Authors: Jaison R. Abel and Richard Deitz
Colleges and universities can contribute to the economic success of a region by deepening the skills and knowledge—or human capitalof its residents. Producing graduates who join the region's educated workforce is one way these institutions increase human capital levels. In addition, the knowledge and technologies created through research activities at area universities may not only attract new firms to a region but also help existing businesses expand and innovate. These "spillover effects can in turn raise the regions demand for high-skilled workers.