the undergraduate curriculum at Stevens.

Each year, many Stevens faculty members engage undergraduate students in their research work, accompanied either by academic credit or a stipend. The university also offers several more formal programs that support undergraduate research. For example:

 The Pinnacle Scholars Program, instituted in the fall of 2015, offers undergraduates the opportunity to undertake original, advanced research or entrepreneurial projects with a faculty mentor during the academic year and over the summer. This is an “invitation- only” program for which students are selected during the admissions process.

Those who participate receive an annual $5,000 stipend that can be used to support participation in either a faculty-guided research project, the Innovation and Entrepreneurship Summer Research Program (discussed below), or an international experience (such as study abroad or an internship). Program participants are also awarded a scholarship toward the university’s accelerated master’s program.

 Each year, about 10 percent of the freshman class is invited to participate in the Stevens Scholars Program. Those who participate have the opportunity to take the Freshman Seminar – a course in which first year students learn how to define and understand research, and write and defend a research proposal – and participate in lab visits on campus and at corporate sites such as Bell Labs and Princeton Infusion. During the summer, Stevens Scholars are provided stipends and on-campus housing while they conduct research with Stevens faculty.

 In the Innovation and Entrepreneurship (I&E) Summer Research Program, undergraduate students work with faculty mentors on research, design or business projects during a ten-week summer session. This work is often carried on throughout the student’s academic career and integrated into the student’s senior capstone projects (discussed below). Students are selected for the program on the basis of specific project proposals, which are reviewed by the Research Program Committee.

In addition to special programs such as these, most Stevens undergraduate students are also required to complete a year-long Senior Design Project, in which they get to apply what they’ve learned during the course of their studies to real world problems. Students work in teams of two to six on multi-disciplinary projects – many of which are sponsored by corporate partners – that range from feasibility studies to design and redesign problems. The capstone program culminates with the Senior Design Exposition, a part of the annual Stevens Innovation Expo (discussed in Part Four), during which students have the opportunity to present their projects to the Stevens community, invited guests and industry sponsors.

Hands-on research experience – whether within an academic setting with a faculty member or within a professional environment to meet a practical industry need – strengthens undergraduate education in several ways. It allows students to explore in greater depth topics that are of particular interest to them, as well as helps them develop skills in project planning, working through unanticipated problems, time management, teamwork and written and oral communication skills. These lessons are of real value, regardless of whether students pursue careers that involve formal scientific or engineering research.

With few exceptions, the new knowledge derived from university research does not directly generate economic growth. The new knowledge that university research creates must first be translated into concepts for new products, new processes or new services, which must then be brought to market.

Technological innovation and commercialization are among the most important drivers of economic growth. A report prepared for the National Research Council in 2005 cited research showing that in the half-century following the Second World War, improvements in technology accounted for half of all growth in gross domestic product in the U.S., and about two-thirds of all growth in productivity.8 Other analyses suggest that the share of economic growth attributable to technological innovation may be even higher – as much as 85 percent.9

The translation of university research into new products, processes and services, new businesses and new jobs can occur in any of several ways:

 Through the licensing of technologies first developed in university labs to companies interested in using these technologies for commercial purposes;  Through licenses of technologies to start-up companies (often involving university faculty or graduates) created by entrepreneurs specifically for the purpose of commercializing the results of university research; and  Through other companies started by faculty members, staff, students and alumni that, while not based on licensed technologies, are in some way rooted in their experience at the university.

While the benefits derived from innovation and entrepreneurship at Stevens are by no means limited to the local community or the state, research has shown that start-up companies that emerge from university research labs – as well as other new ventures started by faculty members, students and recent graduates – tend to cluster disproportionately around the institutions from which they emerge. Strengthening the university’s capacity to generate these new ventures, and providing them with the space, services and support they need to succeed, can thus be an especially effective way for Stevens to contribute to the growth and development of Hoboken’s economy.

Moreover, by creating an “ecosystem” that supports innovation and entrepreneurship within the university community, Stevens is also contributing to the development of an infrastructure that can support the growth of start-ups that emerge from the local community, and that can attract promising young companies from elsewhere.

