1 Attractors of talent Universities, regions, and alumni entrepreneurs DRAFT, 2010-01-12

In this paper we investigate how universities may affect regional entrepreneurship through the localisation decisions of entrepreneurial alumni. Empirically, we use a comprehensive, individual-level dataset from Sweden for the period 2003-2005. Our results suggest that even when controlling for their spatial history, individuals have an increased propensity to set up in the region where they studied. This effect is found to substitute for both urbanisation economies and localisation economies as drivers of regional-level entrepreneurship. Thus, our analysis provides evidence on how universities affect regional economic development that complements the strong focus on spin-off activities by university researchers in previous studies