an engine for economic development - Purdue University

an engine for
economic development
H o w P u r d u e U n i v e r s i t y
I s B r i n g i n g i n n o v a t i o n t o
t h e I n d i a n a e c o n o m y

A
great university carries out its missions in many ways. First and foremost, it educates
people in order to prepare them for productive lives and successful careers. It
gives gifted researchers the tools and support they need to discover new knowledge
in order to understand our world, solve important problems, and create new opportunities.
It also finds ways to extend the benefits of its learning and discovery resources to the
people of its community, state, and nation.
play significant roles in Indiana’s economy.
A great land-grant university places a heavy emphasis on this
third mission. At Purdue, we believe our university belongs to the
people of Indiana and that it exists to make their lives and their
futures better. One of the ways Purdue serves its state and community
is by having a positive economic impact.
Much of the University’s economic impact comes about
through programs designed for that purpose. Supporting small
businesses through the Technical Assistance Program, nurturing
new enterprises in the incubators at the Purdue Research Park,
and encouraging graduates to seek employment in Indiana are just
three examples of these programs. There are hundreds of others.
The University also has an enormous positive economic impact,
because it is a very large and successful enterprise that brings money
into the state and then spends it. Purdue’s payroll, its purchases,
its construction enterprises, and the spending of its students all
This publication will give you an idea of how Purdue works to maximize its economic
benefits and to help the businesses and people of Indiana build better lives.
We believe we will become a better university as Indiana becomes a more prosperous
state, and we are working hard to make Purdue the best economic partner it can be.
Martin C. Jischke
President

As an educator, employer, researcher, mentor,
and citizen of Indiana, Purdue is hard at work securing
the state’s future. The University’s faculty and innovative
programs are educating the highly skilled workers of
tomorrow and encouraging them to stay in
Indiana. Purdue researchers are teaming with
business to make both the act of discovery and
its products stronger than ever. Purdue has
more than 17,500 employees statewide, along
with institutional and student spending that
Birck Nanotechnology Center
either directly or indirectly generates more than 44,000 jobs
and over $1.4 billion in income for a total economic output
of more than $2.9 billion. Purdue is partnering with the
state of Indiana on a quest to achieve preeminence in
the 21st century.

Workforce Development
Creating World-Class Employees
master’s
degrees
With Purdue
degrees, highly
educated men and
women are helping
Indiana maintain a
strong and vibrant
economy.
doctoral and
professional degrees
$ billion
in total earnings
associate and
bachelor’s degrees
Value added:
Purdue alumni in Indiana
earn a total of $7 billion
annually.
When intelligent and talented native sons and daughters leave Indiana in search
of high-paying jobs elsewhere, the state loses out. Purdue is helping to keep
skilled workers at home by creating challenging and attractive opportunities for
employment in Indiana.
Numerous Purdue programs put students into
real-life work situations throughout the state, placing
these promising young people in direct contact with
prospective employers on a regular basis.
Purdue is spreading its message of preeminence
via its main and regional campuses. The University
impacts Indiana in many other ways: through its 92
Cooperative Extension offices, at agricultural research
stations, with manufacturing internship programs, and
through myriad engagement and service programs.
Furthering its reach, the University’s Statewide Technology
Program is accessible at 10 locations throughout
Indiana. Together, these programs combine to
educate a highly skilled workforce that will nurture the
state’s economy and help Indiana grow.
Purdue Plugs “The Brain Drain”
Michele L. Thomas
JPMorgan, Indianapolis
Purdue University
Calumet
Indianapolis
Indiana University-Purdue
University Indianapolis
System-wide Campuses
College of Technology Locations
After earning a bachelor’s degree in management from Purdue’s Krannert School in 1993,
Michele L. Thomas could have taken her career anywhere. But leaving her home state
was never an option.
“Everybody I love is here,” says the Columbus, Indiana, native.
As a vice president for New York-based JPMorgan’s Indianapolis office, Thomas provides
investment management consulting to many of the state’s foundations,
endowments, and not-for-profit organizations.
She is particularly passionate about the Purdue Opportunity Awards
Program, which provides assistance to at least one student from each of
Indiana’s 92 counties who might otherwise not be able to attend Purdue
due to financial and/or family circumstances.
As the first in her family to attend college, Thomas feels a unique
connection to the program.
“I think many people take for granted that first-generation college
students still exist, but that’s certainly the case,” Thomas says. “My family
made a lot of sacrifices for me to attend Purdue, and I want others to have
the same opportunity.”
n
South Bend
Purdue University
North Central
Indiana University-Purdue
University Fort Wayne
Lafayette
Kokomo
West Lafayette
Muncie
Anderson
Columbus
New Albany
Richmond
Greensburg

