Universities are more than educational institutions; they are economic engines and civic hubs. A recent scoping review, Civic Universities and Economic Impact, explores their role in regional development, job creation, and social innovation. But how can we measure their impact, and what frameworks ensure they balance economic growth with civic responsibilities?

Universities as Anchor Institutions

One of the most striking insights from the review is the role of universities as anchor institutions—large, place-based organisations that are deeply embedded in their local economies. Unlike corporations that may relocate, universities remain fixed in their communities, wielding economic power through employment, procurement, and infrastructure investment.

Initiatives like the Birmingham Anchor Network—which unites universities with local authorities and healthcare institutions—demonstrate how collaborative efforts address employment, support local enterprises, and foster equitable economic growth.

Economic Impact: Beyond Traditional Metrics

Traditional metrics, such as student numbers and research output, fail to capture universities’ full economic influence. The review highlights that a 10% increase in the number of universities correlates with a 0.4% rise in regional GDP per capita (Valero & Van Reenen, 2019). Beyond direct contributions, universities drive innovation, knowledge transfer, and lifelong learning, crucial for workforce adaptability.

Balancing Economic and Civic Responsibilities

While universities generate wealth, their broader responsibility includes:

  • Supporting lifelong learning and skill development.
  • Partnering with local governments, businesses, and non-profits.
  • Leading place-based innovation to ensure wider community benefits.

The concept of the third mission—universities’ role beyond teaching and research—emphasises their duty to economic and social progress. However, there is a lack of quantitative evidence linking civic initiatives to economic outcomes, highlighting a need for further research.

Global Perspectives: Different Approaches to University Impact

The review also compares international models of civic engagement. In the US, Carnegie Classification frameworks assess universities based on community engagement and public purpose. Meanwhile, European institutions take a more regional approach, integrating universities into city and regional economic planning.

In the UK, universities operate within a less defined framework, though initiatives like the National Civic Impact Accelerator and Civic University Network are providing key recommendations to universities looking to enhance their civic role. Academic research on the Quadruple Helix Model (linking academia, industry, government, and society) is gaining traction. The idea of a “civic university” underpins this framework – as an understanding that universities play a much bigger role than just conducting research or teaching. The challenge is to develop scalable, evidence-based models for assessing civic and economic contributions.

The Civic Impact Framework takes this further and outlines how a university can assess and improve upon its civic impacts. The review points out research on the 12 ‘pillars’ that underpin the economic impact of universities. When demonstrating their economic impacts, many universities tend to focus on the ‘core’ economic impacts, rather than a holistic picture of their broader role. We argue that university economic impact assessments should capture a wide range of impacts, such as examples from the Universities of Birmingham, Bath and Glasgow.

Figure 1. The 12 pillars of university civic economic impact

Outside of the Global North, civic work in Brazil is called “extension”. This formalises, through the Brazilian constitution, the “inseparability” of teaching, research and civic work in higher education. The Brazilian approach goes further to embedding the quadruple helix of civic work in higher education than examples in the UK, Europe and USA.

How to embed universities’ roles in place

Universities can be difficult organisations to break down. At one event recently, a colleague likened universities to a black box, in terms of getting to understand how they work. Similarly, relating to how long things take to change, compared universities to an oil tanker. They were perhaps exaggerating to make a point, but we don’t necessarily disagree.

This is a particular issue when trying to enact change as part of a future UK Higher Education Strategy. The scoping review concludes with key recommendations for universities looking to enhance their civic and economic roles:

  1. Adopt structured impact frameworks such as the Civic Impact Framework or Quadruple Helix Model to measure contributions comprehensively.
  2. Strengthen local partnerships to ensure universities’ economic impact aligns with regional needs.
  3. Embed sustainability goals into university strategies, ensuring long-term economic and environmental benefits.
  4. Develop place-based approaches, recognising that different regions require tailored economic strategies.
  5. Enhance data collection and transparency to quantify the direct and indirect effects of universities on regional economies.

Universities must evolve beyond traditional roles to become active civic leaders. By integrating economic analysis with civic responsibility, they can drive inclusive growth and societal transformation. The findings of this review offer a roadmap for universities, policymakers, and local leaders to ensure that higher education remains a powerful force for economic and social progress. These ideas can be applied to the UK context to help meet the UK government’s five priorities for higher education reform .

