Where Did They Go? A Study on Newly Established Universities and Graduate Mobility in Finland

Saarivirta, Toni and Consoli, Davide (2007): Where Did They Go? A Study on Newly Established Universities and Graduate Mobility in Finland.

Abstract

This paper investigates cross-regional mobility in Finland using individual-level data on a cohort of people over a period of 15 years. The backdrop is that of the institutionalization of science and technology policy in the 1960s, part of which consisted in the expansion of universities in five regions. This had a threefold rationale: increasing participation rates to higher education, widening the recruitment base by facilitating young generations the right to study in their native regions, and stimulating regional economic development by providing skilled labour force. Our empirical analysis reveals high levels of spatial mobility and uneven retention rates across regions. Despite the policy action, graduates are still attracted towards the capital city Helsinki. Through a binary logit regression model we observe that mobility is influenced by the type of studies and to a lesser extent by the socioeconomic background.

• Item Type: MPRA Paper
• Language: English
• Keywords: Higher Education; Regional Development; Labour Mobility
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O18 - Urban, Rural, Regional, and Transportation Analysis ; Housing ; Infrastructure; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources ; Human Development ; Income Distribution ; Migration

References

ANTONELLI, C. (2000) Collective Knowledge Communication and Innovation: The evidence of technological districts, Regional Studies 34(6), 535-547.

ANTONELLI, C. (2001) The Microeconomics of Technological Systems, Oxford University Press.

ANTONELLI, C. (2003) Knowledge Complementarity and Fungeability: Implications for Regional Strategy, Regional Studies 37(6/7), pp. 595-607.

ANTONELLI, C. (2005) Models of Knowledge and Systems of Governance, Journal of Institutional Economics 1(1), pp.51-73.

ARBO, P. AND BENNEWORTH, P. (2006) Understanding the regional contribution of higher education institutions: a literature review. OECD.

ASHEIM, B. AND GERTLER, M. (2004) The Geography of Innovation, in Fagerberg, J., Mowery, D. and Nelson, D. (Ed) The Oxford Handbook of Innovation, Oxford University Press.

ASTERIOU, D. AND AGIOMIRGIANAKIS, G.M. (2001) Human Capital and Economic Growth. Time Series Evidence from Greece, Journal of Policy Modeling 23, pp. 481-489.

AUDRETSCH D.B. AND FELDMAN, M. (1996) Spillovers and the Geography of Innovation and Production, American Economic Review 86, pp. 630–40.

BARRO, R.J. AND SALA-I-MARTIN, X. (1991) Convergence Across States and Regions, Brookings Papers on Economic Activity 1, pp. 107-182.

BOSCHMA, R. & SOTARAUTA, M. (2007) Economic Policy from an Evolutionary Perspective: the case Finland, International Journal of Entrepreneurship and Innovation Management, 7, pp. 156-173.

BRUUN, H. (2004) The emergence of a regional innovation network: BioTurku in Turku, Finland, in G. Schienstock (ed.) Embracing the Knowledge economy: the dynamic transformation of the Finnish innovation system, Edward Elgar.

CASTELLS, M. AND P. HIMANEN (2006) The Information Society and the Welfare State: the Finnish model. Oxford University Press.

CLINCH, R. P. AND GERLOWSKI, D. A. (2002) The Economic Impact of the University System of Maryland: A Fiscal Perspective, Adelphi, Maryland.

COOKE, P., M.G. URANGA AND G. EXTEBARRIA (1997) Regional Innovation Systems: Institutional and organizational dimensions, Research Policy 26, 475-491.

COWAN, R., DAVID, P.A. AND FORAY, D. (2000) The Explicit Economics of Knowledge Codification and Tacitness, Industrial and Corporate Change 9 (2), pp. 211-253.

DAHLLÖF, U. & GODDARD, J. & HUTTUNEN, J. & O´BRIEN, C. & ROMÁN, O. & VIRTANEN, I. (1998) Towards the Responsive University. The Regional Role of Eastern Finland Universities, Publications of Higher Education Evaluation Council 8/1998, Oy Edita Ab. Helsinki.

