The University of Wisconsin-Madison recently reported its impressive economic influence across Wisconsin, highlighting billions in contributions over the past fiscal year.
This information is derived from a new report prepared by the consulting firm Tripp Umbach for the university.
The flagship campus of the Universities of Wisconsin, UW-Madison, alone accounted for an estimated $13.2 billion in economic impact.
Beyond the campus, the report also includes $13.3 billion from affiliated entities such as the UW Health system and various research institutions.
Additionally, the report highlights $12.4 billion generated by numerous “spinoff companies,” which are startups rooted in research from UW-Madison. Among these, Exact Sciences, a healthcare diagnostics company based in Madison, was notable for producing approximately $3.25 billion in annual revenue and employing close to 6,900 people in 2025.
Kathleen Gallagher, executive director of the 5 Lakes Institute, a nonprofit focused on economic development in the region, recognized UW-Madison’s significance, stating, “UW-Madison is incredibly important to the state, and is by far the biggest research university in Wisconsin.”
However, Gallagher raised concerns about the report’s methodology, particularly questioning the classification of Exact Sciences as a spinoff. She commented, “It’s a stretch to even suggest that Exact Sciences is a spinoff company (of UW-Madison),” noting its origins as a publicly traded company in Boston before relocating to Madison.
A UW-Madison spokesperson responded, emphasizing that the decision by Exact Sciences CEO Kevin Conroy to relocate was “deeply connected to Madison’s life sciences ecosystem.” The presence of UW-Madison’s leading biochemistry program and the ability to attract Ph.D.-level scientists were cited as primary motivations for the move, according to spokesperson Rodee Schneider.
Schneider added that research by a UW-Madison professor was instrumental in the development of Cologuard, a colorectal cancer detection test by Exact Sciences.
The analysis considered various factors, including the university’s operational spending, expenditures by students, faculty, staff, and visitors, and the local and state tax revenue generated by the university and its affiliates. The report also included direct and indirect employment impacts, such as jobs within the university and across the supply chain.
This report comes at a time when federal research funding, especially under the Trump administration, faces reductions, and debates continue about state funding allocations for public universities. In fiscal year 2025, UW-Madison received $609.4 million from state sources.
The report underscores the economic benefits of investing in UW-Madison, stating, “This net-positive return demonstrates that UW–Madison not only pays for its public investment but also significantly amplifies it, strengthening Wisconsin’s long-term economic resilience.”
Craig Thompson, UW-Madison’s vice chancellor of university relations, highlighted the significant return on investment from taxpayer funding, noting, “The economic impact that we had studied here really is substantial no matter where you live in the state.”
The Wisconsin Foundation & Alumni Association, which supports UW-Madison through fundraising, funded the report. Foundation spokesperson Tod Pritchard expressed satisfaction with supporting the study through private funds but did not disclose the cost of the report.
