Nova Scotia's billion dollar university

How would you answer this question: “What does a university do?”

You’d say teaching, certainly. Research, absolutely. But unless you added “economic engine” to the mix, you wouldn’t have the full story.

That’s the message of a new report assessing Dalhousie’s economic impact in the Halifax Regional Municipality and Nova Scotia more broadly. Commissioned by Dalhousie and prepared by consulting firm Gardner Pinfold, the report paints a picture of Dalhousie as a crucial driver of the provincial economy, with GDP impacts of over $1 billion each year—equivalent to three per cent of total economic activity in the province.

'Impressive return'

“If we think of universities as an investment that society makes, this report shows that investing in Dalhousie pays off with a very impressive return,” says Dalhousie President Tom Traves.

The report considers Dalhousie’s 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 Dalhousie 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’s key findings:

• Dalhousie students spend $88 million in the local economy each year, including $32 million in accommodation expenses and $31 million in food.
• Dalhousie 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 Dalhousie creates, 1.3 jobs are created elsewhere through spin-offs (such as purchasing from providers and suppliers). Combined, Dalhousie 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, Dalhousie saves Nova Scotia an estimated $33 million in health-care costs each year.
• The earnings differential that Dalhousie’s alumni in Nova Scotia gain from their degrees will contribute more than $2.86 billion to the province’s tax base over their lifetimes—$71.4 million every year.
  

“As we expand Dalhousie’s research and recruitment focus to reach national and international markets, it’s our local community that ultimately benefits,” explains Dr. Traves. “Last 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.”

Role of research

Some of the greatest impacts stem from Dalhousie’s role as a base for knowledge and innovation in the province. Dalhousie brings $132 million in sponsored research to Nova Scotia each year, with the university’s 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 Dalhousie 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’s 25 largest universities.

“If Nova Scotia wants to improve its economic growth, our province needs to become more productive, more innovative and more successful,” says Dr. Traves. “I believe, and this report supports, that Dalhousie’s educational and R&D efforts can and must be a central part of that process. Through our partnerships with industry and government, we’re primed to be an agent of innovation for the future of both Halifax and Nova Scotia.”

Read the full report online [PDF - 983 kB]