8 Committee on prospering in the Global Economy in the 21st Century, Rising Above the Gathering Storm: Energizing and Employing America for a Brighter Economic Future, National Academy of Sciences, National Academy of Engineering, Institute of Medicine, 2005, p. 205. 9 Ibid p. 1.

This part of the report examines the role that Stevens plays in the commercialization of new technologies and the development of new businesses. We focus first on the formal process of technology transfer, including the licensing for commercial use of technologies first developed at Stevens; then on the work of the new Stevens Venture Center and examples of New Jersey companies founded by Stevens alumni, students, faculty and staff; and finally on the university’s role in educating and assisting the next generation of Stevens entrepreneurs.

As Table 12 shows, between fiscal year 2008 and fiscal year 2016:

 The number of invention disclosures filed by researchers at Stevens rose by 216.7 percent (from 18 to 57);  The number of patents issued rose by 400.0 percent (from 3 to 15);  Gross licensing income rose by 317.0 percent, to $418,000; and  26 new ventures were started to further develop and bring technologies first developed at Stevens to market.

Table 12: Technology transfer activity at Stevens, FY 2008 – FY 2016 (gross licensing income in $000s)

2008 2009 2010 2011 2012 2013 2014 2015 2016 Gross licensing income $100.3 – $200.0 $251.0 $451.0 $331.7 $342.0 $113.0 $418.0 Invention disclosures 18 40 49 50 47 40 40 65 57 New patent applications filed 13 20 24 15 16 20 20 17 15 Patents issued 3 5 2 3 12 4 4 9 15 Licenses/options executed 6 3 5 2 2 13 2 2 2 Start-up companies formed 2 2 0 0 0 6 5 5 6

While larger universities may produce higher absolute numbers on these standard measures of technology transfer activity, Stevens is especially noteworthy for the intensity of its technology transfer activity relative to the size of its research enterprise. Table 13 compares ratios of technology transfer activity to research spending at Stevens in fiscal year 2016 with the average ratios in fiscal year 2015 for 202 U.S. research universities, research hospitals and other research institutions surveyed by the Association of University Technology Managers (AUTM).

Table 13: Ratio of research spending to technology transfer at Stevens and other U.S. academic research institutions

Stevens AUTM survey Indicator (FY 2016) institutions (FY 2015) Total research spending $32.7 million $66.6 billion Research spending:  Per invention disclosure $573,866 $2.63 million  Per new patent application $2.18 million $4.17 million  Per U.S. patent awarded $2.52 million $9.97 million  Per new license or option agreement $16.36 million $8.39 million  Per start-up formed $5.45 million $65.81 million

Source: Appleseed calculations, based on AUTM data (AUTM, report titled, Highlights of AUTM’s U.S. Licensing Activity Survey: FY 2015)

While the scale of the Stevens research enterprise is thus smaller (when measured by research spending) than those of many other leading universities, the rate at which new knowledge is made available for commercial use is much higher at Stevens than at most other research universities, indicating a more efficient path toward technology transfer and commercialization at Stevens than comparable, but larger institutions.

The pace of technology transfer at Stevens is partly a product of its specialization in engineering and applied science. But it also reflects an institutional commitment to research that addresses real-world problems, and to ensuring that the new knowledge the university produces is put to use.

Examples of New Jersey companies that licensed technologies first developed at Stevens during fiscal year 2015 and fiscal year 2016 include:

 Castle Point Learning Systems, a Hoboken-based educational technology company founded by two Stevens faculty members, has developed an artificial intelligence-based tutor that provides individualized guidance and feedback to Calculus students using an engaging online learning platform.

 Dental Innovations, a medical device company located in the Stevens Venture Center, developing nanotech coatings for dental implants that “facilitate rapid and controllable tissue regeneration and provide a secure seal to prevent infection.”

 FinTech Studios, a New York City cloud-based software and information technology company founded in 2014, develops and markets a cloud-based web and mobile platform of curated financial technology apps, investment research and big-data analytic products.

