"The socio-economic impact of universities on local regions: A centralized empirical approach for Canada". Presentation by A. Hecht (WLU) and S. Mayer (Laurentian University) On the occasion of a visit by Russian University Presidents, Academics and Legislators to Wilfrid Laurier University May 27, 2005

Abstract It is generally believed that universities have a positive influence on the local region in which they are located. They produced an educated labour force, attract potential employers, use the local infrastructure and their students bring substantial funds to the local community. Employees of the university themselves are relatively well paid, have substantial job security and contribute financially greatly to the local environment. They are in fact growth poles for the surrounding environment.

Major influences of Universities in North America University mechanisms that may encourage local growth* –as Trainer (provider of skilled labour for the local market) –as Innovator (generator of local commercial knowledge) –as Partner (with local commercial firms) –as Regional Talent Magnet (attract firms to work with profs/students and profs/students may establishing local firms) –as Facilitator (of local entrepreneurial networks) –as Exporter of Knowledge (graduates, patens, consulting services, etc.) –as Importer of Capital (student and government fees, student living expenses, grants) ______________________________ *Source: J.R.Betts and C.W. Lee, “Universities as drivers of Regional and National Innovation an Assessment of the Linkages from Universities to Innovation and Economic Growth” in Beach,C.M. R.W. Broadway, and R.M. McInnis, Higher Education in Canada, Montreal: McGill-Queen’s University Press, 2005, pp and Meyer, S. and A. Hecht, “University growth poles in Canada: An Empirical Assessment”, Canadian Journal of Regional Science, Vol. XIX, 3, 1996,

Socio economic Well Being in the Waterloo Region and Ontario characteristics WaterlooKitchenerCambridgeOntario % Population growth % of the population with a U. cert. dip.or degree Age Age Age Average earnings (all persons with earnings ($) Median income,15 years and over ($) % Labour part. rate, 15 years and older % in Manufacturing and construction % in FIRE, Health, Education, Business serv.47, Average value of dwelling ($) Source:

Wilfrid Laurier University Local Impact Analysis for 2004/5 (in,000 of $) A. Direct Financial inflowTotalLocalAdjacentPeriphery to the University (in,000 of $) Waterloo RWellingtonOntario Other CDN World Source of Students 10, Tuition Fees 55,4208,9801,55041,0001,1702,720 Government operating grant50,270 8,146 1,406 37,190 1,0610 Other (Grants, etc) 900 Total Direct 104,12317,1262,95678,1903,1312,720 University local multiplier is ~1.6 Total plus multiplier 166,59627,4014,730125,1045,0104,352 B. Direct Students Expenditures (in,000 of $) books (1000/student) 10,775 1, , food (400/month - 8 month)28, ,055 26, ,161 accommodation (500/month - 8 month)35, , ,451 incidentals (300/month - 8 month)21, , Total Direct 95,5861,9013,11886, ,844 Student local multiplier is ~1.6 Total plus multiplier 152,9383,0424,988138, ,151 Total financial impact to the Waterloo Region for the 8 month is million Source: basic figures from Wally Pirker Internal Auditor/Institutional Research Officer Wilfrid Laurier University and calculations were done by Al Hecht (some data is estimated)

2001

CDs Socio-Economic Well Being Conditions: Total vs. CDs with Universities in the Maritimes and Quebec CDs Ave.CDs with U's CDs Ave.CDs with U's Maritimes Median Income $19,025$16,195$17,797$18,028 Average Household Value$72,540$87,763$81,195$90,943 Employment Rate49.08%54.01%50.93% 52.36% Quaternary Labour Rate37.26%45.09%36.42% 39.43% Population Change-0.20%1.92%-1.25% -1.78% Manufacturing Labour Rate13.22%8.55%16.83% 16.70% Quebec Median Income$16,439$17,020$19,430$19,529 Average Household Value$80,243$85,846$86,413$87,899 Employment Rate52.67%53.77%56.17% 52.36% Quaternary Labour Rate35.97%46.01%36.01% 43.83% Population Change3.80%2.25%0.75% -0.98% Manufacturing Labour Rate18.79%11.99%19.13% 17.62% Source: Statistics Canada, 1996 Census,

