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Universities and Firm Performance: Evidence from Germany

Author

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  • Meier Philipp

    (VWL II – Chair of International Economics, 26523 University of Bayreuth , 95440 Bayreuth, Germany)

Abstract

This paper analyses the impact of universities on firm performance based on the universe of firms in Germany from 2013 to 2017. From a regional perspective, firms have 0.92 % more revenues per employee in counties with a university than in a county without a university. To address potential endogeneity concerns, I focus on a subsample of universities, founded for political reasons. Analysing different types of German universities indicates that the high-skilled regional labour supply is important for the positive impact of universities, while proximity to the knowledge spillovers of research-intensive universities is associated with weaker firm performance. The latter finding is at least partially explained by the networks of multinational firms.

Suggested Citation

  • Meier Philipp, 2024. "Universities and Firm Performance: Evidence from Germany," German Economic Review, De Gruyter, vol. 25(2), pages 61-100.
    • Handle: RePEc:bpj:germec:v:25:y:2024:i:2:p:61-100:n:1003
    DOI: 10.1515/ger-2024-0043
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    More about this item

    Keywords

    German universities; regional differences; tertiary education; human capital; university-industry interaction; knowledge spillovers;
    All these keywords.

    JEL classification:

    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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