Entrepreneurial Impact: The Role of MIT

Edward B. Roberts, Charles Eesley

Abstract


Economic Impact of MIT Alumni Entrepreneurs

Research and technology intensive universities, especially via their entrepreneurial spinoffs, have a dramatic impact on the economies of the United States and its fifty states. This report is an in-depth case study carried out during the past few years of a single research/technology university, the Massachusetts Institute of Technology (MIT), and of the significant consequences it has helped to produce for the nation and the world via its broad-based entrepreneurial ecosystem. From our extensive data collection and analyses we conclude that if the active companies founded by MIT graduates formed an independent nation, conservative estimates indicate that their revenues would make that nation at least the 17th largest economy in the world. A less conservative direct extrapolation of the underlying survey data boosts the numbers to 25,800 currently active companies founded by MIT alumni that employ about 3.3 million people and generate annual world revenues of $2 trillion, producing the equivalent of the 11th largest economy in the world.

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References


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