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    Economic Impacton New York StateMarch 2009

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    Cornell UniversityEconomic Impact on New York State

    December 2008

    As this report was being written in fall 2008, the world was coming to terms with the worst

    financial disaster since the Great Depression. It would be tempting, therefore, to dismiss

    an economic impact statement based on fiscal year 2007 as moot. Surely the landscape has

    changed so radically in the interim that any information Cornell provided would be hope-

    lessly out of date.

    But that overlooks Cornells almost 150-year history as an economic engine for ompkins

    County, Central New York, and New York State. In that time, Cornell has weathered a series

    of economic depressions and recessions, two world wars, and several rounds of contractions

    in the college-bound demographic. Trough it all, the university has continued to be one of

    the major sources of employment, and a major purchaser of goods and services, in ompkins

    and surrounding counties. Cornell has continually drawn visitors from across the UnitedStates and around the globe to Ithaca, supporting a healthy local hospitality sector. As New

    Yorks land-grant institution, Cornell has prepared the states young people for successful ca-

    reers, made significant contributions to t he states business and industry, and provided much-

    needed support to its human services sector.

    If at times the university has had to exercise extra fiscal restraint, the long-range trend

    always has been toward growth and innovation.

    Tat continues to be the case today. Although university admini strators have acknowledged

    current economic realities by calling for tighter spending measures, they have tempered the

    difficult choices ahead by reaffirming Cornells commitment to high-quality education, finan-

    cial assistance for students in need, and policies and benefits that make it an outstanding area

    employer. Some of the multimillion-dollar construction projects that have generated intense

    economic activity on Cornells Ithaca and New York City campuses have been put on hold,

    but the need for them has not gone away and will be met when conditions improve.

    In the meantime, Cornell will continue operating as a community of more than 30,000

    students, faculty, and staff, providing food, shelter, heat, electricity, recreation, and other vital

    services. It will also continue to draw external sponsored awards for research to Central New

    York, and it will continue delivering applied research and outreach services, including efforts

    that will help the state and its citizens cope with the current fiscal downturn. In doing so,

    Cornell University is a stable generator of economic activity at a time of great uncertainty in

    New York State.

    Contents

    Section IImpact on the New York State

    Economy: Cornell University as an Enterprise 2

    Section IIHuman Capital: Employees,

    Alumni, and Students 10

    Section IIIPromoting Economic

    Development in New York State 17

    AppendixMultiplier Effec ts and IMPLAN 31

    Acknowledgements 32

    All data in this report is from Cornell Uni versity unless otherwise noted.

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    Section IImpact on the New York StateEconomy: Cornell University asan Enterprise

    Cornell University is one of the worlds great research uni-versities, with a special commitment to undergraduateeducation and an academic and research program of aston-ishing range and depth. Most of the activity is concentratedin the core campus in the city of Ithaca, which is located inompkins County in the Finger Lakes region of New YorkState. Cornell also runs campuses in New York City andthe Middle East, and oversees offices providing extensionservices in almost every county in New York State.

    INVESTMENT EARNINGS $290,655

    TUITION AND FEES $633,387

    GIFTS $219,136

    STATE SUPPORT $275,969

    PATIENT CARE REVENUES $438,355

    SPONSORED GRANTS AND CONTRACTS $500,840

    OTHER $456,005

    Figure 1A.Cornell University Operating Revenues FY2007(in thousands of dollars)

    Total: $2.8 billion

    Figure 1B.Cornell University Operating Expenditures FY2007(in thousands of dollars)

    Total: $2.6 billion

    WAGES AND SALARIES (INCLUDING BENEFITS) $1,725,610

    PURCHASE OF GOODS AND SERVICES $676,119

    OTHER $233,537

    $3,000

    $2,500

    $2,000

    $1,500

    $1,000

    $500

    (inmillionsofdollars)

    FY2003 FY2004 FY2005 FY2006 FY2007

    Figure 2.Cornell University Operating Revenues, FY20032007

    $2,158

    $2,327$2,434

    $2,731$2,814

    Table 2.Cornell University Total Purchaby Location of Vendor, FY2007(in thousands of dollars)

    Location Cornell-Ithaca Wei

    Tompkins County $128,267

    Other counties near Cornell $12,464

    Other Central NYS locations $43,110

    New York City $21,768 $202

    Other NYS locations $57,230 $5

    Outside NYS $270,061 $188

    Total $532,899 $395,

    TOMPKINS COUNTY $128,267

    OTHER COUNTIES NEAR CORNELL $12,464

    OTHER CENTRAL NYS LOCATIONS $43,110

    NYC $21,768

    OTHER NYS LOCATIONS $57,230

    OUTSIDE NYS $270,061

    Figure 3. Cornell-Ithaca Purchasing by Location of Vendor, FY2(in thousands of dollars)

    Total: $533 million

    2

    Purchasing

    Te university strives to u se local and New York State sup-pliers when making purchasing decisions. Cornells edu-cational and research missions often require specializedequipment that isnt available in New York. Still, as able 2indicates, slightly more than half the purchases made forthe Ithaca campus and Weill Cornell Medical Collegewere from vendors inside New York State.

    By itself, the Ithaca campus purchased more than halfa billion dollars worth of goods and services in 2007. AsFigure 3 shows, nearly a quarter of that was spent in Cor-nells home county, and a third went to businesses in theCentral New York region, including ompkins and sur-rounding counties.

    Table 1.Cornell Universitys

    Colleges and Schools

    Undergraduate Colleges

    New York State College of Agriculture andLife Sciences*

    College of Architecture, Art, and Planning

    College of Arts and Sciences

    College of Engineering

    School of Hotel Administration

    New York State College of Human Ecology*

    New York State School of Industrial andLabor Relations*

    Graduate and Professional Schools

    Cornell Graduate School

    Cornell Law School

    Johnson Graduate School of Management

    Weill Cornell Medical College in New YorkCity

    Weill Cornell Medical College in Doha, Qatar

    Weill Cornell Graduate School of MedicalSciences

    New York State College of VeterinaryMedicine*

    Other Academic UnitsFaculty of Computing and InformationSciences

    School of Continuing Education

    Division of Nutritional Sciences

    Cornell University Library

    * New York State statutory college

    able 1 lists Cornells undergraduate, graduate, andprofessional colleges as well as programs that cut acrossschools.

    Revenues and Expenditures

    Cornells fiscal year runs from July 1 to June 30. In fiscalyear 2007, the period covered in this report, the univer-sity recorded $2.8 billion in revenue from operations andmade $2.6 billion worth of expenditures. Figure 1providesa broad overview of where the money came from in 2007and how it was spent.

    Te five-year trend shown in Figure 2 shows steadygrowth in revenues over time.

    Note: State Support includes direct appropriations, certain fringe benefits, and debt service.

    Note: FY2003, FY2004, FY2005 restated to reflect operating revenue consistent with information for FY2006 and FY2007.

    Section I Impact on the New York State Economy: Cornell Univers

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    able 3breaks out some of the major spending catego-ries for purchases made from ompkins County vendorsin 2007.

    When a large enterprise spends millions of dollars ina community, it has an economic impact that goes wellbeyond the individual vendor. Each dollar Cornell spendsproduces what economists call the multiplier effect, orthe indirect and induced impacts on the vendors com-munity, region, and state.

    Table 3. Cornell-Ithaca PurchasesGreater Than $2 Million fromTompkins County Businesses, FY2007

    Commodity or Service Spending

    (in thousands of dollars)

    Utilities $18,288

    Restaurants and catering $13,086

    Office supplies $6,128

    Civic, social, and professiona l organizati ons $4,104

    Scientific research services $4,032

    Wholesale trade $3,964

    Miscellaneous professional and technical services $3,475

    Printing $2,708

    Computer equipment, software, and services $2,696

    Facilities support services $2,394

    Printing machiner y $2,275

    Machiner y and equipment leasing $2,210

    NEW YORK CITY $158,300

    NYC SUBURBS $43,700

    OTHER NYS LOCATIONS $5,400

    OUTSIDE NYS $188,400

    Figure 4.Weill Cornell Medical College Purchasing byLocation of Vendor, FY2007(in thousands of dollars)

    Total: $396 million

    Cornells indirect impactis a product of spending bythe local, regional, or New York State companies fromwhich the university buys goods and services. Construc-tion contractors, utility companies, temporary services,caterers, and other firms use the payments they receivefrom Cornell to pay their employees, rent space, and buyequipment, supplies, and telephone servicesand all ofthese expenditures have an impact on the economy. Teuniversitys induced impactrepresents the impact of rou-tine household spending by its own employeesfor rent,food, clothing, transportation, and childcareand by t heemployees of its suppliers.

    Tere are several quantitative economic models foridentifying the indirect and induced impacts of an enter-prises expenditures. For this report, facult y and research-ers in Cornells Department of City and Regional Planningused a social accounting matrix (SAM) model, imple-mented with IMPLAN software. (See the Appendix for

    a detailed description of IMPLAN.)Using IMPLAN, Cornell researchers estimated that in

    2007, purchases of goods and services for Cornells Ithacacampus directly supported: 803 full-time-equivalent (FTE) jobs in Tompkins

    County 244 FTE jobs in the six counties immediately sur-

    rounding ompkins 190 FTE jobs elsewhere in Central New York 894 FTE jobs elsewhere in New York State

    Purchasing for the Weill Cornell academic and medicaloperations in New York City amounted to $396 million in2007, of which 40 percent was spent with local vendors.Figure 4breaks down Weill Cornell purchases by locationof vendor.

    Major purchasing categories for Weill Cornell differfrom those of the Ithaca campus. For example, Weill Cor-nell provides malpractice insurance for the physicians whowork there, putting that at the top of the list in Table 4.

    Using IMPLAN, Cornell researchers estimated that in2007, purchases of goods and services for Weill CornellsNew York City campus directly supported 2, 001 FE jobsin New York State, 1,777 of them in New York City alone.

