Although private universities have a long-standing tradition in many countries, there has been limited research on this type of higher education institution. This knowledge gap also extends to the question of the economic effects of private universities. The aim of this project is to address this research gap, with a specific focus on examining the contributions of private universities to the economic performance and innovation success of companies in the region, as well as their impact on regional entrepreneurship and startup activity. One particular challenge lies in disentangling purely correlational relationships from genuinely causal ones when measuring such effects.

To tackle this challenge, a long-term panel dataset will be constructed based on the university statistics provided by DESTATIS (German Federal Statistical Office) as well as the Mannheim Innovation Panel and the Mannheim Startup Panel. This dataset will allow for a comprehensive sample of German companies to be linked to the private universities in their respective vicinity. Leveraging this dataset, state-of-the-art econometric difference-in-difference estimation techniques will be employed to identify causal effects. In particular, the study will investigate the extent to which private universities have had effects on companies in terms of innovation, entrepreneurship, and economic performance. Furthermore, it will explore whether these effects are contingent upon the characteristics of the university, such as its focus on teaching versus research, or its combination of disciplines.

Finally, the generated dataset will provide valuable insights into the diversity of private universities concerning their respective strategies, missions, and objectives. This will enable the typification of these institutions, thereby supporting further research in this field. Ultimately, this project aims to bridge the existing research gap and contribute to a better understanding of the economic effects of private universities, shedding light on their role in fostering regional innovation, entrepreneurship, and overall economic performance.