our u niversity

OUR UNIVERSITY

How PSU fuels the economic development of the region

It’s Not Just Academic

WHEN I LOOK TO THE FUTURE

of Portland State I see a university

that is integrated with its commu-

nity—so integrated, in fact, that the

community automatically recognizes

that Portland State University is part of the solution for civic issues

and problems. My vision is of a university so thoroughly engaged in

its community that people throughout the region refer to it as “our

university.” I see a university that is well known for the quality of

education our students receive, for the importance of the research

we perform, and for the positive impact we’ve had on quality of life

and the economy of our region and our state.

Knowledge is the key input for today’s economy and in this economic

impact report, we demonstrate the many roles Oregon’s largest

university plays as a catalyst for regional economic activity. In the

following pages you will find highlights that explain how Portland

State University is a partner in Oregon’s economic progress.

Daniel O. Bernstine

President, Portland State University

TABLE OF CONTENTS

Forget the Ivory Tower 2

PSU Is Growing 3

Roles of the Urban University 4

The Economic Multiplier Effect 5

Economic Impact Highlights 6

Employer 7

Purchaser 8

Expert Adviser 9

Real Estate Developer 10

Workforce Developer 12

Business Accelerator 13

Community Partner 14

The Value of PSU Research 15

Summarizing the Value of a PSU Degree 16

Data Sources and Acknowledgments 17

1

Portland State University has always thrived in the heart of the real world. Sixty years ago, we emerged from the waters of the Vanport flood ready to serve our community.

We were scrappy then and we’re scrappy now.

For 60 years we have adapted to meet the region’s needs and our community has supported us with enthusiasm, so much enthusiasm that we have grown to become Oregon’s largest university. PSU is proud of this distinction, but our evolution continues and according to U.S. News & World Report we are now one of the nation’s finest universities, recognized for programs and curricula that lead to student success.

Given our history, achieving excellence is part of our evolution. At Portland State University we aspire to greatness—greatness as our destiny and the destiny of our city.

FORGET THE IVORY TOWER

2

• • • DID YOU KNOW? • • •

U.S. News & World Report’s, “America’s Best Colleges 2006” edition features Portland State under the section “Choosing a School: Programs to look for” in five categories:

• Internships/Co-ops • First-year Experiences• Senior Capstone • Learning Communities• Service Learning

PSU IS GROWING…

Even though our state appropriation has been shrinking.

YEAR 2017

25,000

35,000

103,798

164,994

$37 M

$80 M

3,420

4,788

$184 M

$293 M

ENROLLMENT(STUDENTS)

DEGREES(AWARDED)

RESEARCH(DOLLARS

EXPENDED)

STAFF(EMPLOYEES)

PAYROLL(DOLLARS)

YEAR 2005

2005-06 Budget Summary Total: $409 Million

State Appropriation: 15% Housing, Parking, and Other Revenue Sources: 14%

Tuition and Fees: 28%Contracts, Grants, Gifts, Research Funds and Financial Aid: 43%

15%

3

ROLES OF THE URBAN UNIVERSITY

While Portland State’s primary role is as a provider of well-prepared graduates and research, looking at us from a financial perspective, we play many different roles in the economy of the region.

PSU $ PSU

REAL ESTATE DEVELOPER

PURCHASER

EMPLOYER

STUDENT AID PROVIDER

WORK FORCE DEVELOPERCOMMUNITY PARTNERBUSINESS ACCELERATOR

EXPERT ADVISER

4

2005 Budgeted Expenditures

Total Value: $409 Million

Other Contributions

Economic Multiplier Effect Defined

Every dollar PSU spends yields an economic multiplier (or ripple) effect—enabling additional rounds of spending in the community. This eco-nomic multiplier measures such indirect effects as: • Faculty, student, and staff spending on housing and retail purchases.• PSU spending on supplies and services from business vendors in the community, inducing continued spending in the community.

* Eric Hovee and Andrea Logue, Portland State University Economic Benefits Assessment, August 2004

THE ECONOMIC MULTIPLIER EFFECT

How PSU dollars work in the region

5

EMPLOYERPURCHASERSTUDENT AID PROVIDERREAL ESTATE DEVELOPER

MULTIPLIER EFFECT

$184 M x 2.43 = 447 M$107 M x 2.43 = 260 M$95 M x 2.43 = 230 M$23 M x 2.43 = 56 M

$409 M x 2.43 = 993 M

$993 MILLION

OTHER PSU CONTRIBUTIONS

TOTAL 2005 PSU CONTRIBUTION

$1.068 BILLION

The roles of student aid provider, employer, purchaser, and real estate de-veloper have an even greater impact in our community when the economic multiplier effect is applied. When combined with PSU’s other contributions, our economic impact on the region in 2005 was $1.068 billion.

