Do private university campuses lead to success?

Private university campuses can measurably boost the regional economy: a joint analysis by ZEW Mannheim and the Fraunhofer Institute for Systems and Innovation Research ISI shows that campus start-ups can increase local gross domestic product by around 1.5 to 2.1 per cent in the long term. In the latest episode of the ZEW podcast “Wirklich Wirtschaft”, Dr Bastian Krieger, researcher in the ZEW Research Unit “Economics of Innovation and Industrial Dynamics” and head of the junior research group “Co-Creation”, discusses the economic effects of private universities, regional differences and the implications for higher education and regional policy. The podcast is available on all popular podcast platforms, such as Spotify, Apple Podcasts and Deezer, as well as on the ZEW website.

The episode focuses on the question of whether private university campuses can act as economic catalysts for regions. The positive effects are particularly pronounced in rural and intermediate regions, whilst there are hardly any measurable impacts in large cities. At the same time, the results make it clear that such stimuli take time: the economic effects do not materialise immediately, but in some cases only become visible after many years. The study thus provides important insights into how the establishment of private universities can contribute specifically to regional development.