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The Heterogeneous Impacts of Higher Education Institutions on Regional Firm Location: Evidence from the Swiss Universities of Applied Sciences

Tobias Schlegel () and Uschi Backes-Gellner

No 187, Economics of Education Working Paper Series from University of Zurich, Department of Business Administration (IBW)

Abstract: The empirical literature on knowledge spillovers provides evidence that higher education institutions (HEIs) have positive effects on regional firm location, i.e., the number of 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 estimate effects on firm location in different industries, we exploit the establishment of universities of applied sciences (UASs)-bachelor degree-granting three-year HEIs in Switzerland-in different fields of study. We find that effects are heterogeneous and UASs specializing in "chemistry and life sciences" and "business, management, and services" are the only UASs that positively affect regional firm location. These positive effects are limited to service industries that are characterized by both radical service innovations and incremental product and process innovations.

Keywords: Higher Education and Research Institutions; Government Policy; Regional Economic Development (search for similar items in EconPapers)
JEL-codes: I23 I28 O18 (search for similar items in EconPapers)
Pages: 80 pages
Date: 2021-11
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eur, nep-geo, nep-ino, nep-sbm and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:iso:educat:0187

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