MIPS Impact
HughesNet
HughesNet, North America's largest consumer satellite Internet network. $26.4 billion in impact.
Martek Biosciences
Martek Biosciences' Life's DHA fatty acids, found in more than 90 percent of infant formulas in the U.S. $2.9 billion in impact.
Synagis
Synagis, which prevents a severe respiratory disease in infants. $18 billion in impact.
MIPS Cumulative ROI
- $48 billion in company revenues from products benefiting from MIPS projects
- 5% of that returned to State treasury from corporate and employee income taxes, and 3X jobs multiplier effect
- $61.2 million in total state funding for MIPS projects since 1987
- Total Maryland Tax Revenues: $48 billion x 0.05 = $2.4 billion
- MIPS ROI: $2.4 billion / $61.2 million = 39 to 1
MIPS: An Innovative Job Creation Engine for Maryland
- 8,600 jobs created in companies with products benefiting from MIPS projects (impacts created an additional 15,000 jobs for a total of 22,915 jobs)
- $48 billion in company revenues from products benefiting from MIPS projects
- Annual Tax Revenues State: $166 million, Counties: $125 million
MIPS: 72 Competitive Rounds
- 2,356 applications received
- 1,408 different contracts and amendments
- 980 individual projects
- 685 companies
- 488 faculty
MIPS Impact
In 2017, 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. Highlights of the 17-page report include:
Research conducted by the MIPS program has found that MIPS-supported technologies had at that time generated more than $34.9 billion in cumulative sales over the prior 30 years.
Technologies developed and commercialized in collaboration with the MIPS program over that 30-year history generated over $4.7 billion in product sales and supported 7,150 ongoing jobs in Maryland in calendar 2017 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 totals almost $7.5 billion in annual economic activity in Maryland, supporting 22,915 jobs earning $2.2 billion in labor income.
The economic impacts associated with MIPS supported technology generated an estimated $166.1 million in state tax revenues in the year 2017 alone. These estimated one-year 2017 state tax revenues significantly exceed the $60.2 million lifetime cost [1] of the MIPS program. An estimated $125 million in local government revenues was also generated by MIPS-supported technologies in 2017.
MIPS lifetime spending of $46.2 million assisted in catalyzing the development and commercialization of technologies that have attracted $1.3 billion in additional grant, debt, equity, and venture capital funding into Maryland.
Several MIPS-supported companies have been acquired and the acquisition cost of these companies has totaled over $18.7 billion dollars.
Overall, the Jacob France Institute’s report shows that the MIPS program continues to make a significant contribution to the Maryland economy.
[1] Lifetime costs of $60.2 million differ from the cumulative $46.2 million in program spending up to 2017 – because they are expressed in 2017 dollars.
Download the MIPS Economic Study
Browse a special collection of MIPS projects in the 30th anniversary collection
