The missing middle — Why Tallahassee’s magnetics ecosystem never formed 

Part 2 in a series

• Lack of a corporate cluster. 
  Unlike national labs such as Oak Ridge and Los Alamos, the MagLab is not surrounded by a dense network of R&D firms or advanced manufacturers. Even within Innovation Park, there is little evidence of a thriving private-sector ecosystem linked to the lab’s research. 

• Inadequate infrastructure. 
  Tallahassee’s electric grid, industrial land supply, and air travel connectivity are frequently cited by site selectors and business leaders as barriers to growth. The MagLab itself accounts for 7–8% of the city’s total electricity use — and reports suggest it has been asked to reduce load during capacity constraints. 

• No targeted incentives. 
  Unlike Oak Ridge, TN — where city and county officials have deployed tailored incentive packages to attract lab-adjacent companies — Tallahassee and Leon County have no specific economic development tools tied to the MagLab’s potential spinoffs or commercialization opportunities. 

• Insufficient marketing. 
  There is no dedicated marketing campaign to promote the MagLab to corporate site selectors, research parks, or innovation investors. Though the MagLab is featured in some general OEV (Office of Economic Vitality) materials, there is no sustained marketing outreach effort positioning it as a business development asset. 

• Community culture unfriendly to business 
  Tallahassee’s reputation precedes – it is widely known in business circles that the city is not easy to work with when it comes to permitting and economic development. OEV’s clunky structure prevents even talented leaders from succeeding.  

Despite the reality on the ground, FSU often touts the MagLab’s economic development impact on the community. But things aren’t as rosy as the picture that is painted.  
 

Economic ‘impact’ 

At first glance, the economic impact figures associated with the MagLab sound impressive. Florida State University and its supporters often cite large numbers — including a $325 million annual statewide impact. But these estimates rely heavily on internal modeling, and a closer look at the components raises questions about what kind of impact is really being measured. 

Let’s break it down. 

1. Who created the impact estimates? 

The most commonly cited impact numbers trace back to FSU-affiliated analysts (CEFA) and FSU publications, not an independent third party — e.g., $325M statewide (FSU BOT materials) and $221M Tallahassee / $325M Florida (MagLab “Economic Impact” PDF sourced to CEFA 2019). To date, there is no publicly available economic impact report on the MagLab conducted by an unaffiliated national consulting firm or neutral economic research organization. 

2. What’s actually included in the “impact”? 

The $325 million impact figure includes: 

• Salaries and benefits paid to lab and university staff; 

• Federal and state funding allocated to the lab; 

• Construction, equipment, and operational spending; 

• Indirect and induced effects estimated from lab visitors, vendor spending, and employee consumption. 

These are typical components of input-output modeling — they reflect the flow of public funds through the regional economy. In other words, much of the “impact” represents economic activity, not necessarily private-sector growth or wealth creation. There is little in the estimate to suggest substantial returns in the form of new tax revenue, private investment, business formation or job creation. 

Unfortunately, these numbers are usually lapped up or parroted by business advocates and the media. 

3. What’s missing from the equation? 

In economic development terms, the presence of a high-profile research facility like the MagLab would ideally spark spinoff companies, attract venture capital, support industry partnerships, and expand the local tax base. However, publicly available reports and presentations from the MagLab do not document a pattern of commercialization successes, private-sector relocations, or large-scale job creation beyond the lab itself. 

One exception is Danfoss Turbocor, a private manufacturer that has cited the MagLab as a factor in its decision to grow in Tallahassee — a point noted in an FSU Board of Trustees presentation.  

4. How does MagLab compare to national peers? 

Consider Oak Ridge National Laboratory (ORNL) in Tennessee, which has built a significant economic ecosystem around federal research. DOE’s Oak Ridge Reservation — which includes ORNL — generated $7.2 billion in economic impact and supported ~43,000 jobs in Tennessee in FY2020 (ETEC/Baker Center study). ORNL’s role is amplified by robust technology transfer and manufacturing partnerships. 

Now, again, to be fair, ultra-high field magnets (the Mag Lab’s primary focus) have limited manufacturing purpose right now. But that didn’t stop Danfoss from seeing the potential of an ecosystem forming and of the proximity to research. 

Even accounting for scale differences, the gap in economic reach and private-sector spillover is substantial. Despite being a world-class scientific asset, the MagLab has not yet catalyzed a broader innovation or manufacturing cluster in Tallahassee. 

Bottom line 

The MagLab’s economic impact claims are based on modeling of public spending and its local ripple effects — not on independent analysis of long-term economic transformation. While the lab clearly delivers scientific value and supports high-wage public-sector employment, the evidence for substantial private-sector growth around it is limited. An independent economic assessment could help clarify the lab’s true role in regional development — and what might be done to enhance it. 

Coming next: What could have been and could still be