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Over the last two decades, interest increased with regard to how some research universities made direct impacts on surrounding regional economic activities and growth. Although the role of basic research for most research universities has remained strong, pressure has intensified to broaden its missions to include helping local and regional economic development efforts. Consequently, many research universities have evolved their basic scientific research mission from the production of scientific knowledge to the sharing and exchange of knowledge with local industries by actively engaging in local economic development (Uyarra 2010). Previous examination has shown that most research universities contribute to local and regional economic development by various functions they provide. They are as follows: Creation of Knowledge, Human-capital creation, Transfer of existing know-how, Technological innovation, Capital investment, Regional leadership, Knowledge infrastructure production and Influence in regional milieu (Drucker and Goldstein 2007). This paper will review the existing literature on the role of universities and its impacts on local regional economic growth and development. In addition, this paper will show how two major research universities (The University of Arizona and Arizona State University) have contributed to the growth of Arizona during last two decades. It is believed that the existence of these two research universities have been instrumental in making industries more diverse and highly attractive, particularly in the Phoenix Metropolitan Area.

A University's Role for Regional Innovation: Arizona Universities' Contribution to Regional Economic Growth