Quick look
Iowa State University's $6 billion economic impact supports one out of every 36 jobs in Iowa, according to an analysis conducted for the Iowa Board of Regents. The university's total impact includes $2.1 billion in economic development and added income from ISU startups and Iowa-based businesses assisted by CIRAS and Iowa State's Small Business Development Center.
AMES, Iowa - When an Ames-based ag-tech startup wanted to accelerate development of a new product, the founder turned to Iowa State University's Center for Industrial Research and Service (CIRAS) for help.
CIRAS delivered a solution with immediate and long-term value for Distynct. The founder, an Iowa State alumnus, expects a nearly $400,000 economic impact as a result of this project. The results are one example of Iowa State University's $6 billion economic impact on the state.
Included in Iowa State's total impact is $2.1 billion in economic development and added income from ISU startups and Iowa-based businesses assisted by CIRAS and Iowa State's Small Business Development Center, according to an economic impact and investment analysis conducted by Lightcast for the Iowa Board of Regents.
Iowa State's total economic impact supports 59,888 jobs - or one out of every 36 jobs in Iowa - based on fiscal year 2023-2024 data, the timeframe reviewed for the analysis. ISU's economic impact represented 2.5% of the total gross state product - an impact nearly as large as the entire accommodation and food services industry in the state, according to the analysis.
"Iowa State is world-class institution for innovation and research that benefits all Iowans," said David Spalding, Iowa State University interim president. "In addition to groundbreaking discoveries and new technologies, the university serves all 99 Iowa counties, provides support for business and industry and prepares students for future careers that will enhance the productivity of the state's workforce."
The analysis shows the education and training Iowa State provides for state residents provides the greatest impact. Iowa State alumni generated $2.5 billion in added income for the state economy based on increased productivity at the businesses where they work and higher earnings.
Increase in return on student investment
The value of an Iowa State degree continues to grow. On average, Iowa State graduates with a bachelor's degree will earn $26,600 more annually than a person with a high school diploma or equivalent working in Iowa. Over the course of a career, that's equal to $1.2 million in higher earnings per graduate.
For comparison, the average annual return on investment for students graduating in FY2023-24 was 14.3% - nearly 3.5% more than the U.S. stock market's 30-year average rate of return (10.9%) during the same timeframe.
Iowa taxpayers also benefit from their investment in the university. As Iowa State graduates earn more, they purchase more goods and services and make higher taxpayer payments. Higher earnings also translate into savings from reduced government services for health care, income assistance and justice system. The benefit is equal to $500.2 million in added tax revenue and public sector savings - or a 4.7% average annual rate of return for taxpayers.
Significant research and extension results
Iowa State's research spending generated $292.6 million in added income for Iowa's economy. Innovations and solutions discovered in the lab resulted in 135 invention disclosures, 53 patent applications and 25 licenses for ISU technologies for FY2023-24.
Although the analysis did not measure ISU Extension and Outreach's impact, it noted the significant value of its work to strengthen Iowa communities and local economies in all 99 counties through science-based programs. This includes:
- Training for 140,740 professionals including childcare providers, restaurant employees and Master Gardeners
- Assisting 60,000 farmers with certification to properly apply pesticides and manure
- Supporting 2,255 organizations including municipalities, economic development groups and the Iowa Rural Development Council
- Helping 449 companies receive certification to conduct business
Impact summary
Breakdown of Iowa State's economic impact
- Alumni = $2.5 billion
- Economic development = $2.1 billion
- Operations spending = $786 million
- Research spending = $292.6 million
- Student spending = $72.7 million
- Visitor spending = $69.2 million
- Construction spending = $50.8 million
- Volunteerism = $24.4 million
- For every $1 of public money invested in Iowa State, Iowa taxpayers receive $1.80 in return
