The University of Rochester

Economic Impact

May, 2014









The University of Rochester
Economic Impact

May, 2014





Prepared for:
The University of Rochester Office of Government and
Community Relations

Prepared By:
Scott Sittig, M.P.P.
Project Director

1 South Washington Street
Suite 400
Rochester, NY 14614
585.325.6360
www.cgr.org








©Copyright CGR Inc. 2014 – All Rights Reserved

i

The University of Rochester
Economic Impact
May, 2014
SUMMARY
In late 2013, the University of Rochester engaged CGR (Center for
Governmental Research, Inc.) to conduct an economic impact assessment
of the entire University. Using data for the calendar year 2013 along with
interviews of key stakeholders, CGR analyzed the broad diversity of
specialized academic schools and affiliated organizations to develop a
profile of the University’s wide ranging economic and fiscal impact on the
region.
Every region is made stronger by the presence of a catalytic economic
engine. The University of Rochester (UR) is the economic engine for the
Rochester Metropolitan Region. As New York State’s eighth largest
private employer, the University of Rochester is Rochester’s largest
employer and it continues to grow, spur new innovation, spin off new
technology, and attract new research and other investment dollars to the
region. It has created new public/private partnerships that are changing the
physical landscape through new off-campus development, changes to the
local roadway system and continued development on the campus itself. By
2018, it envisions itself as one of the nation’s leading research universities
and an integral support and ongoing catalyst of economic development
locally and globally.
The University also continues to expand its footprint now expanding
medical locations to Brockport and Canandaigua as well as distance
learning opportunities for undergrad and graduate students. Despite
challenges in the local economy, and despite the cost of higher education
which continues to rise, the institution is continuing to draw in new
students, attract new faculty and staff, and expand its footprint in the area.
In its strategic plan
1
approved in October of 2013, UR President Joel
Seligman declared and the Board of Trustees affirmed that:
The University of Rochester has evolved from a regional leader
into a leading national research university with growing
opportunities to contribute to local, national, and global progress.
This transformation is gathering momentum as we have


1
http://www.rochester.edu/strategic-plan/
ii

strengthened our faculty, programs, and staff, translated
innovation from our campus to a broader community, while
increasing our geographic and cultural diversity.
University Profile
The following metrics represent the primary ways the UR is contributing
to the Rochester economy. The University:
 purchased goods and services in excess of $854 million in 2013. Of this
total, 23% (about $196 million) was spent to purchase goods and
services in the Rochester metro area.
 spent an average of $241 million per year (in 2013 dollars) for capital
improvements including building and fixed and movable equipment over
the last five years.
 provided employment to 25,773 people (full-time, part-time, and time-
as-reported) at year-end, December 31, 2013.
2

 paid over $1.5 billion in wages of which 97% ($1.48 billion) was to
employees living in the Rochester metro and an additional $21.3 million
was to employees living outside the Rochester metro but still in close
proximity to Rochester.
3

 received more than $3.4 billion in external funding (federal and non-
federal agencies) from FY 2005 to FY 2013.
Visitors to UR:
 booked over 24,700 hotel reservations; and
 lodged in regional hotels more than 37,100 nights.


2
Employees of University of Rochester include all adjunct faculty, faculty, post
doctorates, research and teaching fellows, medical residents, and staff at the University of
Rochester. In addition, all employees of Strong Memorial Hospital, Thompson Health,
Visiting Nurse Service (VNS), Visiting Nurse Signature Care, Highland Hospital, High
Tech Rochester, Excell Partners, Inc., Rochester BioVenture Center, The Highlands at
Brighton, and the Highlands Living Center are included. CGR will refer to this entire
body as University of Rochester employees. We do not include undergraduate students
and graduate students in the employee spending part of the report, but rather in the
student spending component of the economic impact. Including graduate students, UR
provided employment to 25,773 as of 12/31/13.
3
Includes employees living in Allegany, Cattaraugus, Cayuga, Chemung, Genesee,
Schuyler, Seneca, Tompkins, or Yates counties.
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The students of UR also contribute to the economic activity of the
Rochester metro. More than 9,300 undergraduate and graduate students
4

per semester:
 lived off-campus, contributing their living expenses to the Rochester
economy; and
 purchased food off-campus on a regular basis–spending their money
locally in restaurants or shopping at grocery stores.
Economic Impact Results
CGR translates these metrics into economic impact estimates using two
scenarios.
 Local and Traded Sector Combined: This scenario sums all
contributions of the UR and its affiliates to the Rochester regional
economy into one measure of economic impact.
 Traded Sector: A more conservative estimate of the economic impact,
this scenario attempts to discern which elements of UR are the results of
a trading relationship with the economy outside the Rochester region.
Few communities the size of Rochester contain an academic medical
center like the University of Rochester Medical Center (URMC).
Without URMC, millions of dollars in National Institutes of Health
research funding would flow elsewhere. If routine obstetric services
were no longer available from Strong Memorial or Highland hospitals,
however, these services would be provided by others.
Analyzing the Local and Traded Sector combined the University of
Rochester and its affiliates generated:
 approximately 50,300 jobs (direct and spillover) in the Rochester metro;
 more than $2.8 billion in wages (direct and spillover) in the Rochester
metro; and
 approximately $160 million in sales tax, personal income tax, and local
property taxes to the Rochester metro and NYS economy.



4
The UR had 10,357 students enrolled in spring semester 2013, 3,187 students enrolled
in summer semester 2013 and 11,044 enrolled in the fall semester of 2013. 9,300
represent only those who lived off campus or did not buy a meal plan in each semester.
iv

In the Traded Sector scenario, the University of Rochester and its
affiliates generated:
 more than 33,900 jobs (direct and spillover) in the Rochester metro;
 close to $1.9 billion in wages (direct and spillover) in the Rochester
metro; and
 slightly more than $110 million in sales tax, personal income tax, and
local property taxes to the Rochester metro and NYS economy.
Institute for Data Science
In addition to the ongoing operations, the University is continually
planning for new growth and expansion of programs and impact. In 2010,
the University entered into a partnership with IBM to establish a $100
million supercomputing center known as the Health Sciences Center for
Computational Innovation (HSCCI). It is dedicated to applying high
performance computing solutions to the nation’s health challenges.
Building upon the success of the HSCCI, the UR has announced the
signature project of the 2013–2018 University strategic plan is the creation
of a university-wide Institute for Data Science. The IDS will position the
UR as one of only a handful of elite research facilities across the country
with super-computing capacity on the cutting edge of the rapidly growing
field of “big data” in higher education and business.
The proposed Institute for Data Science (IDS) will be housed in a new,
state-of-the-art building located adjacent to Hopeman Hall. The UR’s
expertise in data science is currently dispersed across many different
departments and divisions. While there are collaborations between
individual groups of researchers, there is no umbrella structure that brings
them all together. The distinct advantage of creating this institute is that it
will enable the coalescence of multiple individual centers in data science
that are emerging from domain specific applications and facilitate
enhanced external partnerships with organizations such as Xerox and IBM
(among many others).
The IDS is planned to have about 20 principal investigators at full
implementation in approximately 10 years. These investigators will have
support staff which will total about 100 people, spurring an additional 50
jobs within the regional economy. The staff will attract over $530 million
of new research funding to the community in the first 10 years of
operation.
The IDS also has catalytic potential to spur new business startups (e.g.
technology spinoffs). Big data startups harness the power of computing
potential with contextual expertise. CGR estimates that new business
v

startups could yield 80 new jobs in the region with over $5.4 million in
new labor income.
2013 Results in Perspective
The economic impact of the University of Rochester and its affiliates on
this region is difficult for some to comprehend. To put this impact into
perspective, University of Rochester’s traded sector impact of 33,900 jobs
equated to about 7% of the entire labor force of the Rochester
Metropolitan Statistical Area (RMSA) in 2013.
5
Were this number of jobs
to be lost, the unemployment rate in the RMSA would double to about
14%.
6