CDs Socio-Economic Well Being Conditions: Total vs. CDs with Universities in Ontario and the West CDs Ave.CDs with U's CDs Ave.CDs with U's Ontario Median Income$19,490$19,807$22,785$23,020 Average Household Value$142,029$151,281$137,681$146,760 Employment Rate58.45%58.42%60.47% 60.38% Quaternary Labour Rate39.21%40.18%36.60% 37.96% Population Change4.79%3.75%2.53% 1.91% Manufacturing Labour Rate16.16%17.05%15.93% 16.64% Western Canada Median Income$17,049$18,567$19,574$21,645 Average Household Value$99,029$133,216$102,430$136,394 Employment Rate62.17% 63.88% 62.66% 64.99% Quaternary Labour Rate35.39% 42.78% 35.72% 41.68% Population Change4.77% 3.59% 1.59% 3.34% Manufacturing Labour Rate7.60% 8.16% 8.00% 8.15% Source: Statistics Canada, 1996 Census,

Socio-Economic Well Being in Census Divisions of Ontario, 2001 PopulationEmploymentQuaternaryManufacturingMedianAverage NChangeRateLabour Rate IncomeHouse Value CDs with Universities %60.38%37.96%16.64% $ 23,020 $ 146,760 Adjacent CDs %59.93%36.72%16.12% $ 22,086 $ 128,696 Peripheral CDs %61.52%39.83%14.92% $ 23,704 $ 145,196 Source: Statistics Canada, 1996 Census, (based on 48 to 0f 59 CDs) Socio-Economic Well Being in Census Divisions in Western Canada, 2001 PopulationEmploymentQuaternaryManufacturingMedianAverage N ChangeRateLabour Rate IncomeHouse Value CDs with Universities %64.99%41.68%8.15% $ 21,645 $ 136,394 Adjacent CDs %65.08%34.13%6.96% $ 19,525 $ 103,530 Peripheral CDs %59.84%35.85%9.31% $ 19,360 $ 101,133 Source: Statistics Canada, 2001 Census,

Socio-Economic Well Being in Census Divisions of the Maritimes,1996 PopulationEmploymentQuaternaryManufacturingMedianAverage NChangeRateLabour Rate IncomeHouse Value CDs with Universities9 1.92%54.01%45.09%8.55% $ 16,195 $ 87,763 Adjacent CDs %47.99%36.47%15.12% $ 14,671 $ 69,902 Peripheral CDs %44.39%35.71%14.61% $ 13,818 $ 64,821 Source: Statistics Canada, 1996 Census, Socio-Economic Well Being in Census Divisions of Quebec,1996 PopulationEmploymentQuaternaryManufacturingMedianAverage NChangeRateLabour Rate IncomeHouse Value CDs with Universities6 2.25%53.77%46.01%11.99% $ 17,020 $ 85,846 Adjacent CDs %50.84%36.15%17.16% $ 16,177 $ 73,542 Peripheral CDs %53.52%34.94%20.23% $ 16,523 $ 83,155 Source: Statistics Canada, 1996 Census,

Socio-Economic Well Being in Census Divisions of Ontario,1996 PopulationEmploymentQuaternaryManufacturingMedianAverage NChangeRateLabour Rate IncomeHouse Value CDs with Universities %58.42%40.18%17.05% $ 19,807 $ 151,281 Adjacent CDs %57.76%37.85%16.46% $ 18,886 $ 134,845 Peripheral CDs %59.63%40.60%14.91% $ 20,210 $ 145,902 Source: Statistics Canada, 1996 Census, Socio-Economic Well Being in Census Metropolitan Areas of Western Canada,1996 PopulationEmploymentQuaternaryManufacturingMedianAverage NChangeRateLabour Rate IncomeHouse Value CDs with Universities %63.88%42.78%8.16% $ 18,567 $ 133,216 Adjacent CDs %63.70%33.92%6.82% $ 17,003 $ 101,181 Peripheral CDs %60.42%35.08%8.73% $ 17,003 $ 100,034 Source: Statistics Canada, 1996 Census,

Conclusion Communities in Canada with Universities - have produced higher average income in the local communities - have produced more knowledge jobs - have increase housing values - have higher labour participation rates - have normally less people in lowly manufacturing jobs