How would you answer this question: 鈥淲hat does a university do?鈥�
You鈥檇 say teaching, certainly. Research, absolutely. But unless you added 鈥渆conomic engine鈥� to the mix, you wouldn鈥檛 have the full story.
That鈥檚 the message of a new report assessing AV俱乐部鈥檚 economic impact in the Halifax Regional Municipality and Nova Scotia more broadly. Commissioned by AV俱乐部 and prepared by consulting firm Gardner Pinfold, the report paints a picture of AV俱乐部 as a crucial driver of the provincial economy, with GDP impacts of over $1 billion each year鈥攅quivalent to three per cent of total economic activity in the province.
'Impressive return'
鈥淚f we think of universities as an investment that society makes, this report shows that investing in AV俱乐部 pays off with a very impressive return,鈥� says AV俱乐部 President Tom Traves.
The report considers AV俱乐部鈥檚 contribution to the economic and social fabric of HRM and Nova Scotia, in part, through its direct activities: employment, purchasing and expenditures, and research activities. It also considers the spinoff benefits AV俱乐部 provides by attracting students to the province and building a more educated local workforce, such as an increased tax base and improved sociodemographic outcomes.
Some of the report鈥檚 key findings:
- AV俱乐部 students spend $88 million in the local economy each year, including $32 million in accommodation expenses and $31 million in food.
- AV俱乐部 pays more than $300 million in wages to a workforce totaling 5,750 faculty and staff, most of whom reside in HRM.
- For every job AV俱乐部 creates, 1.3 jobs are created elsewhere through spin-offs (such as purchasing from providers and suppliers). Combined, AV俱乐部 is responsible for more than 10,000 full-time equivalent jobs in the economy.
- Through improved health education and the impact of education on socioeconomic health outcomes, AV俱乐部 saves Nova Scotia an estimated $33 million in health-care costs each year.
- The earnings differential that AV俱乐部鈥檚 alumni in Nova Scotia gain from their degrees will contribute more than $2.86 billion to the province鈥檚 tax base over their lifetimes鈥�$71.4 million every year.
鈥淎s we expand AV俱乐部鈥檚 research and recruitment focus to reach national and international markets, it鈥檚 our local community that ultimately benefits,鈥� explains Dr. Traves. 鈥淟ast year, campus construction to support our strategic goals totaled $75 million, benefiting businesses in our community. And 70 per cent of our goods and services come from local business; we support more than 2,000 Nova Scotia companies each year.鈥�
Role of research
Some of the greatest impacts stem from AV俱乐部鈥檚 role as a base for knowledge and innovation in the province. AV俱乐部 brings $132 million in sponsored research to Nova Scotia each year, with the university鈥檚 Industry Liaison and Innovation office committing upwards of $4.5 million yearly to turn that research into new commercial opportunities and spin-out companies. Beyond the dollars, though, the impact of AV俱乐部 research is vast: the university has 36 faculty members with more than 2,000 journal citations, and can claim the greatest number of citations per research dollar among Canada鈥檚 25 largest universities.
鈥淚f Nova Scotia wants to improve its economic growth, our province needs to become more productive, more innovative and more successful,鈥� says Dr. Traves. 鈥淚 believe, and this report supports, that AV俱乐部鈥檚 educational and R&D efforts can and must be a central part of that process. Through our partnerships with industry and government, we鈥檙e primed to be an agent of innovation for the future of both Halifax and Nova Scotia.鈥�
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