Policy Brief: Higher Education and Regions

In the globalising knowledge economy, OECD countries face competition in a number of markets. They are turning to knowledge-intensive products and services, which increases dependency on access to new technologies, research results and knowledge and skills. But as global success is often based on local excellence, the local availability of knowledge and skills is becoming increasingly important.

Higher education institutions (HEIs) are among the most important sources of knowledge and innovation. As a result, governments are rethinking how to maximise the benefits from higher education for skills and development not only at the national, but also at the regional level.

Higher education institutions can play multiple roles in their regions, notably: knowledge creation through research and technology transfer; knowledge transfer through education and human resources development and cultural and community development, which create the conditions where innovation thrives. For governments the key justification for supporting innovation-related activities in HEIs is their potential socio-economic impact and the benefits that may result from new products, services and companies.

The contribution of HEIs to developing their home regions has not previously been a major concern for public policy or the HEIs themselves. But this is changing with the expansion of higher education, particularly in the non-university sector, which in some cases has aimed to address regional disparities. Another crucial factor is a policy switch in most OECD countries towards indigenous development in regions emphasising skills, entrepreneurialism and innovation.

This Policy Brief looks at the policy measures and reforms across OECD countries to mobilise higher education to support regional development. To play a regional role, HEIs must do more than simply educate and research – they must engage with others in their regions, provide opportunities for lifelong learning and contribute to the development of knowledge-intensive jobs which enable graduates to find local employment. This has implications for all aspects of their activities: teaching, research and public service.