Using a generally accepted economic impact model,
Berkeley Lab has estimated that its direct annual expenditures
in the region total $400 million, with another $149
million resulting from indirect and induced impacts.
The Lab is responsible for generating up to 5,600 jobs,
the study says.
According to the report, which uses 1995 data, the
Lab spent $290 million for salaries, benefits and procurements,
plus $8.3 million in retiree pensions and $4.7 million
in retiree medical benefits -- most of which recycles
throughout the region. Guests to the Lab contributed
an estimated $47 million in spending during their visits
to the Bay Area, and conferences contributed $48 million
to the regional economy.
The analysis also shows Berkeley Lab is the second
largest employer in Berkeley (after the University of
California at Berkeley) and the 12th largest in Alameda
"By whatever measure you choose, it is clear that
Berkeley Lab is a valuable contributor to the Greater
Bay Area economy," said Lab Director Charles V. Shank.
"We're proud of the positive impact we have made on
the development and growth of the area in our 65 years
of service to the community and the nation."
Shank also noted that the Laboratory is responsible
for many other contributions that can't be quantified
in dollars and cents but are nonetheless critical to
the regional welfare -- science partnerships with Bay
Area industry, consumer savings through energy efficiency
advances, and outreach efforts in education and public
Berkeley Lab, located in the hills above the UC Berkeley
campus, operates with an annual budget of more than
$340 million and employs over 3,300 people, including
more than 1,000 scientists and engineers. About 400
students work at the Lab while pursuing their degrees,
and the Lab plays host to nearly 200 guest researchers
each year from the United States and abroad.
The economic analysis, coordinated by John Andrew
of UC Berkeley's Haas School of Business, noted Berkeley
Lab's direct effects of payroll and purchasing, plus
the re-spending effects in the greater economy. It applied
an economic multiplier analysis and input/output model
used by the Association of Bay Area Governments (ABAG)
The Lab's employment profile shows 60 percent of its
workers residing in Alameda County and 30 percent in
Contra Costa County. More than 1,000 Lab workers live
in Berkeley, and about 450 live in Oakland. In 1995,
the Lab spent about $137 million in salaries and wages,
$41 million to employees living in Berkeley. About $119
million of the total went to workers living in the East
Of the $76 million in goods and services purchased
from commercial vendors, $43 million went to small businesses
and $9.3 million to small disadvantaged businesses.
Another $20 million in goods and services was purchased
from non-commercial vendors, like the University of
California, state and local government, and non-profit
organizations. Berkeley Lab does business with about
11,000 vendors annually.
In addition, the Lab is host for more than 50 conferences
each year, attracting several thousand guests to the
Bay Area. Outside users of Berkeley Lab's unique scientific
facilities numbered 1,730 in 1995. These short-term
visitors combined to boost the local hospitality industry
by an estimated $400,000, according to the report.
The Lab's technology transfer program has facilitated
research partnerships throughout the Bay Area, including
notable work with the California semiconductor industry
and companies like Rockwell, Motorola, DuPont, Seagate,
Chiron, Octree Corporation and Advanced Photonics. Another
collaboration with Kaiser Permanente is focusing on
a network-based data management and communications system
for storing, analyzing and transmitting medical images
and information, sometimes directly into the operating
Combined industry and government partnership commitments
exceed $65 million, with over half the projects tied
to California companies. The Lab also receives more
than $40 million for sponsored research from agencies
like the National Institutes of Health, Amgen, Children's
Hospital, and the U.S. Navy.
The report pointed out that "while Berkeley Lab has
secured its reputation for basic scientific research,
many of the Lab's scientific discoveries and inventions
have had direct application in industry, spawning new
businesses and creating new opportunities for existing
Start-up companies in Alameda County benefitting from
Lab-developed technologies project sales revenues of
over $20 million annually by 1998. Among them are Berkeley
firms PolyPlus, which markets solid-state lithium battery
technology, and Morris Research, which sells superconductivity
instrumentation. Symyx of Sunnyvale, another start-up
company, is commercializing Berkeley Lab's pioneering
method for synthesis of new materials.
The impact of energy efficiency programs and partnerships
on the state and nation has been enormous, according
to the report. With a total research and development
investment of $70 million in areas like new lighting
sources, window coatings, and appliance and housing
standards, the Lab estimates that consumers have already
reduced their energy bills by $5 billion as of 1993.
Throughout California, Berkeley Lab's advice in building
design, lighting and window technologies has assisted
utilities companies and their customers to maximize
their energy use. The Laboratory hosts the California
Institute for Energy Efficiency, a research consortium
of utility companies, universities and research laboratories.
CIEE's mission is to identify, plan and fund coordinated
research on energy-efficient end-use technologies.
Copies of the Berkeley Lab Economic Impact Analysis
are available from the Berkeley Lab Technology Transfer
Department, One Cyclotron Road, Berkeley, CA 94720.
Berkeley Lab is a non-classified scientific research
laboratory of the U.S. Department of Energy, managed
by the University of California.