TechLink National Economic Impacts from Partnerships between the Department of Defense and U.S. Industry

This study was undertaken to quantify TechLink’s overall contribution to the nation’s economy and defense mission from the TechLink-facilitated technology partnerships between DOD and U.S. industry. The period covered by the study was 2000 to 2021.

The study team conducted a rigorous survey of partners to determine the total sales of new products and services and other economic results from the technology partnership agreements established by TechLink. Partners collectively reported nearly $3.6 billion in direct sales related to the TechLink-established agreements. The team applied IMPLAN economic impact assessment software to estimate the economic ripple effects of these sales nationwide, including their indirect and induced effects. IMPLAN estimated the total economic output, value added, employment, labor income, and tax revenues related to the sales reported by partners.

The total economy-wide output was estimated to be $9.82 billion. Value added was calculated to be $5.13 billion, representing new wealth creation in the economy. Employment impacts included 50,245 jobs with average income of $68,678—approximately 34 percent higher than the median U.S. income in 2021. Total labor income was estimated at $3.45 billion. The $3.6 billion in sales and its economy-wide effects generated approximately $855 million in total tax revenue, including $595 million in federal tax revenues and $260 million in state and local tax revenues. Table 3 on page 13 summarizes the total economic contribution of the technology partnership agreements established by TechLink between DOD and U.S. industry.