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Research, knowledge transfer, and innovation: The effect of Italian universities’ efficiency on local economic development 2006−2012
Author(s) -
Agasisti Tommaso,
Barra Cristian,
Zotti Roberto
Publication year - 2019
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/jors.12427
Subject(s) - endogeneity , instrumental variable , estimation , test (biology) , economics , variable (mathematics) , local economic development , econometrics , industrial organization , regional science , business , economic growth , mathematics , management , geography , paleontology , mathematical analysis , biology
We test whether there is a link between the performance of universities, measured through a concept of efficiency, and the economic development of the regions in which they operate. Indicators of teaching, research, and third mission are considered as outputs. To handle endogeneity problems between the efficiency of universities and economic development, a system generalized method of moments and then an instrumental variable approach are used. Our findings reveal that the presence of efficient universities fosters local economic development. Knowledge spillovers occur to areas that are in close geographical proximity to efficient universities. Results are robust to different estimation strategies.