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Economic contribution of projects leveraged with AURI assistance: fiscal years 2011-2017

Key findings

  • Businesses receiving AURI assistance generated a total estimated $141.8 million in economic activity during FY2011 to 2017. They also supported 935 jobs and an estimated $26.3 million in labor income. The highest indirect and induced effects were in the wholesale trade, crop farming, and professional and scientific services industries.
  • Businesses reported plans to create and retain 606 jobs in the next five years. Businesses that received AURI assistance will generate a total estimated potential of $157.8 million in economic activity. This includes 966 jobs and $28.2 million in labor income.
  • Businesses receiving AURI support between FY 2011 and 2017 invested $89.9 million in capital improvements as a direct result of that assistance. In total, capital investments by these businesses created an estimated $168.8 million in economic activity, including support for 1,010 jobs and $68.0 million in labor income.
  • Businesses planned on capital investments of $139.3 million in the next five years. In total, an estimated 1,570 jobs and $261.5 million in economic activity will be created due to AURI’s assistance.

About this report

According to the Agricultural Utilization Research Institute (AURI), the organization works “with individual entrepreneurs, businesses, cooperatives, commodity groups and farm organizations that have ideas for new uses to benefit Minnesota agriculture.”

To meet this goal, AURI conducts several programs, one of which provides hands-on scientific assistance for businesses to develop new products and technologies. These products and technologies, in turn, generate revenues and create jobs within the businesses. Often, businesses served by AURI also make capital investments to commercialize their new product or technology. The revenues, expenditures, and jobs created have an impact on Minnesota’s economy.

AURI hired University of Minnesota Extension to quantify the impact of its hands-on assistance area. An economic contribution study measured the direct effect of AURI’s business assistance (operating revenues, capital expenditures, and jobs). After conducting a client survey, AURI provided all required data to Extension. Survey respondents represented 50 percent of all client-based projects in AURI’s portfolio and 66 percent of total project hours delivered in the program area. Extension then used an input-output model (IMPLAN) to measure the total effect on the state of Minnesota.

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Author: Brigid Tuck, Extension, senior economic impact analyst

Reviewed in 2018

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