DAVERI, F. AND O. SILVA (2004) Not only Nokia: what Finland tells us about new economy growth, Economic Policy 19(38), pp. 117-163.

DOLOREUX, D. (2002) What We Should Know about Regional Systems of Innovation? Technology in Society 24, pp. 243-263.

DOLOREUX, D. AND PARTO, S. (2005) Regional Innovation Systems: Current discourse and unresolved issues, Technology in Society 27, pp. 133–153.

DUNFORD, M. (2003) Theorizing Regional Economic Performance and the Changing Territorial Division of Labour, Regional Studies 37(8), pp. 839-854.

ETELÄ-KARJALAN TILASTOKATSAUS (2003) Etelä-Karjalan liiton julkaisu A:1/2003.

ESKOLA, S. (2002). Tiedepolitiikka ja korkeakoulut, in Tommila, P. (Ed) Suomen tieteen historia 4. Tieteen tutkimuksen yleinen historia 1880-luvulta lähtien, WSOY. WS Bookwell Oy, Porvoo.

FELDER, I. (1990) Universities as Engines of R and D-based Economic Growth, Research Policy 19 (4), pp. 335-348.

FELDMAN M.P. (1994) The Geography of Innovation, Kluwer Academic, Dordrecht.

FELDMAN M.P. (1999) The New Economics of Innovation Spillovers and Agglomeration: a review of empirical studies, Economics of Innovation and New Technologies 8, pp. 5–26.

FLORIDA, R. (2000) The Economic Geography of Talent, Available online at heinz.cmu.edu/~florida/pages/ pub/working_papers/economic_geography_talent_graphs.pdf (read 11.2.2005)

GEORGHIOU, L., K. SMITH, O. TOIVANEN, AND P. YLÄ-ANTTILA (2003) Evaluation of the Finnish innovation support system, Ministry of Trade and Industry (Finland). Available online at: http://www.tekes.fi/ ohjelmat/arviointi/arviointi.html (28.02.2006)

GEUNA A. (1999) The Economics of Knowledge Production, Edward Elgar, Cheltenham.

HAAPANEN, M. (2000) Expected earnings and interregional migration, University of Jyvaskylä School of Business and Economics, working Paper 221.

HÄMÄLÄINEN, K. (2002) Unemployment, Selective Employment Measures and Inter-Regional Mobility of Labour, Papers in Regional Science 81, pp. 423-441.

HEDMAN, J. AND AALTONEN, S. (1999) External Economic Impacts of the University of Turku. Turun yliopisto, Rehtorinviraston julkaisusarja 6/1999, Kehittäminen ja suunnittelu, Turku.

HJERPPE, R. AND PIHKALA, E. (1989) Suomen taloudellinen kasvu, in Loikkanen, H. and Pekkarinen, J. (Ed) Suomen kansantalou – instituutiot, rakenne ja kehitys, WSOY, Porvoo.

HJERPPE, R. AND VARTIA, P. (1997) Taloudellinen kasvu ja rakennemuutos, in Loikkanen, H., Pekkarinen, J., Siimes, S-A. and Vartia, P. (Ed) Kansantaloutemme – rakenteet ja muutos, Taloustieto Oy, Tammer- Paino Oy, Tampere.

HONKAPOHJA, S. AND KOSKELA, E. (1999) The Economic Crisis of the 1990s in Finland. Economic Policy, October 1999, pp. 401-436.

HOWELLS, J. (2002) Tacit Knowledge, Innovation and Economic Geography, Urban Studies 39, pp. 871-884.

HYYPPÄ, M. T. (2002) Elinvoimaa yhteisöstä, Sosiaalinen pääoma ja terveys, Otavan kirjapaino Oy, Keuruu.

HUBER, P. (2004) Inter-Regional Mobility in Europe: a note on the cross-country evidence Applied Economics Letters 11, pp. 619-624.

KALDOR, N. (1970) The Case for Regional Policies, Scottish Journal of Political Economy 18 (3), pp. 337-348.

KAUHANEN, M. AND TERVO, H. (2002) Who Moves to Depressed Regions? An analysis of migration streams in Finland in the 1990s, International Regional Science Review 25: 2, pp. 200-218.

