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

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.

Organizational Innovation of Chinese Universities of Applied Sciences in Less-Developed Regional Innovation Systems

“…Specifically, the performance of UASs are closely related to those of the regional industries and the locations of firms. For example, UASs focused on chemistry and life sciences were positively associated with knowledge-intensive and supplier-oriented firms, whereas UASs specializing in business and management had positive effects on service-intensive industries [25]. In addition, in the face of a sudden disaster, such as the COVID-19 pandemic, regional UASs play a crucial role in knowledge transfer and crisis management [26].…”