“Krannert is known as a
techno-MBA school. One of
the imperatives of leading
schools of business today is to
replicate our students’
work environment after
graduation.”
G. Logan Jordan
Associate Dean of Administration
Krannert School of Management
In classrooms and laboratories across campus, Purdue students have access to leading-edge technology.
Classrooms, such as those in Rawls Hall, are wired for the future, enabling training that is essential for
the workforce of the 21st century.
Purdue Plugs “The Brain Drain”
Opportunity Knocks
Indiana ranks among the nation’s lowest in the
retention and employment of its own college
graduates, placing nearly 30 percent below the
national average, according to a 1999 study by
the Indiana Fiscal Policy Institute’s Human Capital
Retention Project.
To counter this “brain drain,” Lilly Endowment
Inc. has given a $3.5 million grant to fund
Purdue’s Opportunity for Indiana Program, which
aims to increase the supply of high-tech career
opportunities in Indiana.
Among the initiative’s goals are to provide
Purdue students with internships at high-tech
Indiana companies; subsidize teams of interns;
sponsor a regional business planning competition;
and support entrepreneurship training workshops.
The program is also designed to foster high-tech
start-up companies throughout the state and to encourage
partnerships among start-up companies.
Bob Cain
Rockwell Automation, Columbus
Purdue graduate Bob Cain is being watched carefully by Indiana’s economic experts.
And they’re bound to like what they see. Cain, who grew up in Peru, Indiana, loves the
Hoosier State. He chose to be educated at Purdue University with the hope of landing a
job with one of this state’s industries. He majored in industrial technology;
took an internship with Caterpillar Inc., in Lafayette; and graduated in
May 1999.
Recruiters from Rockwell Automation recognized Cain’s skills, hired
him to be a sales engineer, and assigned him to work in Oregon and Ohio.
In May 2003, his wish to work closer to home came true when
Rockwell Automation promoted him to manufacturing engineer at its
Columbus, Indiana, plant.
“I couldn’t be happier than I am with the way my career has gone so
far. My wife and I are very happy in Columbus and hope to be Hoosiers for
the rest of our lives,” Cain says.

Innovation
THE WAY RESEARCH DOES BUSINESS
State funds enable
Purdue to excel at
learning, discovery, and
engagement.
Preeminence in those
areas helps the University
Millions of dollars
500
400
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0
attract funding from
State
investment
in Purdue
other sources.
gift
receipts
sponsored
program
awards
•
•
Support
attracted
by Purdue
State money
makes money:
State funding helps attract
support from other sources.
Purdue is on the fast track to discovery, forging innovative ties between research and
business that ensure a sound foundation for the future. Among the leaders in this area
is the Purdue Research Park.
In 2004, Purdue Research Park received the Outstanding Research/Science Park
Achievement Award from the Association of University Research Parks. That same year, the
research park received a TechPoint Mira Award for the professional services it provides to
companies. The Mira Awards recognize companies that have risen to the top of their class
for their performance, innovation, and contributions to technology-related industries.
In 2003, Purdue was recognized for having one of the largest university-affiliated, hightech
business incubation programs in the United States. Approximately 40 new companies
have been launched from Purdue Research Park since it began business development and
incubation services in 1993. Those companies range from information technology to biomedical
engineering to advanced manufacturing technology to software development.
On the other side of campus, a locus of true innovation is under development. Called
Discovery Park and featured as a key element of President Martin C. Jischke’s strategic
plan, this endeavor is positioning Purdue as a world leader in nanotechnology, bioscience,
and other important research fields. It has the potential to create thousands of new jobs for
the Indiana economy.
Quadraspec: Success in the Life Sciences
Thanks to Purdue Research Park’s BusinessMaker Process, which allows the accelerated transfer of the University’s
innovations into the marketplace, life sciences company Quadraspec Inc. has quickly risen to success.
Founded in 2004, Quadraspec is commercializing a new type of medical technology that combines research on protein
interactions with compact disc technology. The resulting “Bio-CD” allows the cost-effective scanning of biological samples for
quick diagnoses.
The company won top prizes in several highly competitive business plan competitions held by Purdue’s Burton D.
Morgan Center for Entrepreneurship in Discovery Park. A strong management team of Purdue alumni, a focused business
plan, and the infrastructure support provided by a Purdue Research Park operating location attracted Indiana 21st Century
Research and Technology Fund monies. Venture capitalists and Indiana-based angel investors quickly jumped onboard.
Earlier this year, Quadraspec and Purdue won a joint MIRA Award for Innovation of the Year from TechPoint, Indiana’s
premiere technology-focused association. This award category recognizes the creation and employment of a technologybased
product that demonstrates a sustainable market.
Phenomenal
research facilities,
such as Bindley
Bioscience Center
(right) in Discovery
Park, will have a
significant impact
on Indiana’s future.