Intangible Contributions
Led by the University of Rochester, the region’s colleges and universities
have facilitated the region’s transition from a manufacturing-based
economy to one that is based on knowledge creation. This is the goal of all
mature economies worldwide.
Collectively, educational institutions have enabled countless individuals to
successfully move to new careers, either by re-directing their energies into
new fields or by enhancing their capacity through further education. The
UR’s commitment to education in the context of cutting edge research
fosters a dynamic environment for students and faculty to collaborate. The
region benefits from this environment in countless ways as students and
faculty alike invest in the social networks of the community in both
tangible and intangible ways.
Led particularly by UR’s Eastman School of Music and the Memorial Art
Gallery, the colleges and universities have created a cultural environment
that is unmatched in accessibility and depth. As researchers like the
University of Toronto’s Richard Florida have described, the vitality of a
community’s cultural life is becoming an ever-more important factor in
the attraction of footloose firms and “creative class” individuals.
The University of Rochester is a pillar of strength for the Rochester
community. As defined by its own strategic plan, the University creates a
culture of transformative ideas where educational innovation thrives in a
broad array of academic programs and applied service organizations. The
University is positioned to make significant contributions not only to the


5
Source for Labor Force: Local Area Unemployment Statistics (LAUS) – Bureau of
Labor Statistics (BLS) for 2013 RMSA. This is defined as those actively employed or
actively looking for work.
6
The 2013 unemployment rate for the RMSA was 7.3% according to LAUS - BLS.
vi

local and regional economy, but the national and global marketplace for
many years to come.
Acknowledgements
This report is a team effort between CGR and many University of
Rochester employees. CGR wishes to thank everyone who helped to
provide the data necessary to perform the analysis. In particular, we thank
Josh Farrelman and Mark Michaud for their time in coordinating data
requests, answering questions, and providing feedback on the report.
Staff Team
Scott Sittig, M.P.P., Associate Director, served as the Project Director and
Manager and oversaw data collection, organization and analysis of the
data, provided input on methodological concerns, and was responsible for
drafting and edited the final report.
Kent Gardner, Ph.D., Chief Economist, provided oversight and input to
methodological process, advised the study team and reviewed impact
results.
Mike Silva, Data Analyst, organized and analyzed data, helped define
consistent methodology, and contributing to drafting portions of the
report.
Rachel Rhodes, Research Assistant, assisted with data collection, report
writing and editing.
Eric Hepler, Intern, assisted with developing the NYS largest employer
list.
vii

TABLE OF CONTENTS
Summary ............................................................................................................ i
University Profile ........................................................................................................... ii
Economic Impact Results ............................................................................................. iii
Institute for Data Science ............................................................................................ iv
2013 Results in Perspective ......................................................................................... v
Intangible Contributions ................................................................................................ v
Acknowledgements ..................................................................................................... vi
Staff Team ................................................................................................................... vi
Table of Contents .............................................................................................vii
Introduction ....................................................................................................... 1
The University and its Affiliates .................................................................................... 2
Outline of Report .......................................................................................................... 3
Our Approach .................................................................................................... 4
Terminology .................................................................................................................. 4
Direct Impact .......................................................................................................... 4
Spillover Impact...................................................................................................... 4
“Traded Sector” Impacts ........................................................................................ 5
Methodology and Assumptions .................................................................................... 6
Geographic Scope ................................................................................................. 6
Time Period Examined ........................................................................................... 6
Data Sources and Modeling ................................................................................... 7
Our Findings ..................................................................................................... 8
Economic Impact Summary.......................................................................................... 8
Employment Impacts ............................................................................................. 8
Labor Income Impacts ........................................................................................... 9
Purchases ............................................................................................................ 10
Purchasing Impact ......................................................................................... 10
Capital Investments ............................................................................................. 11
Capital Projects in Progress .......................................................................... 11
Capital Investments Impact ........................................................................... 13
Employee Wages and Spending.......................................................................... 13
UR Remains One of New York State’s Top 10 Private Employers ............... 15
Employment Impact ....................................................................................... 16
Visitor Activity ....................................................................................................... 17
Admissions .................................................................................................... 18
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Athletics ......................................................................................................... 18
Graduation/Alumni Events ............................................................................. 19
Music ............................................................................................................. 19
Strong Visitors ............................................................................................... 19
Academics and the Arts................................................................................. 20
Visitor Activity Impact .................................................................................... 20
Students Spending ............................................................................................... 20
Student Spending Impact .............................................................................. 21
Fiscal Impact Summary .............................................................................................. 21
Other Benefits to the Region ...........................................................................23
Research Funding ...................................................................................................... 23
Grant Activity ........................................................................................................ 23
Patents, Royalties, and Start-Ups ........................................................................ 24
Patents Issued ............................................................................................... 24
Invention Disclosures .................................................................................... 25
Royalty Revenue ........................................................................................... 25
Start-up Companies ....................................................................................... 26
The Institute for Data Science .................................................................................... 27
Institute for Data Science Impact ......................................................................... 28
Community Investment in the Region ........................................................................ 30
Brooks Landing, Riverview, Mortgage Support ................................................... 30
Admissions Support for City School Students ..................................................... 30
Hospital Contributions to the Community ............................................................ 31
UR Footprint ......................................................................................................... 31
Conclusion .......................................................................................................32
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INTRODUCTION
In 2013, The Office of Government and Community Relations within the
University of Rochester engaged CGR (Center for Governmental
Research, Inc.) to conduct an economic impact assessment of the entire
University. The report was commissioned to update the previous study
conducted by CGR in 2011. Using data for the calendar year 2013 along
with interviews of key stakeholders, CGR analyzed the broad diversity of
specialized academic schools and affiliated organizations to develop a
profile of the University’s wide ranging economic and fiscal impact on the
region.
The UR has continued its growth and expanded its influence in the region
in several ways in the last two years. In December 2012, it formally
affiliated with Pluta Cancer Center. It finalized its purchase of the former
Lakeside Health facilities located in Brockport, NY which now provides a
far west side medical presence for UR and offers access to quality
ambulatory care for people living in that part of the region. Similarly, the
UR finalized an affiliation with Thompson Health based in Canandaigua,
NY bringing it under the UR Medicine umbrella, which encompasses the
patient care services of the University of Rochester Medical Center
(URMC) and its affiliates, assuring that the quality care offered by
Thompson could continue for the foreseeable future.
In addition to the affiliations and purchases of new assets, the UR
continued its own aggressive growth strategy on its River and Medical
Campuses. Two of the signature projects included breaking ground for
College Town on Mount Hope and also for the new Golisano Children’s
Hospital. The Children’s Hospital will be a state of the art facility that will
enhance the UR’s capacity for training, research and quality care. College
Town is transforming the landscape of a major corridor around the campus
spurring retail development, enhancing residential property values, and
opening up new economic development opportunities in the immediate
area.
In October of 2013 the UR released its strategic plan for 2013-2018. The
pattern of steady and sustainable growth remains at the core of the new
plan with the signature project built around existing strengths and
emerging technological competitive advantages. The UR will create an
Institute for Data Science (IDS) over the next couple of years with the
help of a $10 million donation from the Wegmans Charitable Foundation,
partnership from local businesses such as Xerox and IBM, and public
investment from New York State to create a Center of Excellence for Data
Science located on the UR campus. This initiative will put UR in an elite
category of research universities around the country which have super-
computing capacity and a growing expertise in the field of “big data”. The
2

investment will attract new research dollars across many disciplines and
streamline the work of many faculties in different schools to position the
UR for cutting edge research for many years to come.
The UR also maintains its commitment to the Rochester community in
countless intangible ways. It intercedes and lobby’s with the State as part
of its contribution to new projects such as College Town, Brooks Landing,
or the new I-390 interchange. It encourages faculty and staff to buy and
live locally in the City of Rochester, and has created scholarship funds for
city school students who want to attend the UR. Its medical faculty and
practitioners participate in community forums and conduct outreach
through health fairs and other community events to promote health and
educate parents and children about healthy lifestyles. The UR President
co-chairs the local regional economic development council and designated
staff supports the process demonstrating the University’s commitment to
the economic wellbeing of the region and the vital role they play in the
community.
This report documents both the tangible economic and fiscal impacts of
the UR, as well as the intangible but valuable contributions the UR makes
in the community.
The University and its Affiliates
This UR is comprised of the River Campus, the UR Medicine and its
affiliates, and the Memorial Art Gallery.
 The River Campus includes:
 The College of Arts, Sciences and Engineering
 The School of Arts and Sciences
 Hajim School of Engineering and Applied Sciences (including the
Laboratory for Laser Energetics – LLE);
 William E. Simon Graduate School of Business Administration;
 Margaret Warner Graduate School of Education and Human
Development; and
 The Eastman School of Music.
 UR Medical Center (URMC)/UR Medicine (URM) includes:
 School of Nursing;
 School of Medicine and Dentistry;
 Eastman Institute for Oral Health;
 Strong Memorial Hospital;
 University of Rochester Medical Faculty Group; and
 Health Sciences Division.
 The UR Medicine Affiliates are:
3

