Historical and theoretical framework of the relation between higher education institutions and the process of regional economic development

Abstract

Objective: The objective of the paper is to investigate the evolution in the relationship between higher education institutions (HEIs) and their surrounding environment and the analysis how higher education can increase the economic competitiveness of regional and national economies. Research Design & Methods: Review of literature that illustrates the evolution of the relation between higher education institutions and its surroundings. Findings: In the context of a contemporary global “knowledge economy”, higher education institutions contribute to the economic competitiveness of regions and nations by performing quality higher education and innovation activities. Implications & Recommendations: Both theoretical literature and practical evidence show that the relationship between higher education institutions and the surrounding economies have helped each other become more competitive. More than ever, regions and nations must foster and invest in the most important institutions that provide higher education and innovation, which in turn increase the competitiveness level. Contribution & Value Added: The originality of this work lies in displaying the historical evolution of higher education in relation to its surrounding environment and the comparative analysis of the two competitivity pillars – higher education and innovation – in Eastern Europe.