    Construction

    A university like Cornell is continually renewing it-selfand needing space for new and expanded academ-ic programs and research. Te past decade has been anespecially busy time, as Cornell brought online two newstudent residential communities on North Campus andWest Campus, academic and research build ings dedicat-ed to nanotechnology (Duffield Hall) and the life sciences(Weill Hall), and a new medical center in New York City.

    In 2007, Cornell spent a total of $291 million with pri-mary construction contractors (also known as generalcontractors): $179 million on projects for the It haca cam-pus, and $112 million on projects in New York City. Figure5shows these last two figures in the context of the pastfive years.

    $200,000

    $175,000

    $150,000

    $125,000

    $100,000

    $75,000

    $50,000

    $25,000

    $0

    (inthousandsofdollars)

    2002 2003 2004 2005 2006 2007

    Cornell-Ithaca Weill Cornell

    Figure 5. Total Construction Spending, 20022007

    $58,080

    $26,234

    $65,561

    $22,445

    $79,481

    $54,283

    $99,954

    $90,528

    $119,504

    $107,449

    $178,770

    $112,054

    Note: State University Construction Fund (SUCF) projects not included. SUCF projects active in 2007had a total construction value of more than $106 million.

    Table 4. Major Categories of Goodsand Services Purchased byWeill Cornell Medical College fromNew York City Vendors, FY2007

    Purchasing Category Spen

    (in thousands of do

    Insurance $54

    Rent $29

    Miscellane ous professiona l service s $12

    Power generation and supply $11

    Facilities support service s $9

    Business support service s $8

    Laboratory supplies and equipment $6

    Travel arrangeme nts $4

    Office supplies $3

    Scientific research and development $3

    Employment service s $3

    Veterinary ser vices $2

    Computer-related service s $1

    Telecommunicati ons $1

    Section I Impact on the New York State Economy: Cornell UniversI Impact on the New York State Economy: Cornell University as an Enterprise

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    Figure 6shows prime contractor expenditures in NewYork State in 2007 for the Ithaca campus alone.

    IMPLAN estimates that construction on the Ithacacampus resulted in 726 FE jobs in ompkins County.Construction for Weill Cornell created 888 FE jobs inNew York City and another 77 FE jobs elsewhere in NewYork State, according to IMPLAN results.

    Because engaging roofers, painters, etc., is the responsi-bility of the primar y contractor, Cornell does not routine-ly track local and regional subcontractor expenditures.However, subcontractor expenditures in the constructionbudgets for three large projects under way in 2007theEast Campus Research Building, the last two residencehalls for the West Campus House System, and the life sci-ences building, Weill Hallprovide further insight intoCornells role as a regional business and job generator.Tese were not the only active construction projects in2007, so the true i mpact is orders of magnitude higher.

    From just these three examples: $9.6 million went to subcontractors in Tompkins

    County $15 million went to subcontractors in counties sur-

    rounding ompkins $49 million went to subcontractors elsewhere in New

    York Statee IMPLAN estimate is that 99 FTE jobs were created

    in ompkins County in 2007 as the result of local subcon-tractor expenditures for the three projects. Te Weill Hal lproject alone accounted for $7.9 million spent in Tomp-kins County and 82 of the FE jobs.

    In running IMPLAN, Cornell researchers determinedthat the primary beneficiaries of construction jobs at Cor-nell-Ithaca are households earning $50,000 to $75,000 ayear, with most of the recipients living in ompkins andsurrounding counties. Tus, construction at Cornell helpsimprove the standard of living for some of the universitysnearest neighbors.

    Figure 6. Cornell-Ithaca Construction Spendingby Location of Prime Contractor, 2007(in millions of dollars)

    Total: $179 million

    TOMPKINS COUNTY $2.3

    OTHER COUNTIES NEAR CORNELL $44.0

    OTHER CENTRAL NYS LOCATIONS $30.2

    NYC AND SUBURBS $4.3

    OTHER NYS LOCATIONS $3.4

    OUTSIDE NYS $94.6

    Te economic impact of construction activit y coveredby this report does not include state-funded projects man-aged by the State University Construction Fund (SUCF)on Cornell campuses. During 2007, the construction

    value of active SUCF projects on the Ithaca campus to-taled $71.3 million. On the Geneva, New York campus,the construction value of active SUCF projects in 2007totaled $3.4 million. In addition, the construction valueof projects in Ithaca funded by the state but managed byCornell on behalf of SUCF totaled $34.9 million. All ofthese state-funded capital projects in Ithaca and Genevagenerated jobs, the purchasing of construction materialsand supplies, and t he engagement of area subcontractorsin addition to those modeled in this report.

    Employees and Payroll

    With more than 17,000 employees statewide, Cornell isamong the largest employers in New York; with 12,000 of

    those employees in Ithaca alone, it is t he largest employerin ompkins County. Aside from the sheer number of itsworkforce, Cornell is committed to being a quality em-ployer, offering wages and benefits comparable toand inmany cases better thanthe local average. Te universityhas been recognized nationally for these efforts, appear-ing on the best employer lists compiled by the Chronicleof Higher Education, AARP, and Working Mothermaga-zine, among others.

    Figure 7indicates employment growth at Cornell.Figure 8 shows that Cornells Ithaca payroll has grown

    at an average rate of 6 percent for the same period.Payroll growth is due in part to the universitys Salary

    Improvement Program, which is designed to move Cor-nell wages from below- to at-market levels over a periodof years.

    20,000

    17,500

    15,000

    12,500

    10,000

    7,500

    5,000

    2,500

    0

    (innumberoffull-timeequivalents)

    2002 2003 200 4 2005 2006 2007

    Figure 7. Cornell University EmploymentGrowth (excluding students), 20022007

    16,06916,631 16,797

    17,336 17,577 17,596

    $800

    $700

    $600

    $500

    $400

    $300

    $200

    $100

    $0

    (inmillionsofdollars)

    2002 2003 2004 2005 2006

    Figure 8. Cornell-Ithaca Total Payroll GroFY20022007

    $534

    $573$602

    $644

    $679

    Table 5. Summary of Cornell Universitys Economic Impact in New York State,FY2007(in millions of dollars and total of full-time equivalents)

    Indirect and Induced Impact of Spending byDirect University Spending Employees, Vendors, Contractors Total Impact

    Purchasing/ Impact of Impact of vendor andPayroll construction employee spending contractor spending

    New York State

    $1,148 $663 $1,072 $434 $3,317

    17,418 5,023 6,162 2,842 31,445

    Central New York

    $640 $258 $622 $135 $1,654

    12,776 1,971 4,300 1,114 20,161

    New York City

    $467 $333 $330 $189 $1,319

    4,572 2,796 1,815 1,124 10,307

    Summary: Cornells Economic Impactin New York State

    We have seen how purchasing, construction, and employ-ment at Cornell University directly impacted the immedi-ate vicinity and New York State as a whole in 2007. able 5sets those direct impacts side-by-side with the indirectand induced impacts as estimated using IMPLAN. Itpresents a concise picture of a large and thriving enter-prise that makes vital contributions to the local and stateeconomies.

    Note: State University Construction Fund (SUCF) projects not included. SUCF projects active in 2007had a total construction value of more than $106 million.

    Section I Impact on the New York State Economy: Cornell UniversI Impact on the New York State Economy: Cornell University as an Enterprise

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    For ompkins County, Cornells Ithaca operation is theprimary economic engine, adding more than 16,000 jobsand $1.1 billion in wages to the local economy. As able 6demonstrates, the universitys economic impact is felt innearby counties and t hroughout Central New York.

    In addition to jobs and wages, the Ithaca campus alsogenerates sales and use tax revenue for ompkins Coun-tyand, in spite of the fact that most of its property istax-exempt, the university makes a sizeable contributionto local property tax revenues, as seen in able 7.

    able 8expands on able 7 to show the tax impact ofthe Ithaca campus alone on New York State, contributingmore than $61 million to state tax revenues in 2007.

    Table 6. Summary of Cornell-Ithaca Economic Impact, 2007(in millions of dollars and total of full-time equivalents)

    Indirect and Induced Impact of Spending byDirect University Spending Employees, Vendors, Contractors Total Impact

    Purchasing/ Induced Impact of Indirect Impact of vendorPayroll construction employee spending and contractor spending

    Tompkins County

    $615 $129 $414 $22 $1,181

    12,461 827 2,733 206 16,227

    Counties Near Cornell

    $615 $185 $529 $62 $1,391

    12,461 1,517 3,724 600 18,302

    Central New York

    $640 $258 $622 $135 $1,654

    12,776 1,971 4,30 0 1,114 20,161

    Table 8. Summary of Cornell-IthacaTax Impacts on New York State, 2007(in millions of dollars)

    Type of Tax Amount

    Taxes paid by or on be half of univers ity employees

    Property taxes $33.3

    Sales and use taxes $7.6

    Taxes paid by vendor s, contractors, a nd their employe es $8.9

    Taxes generate d through multipli er effect $11.3

    Total local ta x revenue $61.2

    Table 9. Cornell-Ithaca Voluntary CashContribution and Public Transit Subsidies,2007

    Recipient of Contribution Amount

    (in dollars)

    Tompkins County Area Trans it $3,195,593*

    City of Ithacamunicipal service s $1,076,920

    Ithaca City School District $425,000

    City of Ithacaeconomic development $75,000

    Tompkins County Day Care and Child Develo pment $38,000

    Tompkins County Area D evelopment $31,250

    Hangar Theatre Public School Program $15,000

    Tompkins County Chambe r of Commerce $10,684

    Ithaca Neighborho od Housing $10,500

    Cayuga Medical Center $10,000ScienCenter Kids Discover y Trail $10,000

    Tompkins County Public Library $10,000

    Other $106,350

    Total $5,014,297

    Table 10. Taxes and Fees Paid by Cornell-Ithaca, FY2007(in dollars)

    Sewer, Water/Sewer, Permits, AgencyProperty Tax and Other Taxes/Fees and Inspection Fees Total

    City of Ithaca $153,394 $969,081 $905,994 $2,028,469

    Town of Ithaca $27,021 $588,853 $86,220 $702,094

    Ithaca School District $568,795 $568,795

    Lansing School District $424,915 $424,915

    Tompkins County $388,733 $388,733

    Village of La nsing $34,464 $94,057 $128,521

    Town of Dryden $3,311 $82,501 $85,812

    Town of Lansing $43,788 $338 $44,126

    Village of Cayu ga Heights $13,906 $8,093 $6,139 $28,138

    Dryden School District $8,106 $8,106

    Other $4,835 $4,835

    Total $1,666,43 3 $1,742,923 $1,003,188 $4,412,544

    Cornell further supports local governments and com-munity organizations through voluntary cash contribu-tions. Table 9lists some of the recipients.

