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The Economic Impact of the ÒùÂÒÉ«ÇéƬ

Economic Impact

An Economic Impact report was commissioned by the ÒùÂÒÉ«ÇéƬ and undertaken by Oxford Economics. The report provides a breakdown of the economic impact generated by the university in the academic year 2020/21 across a number of geographic regions and sub-regions.

Among its key findings are that the University supported:

  • £1,561.4³¾ of output, nationally, amounting to £899.8³¾ in GVA, and 15,540 jobs
  • £951.4³¾ of output for the Heart of the South West Local Enterprise Partnership area, with £582.5³¾ GVA, and 12,300 jobs
  • £915³¾ of output for the county of Devon, equating to £563.4 GVA, and 11,920 jobs
  • £816.3³¾ of output for the city of Exeter, totalling £509.4³¾ GVA and 9,750 jobs – equivalent to 9% of the city’s total, making it the second largest employer in the city.
  • £125³¾ of output for Cornwall and the Isles of Scilly, with £73.5³¾ GVA and 1,900 jobs.
Lisa Roberts

Universities play a vital role in UK society – as places of learning and social mobility, anchor institutions for local communities, and catalysts for innovation, research and development that help our business thrive and grow. This report quantifies the contribution that the ÒùÂÒÉ«ÇéƬ makes to the UK economy and the economies of the region and reaffirms the important role we have to play in supporting jobs and economic prosperity in the South West.

Professor Lisa Roberts, The Vice-Chancellor and Chief Executive

Overall impact of the University by location

The University has campuses in both Devon and Cornwall, in Exeter, Penryn and Truro. The study included detailed modelled analysis of the distribution of university impact across the two Local Enterprise Partnerships (LEPS) covering Devon and Cornwall – the Heart of the South West LEP and the Cornwall & Isles of Scilly LEP – as well as the impact on the city of Exeter, the county of Devon and on the UK as a whole.

The university supported economic output of almost £1.6 billion in 2020/21. The gross value-added contribution supported from the university’s core activities totalled £899.8³¾ and supported some 15,540 jobs. This contribution comprised:

  • The university’s day-to-day operations and spending with suppliers and on wages (£796.7m; 13,980 jobs)
  • the spending of its students (£101.7³¾; 1,540 jobs)
  • and the spending of their visitors (£1.3m; 20 jobs).

The university’s economic impact goes far beyond its core economic contribution. More than 9,650 students graduated from Exeter in 2020/21, enhancing the talent pool of skilled workers available to local employers, and the rest of the UK. Oxford Economics estimates that the university contributed £970³¾ to UK labour force productivity as a result of increased earnings potential accrued by its undergraduate students in 2020/21.

The university regularly produces world-leading and internationally recognised research. In 2020/21, it received £94.6³¾ in research funding and generated 6,070 research outputs. Total research funding has increased by 37% (after adjusting for inflation) since 2013/14.

Businesses are able to take advantage of the university’s research capability through collaboration and access to specialist equipment and academic staff. Between 2016/17 and 2020/21, the university undertook £604³¾ of R&D across its campuses. Oxford Economics estimates this R&D will produce £260³¾ of yearly benefits from 2030, once the benefits of R&D are dispersed amongst the wider economy. In other words, for every £1m that the university spent on R&D between 2016/17 and 2020/21, the UK economy’s long-run productive capabilities will increase by around £430,000 from 2030.

The economic impact of international students

The university was home to 6,800 international students from more than 130 countries in 2020/21. Some 25% of international students come to study at the university from European countries (EU), and the remaining 75% from the rest of the world. International students at the university make a sizeable economic contribution to the economy.Bypaying tuition fees, spending money throughout the local economies, and attracting visiting friends and family to the local areas, international students supported a £267.5³¾ gross value-added contribution and 4,670 jobs across the UK.

Download the Economic impact of the ÒùÂÒÉ«ÇéƬ in the UK report (.pdf

The university’s expenditure activities, the spending of students attracted to the area, and their visitors contributed £816.3³¾ of output in the city, in turn supporting a £509.4³¾ gross value added contribution to Exeter’s GDP and 9,750 jobs. This is equal to 9% of both Exeter’s GDP and of all its employment.

This overall impact comprised:

  • £359³¾ in GVA and 6,870 jobs supported by the university’s day-to-day operations and spending with suppliers and on wages
  • A further £148.8³¾ in GVA and 2,810 jobs through the spending of the university’s students
  • £1.6³¾ and 720 jobs supported by their visitors

The economic impact of Exeter’s campuses to the city

  • In 2020/21, the university generated £455.3³¾ of income within Exeter, including revenue from tuition fees, research grants, and endowments
  • The direct gross value added generated from this output was equal to £307.8³¾
  • The university directly employed 5,630 people in Exeter, equivalent to 5% of the city’s total employment
  • The university’s Exeter campuses spent almost £124³¾ on operational goods and services and £29.4³¾ into long-term capital projects on the Exeter campuses.
  • In 2021, the University spent around £22³¾ with 330 suppliers based in the city. This operational expenditure contributed £12.1³¾ to local GVA and supported 330 jobs

Download the Economic impact of the ÒùÂÒÉ«ÇéƬ in Exeter (.pdf)

The university contributed a total impact of £915.0³¾ of output within Devon (including Exeter) in 2020/21. This activity supported almost £563.4³¾ gross value-added contribution to Devon’s GDP, as well as 11,920 jobs. This was equivalent to 2% of Devon’s GDP and 3% of its total employment.

