University effects on regional innovation

This paper analyzes empirically whether expansion of a university system affects local industry innovation. We examine how the opening of new university schools in Italy during 1985-2000 affected regional innovation. We find that creation of new schools increased regional innovation activity already within five years. On average, an opening of a new school has led to a seven percent change in the number of patents filed by regional firms. The evidence suggests that the effect is mainly generated by high quality scientific research brought to the region with new schools. (C) 2012 Elsevier B.V. All rights reserved.