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Urbanization, productivity, and innovation: Evidence from investment in higher education
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management, Real Estate Planning and Land Law.
KTH, School of Architecture and the Built Environment (ABE), Centres, Centre for Banking and Finance, Cefin.
2009 (English)In: Journal of Urban Economics, ISSN 0094-1190, E-ISSN 1095-9068, Vol. 66, no 1, 2-15 p.Article in journal (Refereed) Published
Abstract [en]

During the past two decades, Swedish government policy has decentralized post-secondary education throughout the country. We investigate the economic effects of this decentralization policy on the level of productivity and innovation and their spatial distribution in the national economy. We find important and significant effects of this investment policy upon economic output and the locus of knowledge production, suggesting that the decentralization has affected regional development through local innovation and increased creativity. Our evidence also suggests that aggregate productivity was increased by the deliberate policy of decentralization. Finally, we estimate the spillovers of university investment over space, finding that they are substantial, but that they are greatly attenuated. Agglomerative effects decline rapidly; roughly half of the productivity gains from these investments are manifest within 5-8 km of the community in which they are made.

Place, publisher, year, edition, pages
2009. Vol. 66, no 1, 2-15 p.
Keyword [en]
research-and-development, university-research, increasing returns, regional policy, count data, spillovers, knowledge, geography, patents, growth
URN: urn:nbn:se:kth:diva-18544DOI: 10.1016/j.jue.2009.02.004ISI: 000267297100002ScopusID: 2-s2.0-67349243702OAI: diva2:336591
QC 20100525Available from: 2010-08-05 Created: 2010-08-05 Last updated: 2010-12-13Bibliographically approved

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