$45 M WORK FORCE DEVELOPER$20 M COMMUNITY PARTNER$9 M BUSINESS ACCELERATOR$1 M EXPERT ADVISER

$75 MILLION

ECONOMIC IMPACT HIGHLIGHTSThe many roles of the urban university

EMPLOYERPSU employs 3,420 and cuts 7,000 payroll checks a month. Our payroll had a $447 million impact on the regional economy in 2005.

PURCHASERIn 2005, purchasing generated $260 million in economic activity through its payments to over 7,950 vendors.

EXPERT ADVISERPSU’s role as a regional adviser is established, especially in social work, teacher training, urban affairs, families and children, transportation, real estate, and most recently in the area of sustainability.

REAL ESTATE DEVELOPERPSU’s capital expenditures had a $56 million economic impact in 2005. $300 million worth of capital investment is anticipated in the next six years.

WORKFORCE DEVELOPERPortland State has over 105,000 alumni and 75 percent live, work, and contribute to the economic, social, and cultural well-being of the region.

BUSINESS ACCELERATORIn 2005, the 16 Portland Business Accelerator companies employed 48 percent more workers than in 2004.

COMMUNITY PARTNERIn 2005, PSU students contributed over 1.3 million hours of volunteer services to the Metro region.

“PSU is like an undervalued stock. There’s an advantage to getting in early.”

Willamette WeekMarch 17, 2004

*Note: PSU has grown by 2,000 students since this report was published.

6

EMPLOYER

Higher education is described as the second-fastest growing industrial cluster in the country— with universities alone adding more than 300,000 jobs during the 1990s.

Here is how PSU compares to some of the Metro region’s biggest employers:

PSU is in the top 1% for largest payrolls in the state.

TEKTRONIX: 2,030 PORTLAND STATE: 3,420 US BANK: 3,725

= 500 employees

EMPLO

YER

7

PURCHASER

Urban colleges and universities are associated with substantial purchasing power equivalent to nine times the amount spent each year by the federal government on job and business development in America’s urban areas.

President Daniel Bernstine has reinforced the University’s desire to identify certified minority, women, disadvantaged, and emerging businesses within our local community and state.

Evidence of this is our School of Business Outreach Program which provides direct technical assistance to many of these emerging businesses.

Here’s where PSU spends money

50%LOCALVENDORS

50% Local Vendors (Clackamas, Multnomah, Washington, Yamhill counties)33% US and Foreign Vendors17% Other Oregon Vendors

PUR

CH

ASE

R

In 2005, PSU student aid had a $230 million impact on the local economy.

8


EXPERT ADVISER

Business AdministrationThe 2005 Beyond the Grey Pinstripes Report ranked Portland State University’sMBA program in the top 20 worldwide. Our MBA graduates are currently employed by 250 major local businesses.

Computer ScienceWith over $2 million in annual research expenditures, the Computer Science Department offers a variety of advising and testing services to Oregon’s computer chip manufacturing industry as well as to national and international companies.

Intelligent TransportationPSU’s executive leadership has been instrumental in bringing $16 million in federal funding to Portland for a new Transportation Research Center.

Community and Public HealthThe Oregon Master of Public Health Program is a unique collaborative statewide degree program offered through PSU, OHSU, and OSU. It was ranked second nationally in 2005

Food IndustryThe Food Industry Management Program in the School of Business Administration is the only university program in the Northwest offering a curriculum in the field of food distribution, marketing, and management.

SustainabilitySustainability has been identified as a strategic research focus for Oregon’s economy, and PSU will play a key role in the development of this important new economic sector.

EXPER

T A

DV

ISER

9


The School of Business Administration at Portland State University is one of the nation’s most outstanding business schools according to the 2005 edition of The Princeton Review’s “Best 143 Business Schools,” a recently released student opinion-driven guidebook.

REAL ESTATE DEVELOPER

PSU is moving ahead aggressively to realize its potential as a partner in the development of the University District. Nationally, universities are recognizing that real estate development projects can be used as anchors of urban renewal. Portland State is a leader in this regard.

PSU has stepped up to assume its natural role in the continuing evolution of Portland’s downtown.

• 49 acres of downtown real estate• 4.5 million sq. ft. of buildings on campus• Over 1 million sq. ft. of new space acquired since 2000• 12 buildings constructed or remodeled since 2000• 26 new businesses in the University District since 2000• $300 million of new capital investment planned by 2012R

EAL

ESTA

TED

EVEL

OPE

R

BUIL

4.

1.

3.

5.

2.

