University of Arizona innovation drives $459.7 million in annual economic impact for Arizona

A new independent economic impact analysis finds that Tech Launch Arizona, the University of Arizona’s office for commercialization and innovation, generated $459.7 million in economic output and supported 3,070 jobs statewide in fiscal year 2025, underscoring the University’s growing role as an engine of Arizona’s economy.

According to the report, in fiscal year 2025 running from July 1, 2024, to June 30, 2025, Tech Launch Arizona and TLA-linked activities generated $159.8 million in labor income and $16.8 million in state, county and municipal tax revenues. Compared with fiscal year 2021, TLA’s economic impact grew by approximately 20% across all measured categories, including jobs, labor income, economic output and tax revenue.

TLA is a unit of the U of A Office for Research and Partnerships charged with translating university research into real-world impact. The office works with faculty, staff and researchers to protect intellectual property, license technologies to industry partners, and launch startups that bring to market university innovations that range from medical devices and cancer therapies to optics, cybersecurity and advanced software.

“We work with innovations across the university, drawing from every research area and discipline,” said Associate Vice President of TLA Doug Hockstad. “With the expansive research porftolio of the U of A, it’s a huge, rewarding job.”

Hockstad says that TLA’s ultimate goal is to make the U of A one of the top universities in the nation when it comes to technology commercialization, also known as “tech transfer”, where it can impact economies and improve lives. 

“Achieving that takes a strong and connected ecosystem that brings together university innovators, a community of technology and business experts, and entrepreneurs and investors to help us map out the best pathway forward for each invention,” he said. “This report is evidence that the ecosystem we’re growing is strong and we’re on our way toward our goals of impact and leadership.”

“At the University of Arizona, we measure the success of our billion-dollar research enterprise not just by the discoveries made in our labs, but by the tangible benefits that translating those discoveries into innovations bring to the people of Arizona,” said Tomás Díaz de la Rubia, senior vice president for research and partnerships. “This report confirms that our commitment to innovation and partnerships is a powerful economic driver. By translating world-class research into new companies and high-wage jobs, we are ensuring that Arizona remains a leader in the global innovation economy.” 

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Over a Decade of Growing Impact

Along with last year’s impact numbers, the report compares TLA’s impact over two extended time periods. It looks back at the nine fiscal years spanning July 1, 2017, through June 30, 2025, and also looks ahead to the future impact projected for the next five fiscal years from 2026 through 2030.

The top findings for the past nine years show that TLA activities generated:

• $3.3 billion in economic output

• $1.2 billion in labor income

• $122.2 million in tax revenues

Over the upcoming five years, those numbers are projected to be: 

• $2.46 billion in economic output

• $855.5 million in labor income

• $90 million in tax revenues

In addition to the dollar value impacts, the report describes how TLA’s activities indirectly stimulate the demand for supporting products and services. 

Jim Rounds, president of Rounds Consulting Group, who co-authored the report, said, ”We’ve studied the impact of TLA’s commercialization activities for many years, and the impact is clear and undeniable – these efforts are having a huge impact on our community and will continue to do so well into the future.”

Understanding the Calculations

The analysis was conducted by Rounds Consulting Group and examines the direct, indirect and induced economic effects of Tech Launch Arizona’s activities, including startup formation, technology licensing and office operations. These effects measure not only jobs and revenue generated directly through commercialization, but also broader ripple effects across Arizona’s economy. View the report for a complete methodology breakdown.