If Spanish public universities and their research centers did not exist, there would be a hole in Spain’s gross domestic product (GDP) of 2.2% and almost 450,000 fewer jobs. This without taking into account, in this hypothetical scenario, the disaster that the population’s lack of higher education would entail for the future of the country. And they are productive. In terms of the economic return on public investment, the campuses return five euros to society for every euro received.
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 is an aspect that had been worked on in the Catalan university system (Acup report), but which had not been done until now on a state level. The study Economic impact of the public university system in 2021, commissioned by the Ministry of Universities, and carried out by Jordi Suriñach, Esther Vayá and Joaquim Murillo, professors at the University of Barcelona, ??aims to correct this gap, and notes the paradox that, despite the fact that these institutions are among the most valued by citizens and some are in advantageous positions in the rankings, they are the most poorly funded in relation to other comparable European campuses. The new university law establishes a minimum of 1% of GDP, and now it is at 0.7%.
The new report looks at four fields: turnover and production level, contribution to GDP, associated salary and tax revenues, and full-time jobs that exist because of university activity. And it reveals that the total turnover reaches 41,056 million euros, with a contribution to GDP of 23,777 million and a total employment of 438,926 employees (2.4% of the employed population), of which 256,314 belong to universities and the rest of the foundations and associated companies.
Low university funding is particularly glaring for campuses that are doing better. The universities of the cities of Madrid and Barcelona alone account for 40% of the total turnover of the Spanish university system (21% Madrid and 19% Barcelona). The same goes for jobs: 90,337 in Madrid, and 73,500 in the Catalan capital, representing 21% and 17% respectively.
The following provinces on the list do not exceed two digits and are Valencia, Seville, Granada, Málaga, A Coruña or Alicante between 3% and 6% of turnover and employment. The rest is below this percentage.
There are provinces with a very low impact (less than 100 million euros and under a thousand employees) such as Sória, Zamora, Ávila, Teruel, Palencia, Segovia and Conca, with a lower weight of 0.2% of the total
The study by UB analysts also measures the impact at a 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 leader in this list is Granada, whose university activity generates 8% of its GDP and of the employed population.
Other cities that stand out are Salamanca (5%), Girona and Seville (around 3.5%). At the opposite extreme are the Balearic Islands, Palencia, Huesca, Zamora, Ávila and Teruel, with a GDP or employment impact of less than 1.3%.
As an autonomous system, Catalonia tops the main parameters analyzed. 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 revenues of 2,123 million (almost 24% of the total ). Its contribution to GDP was 2.72%.
After Catalonia, Madrid accounted for 21% and Andalusia, 18%. The rest of the communities participated in less than 10% of the total ( Valencian Community, 9.5%; Galicia, 4.7%; Castile and Leon, 4.3%, and the Basque Country (4%). The let alone La Rioja and Cantabria (0.4% and 0.7% respectively).
