UNM: Working for Economic Development in New Mexico

Research Programs and Activities

Major research universities such as UNM have played a critical role in economic development across the country, because virtually every aspect of the research endeavor has the potential for impacting local, state and national economies. The research conducted at most major universities has a range of economic benefits which include the following:

1. The increased flow of federal research dollars into a state that can be used to support the creation of new jobs and the purchase of local goods and services.

2. The expansion of the general knowledge base, in a variety of areas that broadens the educational opportunities available to all students.

3. The expansion of specific knowledge in areas that can contribute to greater efficiency and effectiveness within existing companies (e.g., manufacturing, personnel and financial management, marketing and sales).

4. The discovery of new products and techniques that can be patented and licensed and can lead to the "spin-off" of new businesses.

5. The presence of world-class faculty researchers who can serve as collaborators and consultants with local businesses engaged in their own research and development activities.

6. The availability of cutting-edge research equipment, information technologies, and library resources that can support research and development activities in local companies.

7. The enhancement of a university's national reputation, which is often a factor in attracting new business into the state.

Given UNM's rapid rise as a research institution during the decade of the 90's, its significant research programs spin-off each and every one of these benefits for the New Mexico economy. What follows, however, is a description of only the most salient contributions UNM's research makes to the economic development in the state.

A. External Funding for Research and Public Services
Over the past decade, UNM has assembled a truly exceptional faculty and has gained a strong national reputation for its research and public service activities. During the decade of the 90's, according to the National Science Foundation, UNM has been the leading university in the country in terms of growth in federal research funding, and in FY 2000, UNM received grant and contract awards valued at more than $217 million. Since most of these grant and contract revenues come from federal and other non-New Mexico funding sources, they represent a significant flow of new dollars into the state.

In addition to these grant and contract funds, UNM also receives significant out-of-state funds from other sources such as private and foundation gifts, federal reimbursements for services, and out-of-state tuition and fee payments. Again, these other external revenues represent new dollars coming into the state's economy and they exist because of the quality and variety of UNM's academic, research and public service programs.

In total during fiscal year 2000, UNM received $412,401,522 in revenues from sources outside the state of New Mexico. Of this total amount of external funding, $369,727,938 or nearly 90% of the total was expended within New Mexico to support jobs and to purchase goods and services. According to calculations provided by UNM's Bureau of Business and Economic Research, in FY 2000, UNM directly supported the salaries and benefits of 5,571 full-time equivalent employees in New Mexico solely from its out-of-state revenues. This means that 5,571 jobs exist in New Mexico today that would not exist were it not for UNM's external research and public service funding and its ability to attract students from other states. Importantly, the average salary paid to these employees was $37,402 compared to the $26,918 average salary of New Mexico employees overall. Thus, these externally funded jobs are not only significant in numbers, but are also significant in terms of the spending power they represent.

In addition to supporting 5,571 full time jobs directly, UNM's out-of-state revenues also lead to the creation of many additional jobs within the state. First, the more than 5,000 employees who are directly supported pay approximately $18.2 million in state and local taxes annually and spend a significant amount on state goods and services providing support for other jobs. Second, in addition to funding jobs directly, UNM expends nearly $137,000,000 of its external funding annually to purchase New Mexico goods and services, which also stimulates job creation.

According to the Bureau of Business and Economic Research, through these indirect means, UNM's external funds have led to the creation of 5,203 jobs in New Mexico in addition to the 5,571 jobs that are directly supported with these funds. Thus, by conservative estimates, 10,774 jobs exist in New Mexico today solely as the result of the out-of-state revenue UNM receives in support of its research, public service and other activities. Of course, this impact on jobs and job creation is only a small percentage of UNM's total impact on employment, since UNM employs more than 19,000 people state-wide. However, in the above analysis all employees and expenditures that are based on state appropriations or on other state revenues are excluded.

B. Technology Transfer
When UNM research discoveries are patented, licensed and utilized as the basis for spinning-off new companies and expanding existing companies, the discoveries themselves stimulate economic development in New Mexico. According to UNM's Science and Technology Corporation, during FY 2001, 70 invention disclosures were received, 23 U.S. and one foreign patent were issued, and 154 patents were pending.

To this point, technology developed at UNM has led to the creation or expansion of 19 companies in New Mexico and another five spin-off companies in other states. Two of the most notable of these companies are Rio Grande Medical Technologies, which is located in the UNM Research Park and which currently employs more than 40 scientists, engineers and clinical personnel, and Zia Laser Inc., developer of quantum dot (QD) semiconductor lasers for the data and telecommunications markets. Zia Laser was founded during FY 01 by faculty members and research scientists at the Center for High Technology Materials at UNM. In addition, UNM manages a business incubator in its research park, and 13 start-up companies are utilizing this incubator resource.

C. Research and Development Collaborations
Because of UNM's research expertise in a variety of areas, UNM is capable of establishing partnerships with other institutions in the community and the state that can and do create economic development opportunities for New Mexico. The nature of these collaborations vary significantly, but all of them depend on the research capability UNM has assembled. What follows are a few examples of these collaborative efforts:

1. Human Genome Research. A collaboration involving UNM's Cancer Research Center, UNM's High Performance Computing Center, and scientists from Sandia National Laboratories focuses on the development of new instruments and new computational methods that can be utilized in studying the genetic bases of cancer. A proposal submitted by this collaborative to the Keck Foundation has already resulted in $1 million of foundation support for the project and could well lead to new devices and methods that are patentable and new businesses that are based on these discoveries.

