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The local economic impact of the Swedish higher education system

The local economic impact of the Swedish higher education system
The local economic impact of the Swedish higher education system

This article examines the role of Swedish higher education institutions (HEIs) in economic development, focusing on the impact of their research capacities on local economic activity. Globally, HEIs are increasingly prioritising research, frequently at the expense of education and local economic engagement, as a means to climb the university ranking ladder. Sweden has been no exception. Our findings indicate that research intensity at Swedish HEIs does not correlate with higher local income. Rather, the opposite is the case: more emphasis on top-end research seems to undermine local income. We explore human capital and innovation as possible mechanisms for the limited local economic influence of Swedish HEIs. The results reveal that HEIs do not significantly improve local human capital. Moreover, despite Swedish HEIs holding intellectual property rights to foster innovation, the actual economic translation of this knowledge faces considerable hurdles, including a misalignment with industry needs and limited local business collaboration.

Sweden, higher education institutions, human capital, innovation, research capacity
0034-3404
Rodríguez-Pose, Andrés
e56f58ca-b1cf-4874-8812-86486e93b9f1
Wang, Han
63374a4c-194e-474e-90a0-d773fc6db98b
Rodríguez-Pose, Andrés
e56f58ca-b1cf-4874-8812-86486e93b9f1
Wang, Han
63374a4c-194e-474e-90a0-d773fc6db98b

Rodríguez-Pose, Andrés and Wang, Han (2025) The local economic impact of the Swedish higher education system. Regional Studies, 59 (1), [2462712]. (doi:10.1080/00343404.2025.2462712).

Record type: Article

Abstract

This article examines the role of Swedish higher education institutions (HEIs) in economic development, focusing on the impact of their research capacities on local economic activity. Globally, HEIs are increasingly prioritising research, frequently at the expense of education and local economic engagement, as a means to climb the university ranking ladder. Sweden has been no exception. Our findings indicate that research intensity at Swedish HEIs does not correlate with higher local income. Rather, the opposite is the case: more emphasis on top-end research seems to undermine local income. We explore human capital and innovation as possible mechanisms for the limited local economic influence of Swedish HEIs. The results reveal that HEIs do not significantly improve local human capital. Moreover, despite Swedish HEIs holding intellectual property rights to foster innovation, the actual economic translation of this knowledge faces considerable hurdles, including a misalignment with industry needs and limited local business collaboration.

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Accepted/In Press date: 10 January 2025
e-pub ahead of print date: 7 March 2025
Published date: 2025
Keywords: Sweden, higher education institutions, human capital, innovation, research capacity

Identifiers

Local EPrints ID: 499808
URI: http://eprints.soton.ac.uk/id/eprint/499808
ISSN: 0034-3404
PURE UUID: 129ee9e3-d7a9-4ec8-8b6b-bfe055b9c74c
ORCID for Han Wang: ORCID iD orcid.org/0000-0002-7020-2754

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Date deposited: 04 Apr 2025 17:07
Last modified: 21 Aug 2025 02:46

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Contributors

Author: Andrés Rodríguez-Pose
Author: Han Wang ORCID iD

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