This paper focuses on the leading role of Higher Education Institutions (HEIs) on the development and growth of lagging-behind and peripheral regions. We demonstrate that higher education has the ability to lead, foster and promote the industries, enterprises, and economic agents under the condition of adequate interplay with the local government and business sector. If these conditions are not met, the contribution of Higher Educational Institution to regional economic development is limited. Thence, it is in the best interest of local governments, public authorities, as well as scientists and researchers, to foster this cooperation and to establish extensive links with universities and research facilities. The findings presented in our paper might be of a particular importance for the peripheral regions which lack other decisive factors of enhancement. Our results might be relevant not only for the academics but also for the policymakers and stakeholders responsible for the regional development.