Press Release - Study Shows USM 'Ivory Power' in Maryland Economy
February 5, 2001
Study Shows USM 'Ivory Power' in Maryland Economy
A new study shows that University System of Maryland (USM) institutions
account for billions of dollars of additional revenues to the State through the
increased earnings of graduates and the economic activity generated by
out-of-state students and visitors. The study, by the Jacob France
Institute at the University of Baltimore, also found that the USM's
contributions to workforce development and the creation of new businesses and
technology are key to the state's economic fortunes - its resilience to economic
downturns and its capacity for economic growth.
The study, which examined the actual earnings of the 1986 and 1989 graduates
of the USM's 11 degree granting institutions, determined that earnings of
USM graduates far exceeds the state's cost of producing the graduates.
- The USM's 1986 and 1989 graduating classes will earn an additional $21
billion, generating over $1.8 billion in increased state revenues.
- For each $1 the state invested in the USM's 1986 graduates, it will
- For each $1 the state invested in the USM's 1989 graduates, it will
The study analyzed the impact of just two graduating classes. All USM
graduates make similar contributions to Maryland's economy.
Donald N. Langenberg, chancellor of the USM, said that while the France
study's intent is to quantify the System's impact on the state, it also
confirms what many national observers have been saying in recent years about
its rising profile in public higher education.
"Across the country, the USM institutions are becoming known as an economic
engine of enormous energy and vitality," Langenberg said. "Other
even beginning to emulate our model, which ensures that campuses experience
sustained growth especially in areas where professionals are most needed,
like education, health care, and information technology. Too often, college
and universities are accused of having an 'ivory-tower' mentality, but in
Maryland we've adopted the strategy of 'ivory power.' The System's economic
impact doesn't make our state recession-proof, but it makes downturns easier
to manage, and accelerates our recovery."
The study found the USM is maintaining and improving the state's competitive
edge by supplying the vast majority of college and university graduates in
the state. In 2000, among all public and private colleges and universities
in Maryland, the USM awarded:
Through research, public/private partnerships, business incubators,
technology transfer, and other connections to the private sector, the study
also noted the USM institutions' intimate involvement in the economic
development of Maryland.
- 100 percent of all graduate degrees in agriculture, architecture, library
sciences, and public affairs.
- 100 percent of all doctoral degrees in business and communications.
- 100 percent of all professional degrees in law, dentistry and pharmacy.
- 65 percent of all bachelor's, master's, doctoral, and professional
The USM's four research universities are generating new technologies,
conducting basic research, and commercializing research discoveries. For
example, from 1994 to 1999, a total of 14 start-up companies were formed
based on technology developed at USM institutions. In FY 1999 the USM
In FY 1999, the USM's research and development expenditures exceeded $462
million, accounting for almost one-fourth (24 percent) of federally
sponsored R&D expenditures in Maryland and for 22 percent of industry
- 43 percent of invention disclosures.
- 38 percent of new patent applications.
- 23 percent of patents issued to major Maryland universities.
The executive summary and full report of the Jacob France Institute's study
on the economic impact of the USM will be available on the USM website soon.
For more information:
Contact at USM:
Contact at the Jacob France Institute:
Richard P. Clinch