In 2012, MIPS commissioned an economic impact study of the MIPS program: “An Analysis of the Impacts of MIPS Program Spending and the Commercialization of MIPS Funded Projects on the State of Maryland,” prepared by Dr. Richard Clinch, Director of Economic Research at the Jacob France Institute of the University of Baltimore.
Dr. Clinch and his team analyzed the effects of the MIPS program on Maryland’s economy and the return on the investment in MIPS to the state treasury. Some highlights of the 16-page report include:
Research conducted by the MIPS program has found that MIPS-supported technologies have generated $24 billion in revenue over the program's first 25 years.
Technology developed and commercialized in collaboration with the MIPS program over its first 25 years generated over $3 billion in product sales and supported 3,615 ongoing jobs in Maryland in calendar 2011 alone. When the multiplier-based economic impacts associated with this activity are included, the economic impacts associated with the production and sale of these commercialized technologies total $4.8 billion in economic activity in Maryland, supporting 15,191 jobs earning $1.1 billion in labor income during 2011.
The economic impacts associated with MIPS supported technology generated an estimated $87.3 million in state tax revenues in the year 2011 alone. These estimated one-year 2011 state tax revenues significantly exceed the $37 million lifetime costs of the MIPS program. An estimated $70.6 million in local government revenues was also generated by MIPS supported technologies in 2011.
MIPS lifetime spending of $37.0 million assisted in catalyzing the development and commercialization of technologies that have attracted $884.2 million in additional grant, debt, equity, and venture capital funding into Maryland.
Several MIPS supported companies have been acquired over the past few years and the acquisition cost of these companies has totaled over $18.0 billion dollars.
Overall, the Jacob France Institute’s report paints a picture of a program that continues to make a significant contribution to the Maryland economy.