 Wave Dental, a Stevens Venture Center company, has developed dental extraction tools that employ focused vibration technology to reduce incidence of tooth breakage and local trauma during extraction.

Formal technology transfer is not the only means by which the intellectual capital developed at Stevens is translated into new products and services, new businesses and new jobs.

Opened in 2016, the Stevens Venture Center is among the newest additions to the university’s suite of programs and services for aspiring student, faculty and alumni entrepreneurs. The Venture Center nurtures the promising concepts and technologies of Stevens-affiliated entrepreneurs into thriving businesses through technology support, opportunities to share best practices and experiences, networking with investors and experts in legal and accounting, and education in building a successful business. Located in a high-rise building on River Street in Hoboken, New Jersey, the Venture Center’s space includes 29 work stations, a conference room and prototyping equipment. The Venture Center also hosts workshops, speakers and networking events; and through its “entrepreneurs in residence,” provides its members with advice, counseling and valuable connections.

The following are examples of companies in New Jersey started by Stevens faculty, staff, students or alumni.

 Jersey City-based Sphere Technology Solutions, founded in 2010, provides data governance, security and compliance solutions to leading companies in finance, energy, retailing and health care.

 Dynamic Spectrum LLC, founded in 2012 and based in Holmdel, is developing practical applications of “cognitive radio” technology pioneered at Stevens – for example, for use in improving emergency communications systems.

 FlexTra Power, currently based at the Stevens Venture Center in Hoboken, has developed a line of graphene-based sensors that can be embedded in clothing and that can be used to monitor temperature, humidity and the presence of various biohazards.

 Hoboken-based Data Minded Solutions, founded in 2014, provides FDA-approved wearable devices that can be used to collect, analyze and update patient data on an ongoing basis.

Along with its research and technology transfer activity, Stevens supports innovation and entrepreneurship by helping its students acquire the knowledge, skills and experience they need as entrepreneurs. Both through the university’s formal curriculum and other programs and activities, Stevens offers students multiple opportunities to learn the basics of creating and growing a business, including product design, prototyping, sales, marketing, teamwork and fundraising.

 The School of Business offers an undergraduate business minor in entrepreneurship, consisting of six courses that focus on areas such as the discovery and commercialization of technical business opportunities, marketing and operations, assessment and financing, and an entrepreneurial business practicum. The entrepreneurship minor is open to undergraduates majoring in Business, Engineering, Science or Arts and Letters.

 The Schaefer School of Engineering and Science requires all freshman undergraduate engineering students to take Introduction to Entrepreneurial Thinking, an interactive course aimed at creating “an entrepreneurial mindset in freshman undergraduate students,” that features seminars and guest lectures with industry professionals, computer simulations of start-up companies, and case studies.

The course is one of eight core design courses that make up the School of Engineering’s “Design Spine” – a series of undergraduate courses geared towards “developing a set of competencies to meet educational goals in areas such as creative thinking, problem solving, teamwork, economics of engineering, project management, communication skills, ethics, and environmental awareness.”

 In the School of Business’ master’s program in Technology Management, technical professionals with at least five years of professional experience develop skills in the effective management and use of technology in technology-intensive businesses. The two-year, part-time program combines courses in general business skills with courses geared towards the development of entrepreneurial thinking, including corporate entrepreneurship, design thinking, and managing emerging technology.

 The Innovation, Design and Entrepreneurship at Stevens (IDEaS) program provides an innovation spine within the undergraduate experience through curricular- and project- focused learning modules, and provides opportunities for students to interact with professional mentors who will guide them towards design outcomes that maximize their potential value to society.

 A hallmark of the Stevens educational experience is the Innovation Expo, an annual showcase of Stevens faculty research and student senior design projects. The day-long program also features lectures from faculty and invited industry leaders and student pitch and plan competitions (discussed below), and attracts venture capitalists, entrepreneurs, and professionals in the tech industry and beyond. Over 150

interdisciplinary student senior design projects are presented in areas ranging from renewable energy to medical devices, from defense and security technologies to consumer products, and from mobile applications and software design to innovations in transportation and manufacturing.

