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Establishment of higher education institutions and new firm entry

Rui Baptista (), Francisco Lima and Joana Mendonça ()

Research Policy, 2011, vol. 40, issue 5, 751-760

Abstract: The presence of universities has generally been associated with technological entrepreneurship. But what is the real impact of new universities on the levels of firm creation in a region? The present paper uses policy evaluation methodologies and longitudinal data on the establishment of higher education institutions in Portuguese municipalities for the period 1992-2002 to examine its effect on entry rates of new firms in different sectors. We find that the establishment of a new university has a positive and significant effect on subsequent levels of knowledge based firm entry in municipalities, and a negative effect on the levels of entry in other sectors, such as low-tech manufacturing.

Keywords: Universities; Entry; rates; Regional; development; Policy; evaluation; Propensity; scores (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (22)

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