The University as Economic Powerhouse

The UW drives private-sector growth, expands the state’s tax base, and delivers measurable returns on public investment. Althea Dotzour

UW–Madison’s core mission has long held that the work of the university should benefit the entire state. A newly released study now quantifies that commitment, estimating that the university, its affiliated organizations, and the start-up companies it generates contribute $38.9 billion annually to Wisconsin’s economy.

With more than 287,000 jobs supported statewide, the broader UW–Madison enterprise ranks among Wisconsin’s largest employers. The study, conducted by Tripp Umbach, finds that one in every 11 jobs in the state is sustained by the university, placing it alongside major industries such as dairy, food processing, and tourism as a key economic driver.

UW–Madison, together with its affiliates and business spin-offs, generates $1.94 billion in state and local taxes collected each year, accounting for one out of every $12.30 in the Wisconsin economy. The study also underscores the return on public investment: UW–Madison generates $21.66 in economic activity for every dollar invested.

The university’s research enterprise has long been nationally recognized, and at home that impact is even more notable. UW research generates $3 billion in statewide economic activity and has spurred more than 400 companies that have translated ideas into real-world products. These start-up companies launched from UW–Madison research support 88,571 jobs, strengthening some of Wisconsin’s fastest-growing industries, including biotechnology, health care, advanced manufacturing, and energy.

“UW–Madison doesn’t just do research,” says Maggie Brickerman ’08, president of the Wisconsin Technology Council. “It generates new companies that fuel the state’s innovation economy. The discoveries made on campus feed a pipeline of start-ups that create jobs, import capital, build new industries, and move Wisconsin’s core sectors forward.”

Beyond its economic impact, UW–Madison provides major statewide community benefits through volunteerism, philanthropy, and public service driven by faculty, staff, and students. In fiscal year 2025, these efforts generated $156 million in impact, including $38.9 million in donations and $117.1 million in volunteer time.

From workforce development to community service, the findings illustrate the role of UW–Madison as a major statewide economic engine that drives private-sector growth, expands the state’s tax base, and delivers measurable returns on public investment throughout Wisconsin.

Published in the Fall 2026 issue