Often, student senior design projects address the real-world interests of corporate sponsors, which simultaneously provide sponsors with opportunities to explore new concepts or solutions and students with practice in developing professionalism and addressing client needs. The Innovation Expo has also become a launching pad for student start-ups. Many commercially viable projects are filed for patent in order to be developed following students’ completion of the senior capstone design course.

 When choosing their senior design projects, students are encouraged to consider projects that have potential commercial applications. Those that choose to do so have the opportunity to compete for investment funding for innovative business ideas in the Pitch and Plan Competitions at the Innovation Expo. Participating teams each have two minutes to pitch their senior design projects to a panel of judges (made up of industry, academic and community leaders) who then evaluate the project based on the quality of the pitch and the feasibility of the proposed business product or service. In 2016, the winning entries included:

o In the Business Products Pitch Competition, WHISPER, a team of eight engineering students, for their pitch for a wireless structural health monitoring system for heavily traveled bridges.

o In the Business Services Pitch Competition, Nuclear Solutions, a team of three chemical engineering students, for their plan to improve the future of spent nuclear fuel by providing a more efficient, sustainable and safe method for extracting uranium from spent nuclear fuel through crystallization.

The first-place winner for each competition received $5,000 plus one year of co-working membership for the team at Mission50 Workspaces. In addition, the second- and third- place finishers for each competition won $2,000 and $1,000, respectively.

 The new Innovation & Entrepreneurship (I&E) Co-op Program, launched in 2015, provides eligible early-stage start-ups with the opportunity to hire undergraduate Stevens students on a full-time basis over a six-month period at the market rate for their industry.

 Pre-college students may explore their entrepreneurship talents though Stevens’ Entrepreneurship: From an Idea to a StartUp summer program. During the one-week program, students learn about the tools and skills needed to develop a new product or service idea that can be pitched to a potential client. The program features guest lectures, site visits and workshops led by successful business owners, and culminates with a project in which students create a website for a business idea with a group of fellow students.

 Stevens’ Innovation and Entrepreneurship (I&E) Doctoral Fellowship provides tuition and stipends for two years to Ph.D. students whose research could potentially result in the development of disruptive technological innovations or other transformational changes in specific areas, and who aspire to become entrepreneurs. While pursuing their research, I&E doctoral fellows also take courses on entrepreneurship and related topics. I&E doctoral fellowships can be extended to three or four years in selected cases where the student’s research has resulted in the creation of potentially high-value intellectual property and is moving toward licensing or the creation of a new venture.

Since the 1980s, colleges and universities throughout the United States have acknowledged the importance of being actively engaged in the life of their home communities. These institutions recognize that their effectiveness as centers for learning, research and innovation depends in part on the strength, stability and overall attractiveness of the communities in which they operate.

At the same time, both students and practitioners of urban and regional development recognize that strong, attractive neighborhoods and communities are essential to sustainable economic growth. Constructive engagement with their home communities thus helps colleges and universities fulfill their mission, and at the same time contribute to the overall health of the local economy.

Stevens’ projected growth during the next decade (discussed below in Part Six) should be viewed in part in terms of its impact on the university’s capacity for engagement with its local community. Growth at Stevens will mean an increase in the number of students, faculty and staff engaged in community service work; increased capacity to conduct research on issues of concern to the community; and the development of new facilities that can in some cases serve both the university and the community.

This part of the report examines several aspects of community engagement at Stevens, including:

 The university’s engagement in efforts to improve education in science, technology, engineering and mathematics at the elementary and secondary level, both in Hoboken and other New Jersey communities;  Making a variety of university resources available to the City of Hoboken, its residents and local community organizations; and  Drawing on the university’s intellectual and human resources to fashion new solutions to some of the community’s, the region’s and the state’s most pressing problems.

Through its programming from the Center for Innovation in Engineering and Science Education (CIESE), tutoring and mentorship, and other programs and units within the university, Stevens provides in-kind and material support to Hoboken schools and youth, and throughout Hudson County and the State of New Jersey.