This overall impact comprised:

  • day-to-day operations and spending with suppliers and on wages amounting to £399.8m GVA and 8,220 jobs
  • the impact of student expenditure amounting to £162m GVA and 3,620 jobs
  • the impact of their visitors amounting to £1.6³¾ GVA and 80 jobs

The economic impact of Exeter’s campuses to Devon

  • In 2020/21, the university generated £455.3³¾ of income, including revenue from tuition fees, research grants, and endowments withinDevon.  On these earnings, the Exeter campuses made a £307.8 million direct gross value added contribution of £307.8³¾ and supported 5,630 jobs.
  • 3,744 of the University’s employees live in Devon.
  • The University spent £43.6³¾ with local suppliers and contractors through its operational and capital spending. This contributed £23.3³¾ to Devon’s GVA and supported 670 jobs.
  • The wage-stimulated consumption of the university’s employees, and those employed throughout the university’s supply chain supported £68.7³¾ GVA in Devon and 1,920 local jobs.

Download the Economic impact of the ÒùÂÒÉ«ÇéƬ in the County of Devon

With its campuses in Truro and Penryn, the university supported £125³¾ in output and 1,900 jobs across Cornwall & the Isles of Scilly during 2020/21. The institution made an overall contribution to GVA of £73.5³¾ – equivalent to almost half a percent of the LEP area’s total GVA.

This overall impact comprised:

  • day-to-day operations and spending with suppliers and on wages amounting to £47.2³¾ and 1,370 jobs
  • the impact of student expenditure amounting to the impact of student expenditure amounting to £26.1³¾ and 520 jobs
  • the spending of visitors £0.2 million and 10 jobs

The economic impact of Exeter’s Cornwall campuses

  • In 2020/21, the university generated £46.3³¾ of income, including revenue from tuition fees, research grants, and endowments within Cornwall & the Isles of Scilly
  • The direct gross value added generated from this output was equal to £26.6³¾
  • The university employed 671 people on the Cornwall campuses
  • The Cornwall campuses spent £17.9³¾ on operational goods and services with suppliers across the UK
  • 913 of the University’s employees live in Cornwall & the Isles of Scilly
  • The University spent £12.1³¾ on operational goods and services with almost 320 suppliers in Cornwall & the Isles of Scilly
  • The university spent £1.2³¾ on capital expenditure with firms located in Cornwall & the Isles of Scilly
  • The University’s spending with local suppliers and contractor contributed £9.5³¾ to local GVA and supported 400 jobs

International students at the university make a sizeable economic contribution to the LEP’s economy. Bypaying tuition fees, spending money throughout the local economies, and attracting visiting friends and family to the local areas, international students supported a £13.1³¾ gross value-added contribution and 440 jobs to Cornwall & the Isles of Scilly economy in 2020/21.

The university regularly produces world-leading and internationally recognised research. Staff based at the university’s Cornwall campuses generated 18% (£17³¾) of the university’s total research funding during 2020/21 and created 16% (946) of its research outputs.

Download the Economic impact of the ÒùÂÒÉ«ÇéƬ in Cornwall and the Is

In the Heart of the South West LEP, which includes Devon, Plymouth, Torbay and Somerset, the total output supported by the university in 2020/21 was equal to £951.4³¾, which translated to £582.5³¾ gross value-added contribution to the LEP, as well as 12,300 jobs.

This overall impact comprised:

  • spending with suppliers and on wages amounting to £409.9³¾ and 8,480 jobs
  • the impact of student expenditure amounting to £171.0³¾ and 3,740 jobs and their visitors (£1.6 million, 80 jobs) The total GVA contribution is equal to 1.5% of the LEP’s GDP

The economic impact of Exeter’s campuses to the Heart of the South West LEP area

  • In 2020/21, the university generated £455.2³¾ of income with the LEP area, including revenue from tuition fees, research grants, and endowments
  • The total expenditure impact on gross value added generated from this output was equal to £409.9³¾
  • The university directly employed 5,630 people at its Exeter campuses, equivalent to 5% of the LEP’s total
  • 4,011 of the university’s employees live in the Heart of the South West LEP area
  • The university spent £47.7³¾ with local suppliers and contractors, which contributed £26.9³¾ to Heart of the South West GVA and supported 780 jobs
  • The wage-stimulated consumption of the university’s employees, and those employed throughout the university’s supply chain supported £75.2³¾ GVA in the Heart of the South West and 2,070 local jobs
  • Through tuition fees, spending money throughout the local economies, and attracting visiting friends and family to the local areas, international students supported a £134.3³¾ gross value-added contribution and 3,630 jobs to the LEP area’s economy in 2020/21

Download the Economic impact of the ÒùÂÒÉ«ÇéƬ in Heart of the South