Economic Impact of the 4TU Federation

BiGGAR Economics was commissioned earlier this year by the 4TU Federation to highlight the impact its members had throughout the economy in 2021. The 4TU Federation is an alliance of the four universities of technology in the Netherlands which aims to boost and pool technical expertise to address global societal challenges.  The members of 4TU are:

  • Delft University of Technology
  • Eindhoven University of Technology
  • University of Twente
  • Wageningen University & Research

As a group, they make a crucial contribution towards engineering and innovation power in the Netherlands. In 2021, the 4TU members had a combined income of €2.5 billion, a full-time student population of 67,370 people and 27,890 members of staff. It is a very diverse, yet complementary, group with different research strengths and a range of activities. BiGGAR Economics’ analysis demonstrated the economic power of these institutions, which have a total annual economic impact estimated at €12.7 billion. This is created by learning, research, and valorisation impacts and by economic benefits created by the universities’ direct operations.

For every €1 of public investment , 4TU universities create €9 of GVA impact.

They are the motor of the Dutch economy, and provide a key mechanism in ensuring economic resilience in these challenging times, as well as acting as regional anchor institutions, being defining parts of the places to which they belong.

The Netherlands performs well as an environment where ecosystems can thrive and as world leaders in several technology domains, the 4TU universities are the driving force behind these. Each 4TU university is an innovation system in its own right. Within the Netherlands, the 4TU members are also at the heart of important, global systems, stimulating the development of clusters and ensuring critical success factors for competitiveness are in place. They contribute strongly to the overall global performance of the Netherlands as a home for innovation systems and to their own thriving regional systems. These are complex systems, with nuanced features that underpin their success – entrepreneurial mindsets, long term personal and professional relationships, culture, and history.

Valorisation draws the benefits of 4TU’s research and teaching expertise into society, fostering economic growth. Each of the 4TU members has a keen focus on valorisation, with significant investment in people, structures and activities that are targeted at creating societal impact. Valorisation outcomes are supported by highly experienced technology transfer staff and facilities. Much of the impact of the Universities’ research work is reflected in its valorisation impacts.

While this study focuses on economic impact, the benefits created by the 4TU universities are far wider in scope than can be measured through GVA and jobs. They supply skills and knowledge required to solve huge societal challenges, valorising these so that solutions reach society. The economic development they pursue is sustainable and can be transformational, with the UN Sustainable Development Goals a focus for much of their activity. The economic benefits described in the study are a small part of the overall societal impacts they deliver.

The 4TU Federation has published the report here:

Posted 22.11.22

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