Executive Summary: Lehigh University’s Economic and Social Impact in Alignment with Sustainable Development Goals

A recent analysis conducted by Lehigh University in partnership with Lightcast for the fiscal year 2023-2024 reveals the institution’s significant contributions to regional development, closely aligning with the United Nations Sustainable Development Goals (SDGs). The university’s comprehensive economic impact totaled $1.4 billion, demonstrating a profound commitment to fostering economic growth, innovation, and community well-being.

Key Findings and SDG Alignment

• Total Economic Impact: $1.4 billion, equivalent to 3.1% of the Lehigh Valley’s gross regional product.
• Return on Investment: Every dollar invested in the university generates a cumulative value of $2.50 in benefits, encompassing economic and social returns.
• Core SDGs Addressed: The report highlights direct contributions to SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), SDG 4 (Quality Education), and SDG 11 (Sustainable Cities and Communities), among others.

Contribution to Decent Work and Economic Growth (SDG 8)

Lehigh University serves as a primary driver of economic vitality and job creation in the Lehigh Valley, directly supporting the objectives of SDG 8.

Workforce Development and Job Creation

The university’s activities and the integration of its alumni into the regional workforce support thousands of jobs and generate substantial income.

• Alumni Impact: Graduates employed in the regional workforce contributed a net impact of $122.5 million in added income, supporting the equivalent of 1,218 jobs.
• Entrepreneurial Job Support: University-linked startups and spin-offs support an estimated 5,467 jobs.
• Visitor-Supported Employment: Spending by visitors to the university supports an additional 241 jobs in the local economy.

Fostering Industry, Innovation, and Infrastructure (SDG 9)

The university’s focus on research and entrepreneurship is a cornerstone of its contribution to SDG 9, building resilient infrastructure and fostering innovation.

Innovation and Entrepreneurship Ecosystem

Lehigh’s programs cultivate a robust environment for startups and business development, generating significant economic value.

• Income from Innovation: Startup and spin-off companies connected to Lehigh programs added $796.9 million in income to the local economy.
• Institutional Recognition: The university’s designation as an R1 research institution by the Carnegie Classification underscores its role as a national leader in innovation.

Research and Development Impact

Research activities at Lehigh translate into tangible economic and intellectual property outputs.

1. Research Spending Impact: A total of $48.1 million was injected into the economy through research-related expenditures.
2. Intellectual Property Generation: Research activities in the fiscal year resulted in 30 inventions, 35 patents, and one license.

Enhancing Sustainable Cities and Communities (SDG 11)

Lehigh University’s integration with the local community contributes to creating inclusive, safe, and resilient urban environments.

Support for the Local Economy

The university attracts external investment and spending, which directly benefits local businesses and services.

• Visitor Spending: Visitors drawn to the university for events, campus tours, and alumni functions contributed $12.3 million to the regional economy through spending on lodging, dining, and other services.

Social Return on Investment

The university’s operations generate significant social savings, contributing to healthier and more stable communities, aligning with SDG 3 (Good Health and Well-being) and SDG 16 (Peace, Justice and Strong Institutions).

• The analysis identified substantial social savings related to improved health outcomes, reduced costs to the justice system, and decreased need for income assistance in Pennsylvania.

Strengthening Quality Education and Partnerships for the Goals (SDG 4 & SDG 17)

As an institution of higher learning, Lehigh’s core mission directly advances SDG 4, while its collaborative approach exemplifies SDG 17.

Commitment to Quality Education (SDG 4)

The economic success of Lehigh graduates is a primary indicator of the university’s delivery of quality education. The $122.5 million in added income from alumni in the regional workforce is a direct testament to the value of the knowledge and skills they acquired.

Partnerships for Sustainable Development (SDG 17)

The report emphasizes that Lehigh’s success is “intrinsically tied to the success of our community.” This is achieved through strategic collaborations.

• The university actively partners with community organizations, local governments, businesses, and non-profits to address regional challenges and needs.
• The economic impact study itself, conducted in partnership with Lightcast, serves as a model for data-driven collaboration to achieve shared goals.

SDGs Addressed in the Article

SDG 4: Quality Education

• The article focuses on Lehigh University, an institution of higher education. It highlights the value of the education provided by mentioning that graduates entering or re-entering the workforce possess “newly acquired knowledge and skill,” directly contributing to the goal of quality education.

