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Do universities affect firms’ location decisions? Evidence from Spain

Author

Listed:
  • Néstor Duch-Brown

    () (University of Barcelona & IEB)

  • Javier García-Estévez

    () (University of Barcelona & IEB)

Abstract

Human capital, scientific research, and technology are the three chief mechanisms promoting knowledge spillovers from universities to firms. Based on a study of the impact of Spain’s 1983 University Reform Act (LRU), which opened the door to the foundation of new universities and faculties, this paper examines whether university (or faculty) location affects the creation of new firms within a given province. We conclude that the foundation of science and social science faculties has had a marked impact on the creation of firms.

Suggested Citation

  • Néstor Duch-Brown & Javier García-Estévez, 2011. "Do universities affect firms’ location decisions? Evidence from Spain," Working Papers 2011/7, Institut d'Economia de Barcelona (IEB).
  • Handle: RePEc:ieb:wpaper:2011/4/doc2011-7
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    Keywords

    universities; firm location; spillovers; poisson regression;

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R39 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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