    Te taxes and fees paid to the county and individual lo-cal governments in 2007 are broken out in able 10.

    Te first section of this report details the economicimpact of Cornell University purely as an enterprise. Tenext section examines the impact of human activity atCornellthe contributions to the economy made by thepeople who work, study, and visit there.

    Note: Payroll and FTE figures for Tompkins County and Counties Near Cornell are based on employees working at Cornell-Ithaca.Payroll and FTE figures for Central New York are based on employees working at Cornell-Ithaca and Geneva, N.Y.

    * Includes $701,180 in Partnership Share.

    I Impact on the New York State Economy: Cornell University as an Enterprise Section I Impact on the New York State Economy: Cornell Univers

    Table 7. Summary of Cornell-IthacaTax Impacts on Local Governmentin Tompkins County, FY2007(in millions of dollars)

    Type of Tax Amount

    Taxes paid by or on behalf of univer sity employee s

    Property taxes $20.2

    Sales and use taxes $5.2

    Taxes paid by vendor s, contractors, and their emplo yees $5.3

    Taxes genera ted through multipli er effect $1.5

    Total local ta x revenue $32.2

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    Section IIHuman Capital: Employees,Alumni, and Students

    A university campus is a community of people broughttogether to acquire, share, expand, and apply knowledge.Te majority of people who come to Cornells Ithaca cam-pus for extended periods of time (such as the academicyear) are undergraduate students. But Cornell also drawsin graduate students, faculty members, visiting faculty,post-graduates looking for jobs in the research labs, andnon-academic staff who keep functional and attractivewhat is in essence a small city. Short-term visitors includealumni, guest lecturers, attendees at sporting events andthe many conferences held at Cornell, performers, job re-cruiters, and high school students interested in seeing thecampus before applying for admission (who are usuallyaccompanied by parents and even whole families).

    Much of the same activity, albeit on a somewhat small-er scale, takes place on Cornells New York City campus,with the added attraction of a full range of medical ser-vices that generate thousands of patient visits each year.

    Tese visitors stay in local hotels, use the local trans-portation services, and eat at area restaurants, contribut-ing to the local economies and supporting facilities thatalso improve the quality of l ife for long-term residents.

    Employees

    Te employment figures for Cornells Ithaca campus usu-ally include staff at a smaller operation called the NewYork State Agricult ure Experiment Station in nearby Ge-neva, New York; and faculty and staff for New York Citybased programs such as academic and extension officesfor the School of Industrial and Labor Relations. able 11shows staffing levels for each location.

    Employment data for Cornell programs outside NewYork State include staff at the Arecibo Observatory inPuerto Rico and the Shoals Marine Laboratory in Maine.

    Cornells primary presence in New York City is theWeill Cornell medical complex, which consists of a medi-cal school, a graduate school, research laboratories, andclinical services. In 2007, Weill Cornell employed morethan 4,000 ful l- and part-time workers. As shown in able12, most of them are residents of New York City.

    Student EnrollmentAs able 13indicates, more than 20,000 students t ravel toCornells campuses annually to spend the better part ofthe year studying at one of the undergraduate, graduate,or professional schools.

    Table 11. Cornell-Ithaca Employment by Campus, 2007(in numbers of employees)

    Location Full Time Part Time Total Percent

    Ithaca 10,240 2,221 12,461 58.2

    Geneva 256 59 315 1.5

    New York City (non-Weill) 88 64 152 0.7

    Other New York State locations 45 25 70 0.3

    Subtotal New York State 10,629 2,369 12,998 60.8

    Outside New York State 156 22 178 0.8

    Subtotal Cornell-Ithaca 10,785 2,391 13,176 61.6

    Students employed by Cornell-Ithac a 8,217 38.4

    Total 10,785 2,391 21,393 100.0

    Table 12.Weill Cornell Medical College Permanent Full- and Part-Time Employees,*by Employee Residence, 2007(in numbers of employees)

    Location Full Time Part Time Total Percent

    New York City 2,941 128 3,069 69.4

    New York suburbs 526 58 584 13.2

    Other New York State locations 49 5 54 1.2

    Subtotal New York State 3,516 191 3,707 83.9

    Outside New York State 677 36 713 16.1

    Total 4,193 227 4,420 10 0.0

    Table 13. Cornell University Enrollment Trends, 20022006(in numbers of students)

    Program 2002 2003 2004 2005 2006

    Undergraduate Programs

    Statutory college s 5,212 5,161 5,160 5,180 5,206

    Endowed colleg es 8,513 8,494 8,465 8,335 8,356

    Subtotal 13,725 13,655 13,6 25 13,515 13,562

    Graduate/Professional Programs

    Statutory college s 1,467 1,466 1,454 1,410 1,480

    Endowed colleg es 2,821 2,930 2,859 2,886 2,874

    Johnson Graduate School of Management 664 653 655 732 827

    Law School 568 584 589 569 564

    College of Veterinary Medicine 330 332 336 335 332

    Weill Cornell Medical College 662 714 718 751 884

    Subtotal 6,512 6,679 6,611 6,683 6,961

    Total 20,237 20,334 20,236 20,198 20,523

    * Excludes student employees

    Section II Human Capital: Employees, Al

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    Table 14. Cornell University Undergraduateand Graduate Enrollment, Fall 2006(in numbers of students)

    Programs Enrollment

    Undergraduate Programs

    College of Agriculture and Life Sciences* 3,182

    College of Architecture, Art, and Planning 495

    College of Arts and Sciences 4,189

    College of Engineering 2,782

    School of Hotel Administration 858

    College of Human Ecology* 1,205

    School of Industrial and Labor Relations* 819

    Undecided 32

    Subtotal 13,562

    Graduate/Professional Programs

    Graduate School 4,354

    Johnson Graduate School of Management 827

    Law School 564

    College of Veterinary Medicine* 332

    Weill Cornell Medical College 884

    Subtotal 6,961

    Total 20,523

    Table 14 shows how the student population is dist rib-uted among the Cornell colleges and schools in the UnitedStates.

    About a third of the undergraduates at Cornell in anygiven year are New York State residents. Te rest cometo Ithaca from every state in the United States and morethan 100 other countries. Figure 9 shows the breakdownfor students attending Cornell in the fall of 2006.

    Roughly 40 percent of the undergraduates and 15 per-cent of graduate students at the Ithaca campus live in on-campus housing, and another 10 percent of undergradslive in fraternity and sorority houses. Half of all studentsget their meals through Cornell Dining. Te rest findhousing in the Ithaca rental ma rket and buy food from lo-cal restaurants and grocery stores. Students who live incampus housing and dine on the Cornell mealplan alsorely on area businesses for necessities and entertainment.

    Medical students at Weill Cornell usually live in hous-

    ing provided by the college but turn to New York Citybusinesses for everything else.

    Figure 9A. Cornell University Undergraduate Enrollment,by Students Permanent Residence, Fall 2006(in numbers and percent of students)

    Total: 13,561 students

    TOMPKINS COUNTY 574 4%

    OTHER COUNTIES NEAR CORNELL UNIVERSITY 133 1%

    OTHER CENTRAL NEW YORK COUNTIES 658 5%

    NEW YORK CITY AND SUBURBS 2,717 20%

    OTHER NEW YORK STATE LOCATIONS 909 7%

    OTHER UNITED STATES LOCATIONS 7,492 55%

    OUTSIDE UNITED STATES 1,078 8%

    TOMPKINS COUNTY 2,149 31%

    OTHER COUNTIES NEAR CORNELL UNIVERSITY 50 1%

    OTHER CENTRAL NEW YORK COUNTIES 162 2%

    NEW YORK CITY AND SUBURBS 723 10%

    OTHER NEW YORK STATE LOCATIONS 241 4%

    OTHER UNITED STATES LOCATIONS 2,103 30%

    OUTSIDE UNITED STATES 1,526 22%

    Table 15. Estimated Living Costs forCornell Students, 2007(in dollars)

    Type of Student Location

    Cornell-Ithaca Cornell-Ithaca Weill CornellOn-Campus Off-Campus

    On-Campus1

    Undergraduate $2,120 $12,896

    Graduate/Profess ional $5,782 $16,547 $6,675

    1 First-year graduate student

    Note: The methodology for estimating living costs for on-campus graduate and profes-sional students reflects a greater degree of accuracy than that used in the first EconomicImpact Study using 2005 data.

    able 15 provides conservative estimates for livingcosts in both locations, for off-campus students and foron-campus students (whose housing and, in many cases,food expenses are covered as part of overall universityspending impacts in this report).

