Specialization of Regions and Universities: The New Versus the Old

This paper analyzes whether there is a correspondence between a university's research specialization and industrial specialization in the region hosting the university, and to what extent universities influence regional productivity. Moreover, the analysis seeks to answer if a difference can be detected between the influences of old and new universities on regional performance. To achieve this end we utilize a unique data set on spatially disaggregated data for Sweden in the period 1975-99. A two-step Heckman regression analysis is implemented to examine whether universities' research specialization matches regional specialization in production as compared to the average region. The results suggest a correspondence in specialization, as well as positive productivity effects. However, there are also considerable differences across regions, albeit primarily unrelated to the age of the universities.