University closures and declining regional innovation: evidence from South Korea

Hoyong Jung

Science and Public Policy, 2025, vol. 52, issue 5, 781-791

Abstract: This paper empirically examines the impact of university closures on local innovation in South Korea from 2011 to 2021, against the backdrop of declining local populations. Using a two-stage difference-in-differences estimation method, we leverage the staggered timing of closures across regions and years. The results reveal that university closures are associated with a 16 per cent reduction in regional innovation activity, as evidenced by a decline in intellectual property rights registrations. This finding is robust across various model specifications. Furthermore, the analysis uncovers heterogeneity in the impact based on the type of intellectual property, regional characteristics, and university attributes. The observed decline in local innovation is linked to a contraction in the labor force associated with universities. These findings underscore the critical role of universities in fostering regional innovation and highlight the importance of place-based policies in university management to support regional development.

Keywords: university closure; intellectual property rights; regional innovation; two-stage difference-in-differences; South Korea (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:oup:scippl:v:52:y:2025:i:5:p:781-791.

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