Concept of a University Town

In the context of current challenges such as climate change, economic uncertainty, and other global shocks, it is becoming increasingly urgent to reconsider the role of educational institutions in strengthening resilience capacities. Notably, the sustainable development of Central Asian Mountain towns, often characterised by geographic isolation, environmental vulnerability, and socioeconomic challenges, requires universities to take on new roles to achieve sustainable urban development. Historically, universities have evolved from being centres of higher learning to dynamic drivers of local, regional and international development. Starting in the late 20th century, universities were increasingly seen—and saw themselves—as catalysts for knowledge-based economic growth, responding to de-industrialisation by generating innovation, technology, and human capital. The shift in universities' role marked the beginning of a new era in which academic institutions became critical actors in the global movement toward the knowledge economy and drove innovation.

Central Asian universities are in transition, and it is unclear if they can become a transformative engine that can profoundly shape the economic, cultural, and social landscape of their hosting cities and towns. Scholars argue that developing countries should aim for "developmental universities" to contribute to social and economic development (Brundenius et al., 2009) Universities should promote problem-oriented research and education relevant to local needs and foster interactive capabilities to engage with various societal and industrial actors. Therefore, this handbook aims to cover this gap based on the hypothesis that the University of Central Asia’s experience can be a solid basis for devising a workable concept of a resilient university town, integrating academic expertise with local knowledge, fostering innovation tailored to regional needs, and actively contributing to sustainable development.

List of references

Brundenius, C., Lundvall, B. Å., & Sutz, J. (2009). The role of universities in innovation systems in developing countries: developmental university systems–empirical, analytical and normative perspectives. In Handbook of innovation systems and developing countries. Edward Elgar Publishing.

In the context of post-Soviet industrial towns, educational institutions may serve as stabilising anchors in economic decline, providing education and acting as major employers to replace collapsed traditional industries. However, it is essential to distinguish the concept of “university town” discussed in the handbook from the Soviet concept of “naukograd” or “akademgorodok”. Akademgorodok near Novosibirsk, Dubna near Moscow, Arzamas-16 (now Sarov), and Krasnoyarsk-26 (now Zheleznogorsk) were deeply influenced by Soviet-era policies, where higher education was highly centralised and aligned with the Soviet government’s goals. Naukograds were developed to advance strategic scientific research, often in isolation, focusing on maintaining secrecy and security. They specialised primarily in nuclear energy, weapons development, and aerospace, serving as critical hubs for state-directed innovation. While Soviet “naukograd” or “akademgorodok” and Western “university towns” share the common goal of advancing knowledge and innovation, their governance models, purpose, and integration with local communities set them apart. Naukograds, born out of the Soviet need for strategic scientific advances, were isolated and controlled by the Soviet government.

Table 1. The main difference between Western and Soviet university towns

Since the 1980s, globalisation and increased competition have pushed firms to seek external sources of innovation, resulting in a new form of university-industry collaboration in most US and Western European countries. On the one hand, declining profits and rising research costs encouraged firms to outsource more basic research to universities. On the other hand, financial constraints faced by universities led to the pursuit of new funding sources through partnerships with the private sector. Successful examples like MIT and Route 128, Stanford and Silicon Valley, and the Cambridge Phenomenon further demonstrated the transformative potential of these collaborations. To some extent, US military spending and defence contractors also added value in driving the growth of Silicon Valley engagement of universities like Stanford and UC Berkeley (Hershberg et al., 2007). However, unlike Soviet naukograds, US universities foster innovation through open collaboration and integration with the market economy, making them more adaptable to global research trends and economic needs. 

After gaining independence, Central Asian countries have started selectively adopting Western models of university towns, mainly supporting the internationalisation of existing universities, primarily located in large cities. Located in the capital city of Kazakhstan, Nazarbayev University (NU) exemplifies the adaptation of the Western model, with significant funding from the national government institution to develop cutting-edge technical education aligned with global academic standards. Founded in 2010, NU is one of the leading research institutions in Central Asia, with 13.8% of its faculty publications ranking in the top 10% of most-cited globally. With 68% of faculty from 57 countries and partnerships with universities like UCL and Carnegie Mellon, NU follows an international governance model with courses taught in English. NU fosters renewable energy, biotechnology, and AI innovation through the Nazarbayev University Research and Innovation System.

