More than 280,000 students attend Indiana's 41 colleges and universities, studying a wide range of subjects. The results are a more productive citizenry that adds to the wealth of the state and nation. The research carried on by the faculties also has a great economic impact. It tells us that higher education is big business and that local communities, as well as the state, reap important benefits from our colleges and universities. Direct impact includes purchases, payments and employment of the institutions, while the indirect impact gauges the positive effect on the state's economy that results from firms selling goods and services to the colleges and universities.
Induced impact is defined as household spending earned from the institutions or their suppliers.
Not included in this impact is spending associated with auxiliary enterprises such as cultural events, athletics, and summer campus visitors, conferences and continuing education activities, or support enterprises. This would be due to loss of spending on living expenses as students left the state to pursue higher education elsewhere. While these data are approximate, they do show the great importance of higher education.