Spanish public universities multiply every euro invested in them by a factor of five

The Ministry of Universities led by Minister Joan Subirats has published a study on the economic contribution of Spanish public universities. The study, which was carried out with data from 2021, focuses on measuring the direct, indirect and induced economic impact of public universities on the Spanish economy.

The economic impact study was carried out using a three-dimensional approach. First, it calculated the direct impact, i.e. the immediate effect of universities on the economy through their daily operations and activities. Secondly, the indirect impact, which refers to the impact of universities on the economy derived from the demand for goods and services necessary to carry out their activity. Finally, it assessed the induced impact, i.e. the impact generated as a result of the consumption of goods and services by workers whose jobs are due to the existence of Spanish universities.

Public spending and the relationship with GDP

The recently approved Organic Law of the University System (LOSU) establishes a plan to increase public spending on public university education by at least 1% of GDP. As the study reveals, universities are generating a total impact on the country's economy of 2.2% of GDP. This suggests that universities are returning more than what is invested in them, underlining their importance for the Spanish economy.

The Minister for Universities, Joan Subirats, has on numerous occasions highlighted the need to leave behind an era of underfunding universities. "This study only corroborates that the political action of this ministry, as well as the emphasis we have placed on improving funding, is not only a factor that will benefit universities, but society as a whole, and that we have designed a law that goes in the right direction".

Universities as an economic pole of the territory

Among the data that emerges from the study, particularly noteworthy is that for every €100 of public transfers received, Spanish universities produce €110 in tax revenue, underlining their role as a driver of territorial economic development. In addition to their fundamental role in education and research, these figures show that universities are also cost-effective and produce a social return on the public spending invested in them.

Thus, for every €100 received in state and regional transfers, the Spanish public university system (SUPE) generated €505 in turnover, €293 in GDP and €115 in wage income. For every €100,000 received, SUPE created/maintained 5.4 full-time equivalent jobs. In other words, Spanish public universities play a central role in the educational, social and economic development of the country.

Employment, a central issue

Among the benefits generated by university activity in the territory is the generation of employment. SUPE contributed to the creation or maintenance of 438,926 full-time equivalent jobs, or 2.41% of the total employed population. This includes both direct employees of the university (e.g. research teaching staff or administrative and service staff) and jobs derived from its activity (e.g. catering and hotel services or those related to suppliers of goods and services derived from its activity, among others). The impact generated by SUPE benefits various economic sectors: approximately 70% of the total impact is concentrated in sectors other than Education.

In short, this study shows that the investment made in SUPE contributes to the country's development and produces a return to society for the public funds it receives. It is therefore necessary to reverse the underfunding of public universities, not only as a way of boosting teacher training, research and innovation, but also to contribute to the country's wealth. "The changes and the funding targets set by LOSU are on the right track," the minister said.

Non official translation