Unpackaging universities’ local economic impact through a systematic literature review: between fragmentation and unclear boundaries

Abstract This paper systematizes the literature on universities’ local economic impact, using the ‘Preferred Reporting Items for Systematic Reviews and Meta-Analyses’ (PRISMA) approach and bibliometric techniques to identify key aspects underlying this concept. Although the analysis identifies three essential dimensions of economic impact—Technology transfer, Human capital, and Local development—it also reveals the literature’s struggle to examine their interrelationships. Furthermore, while most scholars define local impact as regional, the literature finds also challenging to operationally define its boundaries. This paper contributes to this debate by emphasizing the importance of understanding universities’ economic impact as an interplay among various dimensions at multiple interrelated levels. It is crucial to adopt a holistic and multidisciplinary approach to formulate policies that leverage universities’ full potential as drivers of local economic growth. Additionally, we must acknowledge that local impacts often permeate multiple levels in an increasingly interconnected world, requiring a balance with the policy-driven need for clear and definite boundaries.