The University of Pennsylvania (Penn) sought to quantify its economic impact at the city, regional, and state levels to demonstrate its role as a leading Anchor Institution. The study addressed pressing questions about the value of higher education, Penn’s contribution to local economic development, and its evolving influence over 25 years. The scope included Penn’s operational footprint, capital investments, research activities, student and visitor spending, and alumni wage premiums across Philadelphia, the 14-county “Penn Region,” and the Commonwealth of Pennsylvania.
ESI has conducted similar studies for Penn in 2005, 2010, 2015, and 2020. These articulations of Penn’s impact have been instrumental in messaging the value of the University to a wide range of stakeholders.
ESI employed the IMPLAN economic modeling system to assess direct, indirect, and induced impacts of Penn’s activities, including:
- Annual Operations
- Capital Investments
- Ancillary Spending
- Alumni Wage Premium
ESI then translated these inputs into estimates of economic output, employment, labor income, and tax revenue at the city, region, and state levels.
Penn’s commitment to its mission, size, and influence make it a powerful economic engine for Philadelphia, the Commonwealth of Pennsylvania, and the greater Penn Region. As one of the largest employers in the region and a major purchaser of goods and services, it plays a critical role in Greater Philadelphia’s competitiveness, attracting human talent, investment, and visitors that strengthen the regional workforce and stimulate economic opportunity. With its expansive reach, Penn serves as a vital partner for workforce development and regional economic growth, shaping the local economy.
The University’s economic impact is evident across multiple dimensions, from student, patient, visitor, and athletic spending that fuels local businesses, to the increased earning potential of Penn graduates, which boosts household incomes and contributes to a more competitive labor market. Additionally, the innovation generated by Penn’s research breakthroughs positions the region as a hub for cutting-edge advancements, particularly in healthcare, technology, and life sciences. ESI’s findings also reinforce Penn’s value proposition amid scrutiny of higher education’s return on investment.
