ϡȱÁÔÆæÍø

Press Release - Study Shows ϡȱÁÔÆæÍø 'Ivory Power' in ϡȱÁÔÆæÍø Economy

February 5, 2001

Study Shows ϡȱÁÔÆæÍø 'Ivory Power' in ϡȱÁÔÆæÍø Economy

A new study shows that ϡȱÁÔÆæÍø (ϡȱÁÔÆæÍø) institutions account for billions of dollars of additional revenues to the State through the increased earnings of graduates and the economic activity generated by out-of-state students and visitors.  The study, by the Jacob France Institute at the University of Baltimore, also found that the ϡȱÁÔÆæÍø's contributions to workforce development and the creation of new businesses and technology are key to the state's economic fortunes - its resilience to economic downturns and its capacity for economic growth.

The study, which examined the actual earnings of the 1986 and 1989 graduates of the ϡȱÁÔÆæÍø's 11 degree granting institutions, determined that earnings of ϡȱÁÔÆæÍø graduates far exceeds the state's cost of producing the graduates.

• The ϡȱÁÔÆæÍø's 1986 and 1989 graduating classes will earn an additional $21 billion, generating over $1.8 billion in increased state revenues. 
  
• For each $1 the state invested in the ϡȱÁÔÆæÍø's 1986 graduates, it will receive $3.20.
  
• For each $1 the state invested in the ϡȱÁÔÆæÍø's 1989 graduates, it will receive $2.60.

The study analyzed the impact of just two graduating classes. All ϡȱÁÔÆæÍø graduates make similar contributions to ϡȱÁÔÆæÍø's economy.

Donald N. Langenberg, chancellor of the ϡȱÁÔÆæÍø, said that while the France study's intent is to quantify the System's impact on the state, it also confirms what many national observers have been saying in recent years about its rising profile in public higher education.

"Across the country, the ϡȱÁÔÆæÍø institutions are becoming known as an economic engine of enormous energy and vitality," Langenberg said. "Other states are even beginning to emulate our model, which ensures that campuses experience sustained growth especially in areas where professionals are most needed, like education, health care, and information technology. Too often, college and universities are accused of having an 'ivory-tower' mentality, but in ϡȱÁÔÆæÍø we've adopted the strategy of 'ivory power.' The System's economic impact doesn't make our state recession-proof, but it makes downturns easier to manage, and accelerates our recovery."

The study found the ϡȱÁÔÆæÍø is maintaining and improving the state's competitive edge by supplying the vast majority of college and university graduates in the state. In 2000, among all public and private colleges and universities in ϡȱÁÔÆæÍø, the ϡȱÁÔÆæÍø awarded:

• 100 percent of all graduate degrees in agriculture, architecture, library sciences, and public affairs.
  
• 100 percent of all doctoral degrees in business and communications.
  
• 100 percent of all professional degrees in law, dentistry and pharmacy.
  
• 65 percent of all bachelor's, master's, doctoral, and professional degrees.

• 43 percent of invention disclosures.
  
• 38 percent of new patent applications.
  
• 23 percent of patents issued to major ϡȱÁÔÆæÍø universities.