The Economic Impact of Vanderbilt
Vanderbilt University and Vanderbilt University Medical Center
Driving Growth and Enhancing Quality of Life in Nashville and Beyond
At regular intervals, Vanderbilt University and Vanderbilt University Medical Center commission an objective third-party assessment of their economic impact. Universities and academic medical centers are community anchors that fuel the knowledge economy, providing a stream of talent and a pipeline of discoveries. In this way, VU and VUMC drive economic growth and innovation as well as contribute to quality of life in Nashville and the surrounding region. Below are findings from the 2025 economic impact study produced by TXP Inc.
Economic Impact
The latest economic impact report highlights the university and medical center's ongoing legacy as an economic driver and statewide community partner.
Amid a national conversation about the essential value of universities to American strength and competitiveness, we are proud, as a university and as Nashvillians, to highlight once again the immense economic benefits Vanderbilt provides to our city, state and region.
Job Creation and Employment
Vanderbilt is the largest private employer in the Nashville area and the second-largest private employer in Tennessee.
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50K
full- and part-time
VU and VUMC
staff employed -
120K
jobs generated by economic impact
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64%
growth in jobs generated since 2018
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$7.46B
generated labor income in 2024
Vanderbilt accounted for more than 10 percent of the 1.16 million jobs in the region in fiscal 2024.
This report brings into focus the importance of Vanderbilt's overall economic impact on Tennessee and the surrounding region. The medical center's growing geographic footprint is accompanied by an increase in economic activity in the communities we serve, not only through the hospitals and clinics we operate but through personal spending by our workforce. Increasingly, our employees live and work in these same communities.
Key Economic Contributions
In 2024, VU and VUMC activity accounted for nearly $10 billion in direct spending in Nashville.
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$22.13B
in economic activity generated in 2024
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$530M
in total Tennessee tax revenue 2023–2024
-
$10B+
of the $106B in value-added economic contribution to the local economy came from Vanderbilt in 2023
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4,000
total yearly undergraduate, graduate and professional degrees contributed to the economy
Visitors travel to Nashville for conferences, alumni events, sporting events and medical services associated with Vanderbilt. They support cultural institutions and entertainment attractions, enhancing the quality of life for local residents. The direct spending by these guests provides revenue to local businesses.
$299M
Visitor spending in 2024 VU/VUMC related activity draws 3 percent of the direct visitor spending in the Nashville metropolitan statistic area
19M+
Visitors came to Nashville for Move-In Reunion, Family Weekend
45K
Annual visitors for Undergraduate Admissions programming, including campus visits
488,500
Visitors who attended Vanderbilt sporting events in 2024
Over the past five years, Vanderbilt has invested significantly in construction, with a total spending of $2.2 billion.
$1.45B
VU construction spending 2019–2024
$787M
VUMC construction spending 2019–2024
The completion of the West End Neighborhood project included the constrution of multiple residence halls such as Zeppos and Rothschild Colleges, and the expansion of Owen Graduate School of Management. VUMC's largest project included the Jim Ayers Tower completion.
Vanderbilt students contribute to the local economy with an annual spending of $225 million on local expenses and housing.
- Vanderbilt has approximately 7,220 undergraduate students and 6,419 graduate and professional students completing programs through the university.
- 94 percent of students live on campus all four years, feeding the local economy around campus
Additionally, students and graduates increase the state’s economic development competitiveness and productivity by gaining knowledge, improving technical skills, and commanding a higher salary when entering the job market.
Community Care
VUMC and Vanderbilt University play a crucial role in improving Tennessee’s overall quality of life and economic vitality.
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$952M
total value of charity care, community benefits and other unrecovered costs provided. by VUMC in fiscal year 2024
Vanderbilt University also plays an important role through its community outreach efforts, ensuring that economic growth has a positive impact and connects Vanderbilt research and expertise to community needs.
Strategic partnerships that improve the region's innovation ecosystem:
- Community Impact Fund offering collaborative grants to nonprofits
- Nashville Catalyst Fund addressing affordable housing challenges
- Nashville Innovation Alliance, improving the region’s innovation ecosystem
By intentionally fostering strategic partnerships with local organizations, government agencies, and businesses, we extend our reach in ways that create meaningful, lasting benefits for Nashville and beyond.
Fueling the Innovation Ecosystem
Vanderbilt is constantly pushing the boundaries of research, innovation, science, and entrepreneurship, driving progress and shaping the future.
Research universities like Vanderbilt push the frontiers of science and anchor regional economic growth by providing high-skilled workers, attracting research entrepreneurs and encouraging private-sector R&D partnerships. The knowledge economy thrives on this interplay and is particularly robust when a university is embedded in a downtown. A downtown location is typically associated with more patents, licensing agreements and startups than universities in non-urban settings, making them competitive differentiators in global markets.
Over the last decade, Vanderbilt researchers and their innovations have helped to position the university as a world leader in numerous medical research sectors such as medical technology and imaging, personalized medicine and drug discovery and development.
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32
startups formed
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402
U.S. patents issued
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582
licenses and options executed
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$258M
in revenue from licenses since 2019
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$1B
allocated to research and development in FY23
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1,500+
patent applications and industry agreements, highlighting significant contributions to technological advancements and commercializing new ideas
The Economic Impact of Vanderbilt
Key economic contributions of Vanderbilt University
and Vanderbilt University Medical Center
Analysis by TXP Inc., txp.com