10

“Portand’s continued reputation for innovative and sustainable development depends on access to future talent. We are delighted to see PSU take a leadership role by creating the Center for Real Estate to ensure that companies throughout the real estate industry are able to hire new talent and train existing employees.” Mark EdlenGerding/Edlen Development Company

The College of Urban and Public Affairs housed in the Urban Center Building

Some stars of the University District

1. OCTAVIAN SCIENTIFIC Hosted by PSU since 2003, Octavian received $6.65 million in venture capital in 2005

2. PACCINI’S Family owned and booming

3. SEATTLE’S BEST Portland’s busiest baristas

4. PIZZICATO PIZZA Sells more slices than any other store in the chain

5. THE BROADWAY Featuring new businesses such as Chipotle, Great Clips, and EB Games

REA

L ESTATE

DEV

ELOPER

BUIL

4.

1.

3.

5.

2.

New businesses since 2000

11

The Maseeh College of Engineering and Computer Science housed in the new

Engineering Building

WORKFORCE DEVELOPER

Of course our principle development role is education, as measured by the 4,496 PSU graduates with new degrees who joined the Oregon workforce in 2005.

In 2002, the Portland Development Commission created a planning tool for the future economic development of the City. The report, The Blue Ribbon Committee’s Economic Development Strategy for the City of Portland identifies five emerging industrial sectors: sustainable industries, high tech, biosciences, creative services, and professional services as being particularly worthy of strategic investment.

PSU supports this vision, and students in five of our most popular majors will graduate ready to work in these targeted industries.

BY YEAR 2017

2,046 GRADS

2,721 GRADS

1,958 GRADS

2,604 GRADS

1,063 GRADS

1,413 GRADS

1,068 GRADS

1,420 GRADS

757 GRADS

1,007 GRADS

BUSINESS MANAGEMENT· Business Administration· Accounting· Finance· Real Estate· Consulting

PSYCHOLOGY· Social Work· Education· Family and Child Services· Mental Health· Administration

BIOLOGY· Biotech Industries· Health Sciences· Nursing and Allied Health· Education· Forensics

SOCIOLOGY· Social Work· Education· Human Resources· Research· Government

FINE ARTS· Graphic Arts· Media Services· Design· Museum Services· Administration

BETWEEN 1995-2006


In 2005, PSU’s School of Extended Studies provided workforce development to:• 1,300 companies and businesses• 185 government agencies• 215 nonprofits• 200 Pre K-12 schools• 135 higher education institutions• 90 health related industries• 5 programs in the arts

WO

RK

FOR

CE

DEV

ELO

PER

12

BUSINESS ACCELERATOR

PSU not only develops the workforce, we develop businesses as well.

Companies hosted by the Portland Business Accelerator at PSU:

BlueTechComPiereDevonWayEleven WirelessInternational Resource RecoveryIPM Development CompanyJibeLynquent

Medi-ScrewPerpetua PowerPortland BioscienceQMINDSolutionsWorksRedside SolutionsVisionSite

A recent study by the National Business Incubation Association (NBIA) and several universities indicates that businesses that participate in an incubator program have a success rate of approximately 80% over a five-year period compared to a success rate of 20% for non-incubated businesses.

“The Portland State Business Accelerator has not only provided us very affordable space with great networking opportunities, it has linked us to key University resources that are helping us get to market faster. Our FAST-ID product was a winner in PSU’s Lab2Market technology competition, and as a result, we are receiving 12 months of mentoring by a team of business experts. We also are working with MBA student teams that are doing market research and helping us craft our business plan. The PSU Accelerator has proven to be an incredible resource for our company.”

Phillip KirschFounder, IPM Development Company

BU

SINESS

AC

CELER

ATO

R

13


COMMUNITY PARTNER

One of PSU’s 440 partnershipsEl Programa Hispano

Since 1982, Catholic Charities’ El Programa Hispano has been providing social and mental health services to low-income Latinos living in the Portland area. PSU partners with this important community organization by providing language students who use their Spanish skills to assist recent immigrants with a variety of social services.

CO

MM

UN

ITY

PAR

TNER

One of PSU’s 95 international partnershipsInternational Institute for Information Science and Technology (IIIST)

Portland State University and the International Institute for Information Science and Technology have agreed to jointly develop bachelor’s degree programs in electrical engineering, computer engineering and computer science, and a master’s program in electrical and computer engineering to be offered in China by PSU through distance learn-ing mechanisms at IIIST and PSU.

www.partner.pdx.edu


If you were to put a dollar value on the more than 1.3 million hours of service PSU students and faculty contributed to the Portland region in 2005, using the Oregon multiplier for volunteer hours, the contribution would be worth over $20 million.