Universities are more than educational institutions; they are economic engines and civic hubs. A recent scoping review, Civic Universities and Economic Impact, explores their role in regional development, job creation, and social innovation. But how can we measure their impact, and what frameworks ensure they balance economic growth with civic responsibilities?

Universities as Anchor Institutions

One of the most striking insights from the review is the role of universities as anchor institutions—large, place-based organisations that are deeply embedded in their local economies. Unlike corporations that may relocate, universities remain fixed in their communities, wielding economic power through employment, procurement, and infrastructure investment.

Initiatives like the Birmingham Anchor Network—which unites universities with local authorities and healthcare institutions—demonstrate how collaborative efforts address employment, support local enterprises, and foster equitable economic growth.

Economic Impact: Beyond Traditional Metrics

Traditional metrics, such as student numbers and research output, fail to capture universities’ full economic influence. The review highlights that a 10% increase in the number of universities correlates with a 0.4% rise in regional GDP per capita (Valero & Van Reenen, 2019). Beyond direct contributions, universities drive innovation, knowledge transfer, and lifelong learning, crucial for workforce adaptability.

Balancing Economic and Civic Responsibilities

While universities generate wealth, their broader responsibility includes:

  • Supporting lifelong learning and skill development.
  • Partnering with local governments, businesses, and non-profits.
  • Leading place-based innovation to ensure wider community benefits.

The concept of the third mission—universities’ role beyond teaching and research—emphasises their duty to economic and social progress. However, there is a lack of quantitative evidence linking civic initiatives to economic outcomes, highlighting a need for further research.

Global Perspectives: Different Approaches to University Impact

The review also compares international models of civic engagement. In the US, Carnegie Classification frameworks assess universities based on community engagement and public purpose. Meanwhile, European institutions take a more regional approach, integrating universities into city and regional economic planning.

In the UK, universities operate within a less defined framework, though initiatives like the National Civic Impact Accelerator and Civic University Network are providing key recommendations to universities looking to enhance their civic role. Academic research on the Quadruple Helix Model (linking academia, industry, government, and society) is gaining traction. The idea of a “civic university” underpins this framework – as an understanding that universities play a much bigger role than just conducting research or teaching.  The challenge is to develop scalable, evidence-based models for assessing civic and economic contributions.

The Civic Impact Framework takes this further and outlines how a university can assess and improve upon its civic impacts. The review points out research on the 12 ‘pillars’ that underpin the economic impact of universities. When demonstrating their economic impacts, many universities tend to focus on the ‘core’ economic impacts, rather than a holistic picture of their broader role. We argue that university economic impact assessments should capture a wide range of impacts, such as examples from the Universities of Birmingham, Bath and Glasgow.

Figure 1. The 12 pillars of university civic economic impact

Outside of the Global North, civic work in Brazil is called “extension”. This formalises, through the Brazilian constitution, the “inseparability” of teaching, research and civic work in higher education. The Brazilian approach goes further to embedding the quadruple helix of civic work in higher education than examples in the UK, Europe and USA.

How to embed universities’ roles in place

Universities can be difficult organisations to break down. At one event recently, a colleague likened universities to a black box, in terms of getting to understand how they work. Similarly, relating to how long things take to change, compared universities to an oil tanker. They were perhaps exaggerating to make a point, but we don’t necessarily disagree.

This is a particular issue when trying to enact change as part of a future UK Higher Education Strategy. The scoping review concludes with key recommendations for universities looking to enhance their civic and economic roles:

  1. Adopt structured impact frameworks such as the Civic Impact Framework or Quadruple Helix Model to measure contributions comprehensively.
  2. Strengthen local partnerships to ensure universities’ economic impact aligns with regional needs.
  3. Embed sustainability goals into university strategies, ensuring long-term economic and environmental benefits.
  4. Develop place-based approaches, recognising that different regions require tailored economic strategies.
  5. Enhance data collection and transparency to quantify the direct and indirect effects of universities on regional economies.

Universities must evolve beyond traditional roles to become active civic leaders. By integrating economic analysis with civic responsibility, they can drive inclusive growth and societal transformation. The findings of this review offer a roadmap for universities, policymakers, and local leaders to ensure that higher education remains a powerful force for economic and social progress. These ideas can be applied to the UK context to help meet the UK government’s five priorities for higher education reform .