    Te estimated total for off-campus student spending inIthaca is $107 million; for Weill, it is $13 million. UsingIMPLAN, Cornell researchers found the following direct,indirect, and induced results from this spending: Direct impact: 1,398 FTE jobs in Tompkins County Indirect and induced impacts: $28 million and 273 FTE

    jobs in ompkins County Direct impact : 119 FTE jobs in New York City Indirect and induced impacts: $6 million and 48 FTE

    jobs in New York City

    Volunteerism

    Cornells status as the land-grant university for New

    York State commits it to research and outreach that im-prove the quality of life for all state residents, particula rlythrough programs in the state-assisted st atutory colleges.However, dedication to public service of another kind canbe found throughout the Cornell community. No oneformally tracks employee volunteer work, but each yearuniversity staff and faculty ma ke significant contributionsto the United Way of ompkins County fundraising cam-paignnot just in dollars, but in hours spent planning andpromoting itand spend thousands of hours serving onthe boards of other not-for-profit organizations through-out the community. Professors teach courses in whichstudents apply what they have learned to meet real humanneeds in Ithaca, the surrounding rural communities, andother upstate cities. Undergraduate and graduate studentstutor Ithaca schoolchildren, visit retirement homes, andhost children from across the state at events designed tospark their interest in science and technology.

    Te economic impact of all this activity, in terms ofavoided costs in personnel, equipment, and supplies forschools and human service agencies, would be difficult tocalculate. Here are some figures for student volunteer ef-forts in 2007: 2,883: number of students who participated in ongoing

    community service

    119,171: number of hours of ongoing service 1,645: number of students who participated in one-

    time community service 11,679: number of hours of one-time service 43,000: number of hours of community service pro-

    vided by fraternities and sororities at Cornell $214,000: amount raised through fraternity and soror-

    ity fundraising activitiesIn recognition of its students efforts, Cornell Univer-

    sity was named to the 2008 Presidents Higher Educationand Community Service Honor Roll, with Distinction.

    * New York State statutory college

    Figure 9B. Cornell University Graduate and Professional StudentEnrollment, by Students Permanent Residence, Fall 2006(in numbers and percent of students)

    Total: 6,954 students

    Note: Student totals exclude 1 student with no known residence.

    Note: Student totals exclude 7 students with no known residence.

    Section II Human Capital: Employees, AlII Human Capital: Employees, Alumni, and Students

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    Alumni

    Cornell University is fortunate in having a large and ex-traordinarily devoted alumni body, numbering morethan 255,000 in 2007. And of the 190,000 Cornell alumniwhose addresses are known, approximately one quarterlive in New York State, as indicated in Figure 10.

    Figure 11demonstrates an interesting pattern of resi-dency. More than a third of those in t he 2007 graduatingclass stayed in New York State, with the majority flockingto New York City and suburbs and a s ubstantial percent-age remaining in ompkins County. Te farther alumniare from their commencement date, the fewer there arein New York. By their tenth-year reunion, New York resi-dency levels off at about a thousand per class year.

    Figure 10A. Current Residence of Cornell-Ithaca AlumniDegree Holders, as of 2008(in numbers and percent of alumni)

    Total: 185,751 alumni unique degree holders

    TOMPKINS COUNTY 6,022 3%

    OTHER CENTRAL NEW YORK COUNTIES 8,863 5%

    NEW YORK CITY AND SUBURBS 25,661 14%

    OTHER NEW YORK STATE LOCATIONS 9,589 5%

    OUTSIDE UNITED STATES 10,438 6%

    OTHER UNITED STATES LOCATION S 125,178 67%

    Figure 10B. Current Residence of Weill-Cornell AlumnDegree Holders, as of 2008

    (in numbers and percent of alumni)Total: 4,840 alumni unique degree holders

    NEW YORK CITY 883

    OTHER NEW YORK STATE LOCATIONS 227

    OUTSIDE UNITED STATES 45

    OTHER UNITED STATES LOCATIONS 3,685

    Te most likely explanation is that the more recentgraduates are either pursuing advanced degrees or start-ing their careers close to their alma mater. Either way,they are remaining in New York during a stage in lifewhen they are also getting married, starting fami lies, andbuying their first homesand thus are active supportersof the states consumer economy. At the same time, theyare helping to meet New Yorks need for well-educated,highly skilled workers.

    Wherever they finally settle, Cornell alumni are likelyto return to Ithaca at some point in their lives, either forreunions, sporting events, or because their own childrenchoose to attend Cornell.

    Figure 11.Current Residence of Cornell-Ithaca Alumni and Unique Degree Holders,by Year Degree Conferred, 19812007

    Other New York State locations

    New York City and suburbs

    Other Central New York locations

    Tompkins County

    Section II Human Capital: Employees, AlII Human Capital: Employees, Alumni, and Students

    1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

    (bynumberofd

    egreeholders)

    2500

    2250

    2000

    1750

    1500

    1250

    1000

    750

    500

    250

    0

    976

    451

    199

    198

    128

    929

    415

    206

    206

    102

    965

    463

    188

    211

    103

    942

    459

    208

    186

    89

    964

    489

    186

    179

    110

    977

    517

    195

    172

    93

    955

    506

    171

    155

    123

    1,070

    598

    193

    156

    123

    979

    571

    168

    163

    77

    965

    568

    152

    167

    78

    982

    593

    152

    153

    84

    979

    544

    173

    159

    103

    1,038

    644

    143

    152

    99

    1,064

    671

    151

    148

    94

    995

    654

    130

    129

    82

    1,022

    658

    136

    134

    94

    1,171

    778

    148

    147

    98

    1,198

    811

    124

    148

    115

    1,162

    763

    139

    145

    115

    1,326

    914

    173

    144

    95

    1,278

    847

    170

    145

    116

    1,412

    922

    185

    131

    174

    1,474

    923

    190

    177

    184

    1,570

    960

    181

    205

    224

    1,802

    1,089

    215

    217

    281

    1,788

    1,046

    204

    170

    368

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    Visitors

    Like most colleges and universities, Cornell does not sys-tematically track the number of people who visit its Ithacacampus, the nature of their v isits, where they are comingfrom, how long they stay in Ithaca, and so on. Informationthat is available on some categories of visitors, however,provides a basis for drawing plausible inferences aboutspending by these visitors and the impact of this spend-ing on ompkins County. able 16presents informationon the number of people who for various reasons visitedCornell during the 2006 2007 academic year.

    Using IMPLAN, Cornell researchers estimated that in2007, off-campus spending on lodging, food, transporta-tion, shopping, entertainment, and other services by thetypes of visitors listed above totaled approximately $47million. Tey further estimated that visitor spending di-rectly supported 778 FE jobs in ompkins Countyand,through the multiplier effect, generated an additional $15

    million in economic output and 143 FTE jobs.

    Table 16. Estimated Number of Visitorsto Cornell-Ithaca during 2007

    Types of Visitors Number of Visitors

    Athletic event attend ees 62,307

    Commencement attendees 38,000

    Prospective students 24,250

    Conference (and other) attendeespatronizing the Statler Hotel 19,197

    Summer visitors in Cornell Housing 14,324

    Parents of campers (pick up/drop off) 7,680

    Reunion attendees 6,612

    Total 172,370

    Section IIIPromoting EconomicDevelopment in New York State

    Cornell plays an important role in positioning the statefor future economic growth, through research that leadsto new technologies and new businesses, and programs tohelp entrepreneurs build their businesses; by fulfilling itsland-grant mission to target its activities toward improv-ing the quality of life for al l state residents; and by attract-ing high-quality faculty, staff, and students to CentralNew York and the New York City region. Te university isan asset on which state leaders can rely to foster economicdevelopment in all regions of New York.

    Entrepreneurship

    Small start-up companies are vitally important to the fu-ture of the U.S. economy. Cornell is the entrepreneurial

    university for New York, offering 150 entrepreneurship-related courses, taught by 90 professors, with 9,817 stu-dent enrollments in the 20072008 academic year. Cornellalso provides resources to translate intellectual propertygenerated at the university into start-up firms, to providethose start-ups with the assistance they need to becomeestablished and to expand, and to educate the next gen-eration of entrepreneurs.

    One component of the overall effort is Entrepreneur-ship@Cornell, a university-wide program that managesand supports a range of activities that stimulate economicdevelopment in New York State. Tese include an annualconference, a national alumni entrepreneur network, and,with help from the New York State Centers for Advancedechnology, placement of up to 50 student interns withsmall businesses, many of which are developing applica-tions for intellectual property generated at Cornell.

    Te Johnson Graduate School of Management is con-sidered one of the nations best colleges for entrepreneurs.Its strengths include its riadBR (Big Red) Ventures,BR Incubator, and BR Legalwhich have provided ser-

    vices and capital to more than 150 start-ups since t heirinception early this decade.

    Cornells new eLab student business incubator pro-vides undergraduate entrepreneurs with office space, ac-cess to a network of alumni mentors and investors, andservices like legal and accounting support.

    Te Cornell Entrepreneur Network (www.cen.cornell.edu) has brought together 15,000 alumni at events heldacross the country since its inception in 2001. Networkevents are held regularly in New York City and periodi-cally in Syracuse, Rochester, and Ithaca.

    Cornells Pre-Seed Workshops put a researcher or tech-nology owner with an idea for a product on a team withexperienced entrepreneurs, venture capitalists, attorneys,and experts in the field. Of the more than 30 teams at arecent workshop, 17 have resulted in start-up companies,and 10 are in the organizing stage.

    Research

    In an economy increasingly driven by knowledgeindustries, the communities that can attract new apanding companies are the ones that provide thconditions, including a skilled and educated woraccess to a steady flow of intellectual property, sand resources for entrepreneurial ventures, and

    vironment where the public and private sectortogether to promote economic development. Coleaders also look for communities that offer a higity of li fe for themselves and their prospective empTis includes good schools and healthcare, and cand outdoor recreational activities.

    Cornells ability to attract skilled, educated woreflected in the fact that the tiny Ithaca metropolittistical area (population 96,500) took third place Forbes.com list of Smartest Cities in America (200university itself has been recognized by Compute

    magazine as one of the best employers for informtechnology workers two years in a row. Te qualityin Ithaca has won the city numerous plaudits, incfirst place for its middle-class housing market (Forbthird place on the Farmers Insurance list of Most Places to Live, which takes into account crime, wnatural and man-made hazards, health, and ecoconditions.

