"Penn State is an economic powerhouse in the
Commonwealth, directly or indirectly affecting
every resident of the state. It generates more than
$17 billion annually in overall economic impact."
–Tripp Umbach & Associates, 2008 Economic Impact Statement
Penn State is an economic engine, generating more than $17 billion in impact
Penn State contributes more
to the state's economy annually
than any other industry. In 2008,
the University generated $8.5 billion
in direct and indirect economic impact
and an additional $8.7 billion through
business services, research commercialization,
and the activities of alumni, for
a total of more than $17 billion.
- —For every dollar invested in 2008 by
the Commonwealth to support the
operations of Penn State, the University
returned $25.06 in total economic
impact to Pennsylvania.
- —Penn State generated $647 million in
tax revenue for the Commonwealth in
2008. In other words, the University
returned $1.91 in tax revenue for every
$1 it received in appropriation.
Running on Penn State power
In 2008, Penn State commissioned an independent study by the Pittsburgh-based
Tripp Umbach & Associates to gauge the value of the University to the Commonwealth.
Key findings in the 2008 Tripp Umbach report include the following:
- —Penn State generated more than 2 percent of the state's business volume or more than $1 out of every $50 in the state's total economy.
- — The University annually expends
more than $700 million through
its research activities. Research at
Penn State supports more than
18,000 additional jobs in Pennsylvania,
which generates more than
$1.9 billion in additional economic
impact and more than $61 million
in additional revenue for the
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- — The University is the largest
creator of total employment among
nongovernmental entities. Penn
State has 44,000 employees,
nearly 30,000 of them full-time.
The total payroll from Penn State
annually generates $805 million
in direct impact through faculty,
staff, and technical service employees'
- — The University currently generates
more annual economic impact than
the combined total impact of all of
the state’s airport hubs, professional
sports teams, and arts and cultural
organizations, by attracting nearly
1 million visitors and generating
$1.73 billion annually.
- —Student spending amounts to $932 million in the state's economy.
- —In 2008, out-of-state visitors to Penn State generated nearly $777 million in the Pennsylvania economy.
- —The more than 250,000 alumni who live in Pennsylvania generate $1.9 billion annually in additional economic impact, and produce $59 million in additional government revenue for the state.
- —More than 17,000 Penn State alumni own businesses in Pennsylvania, which directly employ more than 475,000 residents. The average wage of employees at companies owned by Penn State graduates is $9,800 higher than the average wage earner in Pennsylvania. This translates into more than $4.1 billion in additional expansion of the state's economy and more than $125 million in additional government revenue for the Commonwealth annually.
- —Penn State employees donate more than $130 million annually in charitable donations and volunteer services within the Commonwealth.
- —The total direct and indirect
economic impact of Penn State
is projected to grow over the next
five years, from $8.5 billion to
$9.5 billion in 2013.
For more information about Penn State, visit About Penn State