Wayne State, Michigan’s public universities generate nearly $45 billion in economic impact, fueling jobs, innovation and growth statewide – today.wayne.edu

Economic Impact of Michigan’s Public Universities and Alignment with Sustainable Development Goals

Overview of Economic Contributions

Michigan’s public universities serve as a significant catalyst for economic growth, generating nearly $45 billion in net new economic activity annually. Central to this impact is Wayne State University, contributing $4.6 billion each year. This contribution highlights the university’s vital role in advancing research, workforce development, community impact, and student opportunity across the state.

Key Findings from the Michigan Association of State Universities (MASU) Study

1. Michigan’s 15 public universities collectively support over 129,000 jobs statewide.
2. These institutions contribute more than $7 billion in state tax revenue annually.
3. Wayne State University, as Michigan’s only urban R1 research institution, uniquely combines world-class research with a commitment to student access and success.
4. In fiscal year 2024, public universities generated nearly $45 billion in net new economic activity, which is approximately 28 times the state’s $1.6 billion appropriation for these institutions.
5. Universities supported an estimated 129,311 jobs, including nearly 64,000 net new jobs that would not exist without them.

Impact Beyond Campus

• Michigan’s 1.6 million public university alumni generated over $15 billion in incremental earnings due to their degrees.
• University-related economic activity produced more than $7.1 billion in state tax revenue.
• Graduates earn nearly twice as much as peers without a college degree, with average earnings of $91,073 for ages 25–34 compared to $46,272 for high school graduates.

Research Contributions and Economic Activity

Research Universities for Michigan (RU4M) highlights the importance of Michigan’s four R1 research institutions — Wayne State University, Michigan State University, Michigan Technological University, and the University of Michigan:

• Collectively conducted over $3.44 billion in academic research.
• Generated more than $950 million in economic activity within Michigan.
• Attracted billions in federal and industry funding from outside the state.

Contextualizing Economic Impact

The Anderson Economic Group completed the study using fiscal year 2024 data. To contextualize the scale of this impact, major entertainment and sports events generate significant economic activity but still fall short of the contribution made by Michigan’s public universities. For example:

• Taylor Swift’s Eras Tour generated an estimated $9 billion over two years across 19 nations.
• The NFL’s total revenues reached $23 billion in 2024, driven by media rights, sponsorships, and game-day activities.

Alignment with Sustainable Development Goals (SDGs)

Quality Education (SDG 4)

• Wayne State University’s commitment to student access and success supports inclusive and equitable quality education.
• Graduates’ higher earnings reflect improved education outcomes and lifelong learning opportunities.

Decent Work and Economic Growth (SDG 8)

• Public universities support over 129,000 jobs, including 64,000 new jobs, fostering sustained economic growth.
• Research activities attract significant funding, stimulating innovation and economic diversification.

Industry, Innovation, and Infrastructure (SDG 9)

• R1 research institutions drive innovation through $3.44 billion in academic research.
• Collaboration with federal and industry partners enhances infrastructure and technological advancement.

Reduced Inequalities (SDG 10)

• Wayne State’s urban research mission promotes equitable access to higher education and workforce opportunities.
• Alumni earnings demonstrate the role of education in reducing income disparities.

Partnerships for the Goals (SDG 17)

• Collaboration among Michigan’s public universities, government, and industry exemplifies effective partnerships to achieve sustainable development.

Conclusion and Policy Implications

As Michigan’s policymakers prepare for the 2026 legislative session and budget process, the findings underscore Wayne State University’s role as a high-return investment in the state’s workforce, community resilience, research enterprise, and long-term economic competitiveness. The university serves as a national model for integrating top-tier research with broad access to higher education, advancing multiple Sustainable Development Goals and supporting Michigan’s sustainable development agenda.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 4: Quality Education
   • The article highlights Wayne State University’s commitment to student access and success, emphasizing higher education’s role in workforce development and economic opportunity.
2. SDG 8: Decent Work and Economic Growth
   • The economic impact of Michigan’s public universities, including job creation and contribution to state tax revenue, aligns with promoting sustained economic growth and productive employment.
3. SDG 9: Industry, Innovation, and Infrastructure
   • The significant research funding and academic research activities at R1 institutions support innovation and infrastructure development.
4. SDG 17: Partnerships for the Goals
   • The collaboration between universities, state policymakers, federal and industry funding sources reflects partnerships to achieve sustainable development.

2. Specific Targets Under Those SDGs

1. SDG 4: Quality Education
   • Target 4.3: Ensure equal access for all women and men to affordable and quality technical, vocational and tertiary education, including university.
   • Target 4.4: Increase the number of youth and adults who have relevant skills for employment, decent jobs and entrepreneurship.
2. SDG 8: Decent Work and Economic Growth
   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation.
   • Target 8.5: Achieve full and productive employment and decent work for all women and men, including young people and persons with disabilities.
3. SDG 9: Industry, Innovation, and Infrastructure
   • Target 9.5: Enhance scientific research, upgrade the technological capabilities of industrial sectors.
4. SDG 17: Partnerships for the Goals
   • Target 17.6: Enhance North-South, South-South and triangular regional and international cooperation on and access to science, technology and innovation.

3. Indicators Mentioned or Implied to Measure Progress

1. SDG 4 Indicators
   • Gross enrollment ratio in tertiary education (implied by student access and success at Wayne State University).
   • Employment rate of graduates (implied by alumni earnings and workforce development).
2. SDG 8 Indicators
   • Number of jobs supported by public universities (129,311 jobs statewide).
   • Economic productivity measured by net new economic activity ($45 billion annually).
   • State tax revenue generated ($7 billion annually).
3. SDG 9 Indicators
   • Amount of academic research funding ($3.44 billion).
   • Economic activity generated by research ($950 million).
   • External funding attracted (billions in federal and industry funding).
4. SDG 17 Indicators
   • Level of collaboration between universities and external partners (implied by funding and policy engagement).

4. Table: SDGs, Targets and Indicators

Source: today.wayne.edu