 Visiting Nurse Service (VNS) and Visiting Nurse Signature Care
(VNSC);
 Highland Hospital;
 Highlands at Brighton and the Highlands Living Center; and
 Thompson Health.
 Other UR Affiliates include:
 Excell Partners;
 HTR (High Technology Rochester); and
 Rochester BioVenture Center.
 Memorial Art Gallery
Outline of Report
This report details the economic and fiscal impacts that result from the
operations of the University and its affiliates. It also highlights the variety
of investments the University is making to stimulate the Rochester region.
CGR’s report is presented in three major parts:
1) “Our Approach” which provides explanations of terminology as well
as the methodological procedures CGR used to estimate the economic
impact.
2) “Our Findings” which provides estimates of the economic impact of
UR including; purchases, employee wages and spending, capital spending,
student spending, and visitor spending. The impact is estimated both in
terms of employment and labor income and focused solely on calendar
year 2013. CGR also provides estimates of the fiscal impact in terms of
sales, income and property tax revenue generated.
3) “Other Benefits to the Region” which outlines significant impacts the
UR is making in the community that are sometimes difficult to quantify or
are too early in their development to have data to analyze. This section
also includes information about the research productivity of UR in terms
of grant activity, patents, and royalty revenues.
The report is summarized in a brief conclusion following the third section.

4

OUR APPROACH
CGR technical approach to analyzing economic impact is largely
consistent with standard industry practices in the field. Below we outline
several methodological considerations that will aid in understanding the
terms used throughout the report.
Terminology
Direct Impact
The direct economic impact consists of the actual expenditures of the
University of Rochester in the community - i.e., the institution is directly
involved with the transaction. Added to the direct expenditures is the
local spending of students and visitors to campus and/or the hospitals.
Examples of direct expenditures include:
 UR and its affiliates’ payroll expenditures for faculty, physicians, staff,
residents, and students;
 UR and its affiliates’ purchases of goods and services from a variety of
suppliers; and
 UR’s payment to a construction firm for a capital improvement project
(new building).
Spillover Impact
Spillover expenditures result from the subsequent spending of the
recipients of the direct expenditures. In some studies this is subdivided for
analysis into “indirect” and “induced” impact. For example, a vendor
company that supplies a product or service to the University of Rochester
uses the proceeds of that sale to make expenditures of its own, typically
for both materials and labor. Similarly, employees of the University of
Rochester spend their wages, which become income for other businesses
in the region. These types of expenditures are categorized as spillover.
Specific examples of types of spillover impacts include:
 The firm hired to construct a new building buys materials from local
businesses. The local businesses will, in turn, have income to hire
workers. Those workers will then spend money in the community. The
spending of the businesses affected by the construction, and also the
spending of the employees of those businesses, is considered spillover.
 A resident or lab tech purchases dinner in a restaurant, and the restaurant
then uses the money to pay suppliers or staff.
5

“Traded Sector” Impacts
The “traded sector” is defined as those elements of UR that expand the
economy and attract additional income from outside the region.
The goal of any economic impact study is to assess how the economy in
question is larger as a consequence of the activity being studied. In
layman’s terms the question posed is this: How would the economy be
smaller if the activity were to disappear?
In answering this question, economists distinguish between economic
activities that bring dollars into a region from those that simply reallocate
dollars already “earned” from other regions. A new grocery, for example,
will not attract shoppers from another region. Income to support a grocery
must be earned some other way. A new grocery will only reallocate
spending from another store.
While this is an important distinction, it is impossible to divide every
dollar of revenue flowing to a complex institution like the University of
Rochester according to source. For example, strictly speaking, tuition
from students who would have attended another college or University in
the region had they not been accepted at the University of Rochester
should be excluded from the impact assessment. We do not have the
information available to make this kind of distinction.
One adjustment that CGR has made in this analysis, however, is in health
services revenue. Consistent with the many previous studies of the
economic impact of URMC/URM, CGR distinguishes between clinical
service revenue to Strong or Highland hospitals that would likely be
earned in the local economy anyway if these hospitals were to close.
Routine surgery—an appendectomy, for example—would be performed in
the Rochester area regardless. Yet Strong’s highly regarded (and quite
large) liver transplant program is unusual and attracts patients from
outside the region. Local residents who receive liver transplants would
otherwise travel to another city if Strong did not provide this service.
URMC/URM staff estimate that approximately 37% of clinical revenue
flowing to Strong Memorial Hospital is highly specialized. This is the
component of the clinical service revenue that CGR includes as part of the
UR’s unique contribution to the Rochester economy.
The traded sector can be defined as those aspects of UR that would
disappear if UR were not in existence. There are certain portions on the
clinical side of URMC/URM that would still remain in the community if it
were to close. The need for routine medical procedures, for example,
would be satisfied by other health care providers were these services not
available from Strong or Highland Hospitals. Employees and direct
6

spending related to these types of procedures are considered “local” and
are not counted in the economic impact analysis of the traded sector.
Methodology and Assumptions
Geographic Scope
The five-county Rochester metro area (Monroe, Livingston, Orleans,
Ontario and Wayne Counties) provides the geographic scope for the
analysis of economic impact.
7
New York State is the level of analysis for
estimates of the fiscal impact. Other programs and initiatives are defined
in each section according to scope and expected impact.
CGR provides the economic impact in terms of labor income and
employment (number of jobs). In addition, we estimate the fiscal impact
in terms of sales tax revenue and personal income tax (both to NYS and
the Rochester metro). The economic impact is reported in two portions:
direct and spillover.
In calculating the economic impact, CGR only includes the wages of those
employees living and spending in the Rochester metro, though we
recognize that many employees living just outside of the Rochester metro
(e.g. Leroy in Genesee County) spend some of their wages inside the
Rochester metro. Given the definition of the Rochester metro and the
case-by-case nature of these situations, CGR chose to include only wages
for employees who resided in the Rochester metro based upon their zip
code.
Time Period Examined
Where possible, CGR has captured all dollars and estimated impacts for
the calendar year of 2013. For reference, the fiscal year at UR is defined
as July 1 to June 30. Thus, fiscal year 2013 ran from July 1, 2012 to June
30, 2013. Therefore, our analysis spans the fiscal years of 2013 and 2014.
Given the variable nature of capital expenditures, CGR uses a rolling
average over five years to estimate the economic impact of capital
expenditures.


7
In previous studies, the region was the Rochester Metropolitan Statistical Area
(RMSA). In 2013, the U.S. Office of Management and Budget (OMB) changed the
definition of the RMSA to include Yates County. In an effort to maintain consistency
with previous studies, CGR decided to continue using the five county definition.
However, since we have not included Yates County, we refer to the region as the
Rochester metro.
7

Data Sources and Modeling
All data for the study was provided by the UR. The data was gathered
independently by CGR from the various academic schools and affiliated
organizations and compiled for analysis independent of the UR. Where
necessary, CGR consulted with external sources to obtain realistic
benchmarks for analysis (e.g. the average hotel room rate was obtained by
calling several local hotels). We also consulted census sources, Bureau of
Economic Analysis (BEA) data, Bureau of Labor Statistics (BLS) and
New York State Tax and Finance reports among other sources.
CGR used IMPLAN, a regional input-output modeling system, for
estimating the economic impact. IMPLAN is widely acknowledged as
one of the best models of economic activity available. The IMPLAN
database, created by MIG, Inc., consists of two major parts: 1) a national-
level technology matrix and 2) estimates of sectorial activity for final
demand, final payments, industry output and employment for each county
in the U.S. along with state and national totals. Data are updated annually.
IMPLAN estimates the direct, indirect and induced impacts of economic
change through the use of multipliers, and estimates the impact of an
increase in demand in a particular sector on 440 different
industries/sectors of the local economy. CGR rolls the indirect and
induced effects together in our estimates of “spillover”.