This includes a series of externally funded projects that support local teachers’ and students’ learning and engagement in STEM programs, as well as pro bono and volunteer efforts that benefit local education systems and youth. Hoboken schools, including public, non-public, and charter schools, benefit from these projects, which focus on strengthening teacher capabilities,

in-class support, provision of classroom materials and hardware, as well as youth summer camps, tutoring, and other special programming. For example:

 Center for Innovation in Engineering and Science Education (CIESE), a White House-recognized science, technology, engineering, and mathematics (STEM) education and research center with programs in 23 states and a dozen countries, is the principal focal point at Stevens for efforts to strengthen elementary and secondary STEM education. CIESE’s work at Stevens has included a series of externally funded projects, as well as an array of services provided to local school districts on an ongoing basis. Overall, more than 250 teachers and administrators from Hoboken, and thousands of Hoboken students have directly benefited from CIESE programs over more than 25 years. Examples of current projects include:

o Partnership to Improve Student Achievement in Physical Science (PISA2), an $11.5 million, NSF-sponsored program aimed at strengthening the science content knowledge and instructional skills of elementary and middle school physical science teachers in 14 New Jersey school districts.

o Waterbotics®, a program aimed at increasing the number of youth interested in STEM fields of study and careers. As part of the research-based science and technology curriculum, middle and high school students have the opportunity to design, build, program and test underwater robots using LEGO® components while completing team-based design challenges. In the past, corporate sponsorship has enabled the one-week summer program to be offered free or at low cost to Hoboken youth.

o STEAM, a teacher professional development program funded by the Geraldine R. Dodge Foundation that brings together middle school teachers of science and technology and the arts to develop ways to integrate the arts into STEM curricula.

 SATMax, held in the spring of 2015, is a practical workshop designed specifically for high school students who are planning to take or retake the PSAT or SAT. The program runs for two hours per week for five weeks and utilizes Stevens faculty and undergraduates trained as “micro-teaching” tutors to train small groups of high school students in the four basic areas of the test: test taking strategies, mathematical skills, verbal skills, and written composition. The average score increase on the PSAT or SAT of students who completed the program as of 2015 was 70 points on verbal, 65 on math, and 80 on writing.

 STEM-a-thon, launched in 2015, is a one-day program hosted at Stevens designed to engage students from Hoboken’s public, private and charter schools in fun, STEM-based learning activities guided by Stevens student and faculty volunteers. During the 2016 event, STEM-a-thon: Discovery, Innovation & Success for Hoboken’s 8th Grade Students, 150 Hoboken 8th grade students explored innovation, engineering design and

STEM college majors through hands-on, team-based STEM activities, a student panel and a campus tour.

 Duckling Program is a Student-Athlete Advisory Committee-led program in which Stevens student athletes create lesson plans and lead STEM projects for local middle school students. During the 2015-16 academic year, 300 Stevens student volunteers and 200 local 6th grade students participated in the program.

 Hoboken High School-Stevens Scholarship is a full-tuition scholarship awarded each year to the top graduating senior from Hoboken High School who chooses to attend Stevens. Since 1992, $3 million in scholarships have been awarded through this program.

 Stevens also offers scholarships for students from Hoboken and underserved New Jersey communities to attend summer programs like CIESE’s Waterbotics® and pre- college offerings in engineering and technology to rising high-school juniors and seniors.

In addition to these programs, a large number of recurring and ad hoc programs to benefit local K-12 students and teachers occur regularly, including STEM competitions, Boy and Girl Scout Troup field trips to Stevens research laboratories, fraternity tutoring programs in schools, youth summer camps and more.

Stevens also serves in multiple ways as a resource for Hoboken and its residents – through community engagement and volunteer efforts by students, faculty and staff; through access to university programs and resources; and through partnerships with local tech organizations, businesses and government. For example:

 Each year during Freshman Orientation, incoming undergraduate students have the opportunity to engage in community service projects and activities during Orientation Community Service Day. During the 2016-17 academic year, 85 Stevens freshman participated in community service projects with a variety of Hoboken organizations including the Hoboken Shelter, the Hoboken Historical Museum, the City of Hoboken Health and Human Services/Public Works, and the Church of the Holy Innocents.

