R&D Spending Creates 11,000+ Jobs in Indiana Since 1999

An analysis of Indiana’s 21st Century Research and Technology Fund estimates the fund created more than 11,000 jobs since it began in 1999, sparking $427 million in economic activity in the state. Ball State University’s Center for Business and Economic Research in Muncie, Indiana conducted the study.

The Indiana General Assembly created the fund in 1999. Between 1999 and 2007, the fund has spent about $238 million in seven rounds on 188 projects designed to encourage investment, harness science and technology developed in the state, and foster technology transfer based on scientific creativity. The study says fund has focused on research and development supporting industries with economic growth potential, such as advanced manufacturing and engineering, information technology and software development, and life sciences and health care.

The fund was not designed, however, strictly as an economic development agency. Nonetheless, the study authors note that for each $1.00 invested by the fund attracted $2.30 from other sources, such as venture capital. Using a regional economic model, the study estimated the fund’s impact as $427 million in economic activity and more than 11,000 new private sector jobs in Indiana. The authors note that the cost per job created, a little more than $14,000, is somewhat higher than what are considered the most effective economic incentives for job creation.

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Photo – Anssi Koskinen