NDSU Study: Centers of Excellence Program Creates $538.8 Million in Economic Impact
by ND Department of Commerce Posted on 6/19/2012
The North Dakota Department of Commerce today presented the annual report of the North Dakota Centers of Excellence program showing results that have leveraged $32.9 million in funding into an economic impact of $538.8 million through June 30, 2011.
"Our Centers of Excellence are having a significant economic impact on our state," said North Dakota Commerce Commissioner Al Anderson. "Initiatives like this help our private-sector businesses uncover the promising new opportunities that keep North Dakota's economy vibrant and help nurture the pioneers of our future."
The Centers of Research Excellence program had the following economic benefits:
Economic Impact: $538.8 millionThe Centers of Excellence program has had $538.8 in estimated total economic impact to North Dakota's economy. This includes a direct impact of $184.6 million generated by the Centers and their partners.
Job Creation: 973 jobsThe Centers of Excellence program has led to the creation of 973 jobs at an estimated annual payroll of $52.1 million.
Private Sector Partners: 185 CompaniesThe Centers have formed partnerships with 185 companies. These include companies in target industries such as advanced manufacturing, energy, technology, and value-added agriculture, as well as emerging industries such as life sciences and unmanned aircraft systems.
New Businesses: 21 New or Expanded BusinessesTwenty-one new or expanded businesses have resulted from the Centers of Excellence program. This includes seven new spinoff companies, five companies that expanded to North Dakota, and five companies that have expanded within the state.
Funding: $32.9 million InvestedOnly $32.9 million has of the investment allocated to Centers of Excellence had been invested as of June 30, 2011. Due to careful due diligence and project requirements on the part of the program and the university system, projects are funded and dollars spent only when the required match is available and the project is ready to move forward.
Status of Centers of Excellence Investment June 30, 2011 Spent $ 32.9 Disbursed to Centers (not yet spent) $ 6.6 million Approved (waiting disbursement) $ 22.4 million Total $ 62.015 million
"Projects are funded and dollars spent only when the required match is available and the project is ready to move forward," said Anderson. "To date, the Centers have obtained $157 million of matching and leveraged funds, an amount that results in an almost $5 raised for every state $1 leveraged."
The full Economic Impact study and a summary of the Center's Annual Report is available for download at: www.NDCentersofExcellence.com
Centers of ExcellenceNorth Dakota's Centers of Excellence are hubs of research and development partnering with private companies to commercialize new products and services. The program is overseen by the Centers of Excellence Commission which is comprised of members from the State Board of Higher Education and the Economic Development Foundation.
The North Dakota Department of Commerce works to improve the quality of life for North Dakota citizens by leading efforts to attract, retain and expand wealth. Commerce serves businesses and communities statewide through committed people and partners who offer valuable programs and dynamic services. www.NDCommerce.com
