The Economic Impact of Research Parks: An Arizona Example

Generating $48.7 million in tax revenues to local and state governments and 5,949 direct jobs, the 31 tenants of the University of Arizona Science & Technology Park had an estimated direct impact in excess of $1 billion in FY 2000-01, according to a new report from the university's Office of Economic Development.

Impact of the University of Arizona Science and Technology Park on The Economy of Tucson and Pima County: An Economic and Revenue Impact Analysis for FY 2000-2001 lays out the local and regional direct and indirect impact of the sixth largest university research park in the U.S. In addition to tenant businesses, the park includes a high-tech incubator and high school.

In comparison with the 1999 study of the park's impact, the researchers found:

• the number of tenants increased from 21 in 1999 to 31 in FY 2000-01, an increase of 48 percent;
• direct employment by the tenants grew 12 percent from 5,309 in 1999;
• total wage impact grew from $478 million in 1999 to $604 million n FY 2000-01;
• average annual salary for tenant employees was $57,500 (compared to the county's average salary of $31,151); and
• total tax revenues grew 26 percent between the two report years.

The University of Arizona Science & Technology Park was established in 1995 and consists of 1,345 acres, of which 345 are developed with 12 buildings.

The full 29-page report is available online at: http://oed.arizona.edu/updates.htm

Arizona