IDEAS home Printed from https://ideas.repec.org/a/eee/soceps/v72y2020ics0038012119304288.html
   My bibliography  Save this article

Agglomeration economies and university program creation in the knowledge economy

Author

Listed:
  • Faria, João Ricardo
  • Ferreira, João J.
  • Johnson, Ken H.
  • Mixon, Franklin G.
  • Wanke, Peter F.

Abstract

Existing academic literature on the relationship between agglomeration economies and university activities is both under-theorized and relatively sparse in terms of empirical examination. This paper addresses each of these voids by contributing and analyzing a market model of pro-revenue education program creation such as graduate-level executive business education (e.g. EMBA) that reveals some intriguing characteristics. For instance, it shows that demand for these pro-revenue programs is inelastic and therefore uniquely determines their availability. More specifically, we show that through agglomeration economies these types of education programs are more likely to emanate from universities located in metropolitan areas and from less academically prestigious universities. Regression analysis of a cross-section of national public universities lends support to important facets of our formal model by suggesting that agglomeration economies continue to increase the probability of offering EMBA programs through a city size of approximately 2.12 million and that the probability that a given business school will offer an EMBA is negatively related to the academic prestige of the institution to which it is affiliated.

Suggested Citation

  • Faria, João Ricardo & Ferreira, João J. & Johnson, Ken H. & Mixon, Franklin G. & Wanke, Peter F., 2020. "Agglomeration economies and university program creation in the knowledge economy," Socio-Economic Planning Sciences, Elsevier, vol. 72(C).
  • Handle: RePEc:eee:soceps:v:72:y:2020:i:c:s0038012119304288
    DOI: 10.1016/j.seps.2020.100800
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0038012119304288
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.seps.2020.100800?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Donald R. Davis & Jonathan I. Dingel, 2019. "A Spatial Knowledge Economy," American Economic Review, American Economic Association, vol. 109(1), pages 153-170, January.
    2. Rand Ressler, 2000. "Is offering a degree in law an effective strategy for increasing state educational appropriations?," Applied Economics Letters, Taylor & Francis Journals, vol. 7(11), pages 749-753.
    3. Christian Rammer & Jan Kinne & Knut Blind, 2020. "Knowledge proximity and firm innovation: A microgeographic analysis for Berlin," Urban Studies, Urban Studies Journal Limited, vol. 57(5), pages 996-1014, April.
    4. Alessandra Faggian & Philip Mccann, 2009. "Universities, Agglomerations And Graduate Human Capital Mobility," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 100(2), pages 210-223, April.
    5. Webber, Douglas A., 2017. "State divestment and tuition at public institutions," Economics of Education Review, Elsevier, vol. 60(C), pages 1-4.
    6. Harvey Goldstein & Catherine Renault, 2004. "Contributions of Universities to Regional Economic Development: A Quasi-experimental Approach," Regional Studies, Taylor & Francis Journals, vol. 38(7), pages 733-746.
    7. Zoltán J. Ács & Pontus Braunerhjelm & David B. Audretsch & Bo Carlsson, 2015. "The knowledge spillover theory of entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 7, pages 129-144, Edward Elgar Publishing.
    8. Diego Puga, 2010. "The Magnitude And Causes Of Agglomeration Economies," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 203-219, February.
    9. Shimeng Liu, 2015. "Spillovers from Universities: Evidence from the Land-Grant Program," Working Paper 9410, USC Lusk Center for Real Estate.
    10. Haifeng Qian & Zoltán J. Ács, 2015. "An absorptive capacity theory of knowledge spillover entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 9, pages 161-173, Edward Elgar Publishing.
    11. Audretsch, David B, 1998. "Agglomeration and the Location of Innovative Activity," Oxford Review of Economic Policy, Oxford University Press, vol. 14(2), pages 18-29, Summer.
    12. Joshua Drucker, 2016. "Reconsidering the Regional Economic Development Impacts of Higher Education Institutions in the United States," Regional Studies, Taylor & Francis Journals, vol. 50(7), pages 1185-1202, July.
    13. Steven B. Caudill & Shannon Hourican & Franklin G. Mixon, 2018. "Does college football impact the size of university applicant pools and the quality of entering students?," Applied Economics, Taylor & Francis Journals, vol. 50(17), pages 1885-1890, April.
    14. Frank Oort & Niels Bosma, 2013. "Agglomeration economies, inventors and entrepreneurs as engines of European regional economic development," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(1), pages 213-244, August.
    15. Edward L. Glaeser & Joshua D. Gottlieb, 2009. "The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States," Journal of Economic Literature, American Economic Association, vol. 47(4), pages 983-1028, December.
    16. Gerald A. Carlino, 2001. "Knowledge spillovers: cities' role in the new economy," Business Review, Federal Reserve Bank of Philadelphia, issue Q4, pages 17-26.
    17. Amie M. Schuck, 2017. "Evaluating the Impact of Crime and Discipline on Student Success in Postsecondary Education," Research in Higher Education, Springer;Association for Institutional Research, vol. 58(1), pages 77-97, February.
