The Economic Impact Study of the Flemish Universities BiGGAR Economics The Economic Impact Study of the Flemish Universities 20th December 2017
Theoretical Foundations BiGGAR Economics Theoretical Foundations In advanced economies: economic growth from productivity growth productivity growth from: knowledge diffusion of knowledge (innovation) universities are knowledge & innovation institutions
Framework Universities Which leads to a range of economic impacts BiGGAR Economics Framework Universities create intellectual capital create human capital exchange knowledge facilitate technical innovation attract capital investment provide leadership, knowledge infrastructure & a social environment for national & regional development Which leads to a range of economic impacts economic competitiveness & productivity growth public goods & necessary conditions
Principles of Approach BiGGAR Economics Principles of Approach Methodology tried & tested 75+ individual university impact studies Similar to LERU method Impact calculations based on best available evidence Assumptions conservative So, confidence that impact “at least” Transparency: all sources & assumptions clearly stated Nature of impacts Incidental Purposeful Economic impact one of many impacts of universities
Measures of Economic Contribution BiGGAR Economics Measures of Economic Contribution Economic contribution measured in terms of: Gross Value Added (GVA) – a measure of the value that an organisation, company or industry adds to the economy through its operations. GVA is equal to the value of production less the value of inputs used Employment – jobs supported Study areas: Flanders (including Brussels – for purposes of study) Belgium EU
Headline Economic Contribution BiGGAR Economics Headline Economic Contribution
BiGGAR Economics Return on Investment
Incidental and Purposeful Benefits BiGGAR Economics Incidental and Purposeful Benefits
contribution to Flanders BiGGAR Economics Direct Contribution Results in a € 1.7 bn GVA & 32,000 jobs contribution to Flanders € 2.2 bn Income Impact same as draft ppt 32,000 Staff
Supplier Contribution BiGGAR Economics Supplier Contribution Results in a € 391 mn GVA & 5,800 jobs contribution to Flanders € 566 mn spend on goods and services Previously - € 206 mn GVA and 1,800 jobs
Staff Spending Contribution BiGGAR Economics Staff Spending Contribution Results in a € 670 mn GVA & 10,500 jobs contribution to Flanders 32,000 staff Previously € 618 mn GVA and 4,100 jobs €1.4 bn staff costs
Capital Spending Contribution BiGGAR Economics Capital Spending Contribution Results in a € 150 mn GVA & 1,900 jobs contribution to Flanders € 230 mn average annual capital spend Impacts same as draft ppt
Student Spending Contribution BiGGAR Economics Student Spending Contribution Results in a € 437 mn GVA & 3,900 jobs contribution to Flanders 125,200 students Previously € 434 mn GVA and 3,900 jobs € 665 average monthly spend
Student Part-time Work BiGGAR Economics Student Part-time Work Results in a € 400 mn GVA & 6,400 jobs contribution to Flanders 46% of full time students worked Previously € 494 mn GVA and 6,400 jobs Also, students volunteer: 14% for 5 hours per week = € 42 mn GVA 4 hours per week on average
Visits to staff and students BiGGAR Economics Tourism Contribution Results in a € 8.2 mn GVA & 80 jobs contribution to Flanders 13,600 event attendees Previously € 7 mn GVA and 70 jobs Visits to staff and students
Premium varies by subject and level BiGGAR Economics Graduate Premium Results in a € 3.4 bn GVA contribution to Flanders over the working lives of graduates 37,500 graduates Previously € 1.7 bn Premium varies by subject and level
BiGGAR Economics Valorisation € 181 mn services to business income Incomeresearch income 8 science parks & 12 incubators with 10,300 employees 253 spin outs with 5,800 employees 9,700 student placements Student placements – previously 3,900 € 125 mn licensing income
contribution to Flanders BiGGAR Economics Valorisation Impact Science Parks & Incubators Services to Businesses … resulting in a € 2.6 bn GVA & 31,200 jobs contribution to Flanders Spin outs Previously € 2.9 bn and 29,600 jobs Student Placements Licensing
Contribution by Source BiGGAR Economics Contribution by Source Previously € 8.1 bn GVA and 79,900 jobs
Wider Impacts BiGGAR Economics Key component of economic competitiveness in Flanders Collaborative working Attracting international investment in R&D Health benefits Societal benefits
Headline Economic Contribution BiGGAR Economics Headline Economic Contribution
BiGGAR Economics Return on Investment
Contact details BiGGAR Economics BiGGAR Economics Graeme Blackett Pentlands Science Park Bush Loan, Penicuik Midlothian, EH26 0PZ, Scotland Office: +44 (0)131 514 0850 Mobile: +44 (0)7890 998147 graeme@biggareconomics.co.uk www.biggareconomics.co.uk