The Impact of Higher Education Institutions in Low-Density Territories

This article highlights the relevance of the location of HEIs in low-density territories in Portugal, using the Polytechnic Institute of Portalegre as a case study. Based on the American Council Education model and following a surveying approach to faculty, staff, and students, this research accounts for the total spending of incoming academics, other nonlocal university members and their visitors, that positively impacts regional development. A demand-side approach was followed so that indirect and induced effects could also be estimated. The main aim of this research paper is to quantify the total impact arising from the location of the Polytechnic in a given region, measured by economic and social indicators such as the financial return from public funds invested in the region, the number of jobs created, and the impact on the local gross domestic product. The results show an impact of more than EUR 17 million in the territory where the Polytechnic operates, representing 3.68% of the local GDP. The institution was also found to be the third major employer in the region, responsible for the creation of 471 jobs that account for 2.25% of the local economically active population.