Spanish public universities multiply by five each euro received

If the Spanish public universities and their research centers did not exist, there would be a hole in the Spanish Gross Domestic Product (GDP) of 2.2% and almost 450,000 fewer jobs. This without counting the disaster that the lack of higher education of the population would mean for the future of the country.

In terms of the economic return of public investment, they return five euros to society for one received, according to the Economic Impact study of the public university system for the year 2021, commissioned by the Ministry of Universities, and carried out by Jordi Suriñach, Esther Vayá and Joaquim Murillo, professors at the University of Barcelona.

Unlike training, research or the transfer of knowledge to society, the economic dimension of these institutions had not been analyzed until now. The monetary expression of its existence, an aspect that has been worked on in the Catalan university system (Acup report), but that had not been carried out at the state level.

The study confirms the paradox that despite the fact that these institutions are among the most valued by citizens for their prestige, some are in advantageous positions in the rankings and their contribution to GDP is now known, they are the worst financed in relation to comparable European campuses.

This is especially striking in the Catalan and Madrid campuses, and specifically, in the campuses located in the cities of Madrid and Barcelona. Together these centers contribute 40% of the total turnover of the Spanish university system.

The new report analyzes four fields: turnover and production level, contribution to GDP, salary and associated tax income, and full-time jobs that exist due to university activity.

And it reveals that the total turnover reaches 41,056 million euros, with a contribution to the GDP of 23,777 million and a total employment of 438,926 employees (2.4% of the employed population), of which 256,314 are from universities and the rest of foundations and associated companies.

Having an overall vision of the impact that universities generate on the country’s economy (the study also quantifies it by autonomous community and by province) is the first step of the ministry of Joan Subirats to enable compliance with the new university law ( LOSU) that establishes a plan to increase public spending on public university education of at least 1% of GDP. It is currently located at 0.7% as a whole.

The ministry has undertaken another study that analyzes, with homogeneous criteria, the financing of the university system of each autonomous community, since it is the autonomous administrations that determine the participation of the budget to university financing.

The study reflects, however, that not all universities impact the national, regional and provincial GDP in the same way. There are some universities that make a decisive contribution to the country’s economy and it is correlated with the number of students it has in relation to the rest of the national territory.

Most contribute in very low terms, although there are campuses whose activity is of significant importance in the cities in which they are located. All this, from the economic point of view and not from its social effects.

The greatest economic impact (61% of the Spanish total) occurs in just three autonomous regions: Catalonia, Madrid and Andalusia. At the provincial level, Madrid and Barcelona concentrate the turnover of 40% of the state as a whole. And every city in the rest of the territory is a long distance away.

Catalonia, in the lead

Catalonia heads the main parameters analysed. In 2021, it had a turnover of 9,627 million, 23.4% of all Spanish universities, employed almost 90,500 people (more than 20%), and generated tax revenue of 2,123 million (almost 24% of the total).

The share of turnover in Madrid and Andalusia was also high, although somewhat lower, at 21% and 18%, respectively.

The rest of the communities participated below 10% of the total, being La Rioja and Cantabria, 0.4% and 0.7%. At an upper intermediate level would be the Valencian Community (9.5%), Galicia (4.7%), Castilla y León (4.3%) and the Basque Country (4%).

Catalonia also presents a greater contribution to GDP, with 2.72%, only reached by Andalusia, which contributed 2.96%. Below and exceeding the Spanish average of 2.19%, there are also Canarias (2.53%), C. Valenciana (2.26%) and, by one tenth, Madrid (2.20%).

The rest of the communities show an impact of between 1.3% and 2% of GDP, with the exception of Illes Balears, with a 0.8% contribution.

The importance of universities in each autonomous community is also reflected in employment. Andalucía, Madrid, Catalunya, C. Valenciana and the Canary Islands present a contribution to their employed population that is higher than the total for Spain (2.4%). The rest moves below and only Illes Balears has a minimum figure of 1%.

Regarding the fiscal return for the economic transfers received, Catalonia once again stands out, together with the Canary Islands, Madrid, Navarra and Andalusia.

Madrid and Barcelona

The study also focuses on the provinces. The two cities with the highest turnover, 40% of the total impact in Spain, are Madrid, with 8,716 million (21%), and Barcelona, ​​with 7,751 million (19%), which are also the ones with the largest number of students.

It also happens with jobs: 90,337 in Madrid, and 73,500 in the Catalan capital, which represents 21 and 17 percent, respectively.

The following provinces on the list do not exceed two digits and are Valencia, Seville, Granada, Malaga, A Coruña or Alicante between 3% and 6% of turnover and employment.

It should be noted that there are provinces with a very low impact (less than 100 million euros and less than a thousand employees) such as Soria, Zamora, Ávila, Teruel, Palencia, Segovia and Cuenca, with a weight of less than 0.2%. of the total.

university towns

The study by UB analysts also measures the impact at the provincial level in relative terms. This is like measuring the degree of consideration of a “university city” by the weight that higher education has in that city. The order in this list is taken by Granada, whose university activity generates approximately 8% of its GDP and of the employed population.

Other cities that stand out are Salamanca (around 5%), Girona and Seville (around 3.5%).

At the opposite extreme are Illes Balears, Palencia, Huesca, Zamora, Ávila and Teruel, with an impact on GDP or employment of less than 1.3%.

There are 26 provinces with a contribution of their universities to GDP of less than 1.5%.