Interindustry analysis of the impact of federal support for academic science on the economy of New York State

An interindustry model is used to estimate the impact of federal expenditures for academic R&D on the economy of New York State. Resulting economic activity through the multiplier process is estimated to be 3.7 times the level of the original federal spending. This impact on the state economy generates national and state tax revenues sufficient to offset the original outlay of taxpayers' money by the federal government, thereby supporting the case for continued support of higher education in periods of fiscal crisis.