 The university’s athletic teams host sports clinics and tournaments for local children and youth teams throughout the year, including the National Girls and Women in Sports Day at Stevens, an all sport clinic for local youth; coaching and a clinic for Hoboken Youth Lacrosse; and swimming lessons for Hoboken High School special olympians. During the 2016-17 academic year, 100 local children participated in those two events.

 Stevens provides meeting and event space and planning support for a variety of public forums and community events, such as the Mayor’s Inauguration Ceremony in January

2014 and State of the City addresses, graduation ceremonies, monthly NJ Tech Meetup events, and TedX conferences.

 Stevens hosts a variety of arts, cultural, and intellectual events open to the public including the President’s Distinguished Lecture Series, which brings prominent thought- leaders in science and technology to campus; the Vagina Monologues, which is hosted in collaboration with local non-profit WomenRising; performances by local theater and dance organizations; author talks in collaboration with Hoboken-based Little City Books; and OnStage at Stevens, a series of premier arts and cultural events, including performances by members of the New Jersey Symphony Orchestra.

 Stevens Campus Police work closely with the Hoboken Police and Fire Department on crime prevention and law enforcement including compiling crime statistics; coordinating emergency response and law enforcement assistance with the City of Hoboken during major public events and crises; and routinely providing mutual aid on an average of 50 calls per year when the Hoboken Police Department is undermanned. Stevens Campus Police sponsor annual barbecues for Hoboken Police and Fire Departments on campus, and provide campus space for police recruits conducting endurance runs prior to their departure to the police academy.

 Each summer, Stevens’ campus hosts the Hoboken Junior Police Academy, a free camp for Hoboken children ages 12 through 15, which provides hand-on experience with the role of a police officer and helps to prepare children for future entry into the law enforcement field.

 The university’s value as a resource for the community was particularly evident in the days following Hurricane Sandy, which caused widespread flooding, extensive damage and dislocation of residents throughout Hoboken. Stevens estimates that in the week following the storm, 300 students performed more than 2,000 hours of volunteer work – working with the National Guard to rescue people stranded by the storm, delivering water in high-rise buildings, checking in on elderly residents, working with the Hoboken Volunteer Ambulance Corps, helping prepare meals for people who had taken refuge in city shelters, providing the city with an audio system for public meetings and helping to staff a city command center.

At the city’s request, the university’s Walker Gymnasium was also used as a triage and emergency service center for the Hoboken Volunteer Ambulance Corps and other emergency medical service teams. The need for such a facility was particularly critical, in that the storm had resulted in the evacuation and closing of Hoboken Medical Center.

 In the summer of 2014, Stevens donated 16 bicycles and five bike helmets to the Hudson Transportation Management Association for use by Bike Hoboken.

In addition to helping with the immediate needs such as those cited above, Stevens has also made its intellectual resources available to help Hoboken and other communities in the region address longer-term priorities.

Stevens is deeply engaged in efforts to help communities in the New York-New Jersey area recover from the effects of Hurricane Sandy, and to improve protections against flooding and other extreme weather events.

 In June 2013, Stevens and Northeastern University sponsored a conference in Hoboken that brought together managers of urban transportation systems, emergency management professionals and other experts to explore how mass transit, port and aviation infrastructure can be made more resilient. The meeting was the first in a series funded by the Alfred P. Sloan Foundation, with subsequent sessions to focus on enhancing the capacity of energy, communications and health care systems to withstand major catastrophes.

 As part of the city’s Green Infrastructure Pilot, researchers at Stevens are working on a project to monitor the performance of green infrastructure technology (rain barrels and rain gardens) in delaying and storing storm water runoff that contributes to flooding.

