Aug 27, 2024
DIW Econ study confirms TU Dresden’s huge regional economic significance for the Free State of Saxony
A study commissioned by TU Dresden and implemented by DIW Econ GmbH, a subsidiary of the German Institute for Economic Research in Berlin, presents the economic impact of TU Dresden for the Free State of Saxony as a whole and for the region of Dresden. These benefits originate from employment, value creation, tax revenue, patents and transfer. Each euro that the Free State invests in TUD generates double the amount of revenue for Saxony in terms of economic output.
The study analyzed a variety of factors that create added value. These include regional demand effects resulting from TUD's expenditure and investments as well as the demand of its students and employees. They also include regional supply effects resulting from research, teaching and knowledge transfer - including patents. Moreover, they comprise regional network and transfer effects resulting from the unique scientific ecosystem in the DRESDEN-concept research alliance and the technology companies (“Silicon Saxony”).
EUR 1 billion gross value added and 16,000 secure jobs
“Every euro that the Free State of Saxony invests in our university returns EUR 2.06 to the Free State, generating more than double the amount of revenue for Saxony in terms of economic output,” emphasizes Prof. Ursula Staudinger, Rector of TU Dresden. “This way, TUD is making a significant contribution to the prosperity in Saxony and is assuming societal responsibility at the same time.”
The expenditures and demands of TUD students and employees generate around one billion euros in gross value added in Saxony, securing around 16,000 jobs in Saxony, including around 14,000 in the region of Dresden. In addition, TUD is substantially contributing to securing skilled workers by training a current total of around 29,000 students.
Providing a multifaceted range of degree programs and research-oriented teaching, TUD succeeds in winning a particularly large number of young people from the region to study at the university and thus retaining them in the region. The university has proven to be the most popular among prospective students who have acquired their university entrance qualification between 50 and 100 kilometers away from Dresden. “No other university in Germany manages to win more students from their immediate surroundings,” says Prof. Staudinger, “we are making a major contribution to preventing brain drain.”
Appealing degree programs keep young people in the region and secure skilled workers
“By making highly qualified skilled workers available, we create growth effects that lead to a gross domestic product in Saxony that is around EUR 1.5 billion higher,” Andreas Pinkwart, Professor of Economics and Director of the TUD Excellence Center for Innovation, Transfer and Entrepreneurship (TUD|excite), explains another key result of the study. This includes the human capital impact of almost one billion euros generated by skilled professionals trained at TUD in Saxony.
Innovative strength through patents and spin-offs
Added to this are the effects of around 500 million euros that result from TUD-initiated innovations for the Saxon economy. “Between 2000 and 2022, a total of 1,683 patents were registered - more than at any other university in Germany - and 301 companies were founded,” Prof. Pinkwart points out. “92 percent are based in Dresden and contribute to added value.”
According to the latest DFG Funding Atlas (2021), TUD is one of the most successful universities in Germany in acquiring third-party funding. Since the publication of the first Funding Atlas in 1997 until the publication of the current Funding Atlas in 2021, TUD has improved from 35th position to 5th position. With over 8,000 employees, TUD is also the largest employer in Dresden and recruits highly qualified staff from all over the world.
In terms of research funding awarded competitively at EU and national level, Dresden is the third largest research hub in Germany after Berlin and Munich. The science hub boasts a unique scientific environment with around 24,000 employees in the DRESDEN-concept research alliance, having the highest density of scientific personnel in Germany in relation to its population.
Structural change in Lusatia thanks to cutting edge research at TUD
With its top-level research projects, TUD is helping to shape structural change in Lusatia, assuming responsibility for the positive development of this region. These include three projects in particular as part of the TUD | Lusatia Campus: The project leadership for the German Center for Astrophysics (DZA), the significant participation in the development of the “CircEcon” research center in the Schwarze Pumpe Industrial Park (together with TU Bergakademie Freiberg and TU Chemnitz) and the implementation of the large-scale research project “Smart Mobility Lab” in Hoyerswerda.
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