2009-Fall Puukka PDF
2009-Fall Puukka PDF
he regional dimension of innovation is crucial to promote economic growth and competitiveness. Not every region can be a Silicon Valley, but all regions can improve their capacity to adapt knowledge for their regional innovation needs. Universities and other higher education institutions can play a critical role in making their cities and regions more innovative and globally competitive. To take full advantage of higher education for regional development, bridges need to be built between higher education institutions and the small companies that are creating the industries of the future. The OECD reviews of higher education in regional and city development help mobilize higher education institutions for economic, social and cultural development of their cities and regions.
As university leaders have long argued, the contribution of higher education to national and regional economies is considerable. For example, according to a 2009 economic impact statement by Tipp Umbach and Associates, Penn State is an economic powerhouse in Pennsylvania generating more than $17 billion in overall economic impact. For every $1 invested by the Commonwealth of Pennsylvania to support the operations of Penn State, the university returned more than $25 in total economic impact to Pennsylvania. (See http://econimpact.psu.edu.) Although the importance of universities in their local economies is not usually contested, much more should and could be done to take full advantage of higher education in regional and city development. Why have the connections between the higher education institutions and their regions and the local industries been bent or broken? In Europe, many higher education institutions developed to serve traditional industries in their regions during the first half of the 20th century were later incorporated into national systems of higher education. Universities focused on their national standing which weakened their local ties. In the United States, the land grant institutions connected their own welfare to that of the regions, and served the regions through industrial extension services. Over the years, these links were weakened as universities focused on technology transfer and diversifying their funding streams from products with limited relation to the local economy. In many cases the benefits of university inventions 24 NEW ENGLAND BOARD OF HIGHER EDUCATION
leaked out to other regions. What could be done to capitalize on these innovations within the region?
producing almost six times as many patents per 1,000 workers as the U.S. average. These industries have initial advantage in their regions: longstanding networks, technological skills and links to higher education institutions.
bring together universities and other higher education institutions and the public and private stakeholders in the region to identify strategic goals and work together toward them. Third, international experts led by the OECD visit the region and assemble their findings and recommendations in a review report published on the OECD website at www.oecd.org/edu/imhe/regional development. Finally, knowledge-sharing meetings are organized to bring together the stakeholders at different levels.