Professional Documents
Culture Documents
To cite this article: Shiri M. Breznitz, Helen Lawton Smith & Sharmistha Bagchi-Sen (2022) The
contribution of students to regional economies: reframing the regional innovation systems
approach, Regional Studies, 56:6, 885-891, DOI: 10.1080/00343404.2022.2053097
EDITORIAL
ABSTRACT
The role of universities in regional development has grown significantly over the past two decades. One strand of analysis
has been that of the university in regional innovation systems (RIS). However, the contribution of university students has
largely been neglected. This special issue contributes to the RIS literature by unpacking the RIS concept through exploring
this specific aspect of university engagement in regional economies. The nine papers collectively offer an understanding of
the effects of student activity upon the knowledge, skill and entrepreneurial bases of regions. The papers provide evidence
and analysis from Asia, Australia, Europe and North America.
KEYWORDS
regional innovation systems; university students; Asia; Australia; Europe; North America
CONTACT
a
Shiri.breznitz@utoronto.ca
Master of Global Affairs (MGA) Program, Munk School of Global Affairs & Public Policy, University of Toronto, Toronto, ON, Canada.
b
(Corresponding author) h.lawton-smith@bbk.ac.uk
Department of Management, Birkbeck, University of London, London, UK.
c
Sharmistha.Bagchi-Sen@asu.edu
School of Geographical Sciences and Urban Planning, Arizona State University, Tempe, AZ, USA.
as well as the geographical scale of activity. The argument students. That said, Reichart (2019) adopted an explicit
is that the role of universities has tended to overemphasize RIS approach to exploring how universities work in their
the role of research and third-mission activities such as regional environment, including aspects of the teaching
academic spin-offs and various forms of contractual of students. She highlights the role of students as active
relationships. Students’ regional engagement stems from participants in RIS: ‘Students are strongly motivated by
how what they are taught feeds into economic and inno- challenge-driven approaches, in learning and teaching as
vation activity as they move into employment, from their well as in their entrepreneurial initiatives’ (p. 8).
increasing propensity to be entrepreneurial and as contri- While the RIS approach still tends to underplay the
butors to local labour markets. This special issue provides role of entrepreneurs in the dynamics of economic change
insights into concepts and theory, short- and long-term (Lawton Smith, 2021), earlier RIS research also under-
effects, by unpacking assumptions from the empirical evi- played the role of local and regional labour markets in
dence – about regions and entrepreneurship – and the RIS (Asheim et al., 2011). Here we argue that the contri-
importance of context. The nine papers here provide evi- butions of both universities and their students are similarly
dence from Asia, Australia, Europe and North America. insufficiently recognized in RIS analyses. The RIS frame-
Unifying the agenda of these papers is the RIS concept. work is therefore adapted here to look specifically at the
By an analysis of the components of the impact of students multidimensional roles of students in regional develop-
on regional economies, these papers enhance our under- ment, with students as the unit of analysis rather than
standing of conceptual and empirical assumptions at the firms (as is the case in the traditional RIS approach). As
regional level, capitalizing on the skills and capabilities in the RIS approach, regional boundaries of the impact
of young people in higher education. While RIS describes of universities and students are porous and relational
the different players in each region, it does not break down (Cooke, 2005).
the different contributions, nor does it show their impact. The contribution of this special issue to the RIS litera-
Here we attempt to enrich the analytical power of the RIS ture is based on two interrelated themes. The first
concept by exploring the complexity of the contribution of addresses regional characteristics, regional boundaries
universities in RIS, and provide in-depth information on and change mechanisms (Asheim et al., 2011). It is well
their contributions and impact. established that areas with higher levels of human capital
are more likely to be innovative and hence more productive
UNIVERSITIES, STUDENTS AND (Faggian et al., 2009). However, it is also known that
ECONOMIC DEVELOPMENT different models of university system produce different
kinds of connections via the labour market; that regions
Why should we study the role of students and their univer- vary by levels of demand for skills; and that different
sities in RIS? Pertinent is the emphasis on social capital, types of university have varying local effects on supplies
networking and learning, interacting knowledge gener- of skills (Lawton Smith & Waters, 2021).
