UNIVERSITY PARK, Pa. — Penn State is a driver of economic growth and opportunity in Pennsylvania, delivering $15.8 billion to the commonwealth’s economy and supporting nearly 110,000 jobs, according to a newly released report. Additionally, the report found that one out of every 10 jobs in Pennsylvania is supported by Penn State and Penn State alumni.
“Penn State’s impact is equivalent to 2% of the statewide economy and is a testament to the University's role as a powerhouse for economic growth, innovation and community strength in Pennsylvania,” said Penn State President Neeli Bendapudi. “As Pennsylvania’s sole land-grant institution and its largest public university, Penn State is a shared public asset, and we are proud that this report affirms what I have always believed — our University provides significant opportunity for the residents of the commonwealth and beyond.”
The report measured the economic contribution of overall Penn State operations, including the health system, research enterprise, and impacts to the local communities. Data revealed that as the seventh largest employer in the commonwealth, Penn State creates jobs on and off campus through spending on goods and services. Additionally, for every $1 in state appropriations received, Penn State returns $2.27 in tax payments to the commonwealth, demonstrating a significant return on investment for taxpayers.
Other measures of Penn State’s contributions
A significant portion of Penn State’s overall effect on the state’s economy is attributed to Penn State Health, which has an annual economic impact of $7.3 billion, supports or sustains 38,140 jobs, and generates $323.6 million in state and local tax revenue.
Additionally, according to the report, with $1.239 billion in research expenditures in fiscal year (FY) 2022-23, Penn State’s research generates $2.5 billion in annual economic impact.
“It is impossible to overstate the impact that Penn State’s researchers have on the commonwealth, the country and our world,” Bendapudi said. “Penn State’s research enterprise continues to be a driver of impact, working every day to protect and advance the interests of all Pennsylvanians and beyond.”
Penn State Intercollegiate Athletics also generates significant economic, social and cultural value, contributing $754.6 million in economic impact, supporting 5,856 jobs, and generating $52.4 million in local and state taxes.
The economic impact methodology used to assess Penn State’s contributions in FY 2023 involved a detailed input-output analysis powered by the IMPLAN (Impact Analysis for Planning) model, which examines how Penn State’s spending on operations, payroll and capital investments, as well as student and visitor spending, circulates through Pennsylvania’s economy. This comprehensive approach highlights Penn State’s role as a significant economic driver, impacting jobs, income and local business revenues across the region.