The role of universities for regional labour markets: the example of central Switzerland

The development of a region is not solely dependent on what are known as "hard " location factors. Increasingly, key factors seen as vital to the development of a region are the learning aptitude and the ability for innovation in a region. Universities do not just have an educational function, they are also responsible for research and knowledge transfer. They thus have an effect on the labour market and the development of a region. Using the example of the univer-sities in the canton of Lucerne (CH), we will show which significant regional economic ef-fects the three universities located there have on their canton. In this study, both the quantita-tive and qualitative effects of the universities on the regional labour market and the regional added value are examined. The universities in the canton of Lucerne do not just provide 1,000 people with jobs and approximately 5,500 people a university spot, its employees and students have closely knit networks with regional businesses, cultural institutions and political organi-sations. This creates close ties to the universities through which knowledge and skills are transferred to the companies and institutions of a region. In addition, the universities make an important contribution to preventing brain drain and increasing brain gain. With total addi-tional revenues in the amount of approximately € 72 million in 2005, they also contribute to enhancing the economic power of the canton. Overall, the canton of Lucerne benefits not only in terms of education but also in terms of quality of the location