s
Cook Biotech
The fruitful marriage of science and industry is alive and well at Cook Biotech Inc., a company
founded in 1995 that has resided at Purdue Research Park since its inception.
Cook Biotech is one of only a few companies to successfully bring to market products in the
emerging field of tissue engineering. The company has received nine FDA clearances for medical
products currently being used to help patients undergoing wound care, burn management, hernia
repair, urological procedures, general surgery, oral surgery, and vascular surgery. The technology
was discovered by Purdue researchers and is licensed by the Purdue Research Foundation to Cook
Biotech.
The relationship between Cook Biotech and Purdue is not only good for the world of medicine, it’s
also good for the economy. Cook Biotech is so committed to its relationship with Purdue that it has built a
new 55,000-square-foot manufacturing, research, and development facility in the park. The facility means
an increase in high-tech jobs for a company that already boasts 74 employees.
Research and Discovery
Research and discovery at Purdue have generated
millions of dollars for the University and for the
local and state economies.
Sponsored research on the West Lafayette
campus has been growing by leaps and bounds. In
2004-05, the University spent more than $394 million
on sponsored research, an increase of nearly
$60 million over the previous year. Institutional
funds covered 45 percent of that total, while 36
percent was derived from federal support and
19 percent from non-federal sources.
Many of the discoveries made by Purdue
researchers lead to patents that are sold to companies
and developed into products or concepts
for public use. Year in and year out, Purdue leads
the state’s universities in producing patents that
generate millions of dollars worth of revenue for
the University. These patents frequently lead to
jobs that create products, save lives, and improve
the quality of life for all Hoosiers.
Endocyte Inc.
s
Purdue Research Park has spawned many success
stories. Among them is Endocyte Inc., founded in
1996. Endocyte is a Purdue Research Park life sciences
venture developing Purdue University-licensed cancer
detection and treatment technologies.
In 2003, Endocyte attracted $15 million in investments,
by far the largest of all Indiana-based venture
capital deals. In 2004, Endocyte secured another
$22.6 million in venture capital funding and became
the first Indiana life sciences company to benefit from
the Indiana Future Fund. The company’s technologies
are undergoing FDA-regulated human clinical trials.
In 2005, Endocyte became the anchor tenant
for the new wing of the park’s largest incubator, the
Purdue Technology Center.
Phenomenal research facilities promise to have a
tremendous impact on Indiana’s future.
s
Discovery Park
Currently under construction,
this centerpiece of University
research is projected to engage
3,000 students in entrepreneurial
activities; 1,000 faculty
in interdisciplinary research;
draw $35+ million/year in
sponsored research funding;
and $10 million/year in recurring
infrastructure support.
Purdue
Research Park
Indiana’s first certified
technology park, Purdue
Research Park is the largest
such facility in the nation.
It is now home to 135
businesses employing nearly
2,900 people in 40 buildings
on 591 acres in West Lafayette
as of summmer 2006.
s

Reaching Out
CONSULTING SERVICES AND PARTNERSHIPS
Programs like Purdue‘s
Technical Assistance
Program and the
University’s High Tech
Job Fair help make the
state’s knowledge-based
industries competitive.
With its many consulting and engagement services, Purdue is actively involved
in helping Indiana businesses become more efficient and productive.
The University’s Industry Research and Technology Program promotes partnerships
between Purdue and the private sector, and provides access to Purdue’s
broad range of research resources. Programs such as Purdue’s Technical Assistance
Program (TAP) and the Dauch Center for the Management of Manufacturing
Enterprises (DCMME) help place student interns in manufacturing and workplace
situations. These programs provide valuable connections between employers and a
future workforce.
Fueled by Purdue’s preeminence in education, research, engagement, and
discovery, Indiana is poised for a strong future.
With the encouragement and support of Purdue, highly educated men and
women are opting to stay in Indiana and help the state maintain a strong and
vibrant economy.
Technical Assistance Program Nurtures
Indiana Workforce, Companies
Programs like Purdue’s Technical
Assistance Program and the
University’s High-Tech Job Fair help
make the state’s knowledge-based
industries competitive.
Purdue’s Technical Assistance Program (TAP) has created nearly 1,600 Indiana jobs and saved another approximately
2,600 since its inception in 1986.
TAP supports Indiana companies by making a team of faculty, staff, and students available to assist companies
with product development, advanced manufacturing, information technology, and management issues.
TAP has completed more than 6,400 assistance projects to date and works in approximately 450 companies a year.
Its High Tech Job Fair serves hundreds of students each year.
Among the companies TAP has helped is Pratt Corporation of Indianapolis, which makes signs and banners.
Aman Sapra, a graduate student in industrial engineering, worked with the company during a recent summer to
help improve efficiency. Aman and his team assisted Pratt in laying out a new material flow, a move that gave Pratt
additional space to grow its business. As a result, Pratt realized $200,000 in cost savings and should reap greater profits
in the future.
In April 2005, Healthcare TAP was launched. This initiative is a partnership with the Indiana Hospital and Health
Association to assist Indiana’s hospitals in making operational and quality improvements.
300
250
200
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50
0

