1. The Economic Impact Study of the Flemish Universities
BiGGAR Economics
The Economic Impact Study of the Flemish Universities
20th December 2017

2. 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

3. 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

4. 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

5. 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

6. Headline Economic Contribution
BiGGAR Economics
Headline Economic Contribution

7. BiGGAR Economics
Return on Investment

8. Incidental and Purposeful Benefits
BiGGAR Economics
Incidental and Purposeful Benefits

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. Contribution by Source
BiGGAR Economics
Contribution by Source
Previously € 8.1 bn GVA and 79,900 jobs

20. Wider Impacts BiGGAR Economics
Key component of economic competitiveness in Flanders
Collaborative working
Attracting international investment in R&D
Health benefits
Societal benefits

21. Headline Economic Contribution
BiGGAR Economics
Headline Economic Contribution

22. BiGGAR Economics
Return on Investment

23. Contact details BiGGAR Economics BiGGAR Economics Graeme Blackett
Pentlands Science Park
Bush Loan, Penicuik
Midlothian, EH26 0PZ, Scotland
Office: +44 (0)
Mobile: +44 (0)