Study Analyzes Economic and Social Impact of the Madrid Public Universities
Madrid public universities account for over two percent of regional GDP
10/28/16
For every euro spent by public universities in Madrid, the region’s income increases 2.79 euros, and for every person directly employed by these institutions, 2.18 jobs are created in other sectors. These are some of the conclusions of the report, El impacto económico y social de las Universidades públicas madrileñas en la región. Análisis en el corto plazo (“The Economic and Social Impact of Madrid Public Universities on the Region: A Short-Term Analysis”), presented on October 28 at Universidad Carlos III de Madrid (UC3M).
The report was prepared by researchers from the Inter-university Institute for Advanced Research on the Evaluation of Science and Universities (initialed INAECU in Spanish) and promoted by the region’s Conference of Social Councils and regional Ministry of Education, Youth and Sports. It received the collaboration of the regional Ministry of Economy, Employment and Finance, through the ministry’s Directorate-General for Economy and Financial Policy.
The study presents a socio-economic analysis of the so-called Madrid Public University Sector (initialed SUPM in Spanish). The sector consists of the six public universities in Madrid, their 203,065 Bachelor’s and Master’s degree students, their 261,692 visitors and the 118,580 people who attended science and technology events organized by these institutions during academic year 2014-2015.
The study was presented at the UC3M Madrid-Puerta de Toledo campus on the morning of October 28. In attendance were Juan Romo, Rector of Universidad Carlos III de Madrid; Matias Rodríguez Inciarte, President of the regional government’s Conference of Social Councils and President of the UC3M Social Council ; and Rafael van Grieken, regional Minister of Education, Youth and Sports.
Economic contribution
The activities that Madrid public universities carry out in their four dimensions (teaching, research, knowledge transfer and social commitment) have an important economic and social impact in the Autonomous Region of Madrid. According to data from the report, the activity carried out at these universities made a substantial contribution to the economy in 2014: 4.014 billion euros (taking into account direct, indirect and induced effects),which represents 2.05% of the GDP of the Autonomous Region of Madrid.
The investment that the Autonomous Region of Madrid makes in its public universities, accounting for 58% of the income they receive and 0.43% of the region’s GDP, impact the Madrid economy with 2.05% of the region’s GDP and 2.14% of salaries in the Autonomous Region of Madrid, in 2014.
The efficiency of the University spending means that for every euro spent, the contribution to the region’s GDP increases 2.79€.
Repercussions on employment
In 2014, Madrid’s public universities employed 23,211 people, that is, 20,047 Full-Time Equivalent (FTE) jobs, or 0.67% of the region’s employment. Spending by the universities rose to 1,440.9 billion euros and spending on labor costs accounted for 66.1% of the total and 0.85% of the salary costs in the Autonomous Region of Madrid.
This has created important employment opportunities throughout the economy 2.12% of total employment, equivalent to 63,489 full-time jobs. The report also demonstrates that for every FTE job in Madrid’s public universities, 2.18 additional jobs were created in the region. In terms of the efficiency of the universities’ spending, for every million euros spent, 44 FTE jobs are created in the Autonomous Region of Madrid.
Students from abroad and from other autonomous regions
It also notes the great potential for business opportunities entailed by the attraction of students from other countries or autonomous regions. In 2014, these opportunities accounted for 48.5% of the economy generated by students enrolled at public universities in Madrid. This group represents approximately 25% of the total number of students enrolled.
