The city of Eugene jumped significantly in the Milken Institute’s recently released Best Performing Cities index, despite Oregon’s gloomy economic outlook, an increase partly attributed to the University’s influence.
The Milken index — which measures where jobs are being created, where economies are growing and where businesses are thriving — ranked Eugene at No. 85 among the country’s top 200 best-performing cities. Eugene, which was ranked No. 103 last year, surpassed some larger cities like Seattle and San Francisco. Other Oregon cities ranked by the index include Salem at No. 133, and Portland at No. 141.
According to the Milken report, cities where government and higher education play an important role in the local economy are less susceptible to downturns in the national economy.
Although state funding for higher education has dropped, the University’s level of sponsored research grew to a record $75 million in 2002, a 30 percent increase from the previous year, said Rich Linton, University vice president for research.
Linton explained that 95 percent of the $75 million came from non-state sources — 85 percent from federal sources and 10 percent came from private donations. Much of the non-state funding goes toward paying graduate student research assistants and technical support staff. Linton also cited a U.S. Department of Commerce report, which showed that for every million dollars spent in academic research in Oregon, 47 jobs are supported.
“That makes for quite a few jobs that $75 million is supporting,” Linton said.
The University of Oregon Factbook states that the University is Lane County’s largest employer and contributes nearly $400 million a year to the Eugene economy through direct spending, employee payroll, construction contracts and student spending.
Research at the University spurred the creation of start-up companies that help support 250 jobs at the Riverfront Research Park, Linton said, adding that the University is on the verge of creating several more companies that will contribute to Eugene’s growing economy.
“I think there is a growing spirit of partnership and cooperation with the University and Eugene,” Linton said. “We’re working more with local groups and businesses to increase recruitment and business within the area.”
The Milken report also cited economic diversity, high standards of living, and the presence of private, government and university-based research laboratories as significant factors of healthy economic development. The report can be viewed at http://www.milkeninstitute.org.