The role of fields of study for the effects of higher education institutions on regional firm location

Tobias Schlegel and Uschi Backes-Gellner

Small Business Economics, 2023, vol. 61, issue 4, No 10, 1587-1656

Abstract: Abstract The literature on knowledge spillovers provides evidence that higher education institutions (HEIs) positively affect regional firm location (i.e., start-ups or firms located in a region). However, less is known about how HEIs in different fields of study impact regional firm location in different industries. To investigate this question, we exploit the establishment of universities of applied sciences (UASs)—bachelor’s degree-granting three-year HEIs in Switzerland. We find that the effects of UASs are heterogeneous across fields of study and industries. UASs specializing in “chemistry and the life sciences” and “business, management, and services” are the only UASs that positively affect regional firm location across several industries. Positive effects emerge in service industries characterized by radical service, incremental product, or process innovations. Thus, UASs are not a one-size-fits-all solution for increasing regional firm location. Instead, only UASs specializing in particular fields of study positively influence firm location in certain industries.

Keywords: Higher education and research institutions; Firm location; Government policy; Regional economic development (search for similar items in EconPapers)
JEL-codes: I23 I28 O18 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s11187-023-00742-w

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