Measuring the economic impact of an HEI in a deprived region of Portugal

This paper describes an economic impact study conducted for a Portuguese Higher Education Institution (HEI) - the Polytechnic Institute of Bragança (IPB), located on the region of Bragança, a very isolated and deprived region of northeast Portugal. Two approaches were followed. The traditional economic approach is based on the study of Caffrey and Isaacs (1971). It would lead to determine the economic impact that arises from the expenditure of the IPB and its individuals. The skills-based approach is based on Becker (1993) and Bluestoneřs (1993) works. It intends to measure the creation of human capital and the enhancement of local individualsř life quality. To achieve these purposes it was necessary to conduct surveys among the faculty, staff, students and graduates of the IPB, as well as to collect data from IPBřs records and official sources.Following these two approaches, the total impact of the IPB in the region was determined, reaching 55 and 61 million euros, respectively