Iowa State’s impact on state economy grows to $6 billion
AMES, Iowa (Feb. 26, 2026) – When an Ames-based ag-tech startup wanted to accelerate development of a new product, the founder turned to Iowa State University’s Center for Industrial Research and Service (CIRAS) for help.
CIRAS delivered a solution with immediate and long-term value for Distynct. The founder, an Iowa State alumnus, expects a nearly $400,000 economic impact as a result of this project. The results are one example of Iowa State University’s $6 billion economic impact on the state.
Included in Iowa State’s total impact is $2.1 billion in economic development and added income from ISU startups and Iowa-based businesses assisted by CIRAS and Iowa State’s Small Business Development Center, according to an economic impact and investment analysis conducted by Lightcast for the Iowa Board of Regents.
Iowa State’s total economic impact supports 59,888 jobs – or one out of every 36 jobs in Iowa – based on fiscal year 2023-2024 data, the timeframe reviewed for the analysis. ISU’s economic impact represented 2.5% of the total gross state product – an impact nearly as large as the entire accommodation and food services industry in the state, according to the analysis.
“Iowa State is world-class institution for innovation and research that benefits all Iowans,” said David Spalding, Iowa State University interim president. “In addition to groundbreaking discoveries and new technologies, the university serves all 99 Iowa counties, provides support for business and industry and prepares students for future careers that will enhance the productivity of the state’s workforce.”
The analysis shows the education and training Iowa State provides for state residents provides the greatest impact. Iowa State alumni generated $2.5 billion in added income for the state economy based on increased productivity at the businesses where they work and higher earnings.
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Originally published by Iowa State University in February 2026