    Trough its facilities and the work of its faculty searchers, Cornell produces new ideas t hat generabusinesses. During FY2007, 10 existing New Yorbusinesses licensed 22 Cornell technologies, whihelp them to stay competitive and support their gExamples include: Jodange has developed a web-based service

    op of Mind that finds opinions in digitized tetracks them over time. Initially targeting the finservices industry, op of Mind will expand over encompass more general information.

    Laminare Technologies is developing micro-ftechnology that could eventually be used in bafor portable electronic devices like laptops, pothem for weeks instead of hours.

    Mezmeriz uses carbon-ber microelectromecsystems (MEMS) technology to make a high-de

    projector the size of a matchbook. Te companynology will ultimately lead to a projection systecan be embedded into any mobile device.

    Vitis Biosciences is developing virus-resistanrootstock for sale to nurseries servicing the grworldwide wine and grape industries, with invesupport from Chilean research institutions andtors.

    Medeor is a biopharmaceutical company that dD-methadone, a nonopioid analgesic that can bto prevent or reverse the development of morpherance and dependence.

    Section III Promoting Economic DevelopmenII Human Capital: Employees, Alumni, and Students

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    Tere are several older companies that began with Cor-nell technology and have stayed in New York as theyvegrown and expanded, in order to maintain close ties withthe universitys research community: Advion BioSciences, Inc. has become a leading provid-

    er of bioanalytical contract services. Kionix, Inc. produces MEMS inertial sensors with

    applications in the consumer electronics, industrial,health care, and automotive markets.

    BinOptics develops and manufactures photonic chipsfor the telecom, datacom, and optical storage markets.

    BioWorks serves horticulture and specialty agriculturegrowers by providing environmentally responsible,cost-effective disease- and pest-control products.Cornell offers access to some of the most advanced re-

    search facilities in the world, including the Cornell Centerfor Materials Research, the Cornell Nanofabrication Facil-ity, and the Center for Nanoscale Systems. Tese centers

    provide equipment, training, and s taff assistance to majorcorporations like Bausch and Lomb, Xerox, and GeneralElectric, as well as to start-up businesses and small es-tablished companies such as Primet Precision Materials,which moved from Maryland to New York State to be nearCornell.

    Weill Hall, the newly completed life sciences researchfacility, houses the universitys Innovation Developmentand Economic Application (IDEA) Center, a business in-cubator for Cornell start-ups in related fields.

    Users of the Food Processing and Development Labo-ratory in Ithaca include the International Food Networkand the Upstate Farms dairy cooperative.

    $800

    $600

    $400

    $200

    $0

    (inmillionsofdollars)

    2003 2004 2005 2006 2007

    Figure 12. Cornell University ResearchExpenditures, FY20032007

    $504.6$537.7

    $561.3

    $605.3

    $659.4

    $356.0 $372.8

    $397.0$414.1

    $461.5

    $148.6$164.9

    $164.3

    $191.2

    $197.9

    Cornell-Ithaca Weill Cornell

    Much of this work is possible because of the univer-sitys ability to compete successfully for research funding.In 2007, nearly $660 million dollars was spent on researchat the Ithaca campus and at Weill Cornell in New YorkCity. As Figure 12indicates, research spending at Cornellhas steadily increased over time.

    Figure 13puts Cornells research spending in the con-text of similar expenditures at New York State and peerinstitutions.

    $700

    $600

    $500

    $400

    $300

    $200

    $100

    $0

    (inmillion

    sofdollars)

    Rockefeller SUNY Mt. Sinai S UNY New York SUNY University Columbia CornellUniversity Stony Brook School of Albany University Buffalo of Rochester University University

    Medicine

    $234$ 26 9 $ 26 9

    $309 $320 $323

    $377

    $548

    $659

    $1,500

    $1,200

    $900

    $600

    $300

    $0

    (inmillionsofdollars)

    Figure 13B.Select Ivy-Plus Universities, by Total Research Expenditures, 2007

    $176 $193

    $275

    $451$494

    $548

    $659 $668

    $934

    $1,256

    Table 17.Cornell University Research Expenditures by Source, FY2007(in thousands of dollars)

    Source of Funding Cornell-Ithaca Weill-Cornell Total

    Department of Health and Human Service s* $67,420 $128,435 $195,855

    National Science Foundation $120,794 $785 $121,579

    Other Federal Agencies $68,977 $2,375 $71,352

    Subtotal from Federal Agencies $257,191 $131,595 $388,786State and Local Governments $68,474 $3,506 $71,980

    Nonprofit Organizatio ns and Foreign Sources $36,849 $36,849

    Corporatio ns $12,760 $10,896 $23,656

    Foundations $4,345 $15,726 $20,071

    Internal Sources $81,899 $36,142 $118,041

    Total $461,518 $197,865 $659,3 83

    Much of the funding for research at Cornell comesfrom the federal governmentprimarily the National Sci-ence Foundation and the National Institutes of Healthas shown in able 17.

    While Cornell continues to be a leader in basic re-search, a great deal of activity both in Ithaca and at WeillCornell in New York City is focused on discoveries thatcan be translated into viable commercial products rela-

    tively quickly. echnology transferthe procwhich new technology is protected, often through ing, then is either licensed to commercial venturescomes the basis for a new businessis an increasinportant activity at research universities around theAt Cornell, the process is managed by the Cornell for echnology, Enterprise, and Commercialization

    * The majority of funding comes from the National Institutes of Health.Source: National Science Foundation

    Source: National Science Foundation

    Figure 13A.Select New York State Universities, by Total ResearchExpenditures, 2007

    Section III Promoting Economic DevelopmenIII Promoting Economic Development in New York S tate

    Brown Dartmouth Princeton Yale Harvard Columbia Cornell University of Stanford MassachusettsUniversity College University University University University University Pennsylvania University Insti tute of

    Technology

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    able 18shows how Cornell has performed on severalmeasures of technology transfer activity over the five-yearperiod ending in 2007. Te invention disclosures line isof special note, as the number of new inventions or dis-coveries by a universitys faculty and staff is regarded asan indication of that universitys potential for future in-novation.

    Table 19 shows how Cornells technology transferactivities compare with those at other land-grant insti-tutions and select Ivy-plus and New York State schools,based on a five-year annual average for each. In a total fieldof 16 institutions, Cornell is fifth in U.S. patents issuedand start-up companies formed, seventh in total researchexpenditures, invention disclosures, and licenses and op-tions executed.

    able 20is a small sample of New York State compa-nies that have translated licensed technology developedat Cornell into commercial products. Other examples are

    described elsewhere in this section.

    Public and Private Partnerships

    A 2008 Milken Institute report put New York in the sec-ond tier of states in terms of science and technology as-sets. Cornell is well positioned to help New York improveits performance through partnerships with the public andthe private sectors. Te university already works with theCity of Ithaca and ompkins County governments, andprivate-sector development agencies such as the Metro-politan Development Authority of Syracuse and CentralNew York and ompkins County Area Development, todevelop an environment where technology-based busi-nesses can flourish. In addition, Cornell is well represent-ed on the management team and advisory board of theCayuga Venture Fund, whose primary i nvestment focus is

    early-stage and follow-on rounds of financing in tecgy-based companies with high growth potential in uNew York.

    Larger, more capital-intensive projects require cration of a higher order. Research universities acrcountry have received direct support in the form lions of dollars from their state governments, impthe odds that their projects will receive substantialfunding, while the states reap t he benefits of the reeconomic activity: e Tennessee legislature approved a $61 millio

    age for a biofuels research center at the Univeennessee and Oak Ridge National L aboratory iTe project received $125 million from the Dment of Energy and positions the st ate at the foof biofuels research and production.

    e North Carolina Research Campus, a massivetific and economic revitalization project involv

    state university system, is under construction because the state will contribute $29 million anfor faculty salaries and rental space. Te centersents a transition from two traditional North Cindustries: textiles manufacturing and tobaccoing.

    e State of Floridas willingness to invest in ttional High Magnetic Field Laboratory at State University (FSU) has been instrumentalNational Science Boards decisions to locate anit there. Te state covers annual operating exand, in 2004, appropriated $10 million for infrture upgrades. FSU estimates that every dollar contributions to t he lab generates $3.50 in the economy.

    Section III Promoting Economic DevelopmenIII Promoting Economic Development in New York S tate

    Table 18.Selected Cornell University Technology Transfer Data, FY20032007(in millions of dollars and total numbers)

    2003 2004 2005 2006 2007

    Gross licensing income $3.3 $7.4 $3.9 $6.2 $5.2

    Invention disclosur es 185 225 200 237 236

    New first-time U.S. patent applicatio ns filed 72 91 113 114 92

    Patents issued (U.S. only) 53 53 51 59 61

    Licenses /options executed 49 80 77 49 34

    Start-up companies formed 13 6 4 6 2

    Table 19.Five-Year Annual Average of Technology Transfer Performance Metricsfor Comparative Universities, 20022006(in millions of dollars and total numbers)

    New First-TimeTotal Research Gross U.S. Patent U.S. Licenses/ Start-UpExpenditures Licensing Invention Applications Patents Options Companies

    Universities (2007) Income Disclosures Filed Issued Executed Formed

    Selected Land-Grant Institutions

    Cornell University $659.4 $4.7 212 94 55 67 7

    Pennsylvania State Universit y $665.1 $1.7 158 127 48 23 3

    Texas A&M Universi ty $565.6 $7.0 125 81 34 64 3

    Universit y of Illinois $492.3 $7.5 269 135 49 77 10

    Universit y of California, Davis $604.5 $10.6 131 69 34 14 0

    Michigan State Universit y $364.4 $23.7 121 91 35 40 3

    Universit y of Wisconsin $860.3 $41.8 317 184 85 182 3

    Universit y of Minnesota $639.4 $42.5 232 101 43 78 3

    Selected Ivy-Plus Institutions

    Cornell University $659.4 $4.7 212 94 55 67 7

    Brown University $175.6 $1.5 66 39 15 10 4

    Dartmouth College $192.8 $1.3 37 28 9 10 1

    Harvard Universit y $493.9 $19.8 164 113 46 61 5

    Massachuse tts Institute of Technology $1,255.6 $31.9 497 320 140 117 20

    Stanford Universit y $934.5 $50.5 388 396 105 108 10

    Universit y of Pennsylvania $668.1 $8.2 332 374 58 74 8

    Selected New York State Institutions

    Cornell University $659.4 $4.7 212 94 55 67 7

    New York University $319.7 $109.8 94 57 22 29 3

    Universit y of Rochester $377.0 $34.2 134 128 20 18 5

    Table 20.Selected New York State Companies That LicensedCornell University Technology, 20062007

