Economic Effects of Institutions of Higher Education and Non-Academic Research in Lower Austria

The study investigates aspects of the economic linkages of institutions of higher education and non-academic research in Lower Austria. These aspects include the demand side (the embedding of the institutions in the regional economy) as well as the supply side (the effects on regional productivity and innovation as well as individual earnings). The estimated effects are considerable: These two sectors directly employ about 7,000 persons, 1 percent of total employment in Lower Austria. Via supplier relations and consumption effects, another 9,000 employees are utilised, about half of them in Lower Austria. These effects are naturally strongly concentrated regionally at the locations of the universities and research institutions; they are most significant for the district of Krems, where about 13 percent of the employees are directly or indirectly connected with the higher education sector. But also in Tulln, Wiener Neustadt and Baden these linkages are considerable, with almost 3 to about 5 percentage shares of regional employment. The "tertiary premium", i.e. the individual additional earnings through tertiary education, is estimated at 12,000 € before tax per year and graduate, the regional labour productivity in Lower Austria through the university locations at almost 700 € per employee and year. The patents registered by universities and research institutions in Lower Austria are above-average in terms of innovation, even if they are below the Austrian average in terms of numbers.