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Human Capital Flows and Regional Knowledge Assets:A Simultaneous Equation Model

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  • Alessandra Faggian
  • Philip McCann

Abstract

Our paper constructs a simultaneous equation model in order to investigate the relationship between interregional human capital knowledge flows and regional knowledge assets. In particular, with the aid of a GIS system, we model the simultaneous relationship between the interregional migration behaviour of UK students and graduates to and from university, the knowledge assets of the regions, and the regions of employment of the graduates. Our results indicate that the innovativeness of a region encourages university graduates to seek employment in that region. However, there is little or no evidence in favour of direct spillovers between university research and regional innovation. Rather, the primary role of universities appears to be as a conduit for bringing potential high quality undergraduate human capital into a region. Many of these migrants will remain in the university region for employment after graduation, thereby subsequently contributing to the innovative performance of the region. We argue therefore that the spillovers of embodied human capital appear far more important than informal spillovers between universities and local firms.

Suggested Citation

  • Alessandra Faggian & Philip McCann, 2004. "Human Capital Flows and Regional Knowledge Assets:A Simultaneous Equation Model," ERSA conference papers ersa04p354, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa04p354
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    Cited by:

    1. Jun, Bogang, 2013. "The Trade-off between Fertility and Education: Evidence from the Korean Development Path," MPRA Paper 43971, University Library of Munich, Germany.
    2. Mark D., Partridge & Dan S., Rickman & M. Rose, Olfert & Kamar, Ali, 2010. "Dwindling U.S. Internal Migration: Evidence of Spatial Equilibrium?," MPRA Paper 28157, University Library of Munich, Germany.
    3. Cepeda-Emiliani, Laura, 2014. "¿Fuga interregional de cerebros? : el caso colombiano," Chapters, in: Sánchez Jabba, Andrés & Otero Cortés, Andrea (ed.), Educación y desarrollo regional en Colombia, chapter 7, pages 237-257, Banco de la Republica de Colombia.
    4. Luisa Gagliardi, 2015. "Does skilled migration foster innovative performance? Evidence from British local areas," Papers in Regional Science, Wiley Blackwell, vol. 94(4), pages 773-794, November.
    5. Letícia Castro Peixoto & Ricardo Rodrigues Barbosa & Adriana Ferreira Faria, 2022. "Management of Regional Knowledge: Knowledge Flows Among University, Industry, and Government," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(1), pages 92-110, March.
    6. Simona Iammarino, 2005. "An evolutionary integrated view of Regional Systems of Innovation: Concepts, measures and historical perspectives," European Planning Studies, Taylor & Francis Journals, vol. 13(4), pages 497-519, June.

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