8

OUR FINDINGS
CGR’s economic impact studies estimate the wages and jobs that an
institution stimulates as a result of its business operations. Essentially, we
answer the question, “How is the economy larger because of this
institution’s activity in the community?” We analyze five primary areas
of business activity conducted by the UR and its affiliates in order to
quantify the economic impact. The five areas include:
 Purchases;
 Capital investments;
 Employee wages and spending;
 Visitor activity; and
 Student spending.
Economic Impact Summary
CGR provides economic impact estimates for two scenarios. The first
scenario assumes that every component of UR will provide an economic
impact. This is known as the “local and traded sector combined” scenario.
The second scenario only considers the impact of the “traded sector” (see
definition in previous section) and is a more conservative estimate.
Employment Impacts
The employment impact can be interpreted as the number of jobs—direct
and spillover — within the Rochester metro that are attributed to UR.
CGR reports employment impacts in terms of thousands of jobs.
 If one considers the traded sector only, CGR estimates that UR and its
affiliates generate about 34,000 jobs (direct and spillover) in the
Rochester metro.
Economic Impact on Rochester: Traded Sector Only
Employment (thousands of jobs) Direct Spillover Total
Employment Impact 14.7 13.4 28.0
Purchases Impact 1.1 0.6 1.7
Capital Investments Impact 1.6 1.2 2.8
Student Spending Impact 0.8 0.3 1.1
Visitor Activity Impact 0.1 0.1 0.2
Total 18.3 15.6 33.9
 For both the local and traded sector combined, more than 50,000 jobs
(direct and spillover) are generated in the Rochester metro. As noted in
9

the table and in our detailed summaries that follow, the largest impact is
generated by the direct employment of over 22,500 FTE workers at UR.
The money spent by UR to pay them is the single largest source fueling
the economic engine at the UR.
Economic Impact on Rochester:
Local and Traded Sector Combined
Employment (thousands of jobs) Direct Spillover Total
Employment Impact 22.5 20.2 42.7
Purchases Impact 2.2 1.2 3.4
Capital Investments Impact 1.6 1.2 2.8
Student Spending Impact 0.8 0.3 1.1
Visitor Activity Impact 0.1 0.1 0.2
Total 27.3 23.0 50.3
The UR continues to expand its employee base and its overall footprint
resulting in yet more impact on the Rochester economy. Since the last
study of calendar year 2011, the UR’s has increased its employment
impact by 8% for the local and traded sector combined and 7% for just the
traded sector.
Labor Income Impacts
Jobs—many well-paid—translate into paychecks for the thousands of
employees identified above. The wages spent by employees fuel the
economy in countless ways. CGR estimates UR helps to generate:
 Nearly $1.9 billion in wages (direct and spillover) in the Rochester
region in the traded sector; and
Economic Impact on Rochester: Traded Sector Only
Labor Income (millions of dollars) Direct Spillover Total
Employment Impact $974.5 $650.7 $1,625.2
Purchases Impact $56.3 $24.2 $80.5
Capital Investments Impact $82.5 $58.2 $140.7
Student Spending Impact $25.3 $14.6 $39.9
Visitor Activity Impact $2.8 $1.9 $4.7
Total $1,141.4 $749.6 $1,891.0
 Over $2.8 billion in wages (direct and spillover) in the Rochester region
when considering the local and traded sector combined.

10

Economic Impact on Rochester:
Local and Traded Sector Combined
Labor Income (millions of dollars) Direct Spillover Total
Employment Impact $1,479.8 $985.4 $2,465.2
Purchases Impact $107.7 $49.5 $157.2
Capital Investments Impact $82.5 $58.2 $140.7
Student Spending Impact $25.3 $14.6 $39.9
Visitor Activity Impact $2.8 $1.9 $4.7
Total $1,698.1 $1,109.7 $2,807.7
The total wage impact changed from the previous study’s level by 11% for
the traded sector only, and by 17% for the local and traded sector
combined.
In the next several sections we provide details on the impacts calculated
for each of these economic categories. Following that, we provide an
overview of the fiscal impacts generated by the UR for the Rochester
metro and NYS. In the section on “Other Benefits to the Region” we
elaborate on activities that are central to the culture and vibrancy of the
Rochester community but do not have a quantifiable contribution to the
estimates of economic impact.
Purchases
During 2013, the University of Rochester and its affiliates purchased
goods and services in excess of $854 million. Of this total, about $196
million was spent in the Rochester metro. Over 75% of UR purchases flow
outside the Rochester Metro to vendors in other parts of New York, other
states and around the world.
Purchasing Impact
CGR estimates that the purchases of goods and services by the University
of Rochester and its affiliates sustain approximately 3,400 jobs in the
region. The “traded sector” is responsible for 48% of the jobs.
Purchasing Impact
Direct Spillover Total
Local & Traded Sectors Combined
Employment (thousands of jobs) 2.2 1.2 3.4
Labor Income (millions of dollars) 107.7 49.5 157.2
Traded Sector Only
Employment (thousands of jobs) 1.1 0.6 1.7
Labor Income (millions of dollars) 56.3 24.2 80.5
11

Capital Investments
Given the variable nature of capital expenditures, CGR uses a rolling
average over five years to estimate the economic impact of the capital
investments. During the past five fiscal years (FY2009 – FY2013), the
University of Rochester and its affiliates:
 Spent a total of $1.2 billion (in 2013 dollars) on capital (including
building new infrastructure, renovating existing facilities and purchasing
construction equipment) over the five year period; and
 Spent an average of $241 million per year (in 2013 dollars) on capital
investments.
Fiscal year 2013 saw a decline in capital spending from fiscal year 2012,
but spending during the year was on par with the five-year average.

Capital Projects in Progress
 Institute for Data Science ($50 million)
In October 2013, the University of Rochester committed $50 million to
creation of a new Institute for Data Science, on top of more than $50
million dedicated in recent years. This is the top University priority for
the University's 2013-18 strategic plans and includes a new, $25 million,
50,000 sq. ft. state-of-the-art facility that will be home for the Institute and
the newly New York State-designated Center of Excellence for Data
Science. (See later in this report for more detail on the Institute and its
potential impact.)
 Golisano Children’s Hospital ($145 million)
The new Golisano Children’s Hospital tower will provide infants,
children, and families with more space and access to improved care,
$0
$50
$100
$150
$200
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$300
$350
FY09 FY10 FY11 FY12 FY13
Capital Expenditure (millions of 2013 dollars)
12

including 52 private patient rooms and a greatly expanded Neonatal
Intensive Care Unit. The eight-story, 245,000 square foot building will
cost approximately $145 million, and will supply the area with an
estimated 1,066 construction jobs. Funds were raised for the project
through a combination of equity, loans, and the Golisano Children’s
Hospital $100 million campaign.
The new hospital, which is the largest capital project in the University’s
history, is slated to open in the summer of 2015.
 College Town ($100 million)
The University of Rochester partnered with the City of Rochester,
Fairmont Properties, Gilbane Development, and Mt. Hope neighborhood
leaders to develop a comprehensive plan for a College Town on 14 acres
of university-owned property along Mt. Hope Avenue. Like Brooks
Crossing the University is the anchor tenant and committed to leasing
50,000 square feet in office space and relocating the University’s
Bookstore. The project will create a vibrant community hub and serve not
only the Mt. Hope and university communities, but the entire city.
College Town is a $100 million development project in part financed with
local, state, and federal grants and loans. The project will include street-
level retail shops, office space, parking, a hotel, and rental residential
space, and is slated for completion in 2014. College Town is projected to
create approximately 1,200 new jobs and contribute nearly $4.5 million in
taxes annually. In addition, the City of Rochester invested $17 million in
improvements to the main intersection flanking the College Town
development.
Development is currently underway and an opening is slated for the fall of
2014.
 HTR Business Accelerator Cooperative ($15 million)
With $5 million in funding from NYS, High Tech Rochester (HTR) and
Empire State Development partnered to develop the Finger Lakes
Business Accelerator Cooperative. The Business Accelerator is designed
to coordinate and consolidate current business services across the 9-county
Finger Lakes region, and provide start-up and incubation services for a
range of businesses in the service, technology, and biology industries. As
part of this effort, HTR has taken steps towards identifying a new facility
in Rochester that will give early stage companies access to space and
resources including labs for prototype manufacturing, wet labs for biotech
companies, an auditorium, and office space. The Business Accelerator
Cooperative is expected to bring about 1,000 new jobs to the region within
five years of completion.
 The Flats at Brooks Crossing ($18.7 million)
13

