Economic impact of the League of European Research Universities

Posted on: 01 December 2017

Bringing €100 billion to the European economy

In 2016, the 23 member universities of the League of European Research Universities (LERU) generated a collective economic value of €99.8 billion in Gross Value Added and 1.3 million jobs. These and other figures that feature in a just published report by LERU, demonstrate the impressive contribution that LERU universities make to the European economy. Trinity College Dublin joined the prestigious ranks of LERU last year and is the only university on the island of Ireland which is a member of Europe’s leading network of research-intensive universities that includes Oxford and Cambridge.

The study, undertaken for LERU by BiGGAR Economics, was presented at an event in Brussels  today. The report provides some telling figures on the significant role that universities play in driving the European economy.

Commenting on the report findings, Provost of Trinity College Dublin, Dr Patrick Prendergast said: “Universities are first and foremost about transmitting knowledge through education, and our leading research and high-level graduate employment are a cornerstone of innovation and job creation. Research intensive universities such as Trinity and our partner universities in LERU are key drivers in research and innovation investments in their communities, and in the broader European economy the direct GVA was €14.5 billion in 2016, directly supporting 222,800 jobs. This is made very clear in the LERU report launched today that investment in research universities is essential for our future.”

Key findings of the report

Research universities are substantial contributors to European growth and jobs:

• LERU universities generated a total economic value of €99.8 billion in Gross Value Added and 1.3million jobs across Europe in 2016.

• It is estimated that the entire European research universities sector contributed to over €400 billion GVA (2.7% of the total GVA of the European economy), and supported 5.1 million jobs across Europe (2.2% of all European jobs).

Research and education have a high return on investment:

• LERU universities generated almost €5 GVA for every €1 of income they received.

Universities are key actors in the European innovation ecosystem:

• LERU universities generated €33 billion GVA in Europe in 2016 by transferring their research into industry through licenses, spin outs and services to business.

An economic impact that keeps on growing

Between 2014 and 2016, the economic contribution of the LERU universities increased by €28.2 billion GVA. While several factors are responsible for this growth, the largest contributing one is the increase in the size and scale of the LERU universities (including the fact that the League now has two additional members compared to 2014). The LERU members are not only strongly contributing to the European economy but also increasing their contribution every year.

Societal impact

This report provides a snapshot of the economic contribution of the LERU universities in 2016. The long-term economic impact is, however, much bigger. In addition, it is important to recognise the wider impact (other than economic) that universities have in society, delivering talented graduates and professionals into society and acting as hubs for knowledge production, transfer and exchange. Societal impact has always been, is and will remain, a core task of universities.

Commenting on the report’s findings, Professor Deketelaere, LERU´s Secretary-General, said: “The message is clear. If you want to deliver on growth and jobs, invest in research and universities. If you want a budget focused on results, invest in research and universities. We all need to speak up for research. This report provides sound and convincing economic evidence to support our arguments.”

For copy of full report click here:

About LERU

The League of European Research Universities (LERU) is an association of twenty-three leading research intensive universities that share the values of high-quality teaching within an environment of internationally competitive research. Founded in 2002, LERU advocates education through awareness of the frontiers of human understanding; the creation of new knowledge through basic research, which is the ultimate source of innovation in society;

and the promotion of research across a broad front in partnership with industry and society at large. The purpose of the League is to advocate these values, to influence policy in Europe and to develop best practice through mutual exchange of experience. LERU regularly publishes a variety of papers and reports which make high-level policy statements, provide in-depth analyses and make concrete recommendations for policymakers, universities, researchers and other stakeholders.

LERU’s current 23 members are: University of Amsterdam, Universitat de Barcelona, University of Cambridge, University of Edinburgh, University of Freiburg, Université de Genève, Universität Heidelberg, University of Helsinki, Universiteit Leiden, KU Leuven, Imperial College London, University College London, Lund University, University of Milan, Ludwig-Maximilians-Universität München, University of Oxford, Pierre & Marie Curie University, Université Paris-Sud, University of Strasbourg, Utrecht University, University of Zurich, Trinity College Dublin and the University of Copenhagen.