Of the total, an estimated $101.9 million was kept in the Otago economy last year, and $301 million over the past three years.
The report, the first the polytechnic has completed, covers the immediate financial operations of the Dunedin and Cromwell campuses.
It also calculates the flow-on effects for businesses of spending by the polytechnic, staff and students.
The direct spend and added value figures were calculated using accepted economic multipliers and using the same methodology used in similar reports released by the University of Otago, polytechnic marketing, communications and customer relations general manager Mike Waddell said.
Presenting the report to a polytechnic council meeting last week, he said the impact the polytechnic had made over the past three years was "staggering".
"Sometimes we don't totally value the importance of the polytechnic; not just its educational value but its wider economic value as well.
"It is important for the community to understand the contribution this organisation makes to the fabric of society."
Further reports would be completed regularly, he said.
The total expenditure generated by the polytechnic last year was enough to support 2307 jobs for one year, the report said.
It was calculated 1327 of those could theoretically be attributed to the Otago region, including 89 in Central Otago.
Almost 9100 students were enrolled at the polytechnic last year, equating to 3500 full-time equivalent students (efts), the report said.
Of the total, 82% studied at the Dunedin campus, with 5.6% studying at Cromwell and the remainder studying by distance learning, at community learning centres, or in programmes offered through joint arrangements with other polytechnics.
The home towns of about 40% of students were outside Otago, Mr Waddell said.
The three-year data showed the economic impact of the polytechnic dropped from $192.8 million in 2007 to $186.7 million in 2008, before climbing to $192.7 million last year.
That was because of a sizeable drop in the number of students enrolled in 2008, the report said.
More than 11,342 people - 3659 efts - were enrolled in 2007, but enrolments dropped to 9585 - 3419 efts - in 2008.
The drop was mainly due to the Government ending funding for many lower-level qualifications such as community-based computing classes.
Polytechnic council chairwoman Kathy Grant welcomed the report, saying it was a "useful information".
Council member Dr Peter Coolbear said the polytechnic's economic impact would be higher than the report said.
The report underestimated the total economic impact because it did not include the value of educational qualifications and the contribution graduating students made to the economy, he said.
Mr Waddell said was difficult to calculate the value of qualifications in the same way as the other factors which been analysed for the report.