Development at Brooks Landing is fundamentally changing the face of
Rochester's southwest side. The University, the City of Rochester,
neighborhood groups, and private developers all partnered in the
development of Brooks Landing – a waterfront development between
Brooks Avenue and Genesee Street. Ground was broken in 2013 on the
latest addition to the Brooks Landing Revitalization Project, The Flats at
Brooks Crossing.
Brooks Crossing, an $18.7 million project, will house 170 University of
Rochester upperclassmen, a boathouse, and a restaurant when
completed. Brooks Crossing is projected to bring $9.9 million to the
Brooks Landing community as new residents patronize local services and
restaurants. The City of Rochester also contributed to the project in the
form of $6 million in area public improvements.
 I-390 ($90 million)
A multi-phase plan to improve access to the University of Rochester and
the surrounding area via the I-390 interchange began in 2012-13 and will
wrap up in 2015. Funding all phases of the $90 million project has been
committed and is estimated to create 850 construction jobs (indirect and
direct) and $42 million in labor income. In total, the project is supporting
and accommodating increased traffic from almost $450 million in new
development that is underway within 2 square miles of the project. The
project is also expected to ease traffic, increase safety, and provide future
economic development opportunities in the community.
Capital Investments Impact
CGR estimates the University of Rochester’s average annual capital
investments support around 2,800 jobs and bring in about $141 million of
labor income to the regional economy.
Capital Investments Impact
Direct Spillover Total
Employment (thousands of jobs) 1.6 1.2 2.8
Labor Income (millions of dollars) 82.5 58.2 140.7
Employee Wages and Spending
For the purposes of this report, employees of University of Rochester
include all adjunct faculty, full time faculty, post-doctoral fellows,
research and teaching fellows, medical residents, and staff at the
University of Rochester. In addition, CGR includes all employees of
Strong Memorial Hospital, Visiting Nurse Service (VNS), Visiting Nurse
Signature Care, Highland Hospital, High Tech Rochester, Excell Partners,
Inc., Rochester BioVenture Center and both Highlands – Pittsford and
Brighton. Since the last report, UR has formally affiliated with FF
Thompson Health Care based in Canandaigua, NY. Since they are
14

considered in our definition of the Rochester Metro and were fully
absorbed during the calendar year, we have included them in this analysis
for 2013. In expressing the economic impact, CGR will refer to this entire
body as University of Rochester employees.
The table below provides the employee count as of 12/31/13. This
includes full-time, part-time and time as reported (TAR)
8
individuals and
is not a full-time equivalent number. The table does not include graduate
students and undergraduate students. Overall, the UR expanded its
headcount by 10% as compared to December 2011. The addition of
Thompson as an affiliate is partially responsible. Taking out this addition
the UR expanded by 3.8% over the two year period.
All Employees of University of Rochester and its Affiliates
University of Rochester 20,397
Highland Hospital 2,581
The Highlands* 692
FF Thompson 1,403
Visiting Nurse Service/Signature Care 683
High Tech Rochester/BioVenture** 17
Total 25,773
*Includes Highlands at Brighton, Highlands at Pittsford, and Highlands Living Center
**Includes Excell Partners, Inc.
The table below summarizes the full-time equivalent number of UR
employees reported on December 31, 2013. The FTE count is 10% higher
than the end of December 2011. Again, after adjusting for the addition of


8
Includes per diem, casual, and temporary workers
Full-Time Equivalent University of Rochester Employees
Counts by FTE Full-Time Part-Time TAR/Per Diem Total
University of Rochester 16,000 1,597 502 18,099
Highland Hospital 1,676 306 181 2,163
The Highlands* 339 81 71 491
FF Thompson 895 139 81 1,115
Visiting Nurse Service/Signature Care 451 99 17 567
High Tech Rochester/BioVenture** 15 1 0 16
Total 19,376 2,223 852 22,451
*Includes Highlands at Brighton, Highlands at Pittsford, and Highlands Living Center
**Includes Excell Partners, Inc.
15

Thompson Health, the UR FTE count is about 5% higher than its
December 2011 level.
During the 2013 calendar year, UR:
 Paid wages of more than $1.5 billion, of which about $1.48 billion was
to employees living in the Rochester metro.
The geographic distribution of wages for all employees (not including
graduate and undergraduate students) is presented in the table below:
Distribution of Wages by Region
Rochester Metro* $1,475,788,840
Rest of Finger-Lakes Region** $21,314,063
Rest of NYS $16,090,333
Outside NYS $5,928,873
Outside USA $9,185,199
Total $1,532,307,307
*Defined as Monroe, Livingston, Orleans, Ontario and Wayne counties.
**Defined as Allegany, Cattaraugus, Cayuga, Chemung, Genesee,
Schuyler, Seneca, Tompkins, or Yates counties.
CGR only includes the wages of those employees with zip codes in the
Rochester metro ($1.48 billion) to estimate the economic impact of UR on
the Rochester metro. However, it is clear that an employee living in
nearby Genesee County, for example, might still spend a large portion of
their income in the Rochester metro. Thus, the economic impact estimates
presented later in this report may be slightly underestimated as they do not
include any expenses of employees living outside the Rochester metro.
In addition, there are a few employees who have a permanent address
outside NYS. However, some of them may rent an apartment as well as
buy groceries and gas in the Rochester metro during the week. Due to the
case-by-case nature of these situations, CGR chose to only include those
wages of employees with a zip code in the Rochester metro.
Not included in these counts are the reported employment totals of 9,533
undergraduate and graduate students during the 2013 calendar year. The
student employees were paid a total of $41.2 million in wages.
UR Remains One of New York State’s Top 10 Private Employers
With nearly 26,000 employees (22,000 FTE) UR is by far the largest
employer in the Rochester metro; a distinction it has held for several years
now. CGR has updated its list of New York State’s top private employers
for this study to put UR’s employment in a statewide context. Since
private employment figures aren’t public information, CGR has used
various business journals, market research reports, and self-reported
16

numbers to provide the most accurate data. With each new publication of
this list, we have grown more confident that we are capturing the right
firms and institutions. However, we remain cautiously aware that with no
publicly available statewide source to independently verify our findings,
there is a possibility that the list is incomplete.
The following is what CGR believes to be the largest private sector
employers in New York State and their full-time equivalent employment
numbers for the year ended 2013. We have used full time equivalents to
provide a better comparison of employment impact.
Top 20 Private Employers in NYS 2013
Full-time equivalent employees located in the state
Rank Company Name NYS Employment
1 North Shore-LIJ Health System 40,000
2 Mount Sinai Health System 31,000
3 Walmart* 28,000
4 Verizon NY Inc. 27,000
5 JP Morgan Chase 25,000
6 Citigroup Inc. 25,000
7 Macy's Inc. 25,000
8 University of Rochester 22,000
9 New York Presbyterian Hospital 20,000
10 Montefiore Health System 18,000
11 NYU/Medical Center 18,000
12 Wegmans Food Markets 17,000
13 Columbia University 16,000
14 Cornell University/Weill Medical College 15,000
15 Consolidated Edison 15,000
16 Bank of America 14,000
17 IBM Corp. 14,000
18 Morgan Stanley 13,000
19 Memorial Sloan-Kettering Cancer Center 12,000
20 Kaleida Health 10,000
*75% of total reported by each company to adjust for likely part-time workers.
With more than 22,000 FTE employees, the University of Rochester
ranked as the eighth largest employer in New York State in 2013. Across
the board, higher education and healthcare remain the dominant players in
New York State’s economy. The majority of the largest firms are
headquartered downstate, in New York City and on Long Island; though a
few (including UR, Wegmans, and Kaleida Health) are located Upstate.
Employment Impact
The largest component of the UR’s economic impact in the regional
economy is based on the wages it pays to its employees and the
subsequent buying power that generates for them. Not only does the UR
directly employ nearly 22,500 full-time equivalent workers, but the
17

