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The role of the university in attracting high tech entrepreneurship: A Silicon Valley tale

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  • David Huffman

    ()
    (University of California, Berkeley, CA 94720-3880, USA)

  • John M. Quigley

    ()
    (University of California, Berkeley, CA 94720-3880, USA)

Abstract

Among the many sorting functions provided by institutions of higher education, there is a geographic dimension. During the years spent as students and residents of local communities, students develop specific networks and contacts, and perhaps their tastes change as well. After graduation, these students may be more likely to reside in the locality or region in which they have been educated. This paper presents evidence which suggests that the university is important in attracting human capital to the local area and in stimulating entrepreneurial talent in the region. We also measure the strength of the impact of the university on geographical location in one specific instance. For post-graduate professional business and engineering students at Berkeley, we compare the spatial distribution of residences before attending the university and again after graduation. The results are suggestive of the importance of academic institutions in the geographic pattern of agglomerations of footloose scientific firms, such as those in the Silicon Valley just south of San Francisco. The results also reinforce the self-interested reasons for government investment in high-quality educational institutions, as measured by the return on the augmented human capital stock in the region.

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Bibliographic Info

Article provided by Springer in its journal The Annals of Regional Science.

Volume (Year): 36 (2002)
Issue (Month): 3 ()
Pages: 403-419

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Handle: RePEc:spr:anresc:v:36:y:2002:i:3:p:403-419

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Cited by:
  1. Winters, John V., 2012. "Differences in Employment Outcomes for College Town Stayers and Leavers," IZA Discussion Papers 6723, Institute for the Study of Labor (IZA).
  2. Binz, Hanna L. & Czarnitzki, Dirk, 2008. "Are Local Milieus the Key to Innovation Performance?," ZEW Discussion Papers 08-008 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  3. Stefanescu, Razvan & Dumitriu, Ramona & Nistor, Costel, 2011. "Motivations for the Bessarabian youth to study in Romanian universities," MPRA Paper 41621, University Library of Munich, Germany, revised 02 Oct 2011.
  4. Winters, John V, 2010. "Human Capital and Population Growth in Non-Metropolitan U.S. Counties: The Importance of College Student Migration," MPRA Paper 25592, University Library of Munich, Germany.
  5. DAUTEL Vincent & WALTHER Olivier, 2011. "The geography of innovation in the Luxembourg metropolitan region: an intra-regional approach," CEPS/INSTEAD Working Paper Series 2011-38, CEPS/INSTEAD.
  6. Dafna Schwartz & Michael Keren, 2006. "Location incentives and the unintentional generation of employment instability:some evidence from Israel," The Annals of Regional Science, Springer, vol. 40(2), pages 449-460, June.
  7. Winters, John V., 2011. "Human capital, higher education institutions, and quality of life," Regional Science and Urban Economics, Elsevier, vol. 41(5), pages 446-454, September.
  8. Mark Drabenstott, 2005. "A review of the federal role in regional economic development," Monograph, Federal Reserve Bank of Kansas City, number 2005arotfrire, December.
  9. John V. Winters, 2011. "Why Are Smart Cities Growing? Who Moves And Who Stays," Journal of Regional Science, Wiley Blackwell, vol. 51(2), pages 253-270, 05.
  10. Thomas Brenner & Charlotte Schlump, 2010. "University Education, Public Research and Employment Growth in Regions – An Empirical Study of Germany," Working Papers on Innovation and Space 2010-02, Philipps University Marburg, Department of Geography.

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