Oregon State releases economic impact report

Oregon State University makes an extraordinary impact on Oregon’s economy through operations, capital projects, wages, and student and visitor spending to support local and statewide economies to the tune of $3.5 billion annually. And for every $1 invested in the university by the state, OSU returns $13.18 to Oregon’s economy.

A new comprehensive report on the university’s broad-ranging impact on the state economy has just been released. The Economic Impact Report, compiled after months of research, demonstrates that OSU is a critical engine of the state economy, driving job creation, tax revenue and economic growth.

“At OSU, we empower students to realize dreams for a better life, for themselves and their families, and to find fulfilling and creative careers marked by meaning and impact,” said Oregon State President Jayathi Murthy. “We partner with communities and industries to inspire innovation, translate discoveries into economic growth and infuse the workforce with talent and skill.”

OSU hired Parker Strategy Group to measure the university’s economic contribution. To develop the report, PSG gathered student, financial and employment data about the university’s financial, social and cultural impact in Oregon and the region. They looked at operational expenditures, capital expenditures and payroll benefits for employees in FY 2024. PSG also looked at estimated spending by visitors and students, not including tuition and fees.

The report found that OSU contributes significantly to local and statewide economies through its expenditures on operations, capital projects, wages, student spending and visitor spending. The direct, day-to-day spending, combined with the economic contributions of students and visitors, generate a powerful ripple effect throughout the Oregon economy.

Some of the report’s highlights include:

• OSU’s operations, students and visitors support a combined total of 22,141 full-time and part-time jobs throughout the state.
• In FY 2024, OSU and its related constituencies collectively generated an estimated $243.8 million in state and local taxes — $164.9 million direct (investment in construction and expenditures for operations), $25.2 million indirect (purchases from local suppliers), and $53.7 million induced (household spending from earnings of direct and indirect expenditures) —through local spending on operations, capital projects, student spending and visitor spending. 
• One of OSU’s biggest contributions to Oregon is our graduates. 134,592 alumni live and work in Oregon. Collectively, they will generate an estimated $258.5 billion over their careers and underscore the value of an OSU degree.
• OSU’s economic, employment and tax revenue impact in the Corvallis area cannot be overstated. When examining the South Valley/Mid-Coast, Oregon State University has an economic impact of $2.2 billion. This impact supports and sustains 13,144 jobs in Linn and Benton counties. OSU’s economic impact in the South Valley/Mid-Coast region generates $171.3 million in state and local tax revenue.
• OSU-Cascades drives economic development in Bend and surrounding communities. Since its opening, the campus has already contributed to the region’s economic growth, reinforcing its role as an engine of opportunity. This impact is deeply rooted in OSU’s land grant mission, prioritizing accessibility, innovation and community-driven progress. OSU-Cascades generates a statewide economic impact of $89.9 million, supports and sustains 701 jobs and drives $6.6 million in state and local tax revenues.
• Federal research funding awarded to OSU from agencies such as the National Institutes of Health and the National Science Foundation has a profound impact on the statewide economy. These grants bring new dollars into the state, infusing it with fresh resources that support cutting-edge research and drive innovation, attracting top talent and advancing collaboration among researchers, industry and government. In FY 2024, OSU was awarded $370 million in federal research grants.
• Since FY20, research expenditures at OSU have risen every year, totaling more than $1.6 billion over that five-year period. Research drives private sector partnerships that created more than 3,300 new jobs and contributed $33 million in state and local taxes. Oregon State has a long history of bringing research discoveries to market, creating new commercial products and launching companies. More than 100 companies have launched since 2013 through OSU Innovation and Entrepreneurship programs – all of which continue to have the majority of their employees – as well as research and development capacity – in Oregon.

Oregon State, like all institutes of higher education, is navigating a complex and dynamic federal landscape. But it remains steadfast in its land grant university mission of education, research and service to Oregon. OSU continues to focus on producing top-quality students, pursuing new federal-sponsored research and innovation that advances federal and state interests and driving new companies from university innovation and ingenuity. Despite current challenges, the university is well-positioned to make a positive impact on the state.  

“The vast majority of our startups have stayed in Oregon. They’re hiring our students as full-time employees and interns. These startups are also collaborating with us to test their technology and research alongside our faculty,” said Brian Wall, OSU associate vice president of research innovation for economic impact. “When you think about innovation, entrepreneurship, research and development — that’s the backbone of the Oregon economy, and that’s what we do here at OSU.”