$3.5 billion in Oregon State economic impact builds regional economy

CORVALLIS, Ore. – Oregon State University research is a significant contributor to the state’s economy, providing $797.5 million in value and 3,300 jobs annually, according to an economic impact report released today by the university.

“For more than 150 years, OSU has created paths to opportunity, pursued answers to some of our most pressing questions and supported a thriving world,” said Oregon State President Jayathi Murthy.

The full report shows that OSU’s overall contribution to Oregon’s economy exceeds $3.5 billion and supports more than 22,000 jobs. That equates to $13.18 in value returned to Oregon’s residents for every $1 invested by the state. These benefits are felt statewide:

• $2.7 billion in the seven counties surrounding OSU’s main campus in Corvallis.
• $477 million in the Portland metro area.
• $120.9 million in Central Oregon, home to the OSU-Cascades campus in Bend. More about the impact at OSU Casades here.

“We deliver tangible and purpose-driven impact to communities rural and urban. From the coast to the high desert, across Oregon’s forests, farms and fields, OSU is an engine for economic prosperity,” said Murthy, who shared findings at the Portland Metro Chamber’s Annual Meeting in Portland on Wednesday.

Hundreds of millions of additional dollars in value were recorded in communities far from urban centers. From OSU Extension to Oregon Sea Grant to partnerships with rural communities, the report illustrates the extent of the university’s impact.

And that economic impact is directly tied to the university’s research and innovation work. The university is one of the state’s largest recipients of federal research dollars, yet academic research nationwide faces uncertainty as federal agencies that fund much of this work at OSU and at other universities drastically reduce their budgets. Of about 2,400 federally funded projects affiliated with OSU—worth $370 million in direct federal investment in fiscal year 2024 — 49 have been terminated to date, with 12 of those funding sources restored.

The university has supported the need for critical federal funding as it seeks to maintain research into innovations that advance solutions for Oregon business and industry. Many of the university’s core research efforts remain federal priorities, including artificial intelligence, cybersecurity, semiconductors and forest management.

However, university researchers are concerned about changes to federal rules that have allowed grant recipients to bill for the costs of maintaining research facilities and administrative support at a negotiated percentage of grant awards. Several core funding agencies, including the National Institutes of Health, the Department of Energy and the National Science Foundation, have instituted a cap on these overhead costs. All are temporarily blocked as court cases proceed.

This change would have a major impact on research universities. At Oregon State, the cost would total tens of millions of dollars per year — a figure that could have a ripple effect of reduced economic impact in Oregon and beyond.

Oregon State has a long history of bringing research discoveries to market, creating new commercial products and launching companies. More than 100 companies have launched since 2013 through OSU innovation and entrepreneurship programs, including Inpria and NuScale Power in Corvallis and Agility Robotics in Salem.

“At OSU, we are proud to partner with communities and industries to inspire innovation, translate discoveries into economic growth and infuse the workforce with talent and skill,” Murthy said.

The economic impact analysis, conducted by Parker Strategy Group based on fiscal year 2024 data, is the first such report commissioned by the university since 2018. The report used data available through the Integrated Postsecondary Education Data System, as well as OSU operational and capital expenditures, employee payroll and student and visitor spending.

The full report is available online at https://beav.es/economic_impact.