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  April 5, 2004

Report Details University's
Impact On State's Economy

A new University report detailing UConn's significant impact on the Connecticut economy and the quality of life in the Nutmeg State is being distributed to decision-makers and opinion leaders throughout the state.

Image: Cover of the Economic impactreport

"Our faculty and staff are intimately aware of how UConn profoundly touches the lives of Connecticut's residents," says President Philip E. Austin. "It's equally important for business leaders, elected officials, and others whose views are widely respected to know and fully appreciate the value of the University of Connecticut to our state and the important role it plays in Connecticut's economic vitality, as well as its contribution to the high quality of life."

The direct impact UConn has on the state's economic health and productivity is noteworthy, according to the report, The State of UConn: A Powerful Economic Driver for Connecticut.

The report notes that:

  • As a result of its productivity, research spending, and employment, UConn accounts for $3.1 billion of Connecticut's gross state product, which is the total value of goods and services produced by residents of the state.
  • There is a multiplier effect because of UConn: for every state dollar invested in UConn, gross state product increases by $6.18.
  • The state's contribution to UConn attracts an additional $800 million in private and federal investment into Connecticut.
  • If one were to rank order the economic sectors that make up theConnecticut economy (retail trades, manufacturing, finance, real estate, etc.) in order of the value of their output, UConn as a single entity would emerge in the top 25 of the list.
  • Faculty research at UConn provides direct benefits to the Connecticut economy in the form of job creation, new business development, and sub-contracting work with state businesses that, in 2002, was valued at approximately $50 million.

The report, which was prepared by the Office of University Communicatio ns, combines quantitative data gathered by the Connecticut Center for Economic Analysis (CCEA) and qualitative information provided by the University's schools and colleges, the UConn Health Center, UConn's regional campuses, and key administrative departments. The report describes the wide range of statewide UConn activities that begins with educating and preparing Connecticut's professional workforce, and extends to various partnerships with businesses, state and municipal agencies, and local public schools. It also includes UConn's public service activities and the unifying effect and source of pride that 'Huskymania' provides to the state's quality of life.

In addition to distribution of the report to decision-makers and opinion leaders, the cover story of the Spring 2004 edition of UConn Traditions provides alumni with a detailed look at the University's far-reaching impact on the state. More than 90,000 of UConn's 160,000 alumni live and work in Connecticut.

"Opinion leaders know intuitively, and alumni know instinctively, the value that UConn provides to our state," says Scott Brohinsky, director of university relations. "The publication and the magazine story document that value and validate this understanding."

The report uses the most updated form of the dynamic, multi-sector economic model for Connecticut developed by Regional Economic Models, Inc. to measure the state's economy and UConn's impact on it, says Stan McMillen, manager of research projects for CCEA.

"It's an incredible story about what goes on because of UConn," says McMillen. "It's the spending the University does, its faculty, staff and students who purchase goods and services and the development of the professional workforce that reduce the cost of recruiting skilled employees. This all combines to be a powerful economic engine."

The information contained in the report is not surprising to those who work throughout the Connecticut business community and track economic growth and development.

"UConn has made a great transformation and evolved to serve the growth of industry in this state, both manufacturing and service," says Nick Perna, chief economist for Perna Associates and an economic advisor for Webster Financial Corporation in Waterbury. "It's instrumental in getting people and business to locate in the state. Businesses know they have access to quality graduates and families know they can send their children to a high quality public institution."