8 June 2017
Oxford University generates £7.1 billion for the global economy every year, new economic analysis reveals.
The first-ever study of Oxford’s economic impact shows that the University’s innovative and entrepreneurial approach supports more than 50,000 jobs across the UK.
Leading economic analysts Biggar Economics were commissioned to assess the impact of the University’s internationally outstanding research, teaching and enterprise. They calculated the effect of all University activity, including its direct spending, its highly successful spin-out companies and the productivity of its highly-skilled graduates.
Overall, the analysts found that in 2014/15 Oxford had a worldwide gross value added (GVA) of £7.1 billion, with £5.8 billion of that flowing to the UK. The contribution to Oxfordshire’s knowledge-based economy was £2.3bn. For every pound of income earned, Oxford returns £3.30 to the wider national economy.
The Vice-Chancellor of the University of Oxford, Professor Louise Richardson, said: “This report provides evidence for something long known around Oxford: the University drives the economy, both locally and nationally, as well as having a significant international presence. We provide jobs, attract investment and conduct globally recognised research that improves the lives of the people of Oxfordshire and of the United Kingdom. We are a global institution deeply rooted in a vibrant local community and can be an engine of the British economy into the future.”
The University’s commercialisation and enterprise activities are a particular source of strength, pumping £1.2 billion into the world economy every year, almost half of it within the UK. Oxford has generated 136 new spin-out companies – more than any other UK university. These highly innovative businesses – 129 of them based in this country – now boast a combined turnover of £600 million.
The study also found Oxford to be one of the country’s most successful organisations for commercialising research through technology licencing. Oxford accounts for £1 of every £10 of licencing income earned by UK higher education, with 80 per cent of the University’s revenue coming from the US. The University’s vast range of expertise is worth a further £272 million a year to UK business through contract research, consultancy, executive education and knowledge transfer partnerships.
The high-level skills and knowledge gained by University students allow them to contribute more to employers and produce more for the UK. The analysts calculated Oxford’s class of 2015 will be worth an extra £431 million a year to UK over their working lives. On top of that, the University has a knock-on benefit for the UK employment market, directly and indirectly supporting 50,600 jobs, many of them well-paid.
Biggar also assessed the economic value of Oxford’s contribution to health through its Medical Sciences Division, repeatedly ranked the best in the world. They estimated all medical research in 2014/15 to be worth £1.8 billion in the value of lives saved, quality of life improvements and in support for the local life sciences cluster.
Economic Impact of the University of Oxford is a University-commissioned report by Biggar Economics Ltd. For a copy or further information, please contact Stephen Rouse, Head of News and Information, University of Oxford on 01865 280533 or firstname.lastname@example.org