UW–Madison’s Economic Impact

UW–Madison contracted with national consultant Tripp Umbach to measure its economic and community contributions to Wisconsin. Tripp Umbach employed a rigorous, conservative methodology grounded in the industry standard IMPLAN model and enhanced by proprietary techniques refined over the firm’s nearly 40 years of experience.

UW–Madison’s total economic impact includes its direct and indirect effects on the Wisconsin economy. Direct impact includes UW–Madison’s institutional, employee, and visitor spending on the institution itself. Indirect impact, also known as the multiplier effect, is the additional economic impact created as a result of the institution’s direct impact. It includes additional spending by vendors, suppliers, and households within the state economy. Companies that supply goods and services to an institution increase its purchasing power through a multiplier effect, which results in a greater impact on the economy.

The combined impacts reported above include those of UW–Madison, affiliated organizations, and spin-off companies. Read the complete report for more details on each component part.

UW–Madison drives economic activity that reaches businesses and communities across Wisconsin.

UW and its affiliated organizations and spin-off companies generate $38.9 billion in annual economic impact.

This total includes university operations, spending by students and visitors, and the broader economic activity created when employees, vendors, and businesses spend money throughout the state.

Together, these activities represent $1 out of every $12 generated in Wisconsin’s economy.

Public investment in UW–Madison produces measurable returns for Wisconsin.

For every $1 invested in the university, the state receives an estimated $21.66 in economic return through job creation, business activity, research innovation, healthcare services, and companies founded on university discoveries.

These returns reflect the university’s role in recruiting and developing talent, advancing new technologies, supporting industry partnerships, and strengthening the state’s economy.

UW–Madison supports employment across Wisconsin through research, healthcare partnerships, startup companies, and the broader activity connected to the university.

In total, UW–Madison and its affiliated organizations and spin-off companies support 287,232 jobs statewide.

These include jobs within the university and healthcare system, positions created by startup companies, and employment supported through business activity connected to the university community.

Altogether, UW–Madison contributes to 1 in every 11 jobs in Wisconsin.

Economic activity connected to UW–Madison helps generate tax revenue that supports public services across Wisconsin.

This activity produces $1.94 billion in state and local taxes each year.

These revenues are driven by employment, business growth, healthcare services, research partnerships, and consumer spending connected to the university.

Overall, activity connected to UW–Madison accounts for $1 for every $12.70 collected in state and local taxes in Wisconsin.

UW–Madison research drives innovation, saves lives, creates jobs, supports small businesses, and fuels the industries that make Wisconsin—and the U.S.—stronger.

The university’s research enterprise generates $3.0 billion in economic impact in the state and supports 7,872 Wisconsin jobs through sponsored research activity, industry partnerships, and related spending. UW–Madison’s innovative research, outstanding scholarship, and next-generation thought leaders have long-term benefits for Wisconsin, the nation, and the world.

Find out more about UW–Madison’s research impact.

UW–Madison benefits all of Wisconsin’s 72 counties and local communities all around the state. Find out more about UW–Madison’s impact at the county level through the Wisconsin Idea Database.

The relationship between UW–Madison and the private sector has long been a cornerstone of Wisconsin’s economy, spanning more than a century of collaboration. From early breakthroughs like the Babcock butterfat test to today’s work in fusion energy and quantum computing, the university bridges academic discovery and real-world application, serving as a catalyst for innovation locally and globally.

Industry partners gain access to a strong pipeline of workforce-ready talent. Beyond recruiting graduates in high-demand fields, employers connect with students through hands-on experiences like capstone projects and internships. UW–Madison’s wide array of professional development offerings helps existing employees build their skills and stay competitive.

The university also connects industry to world-class research and intellectual property. Through licensing, sponsored research, and collaborative partnerships, companies can tap into UW–Madison’s research enterprise to solve complex challenges.

This ecosystem ensures campus innovations move beyond the lab into real-world impact and economic growth. For more information, contact the Office of Business Engagement, which helps companies navigate the university and build high-impact partnerships.

UW–Madison has a long legacy of innovation and entrepreneurship. Since 1990, more than 400 spin-off companies across Wisconsin started at UW–Madison. These companies currently generate an annual economic impact of $12.4 billion and support 88,571 jobs.

Twenty eight of those companies, founded by 33 UW–Madison alumni between 1997 and 2021, each individually achieved a valuation of over $1 billion. Find out more from the Wisconsin Entrepreneurship Hub.

This page highlights selected findings from UW–Madison’s economic impact analysis. The full report also includes regional impacts across Wisconsin’s nine economic development regions, along with additional breakouts for agriculture, Extension, UW–Madison’s health sciences enterprise, and other affiliated organizations and mission areas. Read the full report for more detail.