Waikato University worth nearly one billion dollars a year to national economy

The University of Waikato is a major driver of the region’s prosperity, generating three per cent of the Waikato’s total regional revenue and nearly one billion dollars for the NZ economy as a whole, according to a new study.

The economic impact study, commissioned by the university from independent consultant Dr Warren Hughes, analysed the university’s 2008 economic contribution to the region and the country.

The study shows that spending by the university generated $913 million dollars in the NZ economy overall.

The figure includes the direct or first-round spending by the university and its students plus the flow-ons into supplying sectors such as retail, energy, transport, sport and recreation, and personal and community services.

Some $749 million of that was generated in the Waikato region, making up three per cent of the entire region’s revenue.

For the core Waikato region – encompassing Hamilton, Raglan, Cambridge, Te Awamutu, Huntly and Ngaruawahia – the university’s contribution is even more significant.

“In the core Waikato region, economic activity by the university accounts for five per cent of overall revenue – a massive percentage for a single organisation,” says university Vice Chancellor Prof. Roy Crawford.

“What that means is every dollar spent by the university in 2008 resulted in $1.21 of flow-on revenue across the core Waikato economy.”

The study also shows that every job at the university generates another job in NZ, with two-thirds of these flow-on jobs located in the core Waikato economy.

Core Waikato, has only 5.4 per cent of NZ’s population and employment, but is home to 15.2 per cent of the nation’s researchers and 7.7 per cent of its tertiary education.

 “Core Waikato punches very much above its weight in the NZ intellectual property stakes,” says Prof. Crawford.

“And at the heart of the core is the University of Waikato.

“The report highlights the partnerships between town and gown that materially diversify a city’s industrial and business capabilities. Together with the Waikato Innovation Park, currently undergoing extension, we’re a great example of what’s been called a ‘communiversity’.”

According to the study, university towns such as Hamilton are generally regarded to be more “recession-proof” than other cities, and it is estimated that average wages tend to rise in synch with the share of the adult population with university degrees.