The Economic Value of WTAMU Main Report

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Start-up company impact WTAMU creates an exceptional environment that fosters innovation and entrepreneurship, evidenced by the number of WTAMU start-up companies that have been created in the region. This subsection presents the economic impact of companies that would not have existed in the region but for the presence of WTAMU. To estimate these impacts, we categorize a start-up company as a company created specifically to license and commercialize technology or knowledge of WTAMU. We vary our methodology from the previous sections in order to estimate the impacts of start-up companies. Ideally, we would use detailed financial information for all start-up companies to estimate their impacts. However, collecting that information is not feasible and would raise a number of privacy concerns. As an alternative, we use the number of employees of each start-up company that was collected and reported by the university. During the analysis year there were 60 start-up companies related to WTAMU that were active in the Texas Panhandle. These companies employed 1,216 people. First, we match each start-up company to the closest NAICS industry. Next, we assume the companies have earnings and spending patterns – or production functions – similar to their respective industry averages. Given the number WTAMU creates an exceptional environment that fosters innovation and entrepreneurship, evidenced by the number of WTAMU start-up companies that have been created in the region. Chapter 2: Economic Impacts on the Texas Panhandle Economy 30
of employees reported for each company, we use industry-specific jobs-toearnings and earnings-to-sales ratios to estimate the sales of each business. Once we have the sales estimates, we follow a similar methodology as outlined in the previous sections by running sales through the MR-SAM to generate the direct, indirect, and induced multiplier effects. Table 2.5 presents the impact of the start-up companies. The initial effect is 1,216 jobs, equal to the number of employees at all start-up companies in the region (from Table 2.6). The corresponding initial effect on labor income is $58 million. The amount of labor income per job created by the start-up companies is much higher than in the previous sections. This is due to the higher average wages within the industries of the start-up companies. The total impacts (the sum of the initial, direct, indirect, and induced effects) are $82.2 million in added labor income and $33.4 million in non-labor income. This totals to $115.5 million in added income – or the equivalent of supporting 1,742 jobs. TABLE 2.5: IMPACT OF START-UP COMPANIES RELATED TO WTAMU, FY 2017-18 Labor income (thousands) Non-labor income (thousands) Total income (thousands) Sales (thousands) Jobs supported Initial effect $57,979 $24,617 $82,596 $171,571 1,216 Multiplier effect Direct effect $7,191 $2,525 $9,716 $19,801 153 Indirect effect $1,626 $581 $2,207 $4,539 34 Induced effect $15,362 $5,653 $21,015 $40,605 339 Total multiplier effect $24,180 $8,759 $32,939 $64,945 526 Total impact (initial + multiplier) $82,159 $33,376 $115,535 $236,516 1,742 Source: Emsi impact model. Chapter 2: Economic Impacts on the Texas Panhandle Economy 31
Page 1 and 2: AUGUST 2019 The Economic Value of W
Page 3 and 4: Executive Summary This report asses
Page 5 and 6: created by WTAMU is equal to approx
Page 7 and 8: Investment Analysis Investment anal
Page 9 and 10: Introduction West Texas A&M Univers
Page 11 and 12: CHAPTER 1: Profile of West Texas A&
Page 13 and 14: WTAMU employee and finance data TAB
Page 15 and 16: When using the Alumni Outcomes data
Page 17 and 18: The Texas Panhandle economy WTAMU s
Page 19 and 20: Table 1.4 and Figure 1.5 present th
Page 21 and 22: IN this chapter, we estimate the fo
Page 23 and 24: Operations spending impact Faculty
Page 25 and 26: the next four rows under the sectio
Page 27 and 28: non-labor income. This sums togethe
Page 29: ing impacts. Again, since construct
Page 33 and 34: Calculating the increase in income
Page 35 and 36: the retained students, we estimate
Page 37 and 38: Alumni impact In this section, we e
Page 39 and 40: income is the difference between th
Page 41 and 42: Once these allocations are complete
Page 43 and 44: These impacts, stemming from spendi
Page 45 and 46: Student perspective To enroll in po
Page 47 and 48: their full earning potential that t
Page 49 and 50: Linking education to earnings Havin
Page 51 and 52: As shown in Table 3.2, the $44.6 mi
Page 53 and 54: Price Index), the corresponding nom
Page 55 and 56: We apply another reduction factor t
Page 57 and 58: TABLE 3.3: PRESENT VALUE OF ADDED T
Page 59 and 60: Social perspective Texas benefits f
Page 61 and 62: to income assistance amount to $1.5
Page 63 and 64: money spent on operations of the un
Page 65 and 66: WHILE WTAMU’s value to the Texas
Page 67 and 68: Buss, Christian, Jeffrey Parker, an
Page 69 and 70: Jaeger, David A. and Marianne E. Pa
Page 71 and 72: Ogden, Cynthia L., Molly M. Lamb, M
Page 73 and 74: U.S. Department of Health and Human
Page 75 and 76: Based on this sensitivity analysis,
Page 77 and 78: • Scenario 1: Increasing the perc
Page 79 and 80: Retained student variable The retai
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Economics Study of the allocation o
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Appendix 3: Frequently Asked Questi
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money” is called discounting and
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Appendix 5: Emsi MR-SAM Emsi’s MR
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Census’ Current Population Survey
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The matrices are built utilizing Em
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Appendix 6: Value per Credit Hour E
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economics. Those critical of the Mi
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Appendix 8: Overview of Investment
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10 years from today given the going
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Appendix 9: Shutdown Point The inve
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Consider benefits now with referenc
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Appendix 10: Social Externalities E
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y education, gender, and ethnicity.
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weighted heavily towards the less t
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