    18. Yener Altunbaş & Edward Jones & John Thornton, 2013. "Knowledge spillovers and the growth of British cities," Applied Economics Letters, Taylor & Francis Journals, vol. 20(2), pages 162-166, February.
    19. Liu, Shimeng, 2015. "Spillovers from universities: Evidence from the land-grant program," Journal of Urban Economics, Elsevier, vol. 87(C), pages 25-41.
    20. Pfeffer, Jeffrey & Fong, Christina T., 2004. "The Business School "Business": Some Lessons from the U.S. Experience," Research Papers 1855, Stanford University, Graduate School of Business.
    21. Taylor, Frederick Winslow, 1911. "The Principles of Scientific Management," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number taylor1911.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gabriela Fernandes & David O’Sullivan, 2023. "Project management practices in major university-industry R&D collaboration programs – a case study," The Journal of Technology Transfer, Springer, vol. 48(1), pages 361-391, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Diekhoff, Josefine & Krieger, Bastian & Licht, Georg & Rammer, Christian, 2019. "Stand der Messung von Interaktionen zwischen Wissenschaft und Wirtschaft im internationalen Vergleich," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 248650.
    2. Andrea Bonaccorsi & Daniele Biancardi & Mabel Sanchez Barrioluengo & Federico Biagi, 2019. "Study on Higher Education Institutions and Local Development," JRC Research Reports JRC117272, Joint Research Centre (Seville site).
    3. Silveli Cristo-Andrade & João J. Ferreira, 2020. "Knowledge spillovers and strategic entrepreneurship: what researches and approaches?," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 263-286, March.
    4. Liang Wang & Justin Tan, 2019. "Social Structure of Regional Entrepreneurship: The Impacts of Collective Action of Incumbents on De Novo Entrants," Entrepreneurship Theory and Practice, , vol. 43(5), pages 855-879, September.
    5. Mark D. Partridge & M. Rose Olfert, 2011. "The Winners' Choice: Sustainable Economic Strategies for Successful 21st-Century Regions," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(2), pages 143-178.
    6. Eyal Apatov & Arthur Grimes, 2019. "Impacts of Higher Education Institutions on Local Population and Employment Growth," International Regional Science Review, , vol. 42(1), pages 31-64, January.
    7. T. M. Tonmoy Islam, 2020. "The impact of population agglomeration of an area on its neighbors: evidence from the USA," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(1), pages 1-26, August.
    8. Tavassoli, Sam & Obschonka, Martin & Audretsch, David B., 2021. "Entrepreneurship in Cities," Research Policy, Elsevier, vol. 50(7).
    9. Behrens, Kristian & Robert-Nicoud, Frédéric, 2015. "Agglomeration Theory with Heterogeneous Agents," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 171-245, Elsevier.
    10. 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.
    11. Balázs Páger & Éva Komlósi, 2015. "Agglomeration effects on countries' competitiveness and entrepreneurial performance," ERSA conference papers ersa15p503, European Regional Science Association.
    12. Hyejin Jung & Inseok Seo & Kyujin Jung, 2018. "Mediating Role of Entrepreneurship in Explaining the Association Between Income Inequality and Regional Economic Performance," Economic Development Quarterly, , vol. 32(2), pages 135-145, May.
    13. Andrés Rodríguez-Pose & Michael Storper, 2020. "Housing, urban growth and inequalities: The limits to deregulation and upzoning in reducing economic and spatial inequality," Urban Studies, Urban Studies Journal Limited, vol. 57(2), pages 223-248, February.
    14. Bruno Ferman & Cristine Pinto & Vitor Possebom, 2020. "Cherry Picking with Synthetic Controls," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(2), pages 510-532, March.
    15. Tobias Schlegel & Curdin Pfister & Dietmar Harhoff & Uschi Backes-Gellner, 2022. "Innovation effects of universities of applied sciences: an assessment of regional heterogeneity," The Journal of Technology Transfer, Springer, vol. 47(1), pages 63-118, February.
    16. Andrew Copus & Dimitris Skuras & Kyriaki Tsegenidi, 2006. "Innovation and Peripherality: A Comparative Study in Six EU Member Countries," ERSA conference papers ersa06p295, European Regional Science Association.
    17. Olivier Meier & Aurélie Sannajust, 0. "The smart contract revolution: a solution for the holdup problem?," Small Business Economics, Springer, vol. 0, pages 1-16.
    18. David Cuberes & Rafael González-Val, 2017. "The effect of the Spanish Reconquest on Iberian cities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 58(3), pages 375-416, May.
    19. Alfredo Monte & Luca Pennacchio, 2020. "Historical roots of regional entrepreneurship: the role of knowledge and creativity," Small Business Economics, Springer, vol. 55(1), pages 1-22, June.
    20. Tsvetkova, Alexandra, 2016. "Do diversity, creativity and localized competition promote endogenous firm formation? Evidence from a high-tech US industry," MPRA Paper 72349, University Library of Munich, Germany.

    More about this item

    Keywords

    Agglomeration economies; Knowledge spillovers; Entrepreneurial universities;
    All these keywords.

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:soceps:v:72:y:2020:i:c:s0038012119304288. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/seps .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.