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Abstract:
We analyze the effect of applied research institutions on regional innovation activity. Exploiting a policy reform that creates tertiary education institutions conducting applied research, the Universities of Applied Sciences (UASs) in Switzerland, we apply difference-in-differences estimations to investigate the effect on innovation quantity and quality. Findings show a 7.7 to 13 percent increase in regional patenting activity (i.e., quantity), and a 1.3 to 11 percent increase in patent family size, and the number of granted patents, claims, and citations per patent (i.e., quality). Findings are robust to various model specifications, suggesting that applied research taught in UASs boosts regional innovation.
