Universities and Human Capital as Regional Determinants for High-Growth Firms

Abstract

Universities have been increasingly asked to play a core role in the growth of the region where they locate as they hold valuable resources for innovation and growth. This study addresses the role of Universities as a location determinant for firms' high growth, in addition to other location and firm level variables. Indeed, academia diverted increasing attention to high growth firms (HGFs), but an important aspect that has been relatively absent from HGFs research is the ‘geography' and location aspects of where these firms grow. The study is conducted in Portugal, and draws upon firm-level information from IES (Inquérito Empresarial Simplificado), which contains detailed balance sheet and income statement information for firms in all sectors of activity in Portugal, covering a time span of 9 years, from 2006 to 2014. Knowing the regional factors that drive growth at the firm level helps to implement more effective enterprise policies.