The Economic Effect of Jena University on the Regional Economy – Knowledge Transfer and Knowledge Capital Reassessed

Abstract: Universities are essential components for regional economic growth; through their research, teaching and entrepreneurial activities, they contribute to the regional economy in terms of knowledge, human capital and firm formation. This thesis not just accounts for and quantifies the overall economic effect of Jena University on the regional economy, but also reveals and illustrates exemplarily how the effect emerges on the micro-level. Therefore, patent networks and joint patents act as a proxy for the economic impact. First, the macro-economic effect of Jena University´s research and teaching activities is quantified by estimating a knowledge capital stock. Second, based on a patent data analysis covering patenting activity since 1999, knowledge transfer from the university to the regional economy is analyzed. The findings suggest that Jena University has an economic impact on the regional economy in terms of knowledge creation and transfer, but also in terms of the effects from human and research capital generated at the university. When quantifying the economic effect of Jena University on the regional economy, it is argued that an effect of 459.9 mil Euro in terms of knowledge capital is operative in the region in 2013, which corresponds to 1.2 percent of Jena region´s domestic product. This economic impact is reflected in Jena University´s predominately regional cooperation and research partners, its technological focus that reflects the regional clusters and its role as promoter of entrepreneurship.