ation and exploitation subsystems linked to global, The first theme covers economic contribution through
national and other regional systems (Asheim & Coenen, various impacts of universities’ teaching roles through stu-
2005). Earlier studies have, for example, explored such dent spending (Incera et al., 2021, in this issue); human–
themes as universities, knowledge transfer and regional capital development, innovation development, and the
development (Varga, 2009) and factors and mechanisms community development roles that students play in their
that make the process of promoting socio-economic respective regions (Eversole, 2021, in this issue; Ballarino
growth in by universities local communities challenging et al., 2021, in this issue); and entrepreneurship (Breznitz
(see the analyses by Pinheiro et al., 2012). & Zhang, 2021, in this issue; Eesley & Yang, 2021, in this
More recent studies have explored how students’ con- issue; Fini et al., 2022, in this issue; Kitagawa et al., 2021,
tribution to regional economies is increasing because of the in this issue). These papers address established RIS com-
range of experiential learning opportunities now offered. ponents of the extent of regional human capital and
For example, Wright et al.’s (2017) analytical focus on knowledge base development by considering inflows of
university students in entrepreneurial ecosystems ident- students seeking education as well as retention, and out-
ified entrepreneurship courses, incubators, accelerators, flows of graduating students both into and to outside of
grants and business plan competitions as ways in which the local regional labour market.
students participate in experiential learning. More recent The second theme is the impact of graduate entrepre-
studies have investigated universities in regional develop- neurship. These studies analyse the relationships of entre-
ment, including many studies that are the result of the preneurship and mobility to the home region (Breznitz &
RUNIN project (https://runinproject.eu/results/ Zhang, 2021, in this issue; Eckhardt et al., 2021, in this
scientific-publications/). Studies included those by Atta- issue; Fini et al., 2022, in this issue; Kitagawa et al.,
Owusu (2019) and Fonseca (2019), who investigated 2021, in this issue); periphery versus urban regions (Ballar-
different aspects of universities’ influences on economic ino et al., 2021, in this issue; Eckhardt et al., 2021, in this
activity in peripheral regions; and by Fonseca and Neith issue; Fini et al., 2022, in this issue; Kitagawa et al., 2021,
(2021), who identified universities’ contributions in differ- in this issue); and salaried versus self-employment trends
ent stages of regional innovation strategy processes. How- (Drejer et al., 2021, in this issue, Fini et al., 2022, in
ever, these studies do not focus explicitly on the role of this issue; Kitagawa et al., 2021, in this issue). The papers
REGIONAL STUDIES
The contribution of students to regional economies: reframing the regional innovation systems approach 887
address the reality of the anticipated impact of institutional regions in Australia? The study finds that regional cam-
and regional contexts in nurturing student firm formation, puses in peripheral Australian regions contribute to RIS
the eventual retention of those firms, and the relationship through human-capital, innovation and community devel-
between demand and supply of labour. opment roles, and that these three roles are interlinked.
Both themes encompass longer term perspectives and Regional campuses, with programmes designed to break
policy implications. Both are about linking the present down barriers to higher education study, additionally
to the future. In these papers the economic contribution play these three roles for regionally embedded non-tra-
of universities is measured over the short and long terms. ditional (mature aged, low socio-economic status, first in
In the short term, the institutional spending, research family, Indigenous) students. These linkages hold the
funding coming into the region and direct employment innovative potential of regional campuses. However,
by the university are considered. The long-term analysis within the Australian context, current policy framing over-
includes a review of future earning of students, including looks this potential. Regional campuses are viewed as
new firm formation. Andre Carrascal Incera, Anastasios lower status institutions, and thus their innovation falls
Kitsos and Diana Gutierrez Posada, ‘Universities, students within ‘institutional blind spots’ where it is unacknow-
and regional economies: A symbiotic relationship?’ (Incera ledged and unvalued, when compared with campuses in
et al., 2021, in this issue), propose a symbiotic relationship wealthier, higher status capital cities.
