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The local economic impact of the Swedish higher education system

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  • Rodríguez-Pose, Andrés
  • Wang, Han

Abstract

This article examines the role of Swedish higher education institutions (HEIs) in economic development, focusing on the impact of their research capacities on local economic activity. Globally, HEIs are increasingly prioritising research, frequently at the expense of education and local economic engagement, as a means to climb the university ranking ladder. Sweden has been no exception. Our findings indicate that research intensity at Swedish HEIs does not correlate with higher local income. Rather, the opposite is the case: more emphasis on top-end research seems to undermine local income. We explore human capital and innovation as possible mechanisms for the limited local economic influence of Swedish HEIs. The results reveal that HEIs do not significantly improve local human capital. Moreover, despite Swedish HEIs holding intellectual property rights to foster innovation, the actual economic translation of this knowledge faces considerable hurdles, including a misalignment with industry needs and limited local business collaboration.

Suggested Citation

  • Rodríguez-Pose, Andrés & Wang, Han, 2025. "The local economic impact of the Swedish higher education system," LSE Research Online Documents on Economics 127188, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:127188
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    3. Rodríguez-Pose, Andrés & Xiang, Leiboyu & Lee, Neil, 2025. "Finding Stars: Mapping the Geography of the World’s Scientific Elites," CEPR Discussion Papers 20970, Centre for Economic Policy Research.

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    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I20 - Health, Education, and Welfare - - Education - - - General
    • 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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