Virginia Tech, the commonwealth's top research institution and its largest university, is a land-grant institution with a tripartite mission of public service, research, and instruction. As such, it is committed to improving the economic well-being and quality of life of all Virginians. The university's educational, research, and outreach programs increase the productivity and competitiveness of individuals, firms, and institutions (including governmental agencies) throughout the state.
Virginia Tech, however, by its very existence in the New River Valley of Southwestern Virginia, plays a major role in fueling the regional economy in many ways. The university and its related organizations manage more than $1 billion in assets and employ 8,500 people. In turn, the expenditures of Virginia Tech and those of its employees, students, visitors, and related organizations have a multiplier effect that creates additional levels of economic activity.
The largest economic effect occurs in Montgomery County, but the activities spill over into the surrounding region. The total economic contribution ultimately translates into more jobs, additional income and tax revenues, greater diversity in retail shopping and services, and generally increases the quality of life in the region.
In 1992, an economic impact study estimated that about $765 million of the economic activity in Montgomery and surrounding counties occurred because of the presence of Virginia Tech. This study updates the previous results for fiscal year 1999.
The study's main objective is to estimate the annual short-run economic impact of the university on the surrounding area. This impact is derived by considering the effects of expenditures that would not occur if the university did not exist.
The economic impact of Virginia Tech provides just one measure of the many interactions between the university and the surrounding community. While this economic activity is quite substantial and beneficial to the study areas, it is important to note that the residents of Montgomery County and the New River/Roanoke Valley (NRRV) benefit from Virginia Tech's presence in other ways as well. The existence of a large university, particularly in rural areas, provides numerous cultural, academic and recreational benefits to local residents, such as increased diversity, sporting events, cultural presentations, and academic opportunities.