spending by these employees spurs on an estimated 20,200 jobs in the
regional economy. When adjusting to account only for traded sector
impact the UR direct employment figure drops to an estimated 14,700
workers and the spending of those employees spurs on an additional
13,400 jobs in the regional economy.
Employment Impact
Direct Spillover Total
Local & Traded Sectors Combined
Employment (thousands of jobs) 22.5 20.2 42.7
Labor Income (millions of dollars) 1,479.8 985.4 2,465.2
Traded Sector Only
Employment (thousands of jobs) 14.7 13.4 28.1
Labor Income (millions of dollars) 974.5 650.7 1,625.2
In summary, the local and traded sector impact for UR employees’ results
in over 42,000 jobs and almost $2.5 billion in labor income.
Visitor Activity
The University of Rochester hosted visitors throughout the year for events
such as Meliora weekend, graduation, concerts, recitals, athletic events,
and admission visits. The visitors include alumni; prospective students and
their families; family and friends of current students; visiting faculty that
attend conferences or use research equipment; family and friends of
Strong Memorial Hospital patients; musicians; athletic opponents and their
fans; and UR fans and families of student athletes. Visitors are a vital
source of economic impact because they bring new dollars to the
Rochester community and they are exposed to the rich culture, geography
and lifestyles of Upstate NY.
During 2013 CGR estimates visitors to UR:
 Booked around 24,700 hotel reservations (up 13% from the 2011 study);
and
 Lodged for more than 37,100 nights (up by 8% from the 2011 study).
18


The largest activities and events that draw visitors to the UR are discussed
below.
Admissions
Prospective students and their families represent a significant influx of
visitors throughout the year. The River Campus undergraduate admissions
office estimated that about 22,000 visitors came to campus in 2013
generating approximately 7,500 hotel nights. The Simon School, Warner
School, Graduate School of Arts, Sciences and Engineering, School of
Nursing and URMC combined attracted over 1,700 admissions visitors to
the area, many of whom also stayed overnight. The Eastman admissions
office also provided tours to nearly 1,200 prospective students during
2013, and about a third brought along at least one parent. A majority of
these people are from out of town and stay overnight in the Rochester
area. Since 2011, the number of visitors to Rochester for admissions or an
admissions-related event has increased by over 20%.
Athletics
Athletic events also draw a large number of visitors, comprised of the
visiting teammates as well as parents and other spectators from out of
town. There were cumulatively 128 home games across all sporting events
during the 2013 calendar year, with nearly 2,800 visiting players from
opposing teams participating. Opposing teams generated just over 1,000
hotel nights, with parents and fans of visiting players likely also staying in
a hotel on those occasions. Both the number of visiting players and hotel
nights stayed declined from 2011 totals despite the increase in the number
of home games. The likely culprit for the lower numbers was that fewer
tournaments were held on campus in 2013 compared with the previous
study year (2011).
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Admissions Athletics Graduation
/ Alumni
Events
Music Strong
Visitors
All Others
Visitor Impact on Area Hotels (2013)
Hotel Reservations Hotel Night Stays
19

Graduation/Alumni Events
Meliora Weekend (MW) is one of the biggest annual events on campus. It
is the combined weekend for Homecoming, Family, and Reunion and
includes events at the River Campus, URMC, and graduate schools.
Attendance for MW stayed flat between 2011 and 2013. In 2013, MW
attendees (specifically alumni, parents and guests) from out of the
Rochester region numbered 1,568 and booked approximately 784 hotel
rooms. The average length of stay was three days and two nights. These
visitors, and any out-of-town visitors to campus, affect the local economy
by spending money at places such as hotels, restaurants, retail
establishments, gas stations, car rental agencies, and the airport.
Another major visitor event is graduation weekend. The University
awarded 2,584 degrees during the May 2013 commencement. The
Conference and Events Office at UR estimates five visitors per graduate
attend the weekend for a total attendance of around 11,600. Many of these
are from out of town and bring out-of-town dollars into the Rochester
economy. Visitors also attend pinning ceremonies at the School of
Nursing in August and December and a White Coat Ceremony at the
School of Medicine and Dentistry in August.
Music
The Kodak Hall at Eastman Theatre draws thousands of outside visitors
for a number of different events such as the Rochester Philharmonic
Orchestra and local graduation ceremonies. Smaller events such as
Eastman School of Music student recital concerts and the Eastman
Rochester Organ Initiative Festival brought nearly 500 visitors from
outside the area. The International Society of Bassists Convention drew
the most visitors in 2013 with 1,300 attendees, many from outside of the
country.
In 2013, attendance for the Rochester International Jazz Festival (RIJF)
grew to 195,000, an increase of 7% from 2011. Of those visitors, 13,000
were for headline concerts at the Kodak Hall at Eastman Theatre and
9,000 attended Kilbourn Hall performances. RIJF is one of the top
attractions of the year in the whole of the Rochester region, and event
organizers estimate that 28% of all the visitors come from outside of the
area. The more than 1,200 musicians that come from out of town to
perform during the week of the festival also add to the economic and
cultural impact of the event.
Strong Visitors
Many visitors to patients of Strong Memorial Hospital come from out of
the area. The Strong Guest Hotel Services processed 5,863 guest
reservations for a total 13,601 hotel nights during 2013, a slight increase
from 2011. Strong Guest Services estimates that well over half of the hotel
20

rooms were paid by individual guests, with the remainder paid for by the
hospital and URMC departments.
Academics and the Arts
The faculty and world class research conducted at UR draws many visitors
for academic conferences. The Laser Lab (LLE) attracted 570 researchers
to use the facility, many of which came from abroad. These researchers
typically stay in local hotels for 4 days to perform their research. The
Medical Center also brought in over 3,300 out of town visitors for various
conferences and teaching series, accounting for about 625 hotel nights,
while the School of Nursing had 10 scholars from out of town visit in
2013.
The Memorial Art Gallery (MAG) had just over 47,500 visitors to their
exhibits during 2013, down 4% from 2011. More than 175,000 people
came to MAG for school tours, creative workshops, weddings, corporate
events, visits to the gift shop and restaurant, and the annual Clothesline
Festival. The Clothesline Festival drew 428 exhibiting artists, about half of
them from outside the Rochester region.
Visitor Activity Impact
CGR estimates that the influx of spending generated by visitors attending
all of these events and activities resulted in approximately 200 jobs and
over $4.5 million of labor income in the Rochester metro economy.
Visitor Activity Impact
Direct Spillover Total
Employment (thousands of jobs) 0.1 0.1 0.2
Labor Income (millions of dollars) 2.8 1.9 4.7
Students Spending
Students generally do not have significant buying power during their on-
campus experiences. However, the sheer volume of students means they
do contribute to the economic activity of the Rochester metro in a variety
of ways. During the 2013 spring semester, UR:
 Enrolled 8,675 full-time undergraduate and graduate students;
 Provided housing to 5,012 undergraduate and graduate students; and
 Provided meal plans to 5,363 undergraduate and graduate students.
Many students continue classes during the summer. During the summer of
2013, UR:
 Enrolled 3,187 full-time undergraduate and graduate students; and
 Provided housing to 1,633 undergraduate and graduate students.
21

During the 2013 fall semester, UR:
 Enrolled 9,308 full-time undergraduate and graduate students;
 Provided housing to 5,201 undergraduate and graduate students; and
 Provided meal plans to 5,415 undergraduate and graduate students.
Based on these numbers, it is reasonable to assume that during the 2013
calendar year more than 9,300 students either:
 Ate off-campus on a semi-regular basis—spending their money locally
to eat in restaurants or shopping at grocery stores; and/or
 Lived off-campus, investing their living expenses in the Rochester
economy.
Student Spending Impact
CGR estimates that the spending by the students supports in total about
1,100 jobs in the regional economy as summarized in the table below.
Student Spending Impact
Direct Spillover Total
Employment (thousands of jobs) 0.8 0.3 1.1
Labor Income (millions of dollars) 25.3 14.6 39.9
Fiscal Impact Summary
CGR’s estimates of the fiscal impact of University of Rochester and its
affiliates show that the UR helps to generate:
 More than $108 million in sales tax, personal income tax, and local
property taxes to the Rochester metro and NYS when considering the
traded sector only.
University of Rochester Impact on New York State:
Traded Sector Only
Millions of Dollars Direct Spillover Total
NYS and Local Sales Tax $26.5 $17.7 $44.2
NYS Personal Income Tax $45.3 $16.9 $62.3
Local Property Tax paid by UR $1.8 N/A $1.8
Total $73.6 $34.6 $108.3
The labor income of the local and traded sector combined helps to
generate:
22