PSU’s metropolitan area partnership map

14

Portland

Vancouver

Hillsboro

Gresham

Beaverton

Tigard

Camas

Damascus

Tualatin

Lake Oswego

West Linn

Oregon City

Wilsonville

Canby

Happy Valley

Washougal

Troutdale

Sandy

Milwaukie

Fairview

Sherwood

Forest Grove

Gladstone

Cornelius

Estacada

North Plains

King City

Banks

Gaston

Plot Date: May, 2006

Map courtesy of:

PSU has 95 partnerships across 31 countries

THE VALUE OF PSU RESEARCH

Portland State is expanding opportunities for university-business collaboration by ramping up its on-site research funding. In just five years, PSU’s research funding has increased by 67 percent. This is one of the fastest growth rates of any university in the nation. Most of this money comes from outside the state in the form of federal dollars.

www.partner.pdx.edu

ONAMIThe Oregon Nanosciences and Microtechnologies Institute is Oregon’s first Signature Research Center for the purpose of growing research and commercialization to accelerate innovation-based economic development in Oregon and the Pacific Northwest.

So far the state of Oregon has invested $28 million in this joint venture between Portland State University and seven other research institutions. To date, Portland State has contributed 14 inventions and 13 patent applications to the ONAMI consortium’s efforts.

Oregon’s Lab2Market (L2M) Initiative, a world class research collaboration between Oregon’s primary research universities (Portland State University, Oregon Health & Science University, Or-egon State University, and the University of Oregon), will result in the launching of 12 new technologies through licensing agreements or start-up ventures in the next three years.

In 2005 U.S. Congress approves $16 million for PSU Transportation Center

80 M

60 M

50 M

45 M

40 M

35 M

30 M

25 M

20 M

15 M

10 M

5 M

$

1990

1992

1994

1996

1998

2000

2002

2004

2006

2017

PSU RESEARCH EXPENDITURES

15


SUMMARIZING THE VALUE OF A PSU DEGREE

The total economic impact of Portland State University was $1.068 billion in 2005. But our impact goes further—it is also personal.

Educational attainment is one of the most reliable predictors of an individual’s earning potential. The more education an individual has, the higher their lifetime earnings are likely to be.


By 2010, six out of ten new jobs in Oregon will require a bachelor’s degree.

And how does our work impact Oregon? The 25 percent of taxpayers who hold a four-year degree pay 55 percent of all personal income taxes. These taxes pay for education, policing, health services, public transportation, libraries—the list goes on and on.

$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

Impact of Higher Education on Personal Annual Income

Less than a bachelor’s degree

With a bachelor’s degree or above

25%WITH BA DEGREE

LESS THAN A BA DEGREE

100%90%80%70%60%50%40%30%20%10%

0%

Percent of households Percent of taxes paid

Bachelor’s degree or higher

Some college/ AA degree

High school only

Less than high school

16

Oregonian’s Educational Level

DATA SOURCES• Eric Hovee and Andrea Logue, Portland State University Economic Benefits Assessment, August 2004.• Institute for a Competitive Inner City and CEOs for Cities, Leveraging Colleges and Universities for Urban Economic Revitalization: An Action Agenda.• Portland Development Commission, Portland Metropolitan Region 2005 Fact Book.• Economic Development Strategy for the City of Portland: Summary Report of the Blue Ribbon Committee, Portland Development Commission, October 2002.• U.S. News & World Report, “America’s Best Colleges 2006”• The Competitive Imperative, The Economic Case for Increasing Oregon’s Education Output and Quality, by Joe Cortright for the Oregon Education Roundtable project.• Oregon University System, Budget Department. • Oregon Environmental Scan, Oregon Library Association Vision 2010 Committee, Jeanne Goodrich, January 2000.• Oregon Nanoscience and Microtechnologies Institute. • Portland Bureau of Business Licenses.• Portland Business Accelerator at Portland State.• The Young and the Restless: How Portland Competes for Talent by Impresa, Inc. with Coletta & Company.• The proprietary IMPLAN input-output model developed by the University of Minnesota and U.S.D.A. Forest Service was used to determine PSU’s total economic impact.

17

ACKNOWLEDGEMENTSThe Department of Finance and Administration wishes to acknowledge Eric D. Hovee, principal, and Andrea Logue, research coordinator, for the work they did on the Portland State University Economic Benefits Assessment in 2004. This document provided the underlying structure and inspiration for this project. We also want to thank the Portland Development Commission for their assistance with data collection.

This report was produced with the invaluable assistance of representatives from all administrative and academic units of Portland State University; however, the Office of Finance and Administration accepts sole responsibility for the methodology and model used to produce the final report. This publication was developed by Mark Wubbold and produced by the Office of University Communications.

For more information, contact:Lindsay DesrochersVice PresidentOffice of Finance and AdministrationPortland State UniversityPost Office Box 751Portland, OR 97207-0751503-725-4444http://www.fadm.pdx.edu/

Portland State University is an affirmative action/equal opportunity institution. Printed on recycled paper. 6/06

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