Lehigh University contributes $1.4 billion to the Lehigh Valley economy, a Community and Economic Impact report released Wednesday found.
That economic impact figure focuses on fiscal year 2023-24 and includes “operations, research, entrepreneurial, visitor, and student spending of Lehigh, together with volunteerism and the enhanced productivity of its alumni.”
The university directly employed 5,470 faculty and staff and invested $48.1 million in research spending, the report said.
Start-up and spin-off companies related to the university added $796.9 million to the local economy, the impact report states. Examples of such business ventures include the Lehigh-owned Manufacturers Resource Center and Ben Franklin Technology Partners of Northeastern Pennsylvania.
Visitors to Lehigh University spent approximately $12.3 million at local businesses, the report estimates, adding that student spending contributed $28.3 million to the Lehigh and Northampton County economies.
“While not detailed in the comprehensive economic impact report, admissions and post-graduate employment data reveal that 6% of Lehigh’s undergraduate students originate from the Lehigh Valley. Significantly, 16% of graduates report being employed in the Lehigh Valley six months after graduation, demonstrating Lehigh’s substantial role in retaining skilled professionals within the community,” the university’s news release said. “Furthermore, the university’s recently achieved R1 status, the highest level of research activity in the Carnegie Classification system, is expected to attract even more top faculty and students, further strengthening the region’s highly skilled workforce.”
Former Lehigh students currently working in Lehigh or Northampton County contributed $122.5 million in income to the local economy, the report found.
The report, generated by labor market analytics firm Lightcast, sought to estimate the return on investment that the private university contributes to the state.
To reach that estimate, the report compares money spent on university operations, tuition and fees to students’ estimated higher earnings and “social savings” from improved health outcomes, reduced crime and a drop in demand for income assistance.
“For every dollar society invests in Lehigh, an average of $2.50 in benefits will accrue to Pennsylvania over the course of the students’ careers,” the report concludes.