 The SURE HOUSE, Stevens’ first-place entry in the 2015 U.S. Department of Energy Solar Decathlon, is a sustainable and resilient home designed for areas at greatest risk due to rising sea-levels and more damaging storms. The SURE HOUSE uses state of the art building science, the latest renewable energy technologies, and fiber-composite materials repurposed from the boat building industry for a design that armors against extreme weather, uses 90% less energy than conventional shore homes, is fully solar powered, and becomes a hub for emergency power in the aftermath of a storm.

 University faculty and researchers affiliated with the Center for Maritime Systems and the Davidson Laboratory provided extensive support to New York City’s efforts to enhance the city’s ability to withstand extreme weather events. Building on their work over the past decade, the Stevens team modeled the impact of future storm surges on coastal areas in the city under various scenarios, and assessed the relative effectiveness of alternative coastal protection measures. The team’s work helped inform the city’s plan for increased resiliency (A Stronger, More Resilient New York), completed in 2013.

 Advised by three faculty members, an interdisciplinary student team placed second in the U.S. Environmental Protection Agency’s 2015 Campus RainWorks Challenge Master Plan Category for their project, “The Living Laboratory,” a stormwater management plan for the Stevens campus which includes 29 green infrastructure techniques to reduce runoff, contaminant discharge, and potable water usage.

 In partnership with Hoboken City Hall, Dr. Elizabeth Fassman-Beck, associate professor in Stevens’ Department of Civil, Environmental and Ocean Engineering, is monitoring the performance of green infrastructure technology demonstrations that have been installed around the City Hall building to delay and store storm water runoff that causes flooding.

 Researchers in Stevens’ Davidson Laboratory have created Stevens Estuarine and Coastal Ocean Model (sECOM) to accurately predict and visualize flood events in Hoboken and Jersey City.

Through these and other forms of engagement with Hoboken and other nearby communities, Stevens contributes to a “triple bottom line” – directly benefiting the community and its residents, enhancing the university’s ability to fulfill its own goals, and strengthening the communal foundation on which economic growth and opportunity depend.

As this report documents, Stevens Institute of Technology has a significant economic impact in Hoboken, in Hudson County and throughout New Jersey. Moreover, during the next decade, the university’s impact is likely to increase. This is so for several reasons.

By the fall of 2023, Stevens is aiming to increase undergraduate enrollment from 3,115 in the fall of 2016 to 3,956 – an increase of 27 percent. Growth would have an immediate impact on the local economy, as it would be accompanied by continued growth in the number of people employed by the university – both faculty and support staff. We estimate that by 2023, as a result of the projected growth associated with the university’s Strategic Plan, the number of people directly employed by Stevens would increase by approximately 6.7 percent, to 1,185.

Increased enrollment would also bring increased off-campus spending by Stevens students, which would also create new jobs in Hoboken and neighboring communities. We estimate that in 2023, increased off-campus spending by Stevens students would directly and indirectly account for:

 127 FTE jobs in Hoboken, with earnings totaling nearly $6.3 million (in 2023 dollars); and  $17.6 million (in 2023 dollars) in citywide economic output.

In Hudson County (including Hoboken), we estimate that in 2023, increased off-campus spending by Stevens students would directly and indirectly account for:

 293 FTE jobs in Hudson County, with earnings totaling $13.4 million (in 2023 dollars); and  Nearly $43.5 million (in 2023 dollars) in countywide economic output.

Even more important in the long run, as enrollment increases so would the university’s contribution to development of the “human capital” that is so essential to the continued growth of Hoboken’s and New Jersey’s economy. Increased enrollment would translate into continued growth in the number of cooperative education students and interns working for New Jersey companies – and over time, continued growth in the number of highly-skilled Stevens graduates living and working in in Hoboken and elsewhere in New Jersey.

Stevens has also set ambitious goals for the continued growth of its research enterprise. If it succeeds in meeting these goals, university research spending could grow from $32.7 million in

fiscal year 2016 to $55 million. This growth will also translate into increased employment at Stevens, and increased spending on purchases of goods and services from New Jersey businesses.

The growth of its research enterprise will also enhance the university’s capacity to address some of the most critical problems that New Jersey communities and industries will confront during the next 10 years and beyond – not only in areas where Stevens has traditionally been strong, such as systems engineering and maritime security, but also in emerging areas such as health care, cybersecurity, energy and understanding how coastal cities and communities such as Hoboken can adapt to the challenges posed by a changing climate.