KAUTONEN, M., KOSKI, P. AND G. SCHIENSTOCK (2004) From the national industrial heartland towards a node in the global knowledge economy: the case of Tampere Region, in G. Schienstock (ed.) Embracing the Knowledge economy: the dynamic transformation of the Finnish innovation system, Edward Elgar.

KEANE, J. AND ALLISON, J. (1999) The Intersection of the Learning Region and Local and Regional Economic Development: Analysing the Role of Higher Education, Regional Studies, pp. 896–902.

KEEBLE, D. AND LAWSON, C. (1998) Collective learning processes, networking and ‘institutional thickness’ in the Cambridge region, in: Keeble, D. and Lawson, C. (Ed) Collective Learning Processes and Knowledge Development in the Evolution of Regional Clusters of High Technology SMEs in Europe, pp. 99-115.ESRC Centre for Business Research, University of Cambridge.

KIANDER, J. (2004a) The Evolution of the Finnish Model in the 1990s: from depression to high-tech boom, VATT Discussion Papers 344, Government Institute for Economic Research. Helsinki.

KIANDER, J. (2004b). Growth and Employment in Nordic Welfare States in the 1990s: a tale of crisis and revival, VATT Discussion Papers 336, Government Institute for Economic Research, Helsinki.

KRUGMAN, P. (1991) Increasing Returns and Economic Geography, Journal of Political Economy 99, pp. 483–499.

LAWSON, C. AND LORENZ, E. (1999) Collective Learning, Tacit Knowledge and Regional Innovative Capacity, Regional Studies 33(4), pp. 305-317.

LEMOLA, T. (2002) Convergence of National Science and Technology Policies: the case of Finland, Research Policy 31, pp. 1481-1490.

LEVER, W. F. (2002) Correlating the Knowledge-base of Cities with Economic Growth, Urban Studies 39, pp. 859-870.

LIN, T. –C. (2004) The Role of Higher Education in Economic Development: an empirical study of Taiwan case, Journal of Asian Economics 15, pp. 355-371.

LOASBY, B. (1991) Equilibrium and Evolution: an Exploration of Connecting Principles in Economics, Manchester University Press: Manchester and New York.

LUGER, M.I. and Goldstein, H.A. (1997) What is the Role of Public Universities in Regional Economic Development? In Bingham, R.D. and Mier, R. (Ed) Dilemmas of Urban Economic Development, Issues in Theory and Practise, Urban Affairs Annual Reviews 47, SAGE Publications, California.

MACFARLAND, T.W. (2001) An Estimate of Nova Southeastern University´s Economic Impact on South Florida and Florida for Fiscal Year 2000, Nova Souhteastern University Research and Planning.

MALMBERG, A. AND MASKELL, P. (1999) Localized Learning and Industrial Competitiveness, Cambridge Journal of Economics 23, pp. 167–185.

MALMBERG, A. AND MASKELL, P. (2002) The Elusive Concept of Localization Economies: towards a knowledge-based theory of spatial clustering, Environmental Planning 34, pp. 429–449.

MANSFIELD, E. (1995) Academic Research Underlying Industrial Innovations: sources, characteristics, and financing, Review of Economics and Statistics 2, pp. 55-65.

MANSFIELD, E. AND LEE, JEONG-YEON (1996) The Modern University: contributor to industrial innovation and recipient of industrial R&D support, Research Policy 25 (7), pp. 1047-1058.

MCMAHON, W.W. (1998) Education and Growth in East Asia, Economics of Education Review 17, pp. 159- 172.

METCALFE, J.S. (2002) Knowledge of Growth and the Growth of Knowledge, Journal of Evolutionary Economics 12(1), pp. 3-15.

METCALFE, J.S. AND RAMLOGAN, R. (2005) Limits to the Economics of Knowledge and Knowledge of Economics, Futures 37 (7), pp. 655-674.

MORGAN, K. (1997) The Learning Regions: institutions, innovation and regional renewal, Regional Studies 31(5), pp. 491–503.

MOWERY, D. AND SAMPAT, B. (2004) Universities in National Innovation Systems, in Fagerberg, J., Mowery, D. and Nelson, D. (Ed) The Oxford Handbook of Innovation, Oxford University Press.

