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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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    References listed on IDEAS

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    6. 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.
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    8. Paola Cardamone & Valeria Pupo & Fernanda Ricotta, 2016. "Do Firms Benefit from University Research? Evidence from Italy," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 2(3), pages 445-471, November.
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    15. 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.
    16. 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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    18. 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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