Growth in enrollment and research will require investment in the development of new facilities. Construction of the university’s new Academic Gateway project, for example, is expected to add approximately 90,000 square feet of instructional and research space to the Stevens campus by 2019, with a total project cost of approximately $63.5 million. Other new facilities and major renovation projects are being planned as well, including those shown below in Table 14.

Table 14: Selected examples of planned construction and renovation projects

Estimated total Estimated year Project project cost of completion University Center and Student Housing Project $190,000,000 2020 Gateway Academic Building $64,000,000 2019 North Building $5,700,000 2017 Babbio Garage $13,500,000 2017 Howe Center kitchen and dining expansion $14,000,000 2020 Academic wrap-around building $314,880,000 2022 Castle Point residence hall $64,512,000 2023 Multi-use building (5th Street and Sinatra Drive) $46,080,000 2024

Over the next five years, from fiscal year 2017 through fiscal year 2021 (as shown in Figure 11), Stevens estimates that it will spend more than $422.8 million in new construction and renovation – an average of nearly $84.6 million each year.

Using IMPLAN, we estimate that this investment will directly support 1,517 person-years of employment in New Jersey, with earnings totaling $144.3 million (in 2020 dollars). Taking into account indirect and induced effects, we estimate that this investment will directly and indirectly account for:

 3,268 person-years of employment in New Jersey (an average of 653 FTE jobs each year), with earnings totaling $257.8 million (in 2020 dollars); and  $713.2 million (in 2020 dollars) in statewide economic output.

Figure 11: Projected construction spending, FY 2017 – FY 2021 (in $ millions)

During the next five years, these investments will translate into new business and jobs for New Jersey contractors and construction workers – and even more important in the long term, will greatly enhance the university’s ability to carry out its mission.

The university’s planned construction program will benefit Hoboken in other ways as well. It will, for example, create or improve facilities that can sometimes be made available for use by other local non-profit organizations. Moreover, the development of new on-campus student residences will eliminate the need for Stevens to house students in leased off-campus space – and in doing so will free up hundreds of apartments for other local residents. Having more students living on campus will also reduce the need for shuttle service to the Stevens campus – and thus reduce traffic on the city’s streets.

Stevens Institute of Technology has long combined a focus on engineering, applied science and technology with an institutional commitment to seeing the results of its research put to good use. During the past few years, the university has done even more to sharpen its focus and reinforce its commitment to innovation and entrepreneurship – strengthening its technology transfer

operations, and expanding opportunities for students to acquire the skills, knowledge and experience they need to succeed as entrepreneurs.

The Stevens Venture Center, launched in 2016, opens a new chapter in the university’s support for innovation and entrepreneurship. The Venture Center is currently providing its inaugural group of student, faculty and recent alumni entrepreneurs with the space, services, connections and other resources they need to successfully start and develop new businesses. Moreover, with its off-campus location and ties to local entrepreneurs, the Venture Center embodies a clear recognition that it cannot succeed if it only faces inward – instead it must serve as a bridge between the university and the wider community. Hoboken is already home to a number of start- ups with ties to Stevens; in the years ahead, their ranks are likely to grow.

During the next five to 10 years, this heightened focus on innovation and entrepreneurship, combined with growth in both enrollment and research spending, is likely to increase significantly the rate at which the university’s programs of education and research lead to the development of new products and services and the creation of new businesses and new jobs.

For more than 145 years, Stevens Institute of Technology has been a noteworthy contributor to the life of the City of Hoboken, and to New Jersey’s economic vitality. The challenges the city and the state face today – jump-starting job growth, coping with the effects of climate change, improving public education and others – differ from those of 1870. But science, engineering and technological innovation, the strengths that have characterized Stevens since its founding, may be even more important now than they have been at any time in the university’s history. Stevens can thus be an invaluable partner in the process of building Hoboken’s future, and New Jersey’s.