While many Central Asian universities have sought to adopt the Western university model through internationalisation and academic partnerships, their direct contributions to local economic development remain limited. Even institutions such as Nazarbayev University, despite significant investments in research and innovation, have primarily contributed through knowledge generation rather than direct economic impact. Unlike most universities in Central Asia, which have yet to prioritise local economic development as a core mission, the University of Central Asia (UCA), with its 25-year history, stands out as a pioneering institution actively shaping its host towns' economic and social transformation. By embedding itself in its host towns' economic and social fabric, the UCA case can represent a unique model for university-led transformations in urban development in Central Asia.

List of references

[1] Hershberg, E., Nabeshima, K., & Yusuf, S. (2007). Opening the ivory tower to business: University–industry linkages and the development of knowledge-intensive clusters in Asian cities. World development, 35(6), 931-940.

The main achievement of top Western universities was that they could expand their societal role through broader forms of engagement, such as living laboratories and urban development co-planners. Through collaboration with residents, businesses and local governments, universities contribute to their towns' sustainable and resilient urban development, enhancing the quality of life and ensuring that urban transformations are driven by knowledge, innovation, and community well-being. As universities expand their local development roles, they are increasingly at the forefront of sustainability and climate action, leveraging their research capacity, infrastructure, and global networks to drive meaningful change. Leading institutions worldwide are committing to ambitious net-zero targets, integrating clean energy solutions, and developing innovative sustainability initiatives that extend beyond their campuses.

Many universities committed to net-zero carbon emissions are setting ambitious targets and implementing transformative projects to enhance energy efficiency. Cambridge University’s Cambridge Zero initiative leads the charge for net zero by 2038, integrating research and policy to reduce emissions across sectors. Princeton University has set its net-zero goal for 2046, already achieving a 33% reduction in emissions since 2008 through the Princeton Energy Plant. MIT’s Climate Action Plan aims for carbon neutrality by 2026, supported by renewable energy partnerships like its solar farm in North Carolina, which provides 40% of campus electricity. At Stanford, the Stanford Energy System Innovations project has reduced emissions by 68% and potable water use by 18%, demonstrating its strong commitment to sustainability. ETH Zurich targets net zero by 2030, combining initiatives like its Energy Hub and Zero Emission Campus Initiative. Tsinghua University, targeting carbon neutrality by 2050, supports this goal with sustainable campus efforts, including solar installations and energy-efficient buildings. Harvard is committed to becoming fossil fuel-free by 2050, contributing research on carbon storage through new forest management practices in collaboration with the state government of Massachusetts.

Universities are developing urban sustainability and resilience research hubs. Caltech’s Resnick Sustainability Institute advances research in climate science, clean energy, and sustainable infrastructure. At the same time, Oxford University’s Environmental Change Institute and Oxford Programme for the Future of Cities focus on climate resilience, urban sustainability, and biodiversity. Cambridge’s Institute for Sustainability Leadership collaborates with over 1,000 organisations worldwide, driving global sustainability leadership through initiatives like the Prince of Wales’s Corporate Leaders Group. Stanford’s Urban Resilience Initiative works on climate adaptation strategies, collaborating with nearby cities like San Francisco. At the same time, Harvard’s Salata Institute for Climate and Sustainability and the Harvard Climate Solutions Living Lab contribute to innovative climate solutions. Imperial College London’s Grantham Institute for Climate Change and Transition to Zero Pollution initiative focuses on climate resilience and pollution reduction.

Universities are implementing green campus initiatives and promoting sustainable building practices. Princeton’s LEED-certified Frick Chemistry Laboratory uses 30% less energy than comparable buildings. At the same time, the University of Toronto incorporates green infrastructure with LEED-certified buildings such as the Environmental Science and Chemistry Building. MIT’s MIT.nano project supports ultra-low energy consumption and sustainable materials in nanotechnology research. The Harvard Grid accelerates sustainability-focused technology development at Harvard, while Tsinghua University integrates sustainability through campus-wide solar panels, energy-efficient buildings, and water recycling.

