mit_impact_full_report
mit_impact_full_report
mit_impact_full_report
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The Role of MIT Alumni Companies in the U.S. Economy<br />
18<br />
Table 7<br />
MIT Alumni Companies by Industry<br />
Industry # of Firms Employment (Median)<br />
Revenue (Median–in $000s)<br />
Aerospace 467 15 1,200<br />
Architecture 1,209 5 265<br />
Biomedical 500 27 2,000<br />
Chemicals and Materials 742 25 1,275<br />
Consumer Products 1,417 23 1,500<br />
Management Consulting 2,239 2 200<br />
Electronics 3,285 25 2,000<br />
Energy and Utilities 789 8 507<br />
Finance 1,111 7 1,800<br />
Law and Accounting 1,046 8 450<br />
Machinery 322 25 2,600<br />
Publishing and Schools 564 12 1,200<br />
Software 5,009 22 1,500<br />
Telecommunications 902 5 143<br />
Other Manufacturing 773 20 1,600<br />
Other Services 5,395 30 1,750<br />
their cumulative <strong>impact</strong> is significant, the median size<br />
in every industry is quite small, reflecting the overall<br />
national experience and the large number of<br />
young firms.<br />
Firms in software, electronics (including<br />
instruments, semiconductors, and computers), and<br />
biotech form a special subset of the MIT alumni<br />
companies. These high-technology firms (1) spend<br />
more of their revenues on research and development,<br />
(2) are more likely to hold one or more patents, and<br />
(3) tend to export a higher percentage of their<br />
products. They are more likely than companies in<br />
other industries to provide the bases for long-term<br />
economic growth. Together, firms in these three<br />
industries account for one-third of the employment in<br />
all MIT alumni companies; electronics and instrument<br />
firms alone account for more than 13 percent.<br />
The expansion plans of the companies we<br />
surveyed form an interesting “leading indicator,”<br />
pointing to growth prospects by industry. More than<br />
30 percent of the firms in chemicals, aerospace, and<br />
biotech are planning to expand. They are followed<br />
closely by telecommunications and consumer<br />
products companies.<br />
ENTREPRENEURIAL IMPACT: THE ROLE OF MIT