From the Duke News Service

May 3, 2001

Duke University estimates its annual economic impact on the city and county of Durham at more than $2 billion, the university reported Thursday.

The second study of the financial impact of Duke on its home community found that local spending by the university, its students, and visitors in 1999-2000 was about $1.12 billion. The impact of that spending, however, is at least twice that amount, or about $2.23 billion, because economists say each dollar spent initiates at least one more round of spending before it leaves the local economy. The first report, released in 1997, estimated the university's economic impact at $1.9 billion.

"It is important to us at Duke that Durham sustains its prosperity and continues to improve the quality of life for all its citizens," said university President Nannerl O. Keohane. "This report provides further evidence that a major research university such as Duke is an economic engine whose activities dramatically benefit its hometown and region. It adds to our understanding of the vital town/gown relationship which we are committed to enhancing through efforts such as the Duke-Durham Neighborhood Partnership Initiative, endorsed by the Board of Trustees in 1994 and again in February 2001."

Thomas White, president of the Greater Durham Chamber of Commerce, praised the report, noting the University's leadership in contributing to the economic well-being of Durham.

"Duke plays a pivotal role in helping us conduct an aggressive and effective economic development program that produces good jobs at good wages for our citizens," White said. "North Carolina is ranked third in the nation in biotechnology enterprises, with Durham being home to approximately one-half of those operations that do business in the state. This phenomenon is due in large measure to the existence of a truly world-class institution with a superior medical school, outstanding biomedical engineering programs and a research and development capability that corporate decision-makers find attractive and enticing."

Highlights of the 14-page study, Durham and Duke, report these estimated impacts:

• Employment — $1.22 billion.
  Duke is the largest employer in Durham County, employing 18,599 Durham residents out of a total university and health system work force of 34,979 in 2000, including students and part-time workers. In 2000, Duke was the fourth largest non-governmental employer in the state, after Delhaize America Inc. (Food Lion), Wal-Mart Inc., and First Union Corp. Durham residents earned $611 million in wages and benefits, or about one of every 10 dollars paid by all local industries and businesses. Duke attracts a highly skilled work force to the campus and to Triangle firms. Expenditures create jobs; a national study using U.S. Commerce Department data suggests Duke's $340 million in research funding for 1999-00 created 13,294 jobs in the area.

• Purchasing — $262.8 million.
  Purchases in Durham County in 1999-00 totaled $131.4 million. Construction accounted for $94 million. Some 436 local vendors (individual and non-governmental) each sold at least $10,000 in goods and services to Duke.

• Services — $37 million.
  Duke provided $18.5 million in municipal-type services, such as a police department and road maintenance that the city otherwise would be obligated to provide and thus relieved the local government and taxpayers of that cost burden. Additionally, while Duke is tax exempt like other colleges, religious, cultural and social service institutions, it paid taxes and fees totaling $6.1 million for Duke-owned facilities and municipal services such as water, solid waste, etc.

• Annual recurring donations — $56 million.
  Duke Hospital provided $25.8 million in uncompensated medical care to county residents, relieving government of the cost of such services. Through various means, the university and its community members donated $2.3 million to Durham organizations, including financial aid averaging $21,758 for 36 Durham residents who are undergraduate students.

• Student and visitor spending — $654 million.
  Duke's 11,500 students spent an estimated $70 million off-campus, according to the Durham Convention & Visitors Bureau, which also concluded that Duke was the most frequent destination of an estimated 5 million visitors to Durham. The bureau estimated that Duke visitor spending amounted to $257 million in 2000.

The study, which uses government and other data and models to measure Duke's impact on Durham, was conducted by Duke's Office of Public Affairs with the advice of economists at Duke and at North Carolina State University.

The study can be found on the web at http://www.dukenews.duke.edu/ulife/impact.pdf.

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