between student spending and discusses the uneven Gabriele Ballarino, Sabrina Colombo, Nazareno Pani-
capacity of regions to benefit. chella and Matteo Piolatto, ‘Human capital dynamics. The
Due to a lack of data surrounding the relationships geographical mobility of students towards university in
between industries across and within regions, most studies Italy’ (Ballarino et al., 2021, in this issue), also focus on
on the benefits of universities have used industrial input– the local contribution of universities through the mobility
output (IO) data to study non-spatial effects focused on patterns of secondary school graduates who enrol in uni-
the national economy instead of geographically. The con- versity in Italy. They do this by analysing the probability
sequence of this methodology is a lack of information on of their choosing a university in a region outside of their
the spatial distribution of the benefits of spending gener- home and the distance of their movement. Previous litera-
ated by universities. By examining the regionally hetero- ture has shown that the mobility of students is affected
geneous effect of student spending on different UK most by structural factors, institutional factors and individ-
NUTS-2 regions, Incera et al. (2021, in this issue) contrib- ual factors. For example, enrolment into higher education
ute to the body of literature on the socio-economic is strongly associated with family background. Past studies
impacts of higher education institutions (HEIs). They have focused mainly on interregional mobility. However,
identify the total gross value added (GVA) and the this paper adds to the literature by examining long- and
employment effects of student spending in each of the short-distance mobility at the provincial level. The results
41 regions in the study. The findings show a positive show that mobility only partially follows the socio-econ-
relationship between spending and regional industrial omic cleavages of the country. Only long-distance geo-
characteristics, albeit with levels of benefit differing graphical mobility (over 500 km) shows a correlation
between different regions given the same level of expendi- with moving from Southern to Northern regions. The
ture. Their results show a high degree of regional hetero- study found that most student mobility instead takes
geneity in GVA, employment multipliers and spillovers. place at the short-distance level, where movements are
The differences in the number of students a region governed predominantly by the geographical distribution
hosts, as well as the spillovers they generate and receive, of universities, not from South to North. Only long-dis-
produce differing spatial footprints of expenditure contri- tance movement shows that individuals from advantaged
bution. The study highlights mechanisms behind the class backgrounds are more likely to relocate than those
regional imbalances through spillover effects, including from lower classes; graduates with good high-school per-
more diverse economic bases and specialization opportu- formance have a higher probability of moving; and that
nities. The authors suggest that policy stakeholders need mobility is more likely for males. Importantly, by high-
to acknowledge the important role of how student expen- lighting the fact that students tend to attend universities
ditures affect regional economies, and how the relation- in their local region, and considering the papers by Incera
ship with regional industrial structures leads to varying et al. (2021, in this issue) and Eversole (2021, in this
economic outcomes, resulting in a different RIS. issue), this paper highlights the important empirical con-
While a wide body of literature provides evidence on tribution that universities provide to their local region
the key role that universities play in regional economic and also to the RIS concept by emphasizing different sca-
development and innovation in advanced and peripheral lar processes at work.
regions, research to date has lacked a specific focus on In the long term, universities contribute to the econ-
the role of students in less-advantaged peripheral areas. omic base of their region through firm creation of faculty
Robyn Eversole, ‘Regional campuses and invisible inno- and students (Bergmann et al., 2016; Rossi et al., 2021).
vation: impacts of non-traditional students in “Regional Shiri M. Breznitz and Qiantao Zhang, ‘Entrepreneurship
Australia”’ (Eversole, 2021, in this issue), seeks to answer education and firm creation’ (Breznitz & Zhang, 2021, in
the question: What roles do university campuses and stu- this issue), focus on the positive impact that entrepreneur-
dents play in the economic development of peripheral ship education in general, and in universities in particular,
