The Impact of an Institution's Federal Research Grants on the Economy of its State
imparted to students and the broader cultural and scholarly contributions to society in general. Universities also contribute economic benefits to their states by attracting funds from agencies outside the state, particularly the federal government. These funds are used to employ researchers and research support personnel at the university. Further, the spending of these funds distributed as salaries and supply and equipment purchases produces a chain of additional spending that generates income and employment beyond the immediate impacts. The estimation of the total economic impact of various types of university expenditures, including research grants, has been undertaken in a number of studies.1 Bourque and Pedersen [3] argue that certain assumptions, particularly the assumption that goods and services are not imported from other states, can lead to an overstatement of the economic impacts. They also warn that care must be taken in associating institu-