The socioeconomic impact of a HEI for a local economy

Abstract

This paper discusses the impact of Higher Education Institutions (HEIs) upon the economic development of a given region. A Portuguese Higher Education Institution - the Polytechnic Institute of Bragança (in Portuguese, IPB) – was used for that purpose as a case study. The IPB is located in the region of Bragança, an isolated and deprived region in the Northeast of Portugal. Two approaches were followed: the demand-side approach (Caffrey & Isaacs, 1971) determines the economic impact arising from the expenditures of the IPB and its individuals; and the supply-side approach (Becker, 1993; Bluestone, 1993) measuring the creation of human capital and the enhancement in the quality of life of local individuals. Data collection included surveys on the faculty, staff, studentsand graduates of the IPB; IPB’s records, and other official sources. Following these two approaches, the IPB’s total impact upon the region was determined, reaching 55 and 61 million euros, respectively. The stakeholders related to the higher education institution were also taken into account. It was perceived that all stakeholders understood the importance of the institution to the region, and they were all engaged in helping to promote the region and the HEI’s activities.