Institut für Öffentliche Dienstleistungen und Tourismus The role of universities for regional labour markets: the example of central Switzerland Simone

Institut für Öffentliche Dienstleistungenund Tourismus

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

Simone StraufDr. Roland SchererSzczecin, April 2007


11.04.23Page 2

Central issues

What are the key factors contributing to the positive economic development of a region? What role do universities play?

Concept of the “learning region”What methods are there to measure the economic impact of universities

on a region?Example of universities in central Switzerland: how can the universities

contribute to improving both the regional labour market and the quality of the region as a business location:

University as employer Educational function (training and further education) Knowledge transfer Brain drain – brain gain Added regional value

Conclusion


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Current research status – Methodological approaches


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Porter‘s diamond model for the competitiveness of regions


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Regional skills and expertise

Expertise and skills

Contributing factors• Intensive problemsolving support• Impetus for innovation ( “push“)

Information andknowledge transfer• Consultants• Research and educational institutions

Customers• High-quality demand• Innovation cluster (“pull”)

Specialisation of overallconditions• Administrative expertise -• Specific transport and communications - infrastructure

Labour market• Qualified labour force• Knowledge transfer

Informal informationand knowledge transfer• Informal discussions • Conferences


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Methods of identifying regional economic effects


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Analysis methods to identify regional economic effects of infrastructure facilities

• Input-output analysis

• Cost-benefit analysis

• Mathematical finance

• Incidence analysis

• Network approach

Method used:Combination of incidence analysis and network approach


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Regional economic effects of infrastructure facilities (e.g. universities)

Effects Examples

Intan

gible E

ffects

Competence effects Brain gain Knowledge transfer Educational function

Network effects Horizontal and vertical networks of the universities Student networks

Structural effects Infrastructure facilities Labour market effects

Image effects Media reporting Location for living, working and learning

Tan

gible E

ffects

Direct economic effects brought about by the universities

Analysis of the success of the universities Lucerne campus, Student Housing Association (StuWo)

Direct economic effects brought about by students and participants

Student expenditures Participant expenditures

Induced total revenues Regional multiplier


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Case study: Central Switzerland


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Where is Switzerland located and what is typical?

Switzerland


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Where is Central Switzerland located?

Central Switzerland


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Universities in Switzerland

Universities in Central Switzerland


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Numbers of students at the universities in central Switzerland

0

1000

2000

3000

4000

5000

6000

7000

2000 2001 2002 2003 2004 2005

nu

mb

er o

f st

ud

ents

Teaching Facility of CentralSwitzerland

University of Applied Sciencesof Central Switzerland

University of Lucerne

Total: 6,200 students


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The effects of the universities on the regional labour market


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University as employer

• 1,000 people are employed by the three universities (full-time positions)

• The universities together are among the five largest employers in the canton of Lucerne (quantitative aspect)

• Most of employees have a tertiary educational degree.

• The percentage of highly-qualified residents has increased (qualitative aspect)

• Also students are visible on the regional labour market: about 75% of the students hold jobs while they are studying.


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Educational level of the population 1998 and 2004

Percentage of the population between 25 and 34 with a university degree


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Educational effects

0

10

20

30

40

50

60

70

80

90

100

City of Lucerne Canton of Lucerne In another canton Outside of Switzerland

Residence prior to studying

per

cen

tag

e

Yes, I would have studied if I couldn't have pursued my degree program in the canton of Lucerne

No, I wouldn't have studied if I couldn't have pursued my degree program in the canton of Lucerne

Reason: specific degree programs

Reason: primary "I come from the region" and "personal relationship"


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Proportion of diploma / bachelor degrees in 2005

0

2

4

6

8

10

12

14

16

18

GenevaLake

Region

EspaceMittelland

NorthwestSwitzerland

Zurich EasternSwitzerland

CentralSwitzerland

Tessin Total

%UH

FH


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Knowledge transfer

• Networking with regional players• Specialists from companies have part-time contracts as

lecturers• Companies make use of the universities for further education• Universities have service contracts to address issues and

problems stemming from the business sector• Students create networks with companies• Graduate organisations (alumni)• Companies are active in university committees, university

members are active in associations and public committees• Knowledge Transfer Centres, Academy of Applied Sciences


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Knowledge transfer - student contacts to companies and institutions

0

10

20

30

40

50

60

Project work Internship and workexperiences

Bachelor's, master'sand thesis work

Job

% o

f a

ll co

nta

cts

Yes, in the canton of Lucerne No, but in central Switzerland

No, in another canton Do not have yet any contact


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Brain gain – brain drainLocation of students after graduation

Do you want to stay in the canton of Lucerne after graduation?

Where did you live before your degree program?

In the canton of Lucerne

In another canton

Number As a % Number As a %

Yes, I will stay in the canton of Lucerne

114 52.8 16 3.8

No, I will go to another canton

18 8.3 187 43.9

I don't know 84 38.9 223 52.3

Total 216 100.0 426 100.0


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Net brain drain – brain gain

Net brain-drain brain gain

in proportion to the number of highly-qualified individuals percentage


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How to explain brain drain vs. brain gain?


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Employment rate of new graduates

80% 85% 90% 95% 100%

Central Switzerland

Zurich

Eastern Switzerland

Northwest Switzerland

Espace Mittelland

Geneva Lake Region

Tessin

Total

University

University of applied sciences


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Employment rates of graduates after 1 and 5 years


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Gross annual income by region


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Regional added value

participants at public eventsstudents

univer-sities

direct revenuesapprox. 50 Mio. €

additional total revenuesapprox. 72 Mio. €

induced revenues22 Mio. €

26.8 0.622.9


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Conclusions

• Highly qualified individuals are attracted (brain gain) and they play a role in preventing the brain drain.

• Knowledge transfer through university involvement (national and international, by students and employees)

• Strong networks between the universities as well as with companies, cultural institutions and other areas

• Structural effects: companies make good use of the supply of graduates in both quantitative and qualitative terms.

• Total additional revenues triggered in 2005 reached € 72 million for the canton of Lucerne.

The appeal of Central Switzerland as a business location is enhanced.

The economic power increases and the universities contribute to boosting the buying power


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How can the effects of the universities on the regional labour market be increased?

The effects of universities on the regional labour market can be very different depending on the structure of the region.

Simply having jobs available is not the only criterion for attracting highly-qualified individuals to a region.

Universities, companies and politicians share joint responsibility for creating the overall conditions to increase brain gain and prevent brain drain.

Documents

Institut für Öffentliche Dienstleistungen und Tourismus The role of universities for regional labour markets: the example of central Switzerland Simone