    Company City Business/Product

    Adirondack Contra ct Packaging Westport Apple-based n utritional su pplement

    DNANO Systems, LLC Ithaca Nanotechnolo gy-based identificatio n

    e2e Materials LLC Ithaca Non-carbon-b ased biodegrad able composites

    Jodange, LLC Yonkers Opinion-tracki ng software

    Laminare Technologie s, Inc. Ithaca Micro fuel-cell technology

    Mezmeriz, Inc. Ithaca Small, high-definiti on projection systems

    Novomer, LLC Ithaca Biodegrada ble plastics

    Terrenew, LLC Geneva Products for removi ng pollutants fr om surfaces and fluids

    Veratag Ithaca Microelec tromechanic al systemsba sed securit y systems

    Vitis BioScie nce, Inc. Geneva Virus-resis tant grape roots tock

    1Four years of data only2No data available

    Source: National Science Foundation, Association of University Technology Managers

    1

    2

    1 1 1

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    New York State has committed funds to Cornell proj-ect proposals that have ultimately received federal fund-ing: the Nanobiotechnology Center, the Cornell Center forMaterials Research, the Center for Nanoscale Systems, andthe National Nanofabrication Users Network at Cornell. Inaddition, the state has appropriated $50 million for the newAnimal Health Diagnostic Laboratory at Cornells Collegeof Veterinary Medicine and $5.3 million for Cornells newgrape research lab in Portland, New York, and has investedin the Food and echnology Park in Geneva, New York.

    Te university has a number of equally ambitious proj-ects on the drawing board. Advancing them to the nextlevelsubmitting proposals to the appropriate federalagenciesrequires an even closer relationship betweenCornell and state government.

    A closer partnership between New York and CornellUniversity could also help the state retain more of itsbudding businesses. Of 50 start-ups founded on Cornell

    technology in the past 10 years, nearly half have movedout of state, taking jobs and tax revenues with them. Asthis report was being written, t wo more New Yorkbasedcompanies were contemplating locations in other s tates.

    SustainabilityAs a large-scale enterprise, Cornell University subscribesto the theory of the triple bottom line, mak ing it a mat-ter of policy that, to the greatest extent possible, its activi-ties be environmentally sustainable, socially sustainable,and economically prudent. As a research university, Cor-nell has attacked environmental problems on all fronts. Inthe process, the university has contributed to the begin-nings of a green economy in the region and the state asa whole.

    Renewable Energy and Energy Efficiency

    Cornell University is one of very few institutions in theworld with a critical mass of physical scientists, life scien-tists, engineers, and social scientists with the motivationand expertise to create a sustainable and vital bioenergyfuture.

    Te result could be fortuitous for New York State. Ac-cording to an award-winning paper from Cornells Col-lege of Agriculture and Life Sciences, transporting bio-

    massfor example, plants like corn and switchgrass,used to make biofuels like ethanolis so expensive thatsuccess will of necessity involve locally produced biomassas well as locally converted and locally consumed energyand products. Te paper envisions small facilities that usea regionalized portfolio of renewable resources from a30- to 40-mile radius. It is possible that every one or twocounties in New York State might profitably develop itsown biomass-processing center.

    Cornell Cooperative Extension (CCE) is uniquely po-sitioned to advise community planners on the nature a ndoptimization of county-level biomass, and to help attractprivate investment dollars. Extension personnel also playa role in recruiting farmers to commit land and resourcesto growing the necessary crops, and in developing a work-force to support the bioenergy industry.

    Creating a Green Economy

    Research conducted at Cornell is already yielding newproducts designed to have little or no impact on the en-

    vironment: Novomer is a new materials company producing low-

    cost, high-performance green plastics, polymers, andother chemicalsand is finding customers among awide variety of packaging, commercial, consumer, andindustrial markets that are looking for advanced mate-rials that combine low environmental impact with high

    quality and low cost. e2e Materials produces petroleum-free, biodegradable

    composites from renewable resources like soy proteinand bamboo for materials that are stronger, lighter,and cheaper than traditional alternatives. A Californiacompany, Comet Skateboards, has moved its manufac-turing operation to Ithaca and is working with e2e tomake green skateboards. e2e plans to use the sametechnology to make biodegradable office furniture.

    Terrenew has just introduced SulfaMaster, technologyto remove hydrogen sulfide from the biogas producedat landfills and on farms, making biogas a more viablesource of renewable energy.As the l argest generator of commuter traffic in omp-

    kins County, the university is working with communityleaders to reduce the number of single-occupancy vehiclestravelling to and from t he Ithaca campus. One initiative isIthaca Carshare, whose members can reserve a speciallyoutfitted car online for a few hours or days. Seven Car-share vehicles were purchased from a ompkins Countydealer, financed through two local lenders, and retrofittedby local companies. Cornell bought more than 2, 000 Car-share memberships to issue to faculty and staff who usethe bus and other a lternatives to commuting alone.

    Local Foods InitiativesIn fiscal year 2007, Cornell Dining bought 23 percent ofits produce within a 250-mile radius of Ithaca or fromanywhere in New York State. Te figure topped 33 per-cent for fiscal year 2008, well on the way to the goal of 50percent. Cornell Dining recently joined the Pride of NewYork Program, which promotes the sale of agriculturalproducts grown and food products processed within NewYork State.

    Cornell Cooperative Extensions Farm-to-Chef andFarm-to-School programs promote the purchase of foodsgrown and produced in New York to restaurants andschool systems, colleges, and universitiessimultane-ously improving the economic prospects of New Yorkfarmers, creating demand for new services such as localtrucking and food storage centers, and reducing the envi-ronmental impact of long-distance trucking.

    In 2005, Cornell turned over operation of its state-of-the-art hydroponics greenhouse to Challenge Industries,Inc., a not-for-profit agency that provides vocational ser-

    vices for individuals with disabilities. Challenge workersgrow a wide variety of lett uces sold under the brand nameFinger Lakes Fresh and sell them to Ithaca-area produce

    vendors and restaurants, and the Wegmans, Price Chop-per, and P&C supermarket chains.

    Sustainable Agribusiness

    Cornell researchers and CCE field crops educators havebeen working with farms in 10 counties to predict the ni-trogen needs for growing corn. Tey have discovered thatwhen corn is planted in fields where alfalfa, grass, or a mixof the two were grown the year before, the soil retainsenough nitrogen to permit farmers to greatly reduce fer-tilizer applications, without impacting the yield or qualityof the corn. Tis saves farmers money and, because nitro-gen is a pollutant, reduces the environmental impact ofgrowing corn.

    CCE also helps farmers and agribusinesses identimplement energy conservation measures, and eages them to conduct farm energy audits. o datethan 200 businesses have documented improved ability from adopting alternative energy sources aergy conservation.

    New York City

    Although Cornell is most readily identified with New York, the university has a large and growingence in the downstate area, with programs ranginarchitecture and the fine arts to medicine, agricaquaculture, and industrial and labor relations.

    Te oldest and largest of these is Weill Cornell MCollege (WCMC). Founded in 1898 and located onhattans Upper East Side, WCMC is among the top-clinical and medical research centers in t he countr

    In 2007, WCMC and the Weill Graduate Sch

    Medical Sciences had 4,420 permanent, non-studeployees, 93 percent of whom worked full-time. Weimore than $395 million dollars worth of purchas

    year, and spent $112 mi llion on construction. shows the direct, indirect, and induced economicof this activity in the city and state of New York amated by IMPLAN.

    Section III Promoting Economic DevelopmenIII Promoting Economic Development in New York S tate

    Table 21.Weill Cornell Medical College Economic Impact, 2007(in millions of dollars and total of full-time equivalents)

    Indirect and Induced Impact of Spending byDirect University Spending Employees, Vendors, Contractors Total Impact

    Purchasing/ Impact of Impact of vendor andPayroll construction employee spending contractor spending

    New York City

    $460 $307 $324 $178 $1,269

    4,420 2,665 1,593 1,053 9,731

    New York State (including NYC)

    $460 $318 $366 $243 $1,387 4,420 2,966 2,133 1,588 11,107

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    Like Cornells Ithaca campus, WCMC contributesdirectly and indirectly to state and city tax revenues, asshown in ables 22, 23, and 24.

    In addition to its teaching mission, Weill Cornell is atop-ranked medical practice, drawing more than a quar-ter-million patients a year to its Manhattan and West-chester facilities. Figure 14shows that a substantial per-centage of patients travel to Weill Cornell from outsideNew York State.

    Patient visits generated more than $354 million in rev-enues in 2007, with one in five dollars from outside NewYork State (Figure 15).

    Weill Cornell further contributes to the vitality ofdownstate New York by providing a wide range of servicessuch as free health screenings and vaccinationspre-ventive measures that reduce employee absenteeism andmedical expenditures. Other Weill Cornell communityoutreach efforts include the Emergencies in School Sym-

    posium, an annual event for public, private, and parochi-al school nurses, who receive training in various healthemergencies and in emergency (bioterror) preparedness.

