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Reconsidering the Regional Economic Development Impacts of Higher Education Institutions in the United States

Drucker J. Reconsidering the regional economic development impacts of higher education institutions in the United States, Regional Studies. This study models relationships between US higher education activities and regional economic performance, 2001–11. Advances include incorporating all degree-granting institutions; estimating spatial spillovers; and comparing multiple economic outcomes, including production and entrepreneurship. Higher education impacts vary by outcome measure but are less influential than in previous studies. Spillovers are substantial up to 60 miles (97 kilometres), reflecting considerable influence across space. More advanced degrees, science and engineering education, and population educational attainment are positively associated with entrepreneurial activity. These findings encourage the traditional university missions of research and teaching, and general policies promoting entrepreneurship, to support economic performance.