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The Economic Development Impacts of Universities on Regions: Do Size and Distance Matter?

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  • Harvey Goldstein

    (University of North Carolina-Chapel Hill)

  • Joshua Drucker

    (University of North Carolina-Chapel Hill)

Abstract

As American colleges and universities have increasingly become involved in economic development since the mid-1980s, there has been a concomitant growth of interest in measuring the impacts of higher education on regional economies. This study examines the influences of 4-year colleges and universities in the United States at the metropolitan level, focusing on the internal and external factors that affect the generation of regional economic development impacts, the spatial extent of the impacts, and separating the effects of different university functions. Knowledge-based university activities, particularly teaching and basic research, are found to have substantial positive effects on regional earnings gains. The greatest impacts occur in small- and medium-sized regions, suggesting that universities may be able to act as a substitute for agglomeration economies. Spatial spillovers across regions are influential as well, indicating a relatively flat spatial gradient of university impacts that stretches to neighboring regions.

Suggested Citation

  • Harvey Goldstein & Joshua Drucker, 2006. "The Economic Development Impacts of Universities on Regions: Do Size and Distance Matter?," Economic Development Quarterly, , vol. 20(1), pages 22-43, February.
    • Handle: RePEc:sae:ecdequ:v:20:y:2006:i:1:p:22-43
    DOI: 10.1177/0891242405283387
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    6. Joaquín M. Azagra-Caro & Dimitrios Pontikakis & Attila Varga, 2013. "Delocalization Patterns in University--Industry Interaction: Evidence from the Sixth R&D Framework Programme," European Planning Studies, Taylor & Francis Journals, vol. 21(10), pages 1676-1701, October.
    7. Olivier Coussi & Kadígia Faccin & Evelyne Lande & Alsones Balestrin, 2015. "Emergence of a territorial triple helix approach during the life cycle of a foreign direct investment project: the HT MICRON case in Brazil [Emergence D'Une Demarche Territorial Triple Helice Duran," Post-Print hal-02114143, HAL.
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    9. Néstor Duch & Javier García & Martí Parellada, 2008. "The economic impact of the spanish public university system. An analysis for the period 1998 - 2004," Working Papers 2008/9, Institut d'Economia de Barcelona (IEB).
    10. Hong Joo Lee, 2019. "What Factors Are Necessary for Sustaining Entrepreneurship?," Sustainability, MDPI, vol. 11(11), pages 1-20, May.
    11. John V. Winters, 2011. "Human Capital and Population Growth in Nonmetropolitan U.S. Counties," Economic Development Quarterly, , vol. 25(4), pages 353-365, November.
    12. Hayter, Christopher S., 2016. "Constraining entrepreneurial development: A knowledge-based view of social networks among academic entrepreneurs," Research Policy, Elsevier, vol. 45(2), pages 475-490.
    13. Bonander, Carl & Jakobsson, Niklas & Podestà, Federico & Svensson, Mikael, 2016. "Universities as engines for regional growth? Using the synthetic control method to analyze the effects of research universities," Regional Science and Urban Economics, Elsevier, vol. 60(C), pages 198-207.
    14. Torben Schubert & Henning Kroll, 2016. "Universities’ effects on regional GDP and unemployment: The case of Germany," Papers in Regional Science, Wiley Blackwell, vol. 95(3), pages 467-489, August.
    15. Solvoll, Gisle & Hanssen, Thor-Erik Sandberg, 2018. "Importance of aviation in higher education," Journal of Air Transport Management, Elsevier, vol. 72(C), pages 47-55.
    16. Alexey A. Egorov & Oleg V. Leshukov & Alexander D. Gromov, 2017. "The Role of Universities in Economic Development of Russian Regions," HSE Working papers WP BRP 41/EDU/2017, National Research University Higher School of Economics.
    17. Chen, Shih-Hsin & Lin, Wei-Ting, 2017. "The dynamic role of universities in developing an emerging sector: a case study of the biotechnology sector," Technological Forecasting and Social Change, Elsevier, vol. 123(C), pages 283-297.
    18. Néstor Duch-Brown & Javier García-Estévez & Martí Parellada-Sabata, 2011. "Universities and regional economic growth in Spanish regions," Working Papers 2011/6, Institut d'Economia de Barcelona (IEB).
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    20. Stephanie A. Pink-Harper, 2015. "Educational Attainment," Economic Development Quarterly, , vol. 29(2), pages 167-179, May.

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