Investing in research pays big dividends

By Theresa Cassiday

Research money goes a long way.

By attracting additional research dollars to campus and securing private funds to build a new research center, the University of Nebraska Medical Center has added nearly $100 million in new monies to the Nebraska economy in the past five years.

When Dr. Harold M. Maurer became chancellor of UNMC in 1998, he made it a priority to increase external funding to conduct research. Since then, UNMC's research funding from external sources has increased from $34 million in fiscal year 1998 to nearly $79.5 million as of July 2006.

In addition, private donations were the primary source of funds to construct the $77 million Durham Research Center. The Nebraska Congressional delegation secured $2.5 million in federal monies for the project. No state dollars were used.

"These are dollars that would not exist in Nebraska without the research activity at UNMC," Maurer said.

But economic growth is only one of the dividends paid by research. The impact of the research can be felt by patients who experience the improvements in care that result from research discoveries. And cutting-edge research impacts education. It attracts top faculty and helps keep top faculty, and that environment attracts the best students.

The dollars ripple through the economy as new employees are hired, spouses and children accompany them to Omaha, and new goods and services are ordered and used.

For every $30,000 of research support, one job is created, according to the U.S. Department of Commerce Bureau of Economic Analysis. This means UNMC's research grants provide employment for 1,860 people.

Using a conservative 2.25 multiplier effect established by the Center for Public Affairs Research at the University of Nebraska at Omaha, the impact of UNMC's $98.9 million in additional research activity over the past five years soars to $222.5 million.

But the impact is even greater. UNMC has spent more than $355 million on all research activities since 1998, including new construction, Maurer said. Using the multiplier, the total economic impact soars to nearly $800 million.

In addition, nine companies have spun off from UNMC's biotechnology research, and researchers have patented more than 400 scientific disclosures through fiscal year 2002.

"We're very proud of all we do for the state," said Maurer. "Without a doubt, the Medical Center is an economic engine for Nebraska. But, even more importantly, the research we're doing and the clinical programs we provide are making a difference in people's lives."