    Other Cornell Colleges in New York City

    Te New York State College of Industrial and Labor Rela-tions (ILR) has five extension offices in New York State,including one in New York City (the others are in Albany,Ithaca, Buffalo, and Rochester). ILR Extension providesworking adults with classes on topics such as union re-vitalization, labor-management cooperation, health andsafety, and regulatory compliance. Employers hire exten-sion faculty as consultants to assist with dispute resolu-tion, strategic planning, and leadership and managementtraining. Downstate I LR researchers have helped producea 2006 report t hat uncovered the opportunities and chal-lenges related to the $5 billion-a-year commercial film andtelevision industry in New York City and a study into theperceptions of New York firefighters and officers regard-ing specific issues of job pressures, workplace safety, re-sources, social support, and post-9/11 trauma that identi-fied key issues of concern.

    Te College of Architecture, Art, and Plannings (AAP)new facility in Chelsea brings faculty and hundreds of stu-dents to New York City for coursework and internships.

    AAP NYC also promotes collaborations with other edu-cational institutions in the city.Te College of Engineerings New York Citybased

    program, Cornell Financial Engineering Manhattan(CFEM), is primarily dedicated to analyzing and man-aging complex financial instruments. CFEMs executivetraining program provides downstaters an opportunity tostudy with faculty from Cornells celebrated School of Op-erations Research and Information Engineering.

    Te Johnson Graduate School of Management runs itsExecutive MBA program for mid-career business profes-sionals at the IBM Pal isades Executive Conference Centerin Palisades, New York, close to the New York metropoli-tan area.

    Cornell Cooperative Extension: Downstate

    Cornell Cooperative Extension (CCE) is active in all fiveboroughs and Long Island. CCE-NYC partners with doz-ens of local agencies to carry out programs in family and

    youth development, nutrition and health, and the urbanenvironment.

    According to CCE-NYC, 8,672 youth participNYC 4-H leadership and life skills programs in 20most 2,000 youth reported participating in a new stechnologyrelated activity through a CCE prMore than 600 young participants reported imsuccess in school science and increased interest in sand technology as a result of such programs.

    CCE associations on Long Island have contributhe vitality of agricultural and horticultural busthere, and to the repopulation of the islands bayoysters, clams, and scallops.

    Table 22.Weill Cornell Medical CollegePayments to New York State, FY2007(in millions of dollars)

    Type of Tax Amount

    Taxes paid by or on be half of univers ity employees

    Personal income taxes $20.5

    Sales and use taxes $4.1

    Taxes paid by vendor s, contractors, a nd their employe es $9.6

    Taxes generate d through multipli er effect $10.1

    Total state tax revenue s $44.2

    Section III Promoting Economic DevelopmenIII Promoting Economic Development in New York S tate

    Table 24.New York City RevenuesIndirectly Attributable toWeill Cornell Medical College, FY2007(in millions of dollars)

    Type of Tax Amount

    Taxes paid by or on be half of univers ity employees

    Property taxes $9.6

    Sales and use taxes $4.1

    Water and sewer fees $2.0Taxes paid by vendor s, contractors, a nd their employe es $6.7

    Taxes generate d through multipli er effect $20.4

    Total city tax reve nues $42.7

    Figure 15.Weill Cornell Medical College Patient Revenuesby Patient Residence, FY2007(in millions of dollars and percent)

    Total: $354.5 million

    NEW YORK CITY $227.8 64.2%

    NEW YORK CITY SUBURBS $49.8 14.1%

    OTHER LOCATIONS IN NEW YORK STATE $1.1 0.3%

    OUTSIDE NEW YORK STATE $75.8 21.4%

    Figure 14.Number of Unique Patients at Weill Cornell Medical College,by Year and Residence

    300,000

    250,000

    200,000

    150,000

    100,000

    50,000

    0

    (numberofpatients)

    2002 2003 2004 2005 2006 2007

    New York City NYC suburbs Other New York State locations Outside NYC

    Table 23.Weill Cornell Medical CollegePayments to New York City Government,FY2007(in millions of dollars)

    Type of Payment Amount

    Income tax withholding $10.4

    Real property taxes $0.2

    Water and sewer fees $0.3

    Total direct payments $10.9

    278,942

    49,270256,850

    46,111

    261,582

    46,399

    265,600

    47,306

    267,454

    44,783

    272,086

    50,652

    346

    30,140

    180,253

    342

    30,147

    184,694

    312

    30,475

    187,507

    4,142357 359

    31,71430,554 31,330

    193,816191,760 189,745

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    Section III Promoting Economic DevelopmenIII Promoting Economic Development in New York S tate

    Cornell Cooperative Extension:Statewide

    Cornell Cooperative Extension (CCE) is one of the prin-cipal means by which Cornell University fulfills its land-grant mission. CCE translates knowledge generated atCornell into programs and resources that benefit com-munities, families, individuals, and farms and other smallbusinesses throughout New York State, from densely pop-ulated neighborhoods in Queens to remote areas of theNorth Country.

    In 2007, CCE associations spent more than $92 millionon programs in five key areas(Figure 16).

    Figure 16.Cornell Cooperative Extension AssociationExpenditures by Program Area, FY2007(in millions of dollars and percent)

    Total: $92.3 million

    AGRICULTU RAL AN D FOOD S YSTEMS $22.6 25%

    NUTRITION AND HEALTH $20.1 22%

    ENVIRONMENT AND NATURAL RESOURCES $8.7 9%

    COMMUNITY AND ECONOMIC VITALITY $4.8 5%

    CHILDREN, YOUTH AND FAMILIES $36.1 39%

    CCE programs are funded by Cornell University and acombination of federal grants, state and county aid, out-side grants, and program fees (Figure 17).

    CCE uses these resources to generate activities thatlead to additional support from agencies and organiza-tions, private sources, and other branches of government.In effect, CCE is an efficient contractor, providing edu-cational services and university resources by partneringwith other community based entities. Tese contracts,while always within mission, extend the efforts of otheragencies at a benefit to the t axpayer.

    Figure 17.Cornell Cooperative Extension AssociationExpenditures by Source of Funds, FY2007(in millions of dollars)

    Total: $92.3 million

    COUNTY APPROPRIATIONS $28.3

    STATE GRANTS AND CONTRACTS $5.5

    STATE SUPPORT (FRINGE BENEFITS AND RENT) $9.7

    FEDERAL SMITH-LEVER ACT FUNDS $4.4

    STATE SUPPORT (COUNTY LAW 224) $4.4

    COUNTY GRANTS AND CONTRACTS $13.7

    FEDERAL GRANTS AND CONTRACTS $5.1

    OTHER INCOME (INCLUDING CONTRACTS) $21.1

    Figure 18.Cornell Cooperative Extension AssociationEmployees, by Job Category, 2007(in number of employees)

    Total: 2,118 employees

    EDUCATORS 535

    CAMP STAFF 260

    TEMPORARY STAFF 339

    OTHER PROFESSIONALS 94

    CLERICAL/PARAPROFESSIONAL 890

    Table 25.Cornell Cooperative Extension Employment, Payroll, and Earnings,per Full-Time-Equivalent Employee, 2007

    Job Category Employees Payroll Average Earnings per FTE

    Educators 505 $24,998,913 $49,503

    Other Professional s 89 $3,410,622 $38 ,378

    Clerical /Paraprofessi onal 803 $18,650,654 $23,226

    Temporary Staff 123 $3,452,102 $28,066

    Camp Staff 47 $437,819 $9,315

    Total 1,567 $50,950,109

    Table 26.Economic Impact of Cornell Cooperative Extension onNew York State, 2007(in millions of dollars and total of full-time equivalents)

    Direct University Spending Indirect and Induced Impact of Spending by Employees, Vendors, Contractors Total Impact

    Payroll Purchasing Impact of employee spending Impact of vendor and contractor spending

    $50 $30 $55 $23 $158

    1,567 223 316 140 2,246

    CCE Employment and Purchasing

    CCE employed 2,118 full- and part-time workers in 2007.Figure 18shows that nearly a third of those workers oc-cupy professional positions.

    able 25includes the average earnings of full-time CCEemployees. Te figures are significant in that many of the

    communities served by CCE are rural areas, whereinstitutions may be the primary economic enginetheir employees are often better paid than otherscommunity.

    Te direct, indirect, and induced impacts on NeState, as calculated using IMPLAN, appear in abl

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    Section III Promoting Economic DevelopmenIII Promoting Economic Development in New York S tate

    In addition to providing jobs and buying goods andservices, CCE offices act as a central organizing point forlocal volunteer efforts, focusing community effort on ar-eas of need that might go unmet if the community had topay to have the work done. In 2007, CCE volunteers put inmore than 1.14 million hours of service; Figure 19 showsthe program areas that benefited from their work.

    In addition to their work as 4-H leaders, volunteersmonitored lakes and streams for invasive plant species,checked watersheds for pollutants, restored native shell-fish to Long Island creeks and bays, and taught fellowcommunity members how to grow their own vegetablesand flowers. Te Independent Sector, a coalition of non-profit organizations, charities, and corporate giving pro-

    Figure 19.Cornell Cooperative Extension Volunteer Hoursby Program Area, 2007(in hours and percent)

    Total: 1.14 million hours

    COMMUNITY AND ECONOMIC VITALITY 68,287 6%

    ENVIRONMENT AND NATURAL RESOURCES 73,918 6%

    NUTRITION AND HEALTH 41,732 4%

    AGRICULTU RAL AN D FOOD S YSTEMS 121,659 11%

    CHILDREN, YOUTH, AND FAMILIES 838,964 73%

    grams that conducts an annual salary survey of its mem-bers, valued volunteer time in 2007 at $19.51 per hour.Because the type of work performed by CCE volunteersis narrower than that encompassed by the IndependentSector survey, we have chosen a more conservative figureof $16 per hour as representative of CCE volunteer labor.Tus, New Yorkers provided more than $18 million in ser-

    vices to the state through CCE programs in 2007.Aside from their statewide impact, CCE activities had

    direct, indirect, and induced impacts, as calculated usingIMPLAN, on each individual region of New York. able 27shows those impacts by region. Figure 20shows the coun-ties that comprise each region.

