Nantes Université's economic impact: €727 Million and Over 16,700 Jobs

Conducted by economists Laetitia Challe and Yannick L'Horty as part of the In Situ programme (TEPP¹ CNRS-Université Gustave Eiffel Research Federation), this study was commissioned by L'initiative, an association comprising six universities awarded I-Site status under France 2030: CY Cergy Paris Université, Université Clermont Auvergne, Université Gustave Eiffel, Nantes Université, Université de Pau et des Pays de l'Adour, and Université de Lille.

With an impact of €727 million and 16,777 jobs supported, Nantes Université stands as one of the region's economic powerhouses. Student expenditure accounts for nearly 64% of this impact, demonstrating the multiplier effect of university life on the metropolitan area and its surroundings.

Nearly €4 Billion in annual economic impact

The study's findings are unequivocal: the six member universities of L'initiative generate a total economic impact of €3.95 billion per year, equivalent to 0.13% of national GDP. This activity supports 83,500 full-time equivalent jobs - direct, indirect, and induced -confirming universities' structural role in driving regional economic dynamics.

An exceptional public spending multiplier effect

For every €1 of public subsidy (SCSP) invested, the universities studied produce €2.70 of economic activity.

This multiplier effect of university public spending ranges from 2.3 to 3.4 depending on the size and territorial anchoring of the universities - three times greater than any other public institution.

Student expenditure accounts for 72% of this impact, underscoring the distinctive nature of the university model: no other public institution concentrates and retains such a large population of users over such an extended period, with direct effects on consumption, housing, and local employment.

A growing territorial priority recognised by local authorities

The study emphasises that higher education has now become a priority for an increasing number of local authorities, although their contributions remain highly unequal. These disparities reveal contrasting local strategies and the fragility of a model still largely dependent on national public spending. In a context of chronic underfunding, the results serve as a reminder that weakening universities would mean weakening regions: job losses, declining local consumption, and reduced attractiveness.

"These results confirm what we observe every day: a university is an economic and social engine for its region."
Mathias Bernard, President of Université Clermont Auvergne

Valuable evidence for public debate

In an uncertain political and budgetary context, this study provides objective data to better recognise universities' economic contribution. Its methodology, replicable across other institutions, offers a valuable tool for the academic community and policymakers seeking to demonstrate the real impact of higher education on regions.

"Having objective data on universities' economic impact is essential for informing public decisions. This study provides a robust framework, replicable for other institutions, and highlights the real contribution of the academic world to regional vitality."
Gilles Roussel, President of Université Gustave Eiffel

¹TEPP: CNRS-Université Gustave Eiffel Research Federation "Theory and Evaluation of Public Policies"

A pioneering research programme to measure universities' economic impact

The In Situ study scientifically evaluates universities' socio-economic impact on their regions by combining economic modelling with geolocated internal data.

This is the first time a harmonised and reproducible methodology has been applied to a group of French universities, enabling comparison between institutions and stakeholder categories: students and apprentices, staff, and suppliers. This pioneering methodology was initially developed through collaboration between Université Gustave Eiffel and the Paris-Vallée de la Marne urban community.

"Our approach measures universities' real economic benefits at different territorial scales. It relies on unprecedented data and transparent methodology, ensuring scientific robustness."
Yannick L'Horty, Economist and study co-author

About L'initiative

L'initiative is an association founded in April 2024 bringing together six institutions:

• CY Cergy Paris Université
• Université Clermont Auvergne
• Université Gustave Eiffel Paris
• Nantes Université
• Université de Pau et des Pays de l'Adour
• Université de Lille.

All six institutions are I-SITE award recipients, a label of excellence created in 2014 by the French government as part of the Future Investment Plan (PIA), now France 2030. The designation is awarded by an international jury to distinguish universities that demonstrate distinctive thematic scientific strengths recognised internationally and leverage these on their territories as a driver and foundation for their development strategy and partnerships with the socio-economic sector.