University of Calgary Economic Impact Report Office of Institutional Analysis March 2013 Table of Contents Executive Summary ............................................................................................................................................................. 3 Introduction ......................................................................................................................................................................... 4 Methodology ........................................................................................................................................................................ 5 Total Economic Impact ........................................................................................................................................................ 7 Institutional Spending ......................................................................................................................................................... 9 Student Spending .............................................................................................................................................................11 Visitor Spending ................................................................................................................................................................12 Alumni Education Premium ...............................................................................................................................................14 Research Impact ...............................................................................................................................................................16 Creation of Knowledge .................................................................................................................................................16 Supplying R&D Human Capital .....................................................................................................................................18 Interactions with Researchers and Industry (Spillover Effects) .................................................................................21 Estimating University of Calgary’s Research Impact using Total Factor Productivity ...............................................21 A Comparison of Economic Impact ...................................................................................................................................22 Additional Economic Impacts ............................................................................................................................................24 Conclusion .........................................................................................................................................................................24 Acknowledgements ...........................................................................................................................................................24 Appendix A – University of Calgary Alumni Education Premium Calculations ................................................................25 Appendix B – Average income in Alberta below bachelor’s level ....................................................................................26 Appendix C – Workforce Participation ..............................................................................................................................27 References .........................................................................................................................................................................29 Economic Impact Report Table of Contents 1 Figures Figure 1: The Economic Impact Model ............................................................................................................................... 6 Figure 2: Total Economic Impact ......................................................................................................................................... 7 Figure 3: Institutional Spending Economic Impact ..........................................................................................................10 Figure 4: Economic Impact of a University of Calgary Education Premium ....................................................................15 Figure 5: Research Publications ....................................................................................................................................... 17 Figure 6: Research Publication Impact ............................................................................................................................ 17 Figure 7: License Income Generated from Research Activities ......................................................................................20 Tables Table 1: Economic Impact Summary .................................................................................................................................. 7 Table 2: Institutional Spending .........................................................................................................................................10 Table 3: Student Spending ................................................................................................................................................11 Table 4: Visitor Spending ...................................................................................................................................................13 Table 5: Differential Earnings ...........................................................................................................................................14 Table 6: Education Premium Summary ............................................................................................................................15 Table 7: Selected Outcomes of Research Commercialization .........................................................................................19 Table 8: Economic Impact of Research ............................................................................................................................21 Table 9: Economic Impact Comparison ............................................................................................................................22 Table 10: Economic Impact Multiplier Comparison .........................................................................................................23 Table 11: Alumni Education Premium by Credential ........................................................................................................25 Table 12: Average Income in Alberta below Bachelor’s Level .........................................................................................26 Table 13: Workforce Participation ....................................................................................................................................27 Economic Impact Report Table of Contents 2 Executive Summary The University of Calgary contributes at least $7.92 far-reaching and difficult to comprehensively measure. billion annually to the Alberta economy through various Exclusive of direct spending on research activities, the direct, induced, and dynamic teaching, research, and creation of knowledge, supplying of R&D human capital, community service activities. and spillover effects to industry contribute to the University of Calgary’s total research impact of $3.14 Spending associated with institutional operations billion annually in the Alberta economy. generates $1.27 billion of impact inclusive of $257 million in direct spending on the research enterprise. The institutional spending multiplier represents the Full-time students attending the University of Calgary amount of total economic impact in the region resulting induced multiple rounds of spending thereby creating from each dollar spent by the institution. In 2009- $298.2 million in economic impact. 10, the Alberta economy realized $9.40 for every dollar spent by the University of Calgary in the region, The university also attracts visitors to its academic and slightly higher than the University of Alberta’s spending non-academic events generating $186.1 million of impact. multiplier ($9.10). Graduates of the university’s programs quickly move Similarly, the government spending multiplier indicates into the workforce and earn increasingly higher salaries that for every dollar of operating grant invested by relative to those without undergraduate or graduate government (federal & provincial) into the University level education. In Alberta, bachelor’s degree graduates of Calgary, $12.90 is generated in economic impact earn between $14K and $50K per year more than within Alberta—just under the University of Alberta’s those without a bachelor’s degree, depending on their government spending multiplier ($13.40), and higher age (2009 data). Similarly, those with graduate level education (i.e., master’s, PhD) earn between $20K and than that of University of British Columbia, University of $62K per year more than those without a bachelor’s Ottawa, and Simon Fraser University. degree, depending on their age (2009 data). The In standardized terms (i.e., per dollar invested or spent), “education premium” earned annually by the total base the University of Calgary has an economic impact on of University of Calgary alumni in the Alberta workforce the province of Alberta that is approximately equivalent is estimated to be worth $3.02 billion in economic to that of the University of