A new economic impact assessment by Biggar Economics showed the activities of the University of Dundee supported £1.6 billion Gross Value Added (GVA) and 16,070 jobs globally in 2020-21.
The analysis said that for every £1 of Scottish Government funding, the University generates £10 for the Scottish economy.
It showed that one in every 12 jobs in Dundee is supported by the University’s activities.
The report, commissioned by the University, said: “In 2020/21, the University of Dundee had 16,230 students, it employed 3,280 staff and it had an income of £276 million.
“Across the UK, the economic value that the University created is over five times greater than its income, and the impact within Scotland is ten times greater than its income received from the Scottish Government.”
Professor Iain Gillespie, Principal & Vice-Chancellor of the University, said: “This report captures the enormous contribution the University of Dundee makes in helping drive our economy locally and nationally.
“We are a major employer and a vital driver of business and innovation, central to Dundee and Scotland’s ambitions.
“We attract students and staff from over 140 countries to the city.
“The economic impact of that on the local economy is huge, with hundreds of millions of pounds of direct spend here in Dundee.
“Our activities also help to attract significant inward investment to Dundee and Scotland, and create new companies through spinout and commercialisation of our research.
“Our return on public investment is significant, as it is for our fellow universities, and underlines the need for continued, sustainable support for the higher education sector in Scotland and the UK.”
The Biggar Economic report also highlighted the contribution the University’s students make to Dundee.
It said: “The 13,000 full time students at the University of Dundee spent an estimated £88 million in the city during 2020/21.
“This includes £35 million that was spent by international students.
“The activities of students were those most affected by the Covid-19 pandemic because the industries most affected by the pandemic were those in which students are more likely to work or spend their money.
“Despite this, students still generated £100 million GVA for the Scottish economy and supported more than 3,100 jobs.”
The contribution made by graduates of the university was also measured.
About 84% of Dundee graduates work in high-skill occupations and it is estimated that “the 2020/21 graduation cohort will generate over £420 million for the Scottish economy as a result of their degree.”
Higher and Further Education Minister Jamie Hepburn MSP said: “The Scottish Government values the contribution of the University of Dundee as a key player in our higher education sector.
“We know this is fundamental to Scotland’s social, economic and environmental wellbeing, as well as our National Strategy for Economic Transformation objectives.
“The University is renowned for its outstanding teaching and research excellence, and we will provide the necessary support to ensure it continues to enable the future prospects of our young people, and respond to the demand for skills in the city, region and Scotland as a whole.”
Alastair Sim, Director of Universities Scotland, said: “The University of Dundee is a crucial anchor institution for the City of Discovery and a catalyst for Dundee, the wider region and beyond.
“The economic impact of this vital institution is telling – a world-leading university that creates growth and inclusion for its region and nation.”
Alison Henderson, CEO of Dundee & Angus Chamber of Commerce, said: “The education sector is a hugely important one for our region, and I’m not at all surprised that the University of Dundee is demonstrating such a huge impact.
“The economic impact in terms of spend, working with local companies in the supply chain and attracting talent to the area cannot be underestimated. We are proud to work in partnership with many departments across the university.”