The Impact of Drexel University, June 2012
Located in the University City District of Philadelphia, Drexel University is a comprehensive private research university with nearly 25,000 students. Drexel is comprised of 14 schools and colleges, including schools of law, medicine, engineering, and business. Offering over 100 academic programs and a unique co-operative education program, Drexel has emerged as a top-tier university.
Econsult Corporation was retained by Drexel University to determine the University’s economic and fiscal impacts on the City of Philadelphia and the Commonwealth of Pennsylvania. Using standard economic impact models, the analysis estimated the impact that Drexel in the following realms:
Direct Spending – capital investments and operating expenditures induce significant spillover activity and generate high levels of employment within the City and Commonwealth and high amounts of tax revenues for the City and Commonwealth.
Human Capital Investment – Educational resources and academic degrees Drexel confers represent an investment in human capital within the City and Commonwealth, and confer a wage premium on Drexel alumni that generates further economic stimulus.
Ancillary Spending – Drexel draws students, visitors of students, visiting prospective students, patients and their visitors, and event attendees and participants, whose ancillary spending represents an importation of dollars that support job creation and generate tax revenues within the City and Commonwealth.
Local Engagement – Drexel marshals the full weight of its many departments and programs to engage on practical solutions to contemporary urban issues throughout the City and to provide invaluable services and resources at the neighborhood level.
Econsult found that Drexel University has a significant economic contribution for the City and the Commonwealth, with upwards of $1.5 billion generated within the City and $2.4 billion generated within the Commonwealth annually. Drexel’s impact comes from activities that are of utmost importance to the City and Commonwealth, and to the world at large. Drexel has distinguished itself at both a local and global level in these areas, and its current trajectory suggests continued advancement, for the benefit of the City, Commonwealth, and beyond.