ECONOMIC IMPACT
The development of Vedanta University will have a profoundly far-reaching and highly productive impact on Orissa’s economy and society. At full capacity, Vedanta University will be one of the largest Universities in the world, housing more than 100,000 students in an environment planned from its inception to facilitate growth. Its expansive 6,000+ acre campus will attract the brightest minds from around the world and incubate a thriving knowledge-based economy.
A vibrant academic community inspired by Vedanta University will generate direct value for the region. In addition to more than 10,000 full-time faculty members, Vedanta University will employ tens of thousands of support staff to manage and maintain the institution. The campus and surrounding areas will house more than 5 lakh people, enabling a dynamic intellectual community whose demand for goods and services will provide employment opportunities for lakhs of others.
Some quick facts:
- Around the world, university campuses generate an average of 1.5 additional jobs for each job on campus
- The average return on investment, measured as value generated by its operation, for money invested in comparable institutions is $5 for each $1 expended
- For each $1 spent in local communities by a University, its faculty, students, and visitors independently spend an equivalent amount for local goods and services.
The State of Orissa stands to gain a comparative advantage with the establishment of the Vedanta University. With significant investment and assets in the minerals, mines and metal industry, University graduates will be able to provide a steady supply of employable skilled labour. Research and Development initiatives on campus could also prove to be tremendously beneficial in the long run.
Research-Driven Economic Growth
During the last century, knowledge has been a key factor in economic development, and societies that are able to produce, select, adapt, and commercialise knowledge have better chances of achieving sustained growth and better quality of life.
Vedanta University will actively partner with private industry and public institutions to invest in the advancement of technology, basic sciences, humanities and knowledge across other disciplines. In addition to the significant internal capacity at Vedanta University, the research agenda will support the local economy by helping commercialize advanced ideas. A research-oriented university community is a natural generator of new enterprise due to its investment in innovation and a flourishing supply of talented human resources.
To tap the potential for developing cutting-edge businesses, Vedanta University will establish an extensive research park and business incubator. The University will not only work with existing corporations, but it will also help start-up enterprises build on university research.
In turn, access to innovative enterprises and opportunities to apply knowledge will ensure Vedanta University students are among the best-prepared and competitive minds in the world.
Below are some examples of the value addition to economies enabled by research universities:
- The Palo Alto Research Park at Stanford University in California has led to the establishment of more than 1200 companies with combined market capitalization in excess of US $330 Billion. It has given rise to a technological revolution with reach throughout the world.
- The Massachusetts Institute of Technology (MIT) has inspired more than 4000 companies with over US $230 Billion in annual revenue; in addition, MIT was instrumental in the development of its state’s high-technology corridor. It is estimated that one out of every 150 jobs in the United States is generated by an MIT-linked firm.
- Hsinchu Science Park in Taiwan is home to prestigious academic institutions including National Tsing Hua University and National Chiao Tung University, which provide quality human resources and learning opportunities for employees. In 27 years, the park has given rise to 370 high-technology companies and is home to the world’s top two semiconductor foundries. The park is considered the “crown jewel” of Taiwan’s industrial machinery and produces more than US $37 Billion in goods annually.
A significant percentage of graduates from research universities establish permanent careers in the vicinity; the related rise in average levels of education will help raise wages, aspirations, and overall economic output.
An example of the growth around research driven Universities, can be seen below with Stanford University and the Palo Alto area:
