Regional Growth with Universities
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This chapter is to introduce education into the interregional modeling framework proposed in the preceding chapters. It is important to examine the role of the university education and research on economic development at the regional scale. Universities play a central role in regional innovation systems as producers of basic research. The importance of basic research is due to the public good nature of the research and positive externalities to the private sector in the form of knowledge spillovers. Regional economies have experienced dramatic changes in different parts of the world in the last few decades. These changes in economic development are influenced by increases of the share of the total resources devoted to R&D, in the educational achievements of the labor force and in the rate of technological change. It has been argued that in developed economies universities and research institutions are the main actors in the knowledge generation process.
KeywordsHuman Capital Wage Rate Transportation Cost Knowledge Spillover Economic Geography
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