12:20 p.m., Sept. 23, 2010----The University of Delaware's annual economic impact on the region comprised of Delaware, New Jersey, Maryland and Pennsylvania amounts to over $6.2 billion and supports over 46,000 jobs, according to a report released by the Center for Applied Business and Economic Research (CABER) in the Alfred Lerner College of Business and Economics.

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At the state level, in Delaware alone, the University's economic impact produced by the spending of students, alumni and visitors is over $2.9 billion, supporting over 26,000 jobs or about 5 percent of total employment.

The comparable results for the greater Newark area show that, for both output and jobs, the University community's activities stimulate total impacts that are 16 percent of the totals for the area.

The study, The Economic Impact of the University of Delaware: Contributions to Greater Newark, New Castle County, the State of Delaware, the 4-State Region and the United States, was commissioned by the University Office of the Executive Vice President and executed by CABER, which is run by directors William Latham, an economics professor, and Kenneth Lewis, also an economics professor and Chaplin Tyler Professor of Business.

“In conducting our study we found that, to understand the economic impact of the University, it is essential that we understand the contributions of the University's alumni,” said Lewis. “Alumni are especially important because their contributions are far greater than those of just this year's students. Alumni have become part of the communities in which they live and their contributions continue year after year. The University now has more than 140,000 living alumni; two thirds of them live in the four-state region and contribute substantially to its economic growth.”

In addition to the alumni impacts, University purchases add to the economy, bringing the total output produced in the four-state region to $6.2 billion.

“The multiplier analysis used in this study is what captures the full effects of the University on the economy,” said Latham. “The multiplier effects consist of the additional jobs, payroll and output created when the businesses that supply the University's purchases of goods and services make their own purchases and hire their own workers. These purchases and payrolls, in turn, generate even more purchases and payrolls. The sum of all these rounds of effects are the multiplier effects.”

According to the report, every dollar invested in the University by the state returns at least $8.71 to Delawareans in the form of salaries and wages, making the University a superb investment for the state.

David Brond, vice president for communications and marketing at UD, said “this analysis and report highlights the importance of the University as an engine of economic growth for the local area, entire state of Delaware and the region. UD generates a 'smart money' positive return on investment.”

The report also describes how the University adds to students' human capital and their ability to earn higher incomes by providing a solid education, and shows that the University's 3,569 bachelor's degree graduates in 2009 would be expected to earn an average of $20,748 a year more than a high school graduate.

The full report documents results for the greater Newark area, New Castle County, the state of Delaware, the four-state region comprised of Delaware, New Jersey, Maryland and Pennsylvania plus the entire U.S. It also reports the University's role in impacting federal, state and local government tax revenues, and attracting nearly three-quarters of a million visitors annually.

Earlier this summer, the University also released the 2010 University of Delaware Diamond Report, which highlights the impact of the University on the state's economy.

CABER was established this year in the Lerner College to provide educational opportunities for students and faculty to refine their skills in economic forecasting, economic analysis of public policy proposals, and evaluation of sustainable business strategies and issues.

“The kind of high quality professional report that we produced could not have been possible without the assistance of a team of highly-qualified, dedicated graduate students,” said Latham. “The students gained great experience by working in CABER and contributed a tremendous amount to the report.”

CABER also produces statistical data and economic impact assessments in support of economic growth and business development in the region.

Article by Kathryn A. Marrone