 About $158 million in sales tax, personal income tax, and local property
taxes to the Rochester metro and NYS.
University of Rochester Impact on New York State:
Local and Traded Sector Combined
Millions of Dollars Direct Spillover Total
NYS and Local Sales Tax $39.7 $26.2 $65.9
NYS Personal Income Tax $62.9 $25.1 $88.0
Local Property Tax paid by UR $3.9 N/A $3.9
Total $106.5 $51.4 $157.8

23

OTHER BENEFITS TO THE REGION
The diversity of the Rochester region is due in part to the vibrancy created
by our cultural and educational institutions. Attracting world class faculty
and producing cutting edge research draws dollars to the region, which
spurs infrastructure improvements, and enhances the quality of life for
many people in the immediate vicinity of the campus and around the area.
The quality of life enhancements are not always easily quantified, but they
are none-the-less catalysts for a healthy and engaged community. The
following sections highlight some of the many ways the Rochester region
is benefitting from the UR that go beyond the basic definition of economic
and fiscal impact.
Research Funding
While the University’s employment and spending are a critical foundation
of the region’s economy, the catalytic impact of the institution’s research
enterprise cannot be overstated. Research activities – both basic science
and clinical research – are an integral part of University of Rochester. UR
medical research has resulted in improved health care for our community
by bringing advances in health care technology to the practice of medicine
in physician offices and hospitals. Whether it’s medical research, the
research at the LLE facilities, the super computing power of the HSCCI
initiative (and now the new IDS) or the many other ongoing research
activities across UR’s campus, the advances are impressive and help to
create intellectual capacity in the Rochester region. UR’s growing
reputation as a leading health care research university is attracting talent
and research dollars from all over the globe and has contributed to
stemming disease through vaccinations and other treatments the world
over.
Grant Activity
UR has received nearly $2 billion in external funding (federal and non-
federal agencies) over the last five years. Total awards to the University of
Rochester averaged $407 million per year (in constant 2013 dollars) from
FY2009 to FY2013. This represents no real change from the average
computed in the 2011 study though 2013 saw more grant dollars than 2012
and reversed a two-year slide in declining grant funding. The Federal
Government sponsors about 79% of UR’s research.
24


Patents, Royalties, and Start-Ups
More patents were issued, and the total invention disclosures were up from
previous reports. Royalty revenue was down slightly from 2011 figures,
but the revenue per million of research funding remains high. The
tremendous value of these innovative concepts is in their potential to be
commercialized for economic development purposes.
Patents Issued
Until 2012, the number of foreign patents had been trending down while
the number of domestic patents was trending slightly up. 2013 reversed
the decline in foreign patents resulting in increases in both foreign and
domestic patents. Since the previous study (2011) the UR increased their
total number of patents issued by 14%.

$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
FY
2005
FY
2006
FY
2007
FY
2008
FY
2009
FY
2010
FY
2011
FY
2012
FY
2013
External Funding Received (thousands of dollars)
Source: UR Office of Research and Project Administration Annual Report
0
10
20
30
40
50
60
70
80
90
FY
2005
FY
2006
FY
2007
FY
2008
FY
2009
FY
2010
FY
2011
FY
2012
FY
2013
Total Number of Patents Issued
United States Foreign Total
Source: UR Office of Technology Transfer
25

Invention Disclosures
The total invention disclosures have remained somewhat steady over the
nine years that we have data, averaging around 138 per year. Since 2011,
however, invention disclosures have increased by 9%. This increase is
driven by the URMC, which accounts for 92% of the change. Overall,
URMC is responsible for approximately 70% of the invention disclosures.
Invention Disclosures
FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
LLE 2 2 5 7 3 2 0 2 1
Engineering 32 29 30 26 35 27 35 28 30
Arts and Sciences 9 8 7 6 4 7 7 8 12
URMC 92 101 107 109 106 87 86 94 97
Total 135 140 149 148 148 123 128 132 140
Royalty Revenue
According to the 2012 Association of University Technology Managers
(AUTM) Annual Report, 161 U.S. universities and 33 other research
institutions reported a total of $63.7 billion in research expenditures, with
a total of $2.6 billion in licensing revenue. These data imply that, on
average, each institution receives approximately $40,800 in royalty
revenue per $1 million in extramural funding (0.04).
Consistent with the latest 2012 AUTM report, CGR analyzed the UR’s
2012 research funding data and found that for every one million dollars in
extramural funding, an average of $113,400 in royalty revenue was
generated by UR. At almost three times the national average, the UR is
clearly on the cutting edge in terms of licensing revenue from research
expenditures.
UR royalty revenue has generally been declining from a high of about
$72M in FY 2008. However, according to data from AUTM, the
University of Rochester was ranked fourteenth nationally in 2012 in terms
of licensing revenues suggesting it remains a significant recipient of
licensing revenues relative to its peers.
26


Start-up Companies
University of Rochester’s potential as an economic catalyst for new and
emerging technology is realized when commercial ventures sprout from its
research findings. Because these new companies often remain closely tied
to ongoing research and university-based faculty, many remain in the
region. With proper support and resources, these companies can form the
critical mass necessary to attract outside investment and skilled workers
and make the region a hub for technology research and industry.
From FY2005 through FY2013, there have been a total of 34 start-up
companies formed as a result of research at the University of Rochester,
both the River campus and URMC. Of those 34 companies, 25 are still
operating in the Rochester area. There were no recorded startups in 2013.

$0
$10
$20
$30
$40
$50
$60
$70
$80
FY
2005
FY
2006
FY
2007
FY
2008
FY
2009
FY
2010
FY
2011
FY
2012
FY
2013
Total Royalty Revenue (millions of dollars)
Source: UR Office of Technology Transfer
0
1
2
3
4
5
6
7
8
9
10
FY
2005
FY
2006
FY
2007
FY
2008
FY
2009
FY
2010
FY
2011
FY
2012
FY
2013
Local Start-up Companies - by FY of Formation
Still in Operation as of January 2014 Start-Ups Formed
Source: UR Office of Technology Transfer
27

The Institute for Data Science
IBM estimates the US creates 2.5 quintillion
9
bytes of data each day.
They further estimate that about 90% of the data in the world today has
been created in the last two years alone. This data comes from
everywhere: sensors used to gather climate information, posts to social
media sites, digital pictures and videos, purchase transaction records, and
cell phone GPS signals to name a few. The voluminous amounts of
information give rise to the name “big data”, a moniker for the emerging
field of data science.
Big data has offered some unique challenges and opportunities. From a
technical level, there is a question of storing and processing data, which is
often gathered in an unstructured format. There is also difficulty in
finding people with the skillset to capitalize on the data. McKinsey &
Company estimate by 2018 the United States will experience a shortage of
190,000 skilled data scientists, and 1.5 million managers and analysts
capable of reaping actionable insights from the big data deluge
10
.
However, big data has offered some interesting opportunities to
researchers. The UR has already begun responding to this opportunity. In
2010, the University entered into a partnership with IBM to establish a
supercomputing center known as the Health Sciences Center for
Computational Innovation (HSCCI). It is dedicated to applying high
performance computing solutions to the nation’s health challenges and
hosts an IBM Blue Gene/Q supercomputer. To date, HSCCI has been
awarded $10 million in support from the State of New York.
Building upon the success of the HSCCI, the UR has announced the
signature project of the 2013–2018 university strategic plan is the creation
of a university-wide Institute for Data Science. It will support the
recruitment of 20 new faculty members focused on three research topics:
predictive health analysis, cognitive systems and artificial intelligence, and
analytics on demand. Currently, more than 100 principal investigators
have been awarded a total of $307 million in research funding relying in
part upon high performance computation. The new Institute will also
leverage existing collaborations with companies such as IBM and Xerox
in data science. The Institute for Data Science is expected to influence the
Rochester region via collaborations with local and emerging companies in
the area.



