The University of Georgia’s economic impact on the state surged to a record $8.1 billion in 2023, according to a new study that measures the value of the university’s teaching, research and service.
Growth in the number of graduates earning degrees at the undergraduate and graduate levels, a thriving research and innovation ecosystem and a commitment to serving the state through public service and outreach activities all contributed to the record.
“The results of this study reflect the University of Georgia’s deep commitment to the state we call home,” said President Jere W. Morehead. “Our dedicated and talented faculty, staff and students are proud to contribute to the economic vitality of Georgia and its citizens.”
The study examined multiple economic drivers to determine UGA’s contributions to the state’s economy: the university’s education and training programs; spending generated by out-of-state and international students; external funding for research and outreach programs; inventions and discoveries that led to new products and businesses; gifts from out-of-state supporters; spending by out-of-state visitors at athletic events; and cost savings from improvements to business and government practices stemming from university research and outreach programs.
The $8.1 billion figure is a conservative estimate of the university’s economic impact, according to Michael Adjemian, a professor in UGA’s department of agricultural and applied economics who has led the study for the past five years. He said the study measures only the easily quantifiable functions of UGA’s teaching, research and public service.
“The most important factors that contributed to UGA’s growing economic impact were increases in the benefits that the university provides in each of its mission areas,” Adjemian said. “The impact of instruction rose by $219 million, research by $28 million and outreach by $161 million.”
Preparing tomorrow’s leaders
More than 11,600 undergraduate, graduate and professional students earned UGA degrees in the 2022-2023 academic year, the period the report covers. To determine the economic activity generated by the university’s teaching activities, the study calculated the increased lifetime earnings these degree holders can expect to receive based on their field of study.
Two out of every three UGA alumni live and work in Georgia, and their earnings contribute to the tax bases of their communities. The study also examined tuition and other money brought into Georgia by out-of-state and international students, spending by prospective students and family members who come from out of state to visit campus and external grant funding related to teaching programs. The report estimates the economic impact of UGA’s teaching program is $5.9 billion per year.
The university’s enrollment reached an all-time high of 41,615 students this fall at a time when gaining admission to UGA has become increasingly competitive. This fall, UGA welcomed one of the most academically qualified first-year classes in its history, a group of 6,200 students selected from a record pool of more than 43,500 applicants.
“The University of Georgia continues to build upon its well-earned reputation as one of the nation’s top public universities, and the demand for a UGA education has never been greater,” said S. Jack Hu, senior vice president for academic affairs and provost. “UGA is preparing a new generation of leaders to take on critical challenges across Georgia and around the world.”
Driving discovery and innovation
Fueled by significant increases in sponsored research funding from federal agencies, the University of Georgia surpassed a half-billion dollars in research and development spending in fiscal year 2022 for the first time in its history. The growth is the result of strategic investments in the university’s research infrastructure and the recruitment of top research faculty. According to a commonly used economic impact model known as IMPLAN, each dollar of funding from federal agencies and out-of-state foundations generates an economic impact of $2.13, as those funds are spent in Georgia on personnel and equipment.
The study estimated the overall impact of the university’s research programs on the state’s economy was $957 million in fiscal year 2023. This figure includes federal funding and other grants that bring money into Georgia from out of state, licensing and royalty fees from the commercialization of discoveries developed by UGA faculty and staff and the impact on companies based on UGA discoveries.
In the past year alone, UGA faculty members have earned grants to advance the economical production of plant-based fuels and chemicals ($14 million), to train school-based mental health providers in high-need schools in rural Georgia ($4.7 million), and to examine drug use vulnerability among low-income rural children ($3.3 million).
Research sparks innovation, and UGA is the nation’s No. 1 university for turning research discoveries into commercial products. In fiscal year 2023, industry partners released 60 new products based on UGA research including new poultry vaccines, software, research tools and crop varieties such as peanuts, pecans, soybeans, wheat, blueberries, turfgrass and citrus.
Overall, more than 200 companies are based on research conducted by UGA faculty, including startups such as biotechnology companies InfraredRX and ArunABio. In addition to serving as a home to alumni and faculty-owned startups, the university’s Innovation District is attracting promising companies to Athens, including Dalan Animal Health, which is teaming with UGA researchers to further advance the world’s first vaccine for honeybees.
A commitment to Georgia
As Georgia’s only land-grant and sea-grant university, UGA has a responsibility to serve the state’s citizens. Through its extensive public service and outreach efforts, UGA contributes to the economic vitality and well-being of Georgia citizens and communities by creating jobs, developing leaders and exploring solutions to critical local challenges. These initiatives generate an economic impact of $1.2 billion annually, according to the report.
Each of Georgia’s 159 counties is served by UGA Cooperative Extension agents. These agents provide reliable, research-based information across the state through science-based programs and educational opportunities in agriculture, the environment, family well-being and 4-H youth development and leadership. In fiscal year 2023, UGA Extension agents made more than 1.8 million in-person contacts with people across the state. Georgia 4-H served more than 152,000 youth statewide over the same period.
The university’s eight Public Service and Outreach units have an economic impact of $505 million and enhance the quality of life in Georgia by applying the knowledge on campus to the state’s economic, social and community priorities. For example, the Archway Partnership and the Carl Vinson Institute of Government are helping Thomaston residents revitalize their downtown and supporting Pulaski County as it develops a long-term economic development strategy. Archway Partnership communities also secured more than $10.6 million in grants for UGA assisted projects. The Small Business Development Center, which operates a network of 18 locations across the state, has helped clients launch 2,178 businesses and helped create nearly 15,000 jobs in the past five years. Return on investment (ROI) for Public Service and Outreach funds is leveraged at $3 to every $1 invested.
Go Dawgs!
For the first time this year, the study calculated the net economic impact of select UGA athletic programs. Events featuring the university’s football, men’s basketball, women’s basketball, gymnastics and baseball teams attracted 107,000 out-of-state spectators during their most recent seasons.
Like other campus visitors, sporting-event attendees typically spend one night in Georgia at $185 per day. The study scaled expenditures for lodging, food, gas and other expenses, along with the associated ticket revenue, using IMPLAN multipliers to arrive at an additional $48.8 million in economic contributions to the state.
