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We evaluate empirically how the efficiency of Spanish public universities impacts regional economic performance in Spain during the period 2010–19. Efficiency is measured using activity analysis methods that attempt to capture how universities perform in their respective missions: teaching, research and knowledge transfer. We analyse the geography of higher education by examining efficiency at the provincial (NUTS-3) and regional (NUTS-2) levels, as well as for groups of regions (NUTS-1). Our results offer several key insights. First, we find that geography plays a differential role primarily when knowledge-transfer activities are considered, while geographical patterns are similar for teaching and research activities. Second, the impact of universities’ efficiency on regional economic activity varies across different outcome measures. While provinces with more efficient public university systems show higher labour productivity and capital intensity levels, there is no significant relationship with per capita income. The spatial analysis indicates that efficiency gains generate indirect and positive spillovers, particularly for capital intensity, suggesting that improvements in university performance can benefit broader regional areas. Additionally, institutional quality, measured through regional government performance indicators, reinforces these effects. Our findings suggest that no single mission is inherently superior to the others. Nevertheless, research appears to play a particularly prominent role, although achieving stronger regional economic performance would require maintaining an appropriate balance across missions. This finding has implications for policymakers and other stakeholders seeking to leverage universities’ activities to promote regional development.
Alamá‐Sabater et al. (Wed,) studied this question.