REGIONAL STUDIES
888 Shiri M. Breznitz et al.
has on the intentions of students to become entrepreneurs. employment’ (Fini et al., 2022, in this issue), explore the
Through the use of a large original dataset on University of relationship between early career decisions (salaried versus
Toronto alumni, the authors were able to generalize the self-employment) of university graduates and their interre-
impact of entrepreneurial education on a broader commu- gional mobility (staying versus going). Using a longitudi-
nity. Aligned with previous research results, the study nal dataset covering 3436 students spanning 62 Italian
found that entrepreneurship education has a positive universities, the authors find that students who studied
impact on entrepreneurship in general, and more particu- and stayed in their home region and those who study
larly on student entrepreneurship. Entrepreneurship away and return to their home region are more likely to
courses at universities impact firm creation in general become self-employed. In contrast, those who move to
and students’ firms in particular. their non-home region after graduation typically enter sal-
However, and in contrast to previous literature, results aried jobs. They found that the deciding factor for these
show that entrepreneurship courses offered by universities graduates regarding which early career to enter was
are less important in high-technology firm creation and explained mainly by individual characteristics (gender,
instead show that courses offered through public or private age, self-employed parents), while the decision of which
regional organizations outside the university better pro- region in which to reside was affected by contextual factors
mote the establishment of high-technology firms. In (e.g., gender, salary). These results highlight the impor-
addition, the analysis finds that entrepreneurship courses tance of students’ contributions to their RIS.
led by incubators and accelerators, which are part of the As the papers above found, student retention is impor-
RIS, have a stronger impact on both general and stu- tant for the economic base of the university’s region. Sev-
dent-founded firms than do university courses. Through eral papers in this issue discuss the question of peripheral
their findings, the authors suggest that for high-technol- versus urban regions. Ina Drejer, Jacob Rubæk Holm and
ogy firms, entrepreneurship education from universities Kristian Nielsen, ‘University graduates in metropolitan
is not enough, and that it should be paired with other and peripheral areas: mobility, occupational choice and
organizations within an entrepreneurship ecosystem. outcomes’ (Drejer et al., 2021, in this issue), build off
Further, findings suggest that in terms of graduate degree existing literature and demonstrate how metropolitan
specialties, computer science courses tended to be more and urban areas are more attractive to graduates, and
relevant for general entrepreneurship, while management how their young age, level of education and status as
courses directly contribute to student entrepreneurship. entrants to the labour market make graduates a geographi-
No degree has a significant impact on being more likely cally mobile group. The paper contributes to the policy
to create a high-technology firm. The results suggest the and academic focus of the role of university graduates as
need to combine entrepreneurship education at univer- human capital for RIS. Based on 2001–10 Danish registry
sities with practical entrepreneurship education at incuba- data, the authors use performance outcomes of university
tors and accelerators. graduates (gender, wage growth, business survival rate)
Through entrepreneurship, students contribute to their to explore the relationship between graduates from two
home region’s economy, although geographical specificities very different regions (the metropolitan area around
of home regions are important influences on their propen- Copenhagen and the peripheral region of North Den-
sity to be entrepreneurial. Jonathan Eckhardt, Clint Harris, mark, which is home to a university), their mobility pat-
Chuan Chen, Bekhzod Khoshimov and Brent Goldfarb, terns, and their occupational choices after graduation
‘Student migration and student entrepreneurship’ (wage earners versus entrepreneurs).
(Eckhardt et al., 2021, in this issue), examine the relation- The study finds that wage-earning graduates from the
ship between the geographical characteristics of a student’s periphery, who choose to remain in the periphery area,
home region and their interest in entrepreneurship. Using have an inferior wage growth performance outcome
data on students from a large public research university in when compared with their peers who moved to the metro-
the United States, the authors determine whether migration politan region. Comparatively, those from the metropoli-
from a specific region influences a student’s interest in and tan area who remain in the metropolitan area do not
proclivity towards entrepreneurship. The economic charac- experience a worse wage growth performance outcome
teristics of home regions include venture capital funding, for remaining in their region of origin. Both the graduates
patents and regional self-employed rates. In particular, who move to the metropolitan area and those who remain
they show that students react to local role models. there experience the same benefits of the thick labour mar-
The study provides evidence that the RIS of the source ket as it pertains to wage growth. For entrepreneurs, how-
region of the students and in particular its venture capital ever, the study found that graduates on the periphery