SDG 8: Decent Work and Economic Growth

• This is a central theme of the article. It quantifies Lehigh University’s contribution to the local economy with a “$1.4 billion” comprehensive economic impact. It also details job creation, stating that university-related activities support thousands of jobs (e.g., “5,467 jobs” from startups, “1,218 jobs” from alumni). This directly addresses the promotion of sustained, inclusive, and sustainable economic growth and decent work.

SDG 9: Industry, Innovation, and Infrastructure

• The article emphasizes Lehigh’s role in fostering innovation. It points to the university’s “R1 research” designation, its “$48.1 million” research spending impact, and the tangible outcomes of this research, including “30 inventions, 35 patents, and one license.” The focus on “startup and spin-off companies” also aligns with building resilient infrastructure and promoting inclusive and sustainable industrialization.

SDG 11: Sustainable Cities and Communities

• The report analyzes the university’s impact on the “Lehigh Valley community” and the “shared Bethlehem experience.” By contributing 3.1% of the total gross regional product and partnering with “local governments and nonprofits,” Lehigh is actively involved in making its local community more inclusive, safe, resilient, and sustainable.

SDG 17: Partnerships for the Goals

• The article explicitly states that the university “partners with community organizations, businesses, local governments and nonprofits.” The impact report itself was a result of a “partnership with Lightcast,” a private company. This demonstrates a multi-stakeholder approach to achieving community and economic goals, which is the essence of SDG 17.

Specific SDG Targets Identified

1. Target 4.4: Increase the number of people with relevant skills for employment and entrepreneurship.

   The article supports this target by highlighting the university’s focus on “entrepreneurship and innovation” and noting that its graduates enter the workforce with “newly acquired knowledge and skill,” leading to a significant economic impact from their employment.

2. Target 8.2: Achieve higher levels of economic productivity through innovation.

   Lehigh’s role as a “powerful driver of talent, innovation and entrepreneurship” and its creation of “startup and spin-off companies” directly contribute to achieving higher economic productivity in the Lehigh Valley, as evidenced by the “$796.9 million” in added income from these ventures.

3. Target 8.3: Promote policies that support job creation and entrepreneurship.

   The university’s activities directly support this target. The article quantifies the impact by stating that startups and spin-offs support “5,467 jobs,” alumni in the workforce support “1,218 jobs,” and visitors support “241 jobs.”

4. Target 9.5: Enhance scientific research and encourage innovation.

   This target is directly addressed through the mention of Lehigh’s R1 research status, its “$48.1 million” research spending, and the resulting “30 inventions, 35 patents, and one license.”

5. Target 11.a: Support positive economic and social links between urban and regional areas.

   The university’s total economic impact of “$1.4 billion” and its explicit strategy of partnering with “community organizations, businesses, local governments and nonprofits” serve to strengthen the economic and social fabric of the Lehigh Valley, directly supporting regional development planning.

6. Target 17.17: Encourage effective public, public-private and civil society partnerships.

   The article provides clear examples of this target in action. The economic impact report was a partnership with Lightcast (private sector), and the university actively collaborates with the Lehigh Valley Economic Development Corporation (public-private partnership), as well as local governments and nonprofits (civil society).

Indicators for Measuring Progress

The article provides several quantitative and qualitative indicators that can be used to measure progress towards the identified targets:

1. Financial and Economic Indicators:

   • Total economic impact: $1.4 billion
   • Contribution to gross regional product: 3.1%
   • Added income from startup/spin-off companies: $796.9 million
   • Added income from alumni in the regional workforce: $122.5 million
   • Economic impact from visitors: $12.3 million
   • Return on investment: $2.50 in benefits for every $1 invested

2. Job Creation Indicators:

   • Jobs supported by startup/spin-off companies: 5,467
   • Jobs supported by employed alumni in the region: 1,218
   • Jobs supported by visitors: 241

3. Research and Innovation Indicators:

   • Total research spending impact: $48.1 million
   • Number of inventions: 30
   • Number of patents: 35
   • Number of licenses: 1

4. Partnership Indicators:

   • The existence of a formal partnership with Lightcast for the impact report.
   • Mention of ongoing partnerships with community organizations, businesses, local governments, and nonprofits.

Summary Table of SDGs, Targets, and Indicators

Source: news.lehigh.edu