“Through the program offered
by the Ackerman Center, we
learned new computer skills
that allowed us to enhance
our curriculum and teaching.
As a result, our students have
learned many new computer
tricks, while studying
citizenship and core
democratic principles.”
Ginger Erickson
Third-grade Teacher,
Cole Elementary School, Lafayette
2003 Ackerman Fellow
When Purdue’s College of Education partners with Indiana educators, the future gets brighter. Programs such as
those offered through the James F. Ackerman Center for Democratic Citizenship and offer teachers a chance to
hone their skills and give Indiana’s youngest citizens cutting-edge curricula.
Soybeans
Feed the
Economy
Thanks to the humble soybean, Indiana’s farmland
may be a field of dreams for the state’s economy.
A team of researchers in Purdue’s College of
Agriculture is on a quest to develop and market
soybeans as an alternative to petroleum-based
products that house your hard drive, de-ice your
windshield, and fuel your flights.
This could be a goldmine for Indiana farmers
and the state’s economy. Soybeans can be grown
in abundance on American soil, especially in
Indiana. When one crop is harvested, another can
be planted just a few months later.
The soybean research is supported by a
$1.5 million endowment from the Indiana Soybean
Board, a matching $1.5 million endowment from
Bindley Capital Partners LLC Chairman and CEO
William E. Bindley, and an in-kind donation from
The Solae Company, which is providing patents
and equipment for researchers to produce plant
protein-based laundry detergents.
Purdue Plugs “The Brain Drain”
Jayson Canady
GLOBAL BUSINESS INTEGRATION PROJECT P2P APPLICATION ENGINEER
Valparaiso native Jayson Canady (BS ‘99, accounting) has found the best of all worlds:
as an employee of Eli Lilly and Company, he is based in Indiana. As a member of its
international team, he lives in Puerto Rico.
Canady, who studied accounting and management information systems (MIS) at Purdue’s
Krannert School of Management, sought a job after graduation that would
combine both interests. Eli Lilly and Company provided such an opportunity,
hiring him at its Indianapolis headquarters as a systems analyst on
the Global Business Integration Project Purchase to Pay (P2P) team. In April
2002, Lilly placed him in Puerto Rico as a P2P application engineer.
“I chose to remain in Indiana with one of the nation’s premier business
schools and one of the world’s premier pharmaceutical companies,”
Canady says. “I have been given opportunities that many dream about
and those outside of the state would be envious of.”

