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The Role of a University in Cluster Formation: Evidence from a National Institute of Science and Technology in Korea

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  • Lee, Jongkwan

Abstract

Can a new technology-oriented research university start a virtuous cycle by inducing industrial agglomeration? In this paper, I study the effect of the opening of the Ulsan National Institute of Science and Technology (UNIST) in 2009 on local industrial specialization. Using synthetic control, I find that the opening of the university increased manufacturing employment through the entry of new firms between 2009 and 2016. These new firms were mainly found in industries technologically close to the university’s research. The number of firms in closely connected industries increased more than 30% compared with little change in less-related industries. My results suggest that a university can lead to local industrial specialization toward industries more closely related to that university’s innovative strengths.

Suggested Citation

  • Lee, Jongkwan, 2021. "The Role of a University in Cluster Formation: Evidence from a National Institute of Science and Technology in Korea," Regional Science and Urban Economics, Elsevier, vol. 86(C).
    • Handle: RePEc:eee:regeco:v:86:y:2021:i:c:s0166046220303021
    DOI: 10.1016/j.regsciurbeco.2020.103617
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    More about this item

    Keywords

    Technology-oriented university; Local development; Industrial clusters; Synthetic control method;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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