Emergence of Economic Institutions: Analysing the Third Role of Universities in Turku, Finland

Abstract:     
How do universities become economic development institutions? The normative 'Third Role' in Europe refers to universities taking on explicit economic development mandates such as greater technology transfer, and commercial outputs, without providing much of a compass for institutional change. It is argued that universities transform themselves into economic institutions against a changing canvas of national welfare by a process of 'task-oriented institutionalization' which involves both individual action and university strategy. Two universities' interactions with firms in Turku, Finland's biotechnology concentration, are investigated. Using universities as a lens, notable gaps are found in frameworks on how economic institutions emerge, and the paper concludes with five hypotheses for future studies on universities, institutions, and economic development.

Number of Pages in PDF File: 20

Keywords: Economic development, Institutions, Planning models, Universities, Urban and regional development, Science and technology policy, Finland

JEL Classification: D02, I23, O21, R11

Accepted Paper Series