Jobs in thousands
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6
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0
Employees on
construction
projects
Total jobs fed
by construction,
support services
Building is
big business:
Purdue construction activities
employ thousands of construction
workers whose earnings
strengthen the economy.
Building a Strong Future
As one of the 25 largest universities in the nation, Purdue extends its reach far
beyond classroom walls. It is an economic dynamo that actively nurtures the
Indiana economy through employment, education, research, and partnership.
In addition to educating the workforce of tomorrow, Purdue is busy building a
campus that will offer students, faculty, and researchers the best available research
and teaching facilities. From the Birck Nanotechnology Center to the Neil Armstrong
Hall of Engineering, Purdue’s West Lafayette campus is poised for preeminence,
and that leadership position will continue to attract the best and brightest
students and faculty, forge the strongest bonds with industry, and nurture the
greatest loyalty from alumni.
Here are some figures that put the size of the Purdue effort into perspective:
Based on its number of full-time employees
(13,610 FTEs), Purdue is the fifth largest
employer in the state:
Purdue pays over $808 million system-wide, employing
more than 17,500 full- and part-time faculty and staff,
as well as graduate students. During fiscal year 2004-05,
there were nearly 14,400 employees on the West Lafayette
campus earning a cumulative $678 million in salaries
and wages.
The quest for excellence is a moneymaker:
Discovery, engagement, and learning activities at Purdue
stimulate 10,071 non-Purdue jobs, bringing $303 million in
income to the Indiana economy. The total Purdue and non-
Purdue employment and income associated with these activities
is 27,597 jobs and more than $1.1 billion in income.
It pays to get
a degree:
Neil Armstrong Hall of Engineering
Purdue graduates are doing
well in the workplace, making
on average $30,500 in
their first year out of college.
Based on U.S. Census Bureau
figures in 2005, the average
earnings for all adults with
high school diplomas (ages
21-24) were $23,046. A Purdue
graduate annually will make on average $19,000 more,
up to $28,000 more, for getting a college degree. College of
Engineering graduates average more than $51,000 in their
first year out of school.

Purdue University has established
a vital presence throughout the state of Indiana.
Purdue’s system-wide campuses and other centers and organizations
provide educational options and important research,
consultation, and other resources throughout the state.
An equal access/equal opportunity university
Produced by Purdue Marketing Communnications
3103105

PURDUE
UNIVERSITY
Economic Impactat a Glance
Total Impact on Indiana
Institutionaland student spendinggenerated directlyand indirectlymorethan 44,000 jobs, $1.42 billion in income,
and a total economicoutput of morethan $2.9 billion
in the state of Indiana.
3000
$2.94
billion
State investment
in Purdue
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Purdue Student Total
0
Purdue Student Total
EconomicImpactof
Purdue Income
Institutionaland studentspending
impactthe state
EconomicImpactof
PurdueExpenditures
Institutional andstudentspending
impacthestate
Direct Institutional Impact
(Employment and income excluding student spending)
Duringthe 2004-05 fiscal year, Purdue University was
responsible for a total of 17,526 jobs. In order to support
those jobs, Purduespent $678 million in salariesand
wages on the West Lafayettecampusand $808 million
system-wide.
Discovery, engagement, and learning activities at Purdue
stimulate 10,071 non-Purduejobs, bringing $303 million in
incometo the Indiana economy.Thetotal Purdueand non-
Purdueemployment and incomeassociatedwith these
activities is 27,597 jobs andmorethan$1.1 billion
in income.
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Total Total Total Total
direct indirect induced
Impactof Purdue
on Employment
Purdue'semploymentranks
fifth in the state
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1000
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200
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Total Total Total Total
direct indirect induced
Impactof Purdue
on Income
Purduegeneratedover
$1.1 billion in income

.
PURDUE.
U N I V E R S I TY
Economiclmpoct at a Glance
Purdue RevenueSources
Purduehasseveralrevenuesources.Duringthe 2004-05
fiscalyear,total resourcesexceeded$1.5 billion. Studentscontributed
nearly $418 million in tuition and fees, representing
27% of Purdue'srevenue.Grantsand contractsaccountedfor
morethan $262 million (18%).The state of Indiana
contributed nearly $359 million (24%).
Consequently,for every $1 million the state invested,it
generatedaround $3.18 million in additional investments
from other sources,for a total economicimpact of morethan
$2.9 billion on the state economy.Furthermore,for every
$10,000 the state investedin Purdue,1.23 jobs were created
with an averageincomeof $39,476 (combination of fulland
part-time jobs), generating a total economicoutput of
$81,838 within the state.
Revenues, 2004-2005
Gifts, Noncapital 5% Other5%
Auxiliary Enterprises
13%
Contracts and Grants
18%
Doctoraland
professionaldegrees
Associateand
bachelor'sdegrees
Valueadded:
Purduealumnin Indiana
earnatotalof $7billion
annually.
Value-Added Education
Based on the U.S. Census Bureau, in 2005 the average earningsfor
all adults age 21-24 with a high school diploma was $23,046.
Purdue graduates in their first year out of school
make more than $30,500. Consequently, Purdue graduates
without much work experience are earning higher salaries than adults
with only a high school diploma but with much more work experience.
A Purdue graduate will make an average of $19,000 more and
up to $28,000 more by getting a college degree. This is the equivalent
of annual average salaries of more than" $42,000, and up to almost
$51,000 for college graduates in the College of Engineering.
In the 2004-05 academic year, 9,054 students graduated from Purdue
University's West Lafayette campus.