    Cornell Cooperative Extension Association Regions

    Fostering Economic Health in Upstate New York

    Te conventional approach to economic development inupstate communities has focused on attracting nationalretail outlets or large manufacturing firms. CCE concen-trates its economic development programming on im-proving the success rate for small businesses, an approachseen as more sustainable, and one t hat takes advantage ofniche opportunities in the upstate economy.

    Increasing the Skilled-Labor Pool

    New York is the third-largest mi lk-producing state i n thenation, producing 12 billion pounds and cash receipts of$2.4 billion in 2007. Dairy employers are pleased to beable to hire the sk illed, year-round laborers from Mexicoand Central America that began migrating to the North-east in the 1990s but struggle with the result ing languagebarriers, cultural differences, and legal hurdles. CCE of

    Wayne County responded with a database of serset of public library resources for Spanish speakeincreased access to ESL and Spanish classes. All Neresidents can take advantage of CCE training in mand herd management, and CCEs partnership wstates agricultural and technical colleges to offer

    courses in agriculture. Other CCE ass ociations havided basic workforce readiness courses for hard-tyouth and conducted horticultural technician tand certification programs.

    Taming Energy Costs

    CCE simultaneously promotes conservation and ative energy sources as solutions to the high cost of In central New York, CCE held informational mon the process of turning corn into ethanol. In souern New York, CCE conducted demonstration tria

    Table 27.Regional Impact of Cornell Cooperative Extension Associations, 2007(in thousands of dollars and total of full-time equivalents)

    Employment/Payroll Purchasing Total

    Region Payroll Jobs (FTE) Output ($M) Jobs (FTE) Output ($M) Jobs (FTE) Output ($M)

    Direct Indirect/ Direct Indirect/ Direct Indirect/ Direct Indirect/ Direct Indirect/ Direct Indirect/Induced Induced Induced Induced Induced Induced

    1 $5,195 163 13 $3,954 $1,503 49 21 $3,536 $2,488 212 33 $7,490 $3,991

    2 $3,786 121 8 $2,854 $1,040 16 11 $1,922 $1,360 138 19 $4,776 $2,400

    3 $5,013 209 10 $3,778 $997 26 14 $2,667 $1,570 235 24 $6,445 $2,567

    4 $15,955 417 31 $12,028 $5,051 73 50 $10,529 $7,588 490 81 $22,557 $12,639

    5 $3,680 139 9 $2,767 $1,047 21 13 $2,461 $1,644 16 0 22 $5,228 $2,691

    6 $6,837 224 14 $5,150 $1,817 41 20 $4,270 $2,715 265 35 $9,420 $4,532

    7 $4,096 112 9 $3,105 $931 16 11 $2,149 $1,305 129 20 $5,254 $2,236

    8 $4,962 180 7 $3,748 $767 23 10 $2,320 $1,056 203 17 $6,068 $1,823

    Total $49,524 1,567 100 $37,384 $13,153 264 150 $29,854 $19,726 1,831 250 $67,238 $32,879

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    switchgrass and other biofuels. In North Country coun-ties, CCE is involved in discussions on the economics ofwind parks. Rural landowners in the Southern ier turnto CCE for advice regarding the sale of rights for naturalgas. Extension associations conduct energy audits to helpsmall businesses become more energy efficient. CCE alsohas held classes for homeowners in 28 counties on how tosave energy.

    Assistance to Local Governments

    CCE provides training for elected officials and local gov-ernment staff, and helps lawmakers address issues withintheir communities. For example, a forum highlightingthe advantages of sharing municipal services, organizedby CCE of Genesee County, resulted in a state grant tocreate a county-wide police dispatch and in formation sys-tem. Te CCE Rural Learning Network encourages com-munities to analyze their population shifts, including the

    return of middle-aged workers to the area, and to createeffective strategies for optimizing the workforce poten-tial. CCE also provides technical assistance in such areasas land-use planning, water quality, storm-water runoff,and emergency preparedness. When increased develop-ment in the Finger Lakes region began putting pressureon water quality, prime grape growing land, a nd the natu-ral beauty of the region, CCE ran a training program inwhich local leaders learned about land-use law and strate-gies and regional stewardship, and then developed a wa-tershed land-use planefforts that go a long way towardprotecting the environmental features that contribute somuch to the quality of life in New York State.

    Connecting Producers with Markets

    Cornell Cooperative Extension has played a key advisoryrole for farmers markets throughout the state. CCE agri-cultural economic development specialists help producersto sell their goods through local supermarket chains, tak-ing advantage of increasing demand for local food. CCEalso supports the development of value-added productssuch as maple products, condiments, and dairy products.Tese products typically develop into home-based busi-nesses, with assistance provided by CCE to move to larger-scale production.

    CCE also has been involved in activities that promote

    local, named cuisine, such as Adirondack Harvest, a col-laborative effort among North Country CCE ass ociationsto promote that regions products to chefs, store owners,and other potential buyers. CCE associations in morethan 20 counties were involved in the development ofLocal Farm Product guides in 2007. Te guides help indi-vidual producers market their products and become partof established agricultural tourism trails that emphasizethe sale of local products.

    Appendix: Multiplier EIII Promoting Economic Development in New York S tate

    Agricultural Business Management

    CCE farm business management specialists provide assis-tance at every point of the farm operation, helping agri-cultural businesses start up, stay afloat, expand, or changedirection when trends change.

    Dairy Farm Business Summariescomprehensiveanalyses of individual operationsare the basis for strate-gic improvement plans. CCE completed 40 such summa-ries in 2006 and, through discussion groups with ownersand related agribusinesses, helped pull the industry outof its worst year si nce the 1970s. Farmers in part icipatingcounties have increased production by four times that ofnon-participants, and the data generated by the effort pro-

    vides an industry benchmark for others to use.CCE of Monroe County provides area landscapers

    with winter classes on environmentally sound practices,a newsletter that covers human resource and businessmanagement as well as horticultural topics, and a plant

    diagnostic service. In the rst year, the classes drew 190attendees, the newsletter went to 200 recipients, and t herewere 700 submissions to the lab.

    Te Allegany association runs a series of clas ses cover-ing the information and skills new farmers need to identifyopportunities best suited to the areas agricultura l condi-tions. Start-ups among participants include four part-timebusinesses and one full-time business, with seven moreenterprises in the planning stages and eight participantsin the process of writing business plans.

    Wine and Grapes

    New York State is the third-largest producer of grapesand wine in the United States. Te total contribution tothe states economy of the wine, grape and grape juice in-dustry is est imated to be $3.4 billion annually, with grosswine sales alone of over $420 m illion generating over $40million of excise ta xes for federal and state governments.New Yorks wineries, vineyards, and grape juice process-ing facilities directly employed more than 3,200 workersin 2004a year with a smaller-than-usual harvest. NewYork wines are enjoying growing international recogni-tion, with commensurate increases in prices and sales.

    All of this is due in large part to research conductedat Cornell University and applied in the field by CCE as-sociates. Cornell has had a viticulture research programsince the 1880s, producing more than 50 varieties of juiceand wine grapes specially suited to New Yorks soils andclimate. A new undergraduate program in enology and vi-ticulture is increasing the supply of trained professionalsfor this robust and growing New York State industry.

    AppendixMultiplier Effects and IMPLAN

    Cornells spending on payroll, purchasing, and construc-tionand the jobs associated with that spendingpro-

    vide a direct measure of the universitys impact on theeconomy of ompkins County and neighboring commu-nities, the Central New York region, New York City, andNew York State. Te universitys local, regional, and state-wide impacts, however, go beyond these direct measures.Each dollar the university spends produces what econo-mists sometimes call indirect and induced effectsthemultiplier effect.

    Cornells indirectimpact is a product of spending bythe local, regional, or New York State companies fromwhich the university buys goods and services. Construc-tion contractors, utility companies, temporary services,

    caterers, and other firms use the payments they receivefrom Cornell to pay t heir employees; rent space; and buyequipment, supplies, and telephone servicesand all ofthese expenditures have an impact on the economy. Teuniversitys inducedimpact represents the impact of rou-tine household spending by its own employeesfor rent,food, clothing, transportation, and child careand by t heemployees of its suppliers.

    Tere are nevertheless several quantitative economicmodels that may be used to provide approximate mea-sures of indirect and induced effects. Using one suchmodela social accounting matrix (SAM) model, imple-mented with IMPLAN softwarefaculty and research-ers in the Department of City and Regional Planning atCornell have calculated the impact of spending by CornellUniversity on total economic output, wages, and employ-ment in ompkins County, other local counties, the Cen-tral New York region, and the state. Tey also used a SAMmodel to estimate the impact of Weill Cornell on NewYork City and New York State.

    Like other models of transactions between indhouseholds, and institutions, a SAM model may bto calculate the flow of payments for goods and sacross different industrial sectors, and between holds, institutions, and industries. It can be envisimply as a table with hundreds of rows and cowith all industries (plus households) listed down tas producers, and the same industries (and houselisted across the top as consumers. Spending by ansumer industryin this case, the universityis allacross all of the producing industries and the housector. Each of these producer industries in turchases its own distinct set of inputs from other indand households in order to produce the output it Cornell.

    Just as the university spends some of its resourcein ompkins County (for example) and some elseCornells local suppliers spend part of their revenue

    in the county, and some is paid to businesses elsewNew York, in other states, or overseas. Trough eacessive round of spending, the money that was orspent within the county is eventually diffu sed throthe broader economy.

    A SAM model thus allows us to trace the imeach dollar of university spending as it ripples thother industry sectors in ompkins County, and tolate the allocation of spending across industries itimates of employment and wages. And it allowrepeat that calculation for the surrounding countthe Central New York region, and for New York Stamodel similarly allows us to t race the impact of Wenells spending in New York City and New York St

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    AcknowledgementsTis report is the second economic impact study under-taken by Cornell University and the first prepared in-house with minimal external consultation. Many peoplefrom all across the university contributed to the comple-tion of the report. We especially wish to acknowledgeJoanne DeStefano,