investment, self-employment and population density benefit from attachment to their home RIS, and that
characteristics is likely to be related to the strength of those who remain on the periphery have a higher survival
the students’ proclivity towards entrepreneurship. This is rate than those who move between regions. Entrepreneur-
in terms of their ideas, participation in start-ups, plans, ial graduates from the metropolitan area benefit from
whether they are a founder, etc. attachment to their home region to a lesser extent. The
Riccardo Fini, Azzurra Meoli, Maurizio Sobrero and authors use their results to suggest that the differences in
Mike Wright, ‘University graduates’ early career decisions the economic contributions of graduates across career
and interregional mobility: salaried-job versus self- paths can help advise regional policy aimed at retaining
REGIONAL STUDIES
The contribution of students to regional economies: reframing the regional innovation systems approach 889
university graduates, with an emphasis on the peripheral not just from the perspective of knowledge generation and
region. For example, entrepreneurship policy in the per- exploitation, but also from the economic contributions of
iphery region should focus on retaining entrepreneurial human capital development and entrepreneurship; shorter
graduates in their home region. and longer term effects; and the uneven capacity of regions
Fumi Kitagawa, Chiara Marzocchi, Mabel Sánchez- to benefit both from direct actual expenditure and
Barrioluengo and Elvira Uyarra, ‘Anchoring talent to indirectly from spillovers. These findings relate to the
regions: the role of universities in graduate retention level of regional economic diversification and specializ-
through employment and entrepreneurship’ (Kitagawa ation and contribute to understanding outcomes, which
et al., 2021, in this issue), also focus on patterns of student is also under-developed in the literature (Asheim et al.,
migration and mobility by examining the conceptual under- 2011). This issue also contributes to a more inclusive per-
standing of graduate retention and investigating organiz- spective on RIS with some of the case studies discussing
ational and spatial determinants influencing knowledge equity and others the perpetuation of class differences.
spillover. In order to study the contribution of universities A crucial aspect of the debate is that of interaction
to RIS through graduate retention, the authors analyse between different agents involved in innovation across
two types of graduate retention: labour retention (graduates public and private sectors (Asheim et al., 2011, p. 887).
employed in their university’s region) and entrepreneurship Incera et al. (2021, in this issue) consider the regional
retention (graduates who create a start-up business in their economic impacts of students in the UK, and the inter-
university’s region), using data from 2010–16 across Eng- relationship between student spending and the uneven
land. The authors specifically look at how differences in a capacity of regions to benefit from direct actual expendi-
university’s subject specialization and spatial context ture and indirectly from spillovers. Their results highlight
(urban versus non-urban) influence the outlined two types the direct impact of student spending and the need for pol-
of retention. Their empirical findings show that agglomera- icy to promote economic diversification and specialization.
tion dynamics and subject specialties affect the two types of Similarly, Eversole (2021, in this issue) highlights the
retention differently. Spatially, universities in urban regions importance of students to RIS specifically in knowledge
produce higher rates of labour retention, while those in generation, diversity and equality. Universities’ regional
non-urban areas produced greater rates of entrepreneurship campuses and their students contribute to the develop-
retention. In the realm of subject specialization, labour ment of the innovation system in peripheral regions.
retention is correlated to a broader knowledge offer across The paper adds to a social equity perspective on regional
science, technology, engineering and mathematics innovation processes as regional campuses have important
(STEM) courses in urban regions, while entrepreneurship systemic effects by creating pathways for talented regional
retention is influenced by specialization in both urban and people from multiple equity groups with deep-placed
non-urban regions. knowledge and networks to engage with universities. Uni-
Charles Eesley and Delin Yang, ‘Regional migration, versities are also growing new institutional spaces where
entrepreneurship and university alumni’ (Eesley & Yang, individuals from peripheral regions can engage with global
2021, in this issue), add to the body of literature by focusing knowledge institutions and have the capacity to generate
both on rural–urban migration and on the role of univer- unique placed-based solutions. Importantly, Ballarino
sities in facilitating regional mobility. The authors use et al. (2021, in this issue), find that most student mobility
alumni surveys to collect data on 283 graduates from Tsin- contributes to regional innovation by occurring over short
ghua University in China who, after graduation, migrated distances. However, readers are cautioned that there are
from their rural hometowns to create entrepreneurial social differences whereby wealthy regions hosting attrac-
firms in urban areas. Their findings suggest that rural to tive universities experience a brain gain with marginal
urban migrants are more likely to create firms in the top areas experiencing a brain drain.
