Title
Agglomeration economies and university program creation in the knowledge economy
Document Type
Article
Publication Date
12-1-2020
Publication Title
Socio-Economic Planning Sciences
Volume
72
Keywords
Agglomeration economies, Entrepreneurial universities, Knowledge spillovers
Abstract
© 2020 Elsevier Ltd Existing academic literature on the relationship between agglomeration economies and university activities is both under-theorized and relatively sparse in terms of empirical examination. This paper addresses each of these voids by contributing and analyzing a market model of pro-revenue education program creation such as graduate-level executive business education (e.g. EMBA) that reveals some intriguing characteristics. For instance, it shows that demand for these pro-revenue programs is inelastic and therefore uniquely determines their availability. More specifically, we show that through agglomeration economies these types of education programs are more likely to emanate from universities located in metropolitan areas and from less academically prestigious universities. Regression analysis of a cross-section of national public universities lends support to important facets of our formal model by suggesting that agglomeration economies continue to increase the probability of offering EMBA programs through a city size of approximately 2.12 million and that the probability that a given business school will offer an EMBA is negatively related to the academic prestige of the institution to which it is affiliated.
Recommended Citation
Faria, João Ricardo; Ferreira, João J.; Johnson, Ken H.; Mixon, Franklin G.; and Wanke, Peter F., "Agglomeration economies and university program creation in the knowledge economy" (2020). Faculty Bibliography. 2654.
https://csuepress.columbusstate.edu/bibliography_faculty/2654