Study Finds Maryland Incubators Have Big Impact

The Maryland Technology Development Corp. (TEDCO), RESI (a regional economic studies institute at Towson University), and the Maryland Business Incubation Association (MBIA) presented on Thursday the results of the Maryland Incubator Impact Study — a first-of-its-kind study for the state by measuring the economic impact of Maryland's six public- and university-related high-tech business incubators on the state's economy. 



Maryland's incubators are a significant economic boon to the state of Maryland, the study shows, estimating that incubator tenants and graduates generate between $184 and $530 million in gross state product and between $31 and $96 million in taxes annually. 



The study also reveals the following: 

• Using three different estimation procedures, RESI calculated the annual employment impact of business incubator tenants and graduates between 2,210 and 6,852 jobs. 
• Using the same estimation procedures, RESI calculated the gross state, product, personal income and fiscal return generated by these firms. Total personal income generated ranged from $88 million to $274 million. 
• Deriving three independent methodologies to estimate the value of the services provided by the incubators, RESI applied these methodologies to the calculations of gross state product, personal income and fiscal return, creating a value-added measure of business incubation. For example, in one scenario calculation, the value of gross state product generated ranged from $7.4 million to $24.9 million annually. 

The Maryland Incubator Impact Study suggests that the state's successful technology incubators not only complement its federal research labs and facilities but "are vital to ongoing and future formations of technology clusters throughout the state's regions." The full report is available through TEDCO: http://www.marylandtedco.org/home.html