Texas A&M University Contributes More Than $22 Billion To Texas Economy

As Texas leads the nation in jobs over the past 12 months, Texas A&M University’s statewide economic impact broke $22.3 billion, according to a recent analysis of data from Fiscal Year 2022-2023.
The new figure encompasses spending by the university on operations, construction, research and entrepreneurial activities, along with spending by current Texas A&M students, visitors and former students. The combined spending in Texas reflects a value equal to about 1% of the state’s total gross state product or GSP, supporting a total of 254,222 jobs. That means one out of every 81 jobs in Texas is supported by the activities of Texas A&M and its current and former students.
“At Texas A&M, we stand for impact. Over the past 10 years, Texas A&M has grown at a rate double that of the average of all other public universities in the state, working to keep pace with the state’s rapidly growing population and workforce needs,” said General (Ret.) Mark A. Welsh III, president of Texas A&M University. “A $22 billion impact, as we work hard to send not just great Aggies, but great citizens into the workforce, isn’t just good bull, it’s also a good return on the state’s investment.”
The university’s ongoing commitment to scientific discovery and fostering innovation and entrepreneurship is reflected in two of its largest areas of economic impact. Research spending alone accounted for $1.2 billion in added income for the state’s economy, while start-up and spin-off companies created as a result of the university’s activities generated $5 billion. The university’s engineering research expenditures alone lead the nation, out-performing all other engineering schools, according U.S. News and World Report. Texas A&M was the first university in the state to break over $1 billion in research expenditures in 2020 and continues to lead the state.
Texas A&M University has over 540,000 former students across the world. The largest area of impact stems from this extensive network of former students, hundreds of thousands of whom participate in the Texas workforce. These Aggies generated an estimated $14.6 billion in added income during FY 2022-23.
Building Prosperous Communities
Also of note is the university’s strong impact in key regions where it operates, including the flagship Texas A&M University campus in the Brazos Valley and its branch campus in Galveston.
For the Brazos Valley in FY 2022-23, Texas A&M’s economic impact reached a grand total of $3.5 billion, including nearly $1 billion related to operations at the College Station campus. The activities of Texas A&M and its students in this region — which consists of Brazos, Burleson, Grimes, Leon, Madison, Robertson and Washington counties — account for 18.2% of gross regional product while supporting one out of every four jobs in the region. Visitors drawn to the Brazos Valley by sporting events and other university activities contributed $342 million to the regional economy, while current Texas A&M students contributed an additional $399 million.
In Galveston County, Texas A&M and its students contributed an estimated $81 million to the local economy, including roughly $34 million tied to operations and $11 million tied to research by Texas A&M University at Galveston. The university’s impact in the region accounts for 0.4% of gross regional product and supports 1,290 jobs, while new academic programs prepare students to make major economic contributions to the state and nation through participation in the growing blue economy.
Meanwhile, the Texas A&M Health Science Center — which encompasses five academic colleges and schools, six outpatient clinics, four major initiatives, and 29 affiliated centers and institutes — was responsible for a total contribution of $1.7 billion to the statewide economy. Income generated by start-up or spin-off companies and HSC former students employed in state’s health care sector account for the largest areas of impact, at $462 million and $875 million, respectively.
The current and past economic impact reports are available online.
About The Data
The analysis was conducted by Lightcast on behalf of Texas A&M University. Data and assumptions used in the study are based on several sources, including the FY 2022-23 academic and financial reports from Texas A&M, industry and employment data from the U.S. Bureau of Labor Statistics and U.S. Census Bureau, outputs of Lightcast’s Multi-Regional Social Accounting Matrix model, and a variety of studies and surveys relating education to social behavior. Lightcast’s methodology for this study adheres to the Association of American Universities (AAU) and the Association of Public and Land-grant Universities (APLU) guidelines. The study applies a conservative methodology and follows standard practice using only the most recognized indicators of economic impact and investment effectiveness.
Media contact: Megan Lacy, [email protected]