MYDRAL, G. (1957) Economic Theory and Underdeveloped Regions, London, Duckworth.

NEVALA, A. (1983) Joensuun korkeakoulun perustamisvaiheet, Joensuun korkeakoulun offsetpaino, Joensuu (in Finnish).

NILSSON, J.A., P. ARBO, M.S. DAHL, B. DAHLUM, I.R. EDVARDSSON, H. ESKELINEN, K. NIELSEN, Å. UHLIN AND H. YLINENPÄÄ (2003) The Role of University in Regional Innovation System. Nordic Industrial Fund, Centre for Innovation and Commercial Development. Online at www.nordicinnovation.net/ _img/Universitetens_ roll_forregionale_innovationsystem.pdf

NIOSI, J. (2002) National Systems of Innovation are “x-efficient” (and x-effective). Why Some are Slow Learners? Research Policy 31, pp. 291-302.

OINAS, A. (1999) Se syntyi sittenkin, in Matkalla Kojamoon (Ed) Muisteluksia Lapin yliopiston alkuvaiheista, Lapin yliopiston hallinnon julkaisuja 41, Rovaniemi (in Finnish).

OLLIKAINEN, M. (1997) Luonnonvara- ja ympäristötalous, in Loikkanen, H., Pekkarinen, J., Siimes, S-A. and Vartia, P. (Ed) Kansantaloutemme – rakenteet ja muutos, Taloustieto Oy, Tammer-Paino Oy, Tampere (in Finnish).

ÖSTERLUND, T. (1997) Pohjanmaan alueen muuttoliike vuosina 1988-1996, Siirtolaisinsituutti, Pohjanmaan aluekeskus, Research Reports No. 1.

PAIJA, L. (2001) The ICT cluster in Finland - Can we explain it? in L. Paija (Ed.) Finnish ICT cluster in the digital economy, Helsinki: Taloustieto.

PEKKALA, S. (2003) Migration flows in Finland: regional differences in migration determinants and migrant types, International Regional Science Review 26 (4), pp. 466-482.

PETRAKIS, P.E. AND STAMATAKIS D. (2002) Growth and Educational Levels: a comparative analysis, Economics of Education Review 21, pp. 513-521.

PISSARIDES, C.A. AND WADSWORTH, J. (1989) Unemployment and the Inter-Regional Mobility of Labour, The Economic Journal 99, pp. 739-755.

PORTER, M. (1998) Clusters and the New Economics of Competition, Harvard Business Review (November/December), pp. 77–90.

PORTER, M.E., K. SCHWAB AND A. LOPEZ-CLAROS (2005) The Global Competitiveness Report 2005-2006. World Economic Forum: Palgrave Macmillan.

RIIKKINEN, S. (2002) Lappeenrannan teknillisen korkeakoulun alueellinen vaikuttavuus, Hallinnon julkaisuja 109, Lappeenrannan teknillinen korkeakoulu, Lappeenranta.

RITSILÄ, J. AND TERVO, H. (1999) Regional Differences in the Role of Migration in Labour Market Adjustment: The Case of Finland. In: Crampton G (ed.) Regional Unemployment, Job Matching and Migration, Series on European Research in Regional Science. Pion, London, pp. 166-182.

ROMANAINEN, J. (2001) The cluster approach in Finnish technology policy, in OECD (ed.), Innovative Clusters: Drivers of National Innovative Systems, Paris: OECD.

ROSENBERG, N. (2000) Schumpeter and the Endogeneity of Technology: some American perspectives, The Graz Schumpeter Lectures. London, New York Taylor and Francis.

ROSENBERG, N. AND NELSON, R.R. (1994) American universities and technical advance in industry, Research Policy 23 (3), pp. 323-348.

SAARIVIRTA, T. (2003) Yliopistollinen toiminta Satakunnassa – yliopistollisen koulutuksen ja tutkimuksen synty, kehittyminen ja laajentuminen 1960-luvulta 2000-luvulle, Porin kaupungin tutkimuksia 125/2003, Pori.

