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UC Davis impact on economy tops $6.9 billion

December 30, 2011

The University of California, Davis, is a powerful economic engine for Northern California, generating $6.9 billion in annual economic activity and accounting for 69,000 jobs, according to research released today.

The economic analysis found that for every two jobs at UC Davis, an additional 1.2 jobs were created in other sectors of the region’s economy in 2009-10, the year studied. And for every dollar of goods and services the university generated, Northern California benefited from an additional $1.10 to $1.40 in secondary economic activity.

Overall, UC Davis’ two campuses — in Davis and Sacramento — constitute the second-largest individual employer in the Sacramento region, behind only the state of California.

"UC Davis is a significant catalyst for economic activity throughout our region and across the state,” said Chancellor Linda P.B. Katehi. “It is gratifying to see that the investments made in the university will pay off not only in the long term — with a highly educated workforce and the discoveries and innovations that will help us to address the globe’s most pressing problems. These investments also have an immediate, positive and profound impact on the economic prosperity of California.”

The Sacramento-based Center for Strategic Economic Research conducted its analysis in two parts. The first part, released in January, assessed the impacts of the Sacramento-based UC Davis Health System, which includes the UC Davis School of Medicine, UC Davis Medical Center, Betty Irene Moore School of Nursing and UC Davis Medical Group, an 800-member physician practice group with outpatient clinics located throughout the Sacramento region.

The second part, released today, focused on the impact of the UC Davis enterprise in Davis, which includes a 25,000-student undergraduate program and 4,300-student graduate academic program, in addition to a School of Veterinary Medicine, School of Law, Graduate School of Management and School of Education. The report also assessed the economic impact of UC Davis satellite locations throughout Northern California, including the Bodega Marine Laboratory, Tahoe Environmental Research Center, Oakville Experimental Vineyard, San Francisco Working Professional MBA Program, and a Veterinary Medicine Teaching & Research Center in Tulare.

Among the specific findings for 2009-10:

  • In Northern California, the Davis campus and its affiliated centers generated more than 48,000 jobs and $3.5 billion in goods and services, while the Sacramento campus generated more than 20,000 jobs and $3.4 billion in goods and services. (Northern California was defined as the area between the Oregon border and the southern borders of Monterey, Kings, Tulare and Inyo counties).
  • In the six-county Sacramento region (El Dorado, Placer, Sacramento, Sutter, Yolo and Yuba counties), the Davis campus and its affiliated centers generated more than 47,000 jobs and $3.1 billion in goods and services, while the Sacramento campus generated more than 20,000 jobs and $3.1 billion in goods and services.
  • UC Davis and UC Davis Health System students and visitors contributed $368.9 million in spending to the Northern California economy.
  • The university’s direct, indirect and induced economic impact is equivalent in size to certain entire industry sectors. For example, UC Davis’ total employment impact is akin to that of the entire Northern California telecommunications sector.

Indirect and induced impacts refer to the university’s secondary impacts on suppliers of goods and services to the campus, as well as employee spending on goods and services.

The new findings buttress and expand on those of an economic impact analysis prepared for the UC Office of the President earlier this year by Economic & Planning Systems Inc., a consulting firm with offices in California and Colorado. That study, released in September, also showed that UC Davis is a key catalyst of economic activity in the region and state.

Copies of Economic Impacts of UC Davis and Economic Impacts of the UC Davis Health System are available online.

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