A recent study released Monday shows the University Research Park has provided millions of dollars in economic benefits for the University of Wisconsin, the city of Madison and Wisconsin as a whole.
North Star Economics Inc., a private research firm based in Madison, used data from University Research Park’s companies and impact models to determine the economic impacts of the park, according to the study.
The study found the park contributes more than $825 million to Wisconsin’s economy each year. There are currently 3,419 employees employed at the park and 126 companies working at the park, the study said.
“The good story for Madison is that these are highly compensated jobs in science fields, and many of the labs are very interested in hiring graduate students,” University Research Park Director Mark Bugher said.
The study said the average salary of employees in the park is $64,310, which is $20,000 more than the average wage of workers across the country. In addition, the focus of most of the employees’ research lies in the realm of biotechnology.
According to the study, the park generates an additional 2,150 jobs in other areas of Wisconsin.
“There are currently labs researching drugs that could help combat diseases like cancer, cystic fibrosis and kidney disease, as well as producing medical equipment and producing software systems” Bugher said.
Bugher said these research projects make the park a highly valuable asset to UW, and as the park grows, it stimulates economic development in Madison while encouraging greater activity in the sciences on campus.
University Research Park companies are also contributing to Wisconsin’s economy by spending over $200 million per year on Wisconsin goods and services, the study said.
The tax revenue generated by the companies and employees is also significant. The study said employees of the park pay over $7 million in state income tax and $4.5 million in sales tax each year. The park itself contributes more than $3.6 million a year in local property taxes.
UW economics professor Andrew Reschovsky said the impact of the research park not just on the local community but also the state is significant.
“The economic value [of University Research Park] to the state is certainly beneficial,” Reschovsky said.