SAARIVIRTA, T. (2004) Koulutuksen ja tutkimuksen taloudellinen merkitys – vertaileva tutkimus yliopistollisen koulutuksen ja tutkimuksen taloudellisesta merkityksestä seitsemälle alueelle, Acta Universitatis Tamperensis 1008, Tampere University Press, Tampere.

SAARIVIRTA, T. (2007) Finnish Higher Education Expansion and Regional Policy, Higher Education Quarterly (forthcoming).

SAARIVIRTA, T., RAMLOGAN, R. AND CONSOLI, D. (2005) The Impact of Education in the Regional Economic Development of Finland. Centre for Research on Innovation and Competition (CRIC), University of Manchester, Mimeo.

SCHIENSTOCK, G. (2004) The Finnish model of the knowledge economy, in G. Schienstock (ed.) Embracing the Knowledge economy: the dynamic transformation of the Finnish innovation system, Edward Elgar.

SJASTAAD, L. (1962) Interpreting the Effect of Distance on Migration, Journal of Political Economy 81, pp. 1153-1169.

SOTARAUTA, M. & KAUTONEN, M. (Forthcoming) Co-evolution of the Finnish National and Local Innovation and Science Arenas: Towards A Dynamic Understanding of Multilevel Governance. Regional Studies.

SOTARAUTA, M., DUBARLE, P., GULBRANDSEN, M., AND NAUWELAERS, C. (2006) Supporting the Contribution of Higher Education Institutions to Regional Development, Peer Review Report: Trondelag (Mid-Norwegian Region), Norway, OECD, Paris.

STATISTICS FINLAND (2004a) Altika Database.

STATISTICS FINLAND (2004b) Regional Accounts.

STATISTICS FINLAND (2005a) http://www.stat.fi/tup/suoluk/taskus_kansantalous.html (10.3.2005)

STATISTICS FINLAND (2005b) http://tilastokeskus.fi/tup/suoluk//taskus_tyoelama.html (14.3.2005)

STATISTICS FINLAND (2005c) http://www.stat.fi/tup/tiedotteet/v2005/tiedote_022_2005-04-26.html (5.5.2005)

STATISTICS FINLAND (2006) Altika Database.

SUDMANT, W. (1999) The Economic Impact of the University of British Columbia on the Greater Vancouver Regional District, Planning and Institutional Research, The University of British Columbia.

TERVO, H. (2000) Migration and Labour Market Adjustment: empirical evidence from Finland 1985-1990, International Review of Applied Economics 14, pp. 343-360.

TINBERGEN, J. (1952) On the theory of economic policy, Amsterdam.

VIRTAHARJU, M. (2002) Korkeasti koulutetun väestön liikkuvuus, Tiede, teknologia ja tutkimus 2002: 1, Tilastokeskus (in Finnish).

VIRTANEN, I. (2002) Yliopistojen kolmas tehtävä. Kunnallisalan kehittämissäätiön Polemiasarjan julkaisu nro 44, Vammalan Kirjapaino Oy, Vammala (in Finnish).

VIRTUAL FINLAND (2005b) http://virtual.finland.fi/finfo/images/people/popumap_b.gif (14.3.2005)

WORLD ECONOMIC FORUM (2005) http://www.weforum.org/site/homepublic.nsf/Content/United+States+in+Second+Place+Behind+Finland+in+Global+Competitiveness+Report (24.5.2005)

www.cia.gov/cia/publications/factbook/geos/fi.html (10.3.2005) www.joensuu.fi/faculties.html (14.3.2005) www.lut.fi/fi/yliopisto_lyhyesti/index.html (14.3.2005) www.research.fi/OECD (2002).

Main Science and Technology Indicators, November 2002. (15.10.2003) www.uku.fi/tutustu/ tiedekunnat.shtml (14.3.2005)

www.ulapland.fi/contentparser.asp?deptid=13906 (15.3.2005)

www.uwasa.fi/info/info-fi.html (14.3.2005)

YRKKÖ, J.A. AND HERMANS, R. (2004) Nokia: a giant in the Finnish innovation system, in G. Schienstock Embracing the Knowledge economy: the dynamic transformation of the Finnish innovation system, Edward Elgar.