9
2,500,000,000,000,000,000
10
See McKinsey Global Institute’s “Game changers: Five opportunities for US growth
and renewal” online at http://www.mckinsey.com/insights/americas/us_game_changers
28

New York State in its recently enacted budget also has named the Institute
for Data Science a Center of Excellence and provided $872,333 in annual
support.
The proposed Institute for Data Science (IDS) and Center will be housed
in a new, state-of-the-art building located adjacent to Hopeman Hall. The
UR’s expertise in data science is currently dispersed across many different
departments and divisions. While there are collaborations between
individual groups of researchers, there is no umbrella structure that brings
them all together. The distinct advantage of creating this institute is that it
will enable the coalescence of multiple individual centers in data science
that are emerging from domain specific applications and facilitate
enhanced external partnerships.
University of Rochester researchers are currently using big data to model
and predict the spread of infectious diseases; track the popularity of
political ideas; understand consumer preferences; predict the existence of
planets; understand human origins; conserve resources; and tackle issues
that were previously too difficult to address because of the lack of
necessary infrastructure and proper equipment to collect, manage, sort,
and analyze enormous data sets.
Institute for Data Science Impact
As part of the evaluation of the economic impact of the UR, CGR
estimated the impact of the proposed IDS. The potential impacts fall into
several categories, including jobs generated from construction of the new
building to house the primary work of IDS, to ongoing impact from world
class researchers and their staff who will be attracted to the UR (and hence
the region) because of the IDS. In the future, the potential for
commercialization and formation of small incubator entrepreneurial
ventures (i.e. business startups) may spur further impact for the region.
CGR estimates that during the construction phase, approximately 230 jobs
will be required in the region generating over $13 million in labor income
Institute of Data Science Impact
Construction Phase
Direct Spillover Total
Employment 170 60 230
Labor Income (thousands of dollars) 9,370 3,680 13,050
Income Tax (thousands of dollars) 340 140 480
Sales Tax (thousands of dollars) 230 90 320
The IDS is planned to attract about 20 principal investigators at full
implementation in approximately 10 years. These investigators will have
29

support staff which will total about 100 people, spurring an additional 50
jobs within the regional economy.
Institute of Data Science Impact
Operational Phase
Direct Spillover Total
Employment 100 50 150
Labor Income (thousands of dollars) 7,040 2,930 9,960
Income Tax (thousands of dollars) 310 110 420
Sales Tax (thousands of dollars) 170 70 240
Being one of a relatively few research institutions with big data capacity
will position the UR for grants and other cutting edge research
opportunities. The IDS through its research staff will attract new research
investments into the University across many different disciplines. Based
upon current practice and the experience of the HSCCI, CGR estimates
that the IDS could attract over $530 million in new research dollars as the
IDS develops over the first ten years.
The IDS also has catalytic potential to spur new business startups (e.g.
technology spinoff). Big data startups harness the power of computing
potential with contextual expertise. It is reasonable to think, for example,
that a startup could leverage big data and the UR’s expertise in the field of
optics in the Rochester metro to spawn a new company. CGR conducted
interviews with other startups in the marketplace leveraging big data and
used their experience as a proxy for the potential of commercialized
ventures being generated by the IDS. CGR estimates such a startup to
have the following impact in the regional economy:
Institute of Data Science Impact
Startup
Direct Spillover Total
Employment 40 40 80
Labor Income (thousands of dollars) 3,540 1,850 5,390
Income Tax (thousands of dollars) 160 60 220
Sales Tax (thousands of dollars) 90 40 130
It is difficult to estimate the number of spinoff companies that could be
started, but the potential is significant for the region if those new
companies locate in the area. If they locate in other areas, Rochester may
still benefit from the association the new companies will have with the UR
creating the potential to lure new research dollars, faculty, and students to
the UR and the region.
30

Community Investment in the Region
The UR enhances our community in many ways that go unnoticed to the
public. Investments in public health, K-12 education, commercial
ventures, and home ownership are just some of the many ways the UR
contributes to the vitality of our community.
Brooks Landing, Riverview, Mortgage Support
The UR’s footprint and influence extends well beyond the immediate
Riverview campus. Across the Genesee River to the west, the Brooks
Landing Project continues to expand and develop as an anchor for a
community that has been in transition for many years. UR students are the
only occupants for the Riverview Housing complex on Genesee Street and
UR is the largest lessee in the Brooks Landing commercial space on the
west side of the river. For several years they have also encouraged home
ownership in Sectors 4 and 6 by contributing incentive grants to staff that
purchase in the area. The table below summarizes these investments for
2013.
Riverview Student Housing $16.7M Lease
Brooks Landing Leases (Office and
Conference)
$2.3M Lease
Mortgage Support in Sector 4 and 6:
Supported 280 mortgages; 51 in 2013
$840K

Admissions Support for City School Students
The struggle of city school children in the Rochester community to
graduate high school and attend college is a well-documented fact.
Through several different outreach efforts, the UR encourages students in
the Rochester City School District by offering incentive scholarships to
attend the UR. The scholarships are based upon participation in city
schools (including private and charter) and offer up to a full tuition
scholarship to attend the UR upon completion of high school. Nearly $1.8
million annually is set aside for these initiatives.
Rochester Promise and Wilson
Scholarships plus additional financial aid for
Rochester City School Students
$1.54M
annually
Additional aid for City students in non-public
schools (charter, private)
$200K
Outreach programs for City School
students
$83K
31

Hospital Contributions to the Community
The full value of the URMC/URM goes beyond just providing the highest
quality care to its patients - it includes improving access to health care
services, educating the next generation of providers and strengthening the
social and economic health of the community. Through the
URMC/URM’s community outreach programs, which take on greater
importance in an era of health care reform and economic hardship, the
URMC/URM is targeting the high-risk Medicaid population to improve
prevention and management of chronic disease, reduce costs, eliminate
health disparities and improve outcomes.

According to the IRS, the URMC/URM provides over $525 million
11
in
community benefits and services. These include discounted and
unreimbursed health care and services to our most vulnerable populations
through Strong and Highland Hospitals, partnerships with Monroe County,
the faith community, and other partners to eliminate racial disparities in
immunization rates, lead poisoning research and abatement in inner-city
housing, operating and supporting school-based health clinics including
one at East High School that provides a full range of primary care and
behavioral health services, providing dental services to inner-city and rural
youth through the Eastman Institute of Oral Health’s Smile Mobile and
dental outreach clinics, tobacco cessation programs, to just name a
few. The URMC/URM also supports numerous free health care clinics,
vaccinations, breast cancer screenings, and physicals ever year. While
many of these efforts go unnoticed, the investment is substantial, unique to
this community, and represents one more way that the UR enhances the
life of our community.
UR Footprint
The UR footprint extends well beyond the immediate River Campus to
numerous locations around the region. In total, the UR leases 1.4 million
square feet of space which involves over $178 million in annual lease
payments. Theses impacts are captured through the earlier purchasing
section of this report.



11
Some of this money is research dollars that have been previously reported in the
section on “Grant Activity at UR”.
32

CONCLUSION
The UR states in its strategic plan its commitment to the Rochester ideal:
that great research is inextricably linked to great teaching and community
service. CGR has documented the UR’s economic impact toward this ideal
in the Rochester metro. The UR is not only the region’s largest employer
and largest economic engine; it is also a catalyst and growing influence for
the economic development and vitality of the region. Development
projects such as College Town on Mount Hope are inspiring several other
projects including investments by the City of Rochester, inviting new
retail, and encouraging revitalization efforts throughout the immediate
neighborhood.
This sort of investment is not unique. The redesigns of the Memorial Art
Gallery and Art Walk in recent years have spurred investment and
revitalization efforts in those neighborhoods as well. And the footprint has
grown outside of Rochester with the affiliation of Thompson Health in
Canandaigua and the acquisition of the former Lakeside Health in
Brockport. The opportunities for the UR to influence investment and the
community’s economic health are quite possibly only second to its
growing recognition as an elite research institution with the ability to
influence macro and micro level health initiatives around the country and
across the globe.
The UR will face competition in the markets it is entering in the field of
big data. However, being on the cutting edge will give the institution an
early mover competitive advantage as research dollars are allocated and
the field continues to grow. The University’s record of leveraging research
dollars into royalties and commercializing new technology position it well
to also spur entrepreneurial ventures in the region.
The 2013-2018 UR strategic plan confidently declares that, “United States
research universities today are among this nation’s greatest comparative
advantages – centers of innovation, creativity, and training of new
generations of leaders, professionals, artists, and scholars.” The
comparative advantage of the UR extends to its economic impact in the
Rochester region.

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