2. The Next Generation Economy (NGE). A collaboration involving UNM, the national laboratories, private sector business, governmental agencies and economic development organizations, its focus is on the growth and development of industry clusters in Central New Mexico. These clusters are specific areas in which central New Mexico already has significant research, development and manufacturing strengths and in which there are significant opportunities to grow and attract new business and new jobs. NGE has just completed Phase One, which focused on identifying the industry clusters that offer the most promise for economic development and identifying a process for developing a strategic plan. Not surprisingly the majority of the cluster areas identified are aligned with areas of special research strength at UNM. University officials are members of the NGE Board of Directors, others are involved in the committee that is working to enhance technology transfer deal flow, and more than 75 UNM faculty have been involved in the planning for cluster development.

3. The Cancer Alliance. The National Cancer Institute officially designates sites throughout the country as Comprehensive Cancer Centers, qualifying those sites to conduct clinical trials with the newest and most advanced experimental drug treatments. These sites have access to special federal funds and commonly spin off new drug discovery businesses. This official recognition goes only to sites that provide clinical training, that conduct significant levels of clinical research, and that treat large numbers of cancer patients. In order to qualify Albuquerque as a future site and to bring to the community the health care and economic benefits that result from such a designation, UNM has taken the lead in forming a community Cancer Alliance involving community-based oncologists who treat substantial numbers of patients and UNM faculty researchers and teachers. The National Cancer Institute has designated 37 sites and currently considers Albuquerque as a developing site.

4. New Mexico Nanoscience Alliance. In August 2001, UNM, along with Sandia and Los Alamos National Laboratories, signed a Memorandum of Understanding, which created the New Mexico Nanoscience Alliance. The purpose of the Alliance, which is open to all New Mexico institutions, is to advance nanoscience within New Mexico, as well as provide a forum for establishing collaborations among all of the research efforts in the state. One of UNM's critical roles in the Alliance is the education of a new generation of scientists and engineers in the nanotechnology area. These students will play a critical role in the technological revolutions that will be derived from new developments in the nanoscience field.

5. The National Foundation for Functional Brain Imaging. Over the past three Congressional funding cycles, the Foundation for Functional Brain Imaging has received $31 million in federal support that will be used to provide research on brain function as it is related to mental health. The Foundation is a partnership of universities, schools of medicine, national laboratories and other scientific organizations in New Mexico, Massachusetts, and Minnesota. The newly-formed Foundation headquarters and the paid Foundation staff have been located in Albuquerque, and funds received by New Mexico-based partners (including UNM and its School of Medicine) will be used in part to support research personnel.

6. Waste-Management Education and Research Consortium (WERC). The WERC collaboration involves UNM, New Mexico State University, New Mexico Tech and a number of business partners, and it receives approximately $3 million per year from the Department of Energy. The goal of the consortium is to promote a safe and clean environment through education and research. A primary focus is to develop and implement new devices and technologies that can be patented and licensed to companies. Thus, the consortium not only supports research and staff personnel in the state, but also is involved in technology transfer activities that can lead to new products and businesses.

D. Endowed Chairs
Endowed chairs in specific fields can contribute directly to economic development. Endowments provide recurring funds to support faculty, most directly by helping the University hire and retain the best faculty and enhancing the quality of education provided by the institution. Endowed faculty members in scientific, engineering and biomedical fields contribute to technology commercialization, address workforce shortages, and support other economic development initiatives. Endowed chairs in other fields also contribute to the economic well being of the state by enhancing the quality of life of the state's citizens through activities such as cultural events, public service and patient care. In September 2001, UNM announced the creation of the PNM Chair in Microsystems, Commercialization & Technology. The funds from the chair will be used to recruit and support a faculty member in The Anderson Schools of Management and the School of Engineering. The position will focus on the entire spectrum of Microsystems -- from the creation of the technology to bringing that technology to market. Also in October 2000, UNM established the Prince of Asturias Endowed Chair in Information Science and Technology. Funded by Iberdrola, a major power company in Spain, this chair provides the opportunity to foster relationships among Spain, the United States and Iberoamerica in the area of information science and technology. The chair will also strengthen UNM's contribution to New Mexico's growing prominence in the Information Society.

E. The Availability of Advanced Technologies and Information Resources
Because major research activities exist at UNM, the University has available on its campus state-of-the-art technologies and equipment and a wealth of information resources that are either by-products of that activity or serve to support it. However, these resources also benefit businesses and governmental agencies in the community and are utilized by a variety of professionals who must keep current in their fields in order to perform adequately in their careers. In effect, these research-based resources are utilized widely to improve performance and productivity in the New Mexico workplace.

Although numerous UNM facilities are used by individuals and organizations throughout the state, two salient examples of such facilities are UNM's libraries and UNM's Albuquerque High Performance Computing Center. The UNM General Library is recognized by the Association of Research Libraries as the only major research library in the state of New Mexico. As a result, thousands of professionals across the state utilize this library resource annually. The Albuquerque High Performance Computing Center provides individuals and businesses in the state access to workshops dealing with high performance computing as well as access to modern supercomputing capabilities.