quartile of the size distribution of all entrepreneurial Breznitz and Zhang (2021, in this issue) find that the
firms, meaning that they are more likely to create larger educational role of universities in entrepreneurship edu-
firms than those entrepreneurs who remained in urban cation has an impact on creating cohorts of entrepreneurs
areas or remained in rural areas. Furthermore, rural–urban for regional economies but not specifically for high-tech-
migrants pursue riskier opportunities. This is in part nology firms. Hence the implication for RIS is that the
explained by the fact that urban areas may offer better university is part of the innovation system, while other
opportunities and resources, and that migration decisions regional organizations play a significant role in generating
tend to indicate a lower level of risk aversion. These findings highly innovative firms, and that the collaboration of uni-
contrast with previous work focused on how entrepreneurs versities and other regional organizations provides practi-
create firms closer to their home regions by finding that the cal education that results in a direct economic
likelihood of creating a larger firm is greater if rural born contribution.
graduates migrate to urban areas to start their firms. Eckhardt et al.’s (2021, in this issue) contribution
involves considering the characteristics of the home RIS.
CONCLUSIONS It does so by finding that the student’s propensity to
become an entrepreneur is impacted by the RIS of their
The collection of papers in this special issue unpacks the home region. If the source region characteristics are entre-
role of students in RIS. They cover the role of universities preneurial, then it will increase the likelihood that the
REGIONAL STUDIES
890 Shiri M. Breznitz et al.
REGIONAL STUDIES
The contribution of students to regional economies: reframing the regional innovation systems approach 891
Fini, R., Meoli, A., Sobrero, M., & Wright, M. (2022). University (Eds.), Unlocking regional innovation and entrepreneurship: The
graduates’ early career decisions and interregional mobility: potential for increasing capacities (pp. 63–79). Edward Elgar.
Salaried-job versus self-employment. Regional Studies. Lawton Smith, H., & Waters, R. (2021). Universities, local labour
Fonseca, L. (2019). Designing regional development? Exploring the markets and regional economic development. International
university of Aveiro’s role in the innovation policy process. Journal of Entrepreneurship and Small Business, 42(1–2), 8–26.
Regional Studies, Regional Science, 6(1), 186–202. https://doi. https://doi.org/10.1504/IJESB.2021.112268
org/10.1080/21681376.2019.1584050 Pinheiro, R., Benneworth, P., & Jones, G. (Eds.). (2012).
Fonseca, L., & Neith, L. (2021). The role of universities in regional Universities and regional development: A critical assessment.
development strategies: A comparison across actors and policy Routledge.
stages. European Urban and Regional Studies, 28(3), 298–315. Reichart, S. (2019). The role of universities in regional innovation
https://doi.org/10.1177/0969776421999743 ecosystems (EUA Innovation Ecosystem Report). https://eua.
Incera, A., Kitsos, A., & Gutierrez, D. (2021). Universities, students eu/resources/publications/819:the-role-of-universities-in-
and regional economies: A symbiotic relationship? Regional regional-innovation-ecosystems.html
Studies. https://doi.org/10.1080/00343404.2021.1925236 Rossi, F., Baines, N., & Lawton Smith, H. (2021). Which regional
Kitagawa, F., Marzocchi, C., Sánchez-Barrioluengob, M., & Uyarra, conditions facilitate university spinouts retention and attraction?
E. (2021). Anchoring talent to regions: The role of universities Regional Studies. https://doi.org/10.1080/00343404.2021.1959909
in graduate retention through employment and entrepreneur- Varga, A. (Ed.). (2009). Universities, knowledge transfer and regional
ship. Regional Studies. https://doi.org/10.1080/00343404.2021. development: Geography, entrepreneurship and policy. Edward Elgar.
1904136 Wright, M., Siegel, D., & Mustar, P. (2017). An emerging ecosys-
Lawton Smith, H. (2021). Entrepreneurs, entrepreneurship policy tem for student start-ups. Journal of Technology Transfer, 42(4),
and regional innovation systems. In I. Bernard, & C. Karlsson 909–922. https://doi.org/10.1007/s10961-017-9558-z
REGIONAL STUDIES