Regional economic development: comparative case studies in the US and Finland

In context globalization of industries and increased level of competition and rapid changes in technology, firms have formed alliances with many types of organizations, including universities. Universities on the other hand, have faced increasing budgetary challenges and sought to expand their roles. Planning agencies at various levels are considering universities as sources of regional economic development. Studies in regional economics strongly point to the fact that proximity to a university is often associated with recent growth of high tech industries in these regions. Examples of the Silicon Valley and its proximity to Stanford University and the University of California, the industrial belt on Route 128 in Massachusetts and its proximity to MIT, and role of Cambridge University in the UK are commonly cited as the important role of universities in regional development. In this paper, the authors draw from the experience of four technological universities in the US and compare them with four technical universities in Finland Although, Finland and the US differ a great deal in many socioeconomic dimensions, the process followed by each of the universities illuminate the complexity of the process.