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The University of Edinburgh generates £2 billion every year for the Scottish economy, according to recent figures.
An independent financial study also found the institution supports more than 30,000 jobs across the country.
It estimated its students contribute £177 million to the Scottish economy.
Authors of the report highlighted how the university benefits the community through a range of activities such as medical research and the creation of start-up companies.
The economic impact study for 2013/14, carried out by BiGGAR Economics, also underlines the contribution made to the local economy through students' spending, part-time work and voluntary activity.
Income generated by visits to the Scottish capital from friends and relatives of students is also included in the figures.
The study states that for every £1 the university receives from the Scottish Funding Council - in the form of awards and grants - it generates £9.53 for the Scottish economy.
University principal Professor Sir Timothy O'Shea said: "As a world-leading centre of academic excellence, we aim to make a significant, sustainable and socially responsible contribution to Scotland, the UK and the world.
"This study strongly indicates the hugely important economic role that the University of Edinburgh plays within Scotland and beyond.''