Study determines economic impact of universities in Boston

Eight major research universities in the Boston area contribute more than $7 billion to the local economy every year, according to a new report commissioned by the universities.

The 102-page study shows the impact research universities, including Tufts, had on various facets of the economy in 2000 and 2002. It attempts to send a powerful message to legislators and entrepreneurs to encourage further investment in research and infrastructure and aims to promote a "greater degree of collaboration" between private business, local government, and the universities, according to President Larry Bacow.

The study, entitled "Engines of Economic Growth," was commissioned by Boston College, Boston University (BU), Brandeis University, Harvard University, Massachusetts Institute of Technology, Northeastern University, University of Massachusetts Boston, and Tufts. It was produced by Appleseed, a New York economic research firm.

Yesterday morning, the universities' presidents and other officials gathered for a breakfast meeting at the Swiss??tel in Boston to present the report's findings.

In the opening speech, Bacow said that the universities "seek to emphasize the role that our region's research universities can play in helping to restore our economy to good health."

"We are asking government officials and the business community to work with us as partners to ensure that our research universities continue to be the driver of economic development in the future as they have in the past," he said.

While answering questions at the presentation, administrators from the eight schools highlighted some of the universities' contributions to their communities -- and areas in which they think Boston could improve.

"The knowledge economy is characterized by increasing returns," Harvard President Lawrence Summers said. But he said there was a need to continue attracting people and resources in order to "maintain leadership" in the region.

BU Chancellor John Silber went further and emphasized the need for more affordable housing and better public schools -- problems which have made it difficult for Universities to attract professors with families.

"Members of the legislature need to be more aware... there are structural problems in Boston public schools that must be fixed," Silber said.

Because universities are immobile, they are a constant source of employment and important pillars of stability in times of economic difficulty, the report said. Four of the eight universities (and their five affiliated medical centers) are among the region's top 25 employers, and while overall employment in the area contracted by 2.8 percent between 2000 and 2002, the number of staff at the eight universities grew by four percent. Together, the universities employed 50,750 people in 2002 and paid an average salary of $51,000. The report estimated that the state received $115 million of those earnings in income tax.

Administrators also emphasized the indirect impact of their institutions. In his opening speech, Bacow said the presence of universities attracts companies that want to be located in places with major research centers, experienced faculty, and a healthy supply of highly-trained graduates.

Within their individual communities, most of the eight schools are involved in helping elementary and high schools; Bacow highlighted a Tufts program run by engineers to teach elementary school students science and math.