| Practice area: | Education and Labour Markets |
|---|---|
| Client: | The University of Edinburgh |
| Published: | 22 June, 2023 |
| Keywords: | economics of education Higher Education 2023 Public Policy Scotland |
The total economic impact on the UK economy associated with the University of Edinburgh’s activities in 2021-22 was estimated at approximately £7.522 billion.
In terms of the components of this impact, the value of the University’s research and knowledge exchange activities stood at £3.180 billion (42% of total), while the impact associated with the University’s international students stood at £1.770 billion (24%). The impact generated by the operating and capital expenditures of the University was £1.535 billion (20%), and the impact of the University’s teaching and learning activities accounted for £857 million (11%). The remaining 2% of economic impact (£180 million) was from the impact of tourism activities associated with the University.
Compared to the University’s total operational costs of approximately £1.086 billion in 2021-22, the total impact of the University of Edinburgh’s activities on the UK economy was estimated at £7.522 billion, which corresponds to a benefit to cost ratio of 6.9:1. This compares to an average benefit-to-cost ratio among Russell Group institutions of approximately 5.5:1, and corresponds to a 34% increase in the University’s impact since 2015-16 (on a like-for-like basis, in real terms).
In addition to assessing the total impact of £7,522 million on the UK economy as a whole, it is also possible to estimate the economic impact of a number of strands of the University’s activities on Scotland. Specifically, we estimated the economic impact associated with the University’s knowledge exchange activities, the impact of international students, the impact of the University’s expenditure, and the impact of tourism activities associated with the University on Scotland. Adopting this approach, the analysis identified that approximately £3,835 million (51%) of the University of Edinburgh’s total impact of £7,522 million can be disaggregated geographically, of which approximately £2,772 million (72%) occurred in Scotland.