Universities and other higher education institutions (HEIs) can play a key role in human capital development and innovation systems. In the time of globalisation, growth and development continue to cluster around specific regions that have a high concentration of skilled and creative workforce and infrastructure for innovation. HEIs can help their cities and regions become more innovative and globally competitive.

OECD human-capital development take on role of universities in driving development (community, economic) from Institute for Management of Higher Education Institutes. Mike Osbourse situates HE as an activity in a typology of regional development which included human capital, social capital and community development.