Universities collaborate closely with policymakers and industries to address global sustainability. In collaboration with the Cambridge City Council, Cambridge University’s Cambridge City Centre Heat Network works to reduce carbon emissions in city buildings. Harvard partners with Boston’s Green Ribbon Commission and the Cambridge Compact for a Sustainable Future to enhance local resilience.[i] Imperial College’s Imperial Policy Forum connects researchers with policymakers to drive sustainability initiatives. Oxford collaborates with the Global Centre on Adaptation to support urban resilience and nature-based solutions. Stanford University works with local governments on projects like the Stanford Urban Resilience Initiative and supports city-wide climate adaptation strategies. Tsinghua’s Institute of Energy, Environment, and Economy plays a role in advancing China’s sustainable policy, supporting the national goal of carbon neutrality.

The University of Northern British Columbia played a key role in supporting community planning and sustainable diversification in Tumbler Ridge, a mining-dependent town in British Columbia (Darko & Halseth, 2023). Faced with economic volatility and boom-bust cycles due to reliance on coal, Tumbler Ridge aimed to overcome this path dependence by investing in place-based planning and sustainable development initiatives. In 2014, the university’s Community Development Institute partnered with Tumbler Ridge to develop a Sustainability Plan, guiding the town's transition from a single-industry economy to one with diverse economic foundations. Through this collaboration, the town leveraged UNBC’s research and expertise to support local infrastructure, tourism, and natural resource management, fostering a resilient, diversified community prepared to navigate the challenges of economic dependence on natural resources.

In summary, leading universities worldwide are increasingly becoming catalysts for sustainable urban development through research, green infrastructure, and collaborative governance. By adopting ambitious carbon neutrality goals, supporting sustainable urban planning, and engaging with local communities, institutions like Cambridge, Princeton, MIT, and several other have demonstrated their capacity to drive both environmental stewardship and economic resilience. Their success lies in leveraging interdisciplinary expertise and forming partnerships with policymakers, businesses, and citizens, thus aligning academic research with real-world sustainability challenges.

In contrast, universities in post-Soviet countries, while making progress toward sustainability, often face structural and institutional barriers that limit their broader societal impact. For example, Nazarbayev University’s Green Campus Initiative in Kazakhstan serves as a local model for waste reduction and energy efficiency. However, its influence on national policy and urban planning remains limited compared to its Western counterparts. Similarly, Skoltech’s focus on renewable energy and environmental technology is notable within Russia’s innovation ecosystem but faces challenges related to regulatory environments and limited industry-academia collaboration. Westminster International University is beginning to integrate sustainability principles into its curriculum in Uzbekistan. Additionally, it has demonstrated its commitment to environmental sustainability through initiatives like tree planting on campus and supporting the national "Yashil Makon" project. The American University of Central Asia in Kyrgyzstan emphasises environmental responsibility through energy-efficient campus design and sustainability education. However, broader engagement with local communities and governance structures remains nascent. 

List of references

Darko, R., & Halseth, G. (2023). Mobilizing through local agency to support place-based economic transition: A case study of Tumbler Ridge, BC. The Extractive Industries and Society, 15, 101313.

In many communities, universities are the largest employers, driving local economic development by directing university contracts and purchases to nearby businesses. Oxford University is responsible for 17,000 jobs and injects £750 million annually into the local economy. Harvard University is the fifth-largest employer of Massachusetts residents and the largest in the City of Cambridge. It supports 50,000 jobs in the local and regional economy through direct and indirect employment, research, and business partnerships. MIT has helped launch over 30,000 companies, creating millions of jobs globally, with a focus on the Greater Boston and nearby Silicon Valley (Roberts & Eesley, 2011). Stanford University employs approximately 18,000 staff and faculty. In addition, 43,000 local jobs are attributed to Stanford's presence, both directly and indirectly, in the broader Bay Area. These examples illustrate universities' pivotal role in fostering job creation and business development.

The alignment between education and employment opportunities significantly influences the returns on investment in human capital. Regions with strong university-industry linkages tend to achieve better education-job matches, fostering economic growth and innovation (Iammarino & Marinelli, 2015). This dynamic is evident in leading universities worldwide, which serve as economic anchors in their regions. Entrepreneurs from the University of Toronto community have raised over $12 billion in funding and created over 17,000 jobs since 2020. The Technical University of Munich is pivotal in Bavaria’s economy, generating approximately 62,400 jobs and contributing an estimated €200 million in hypothetical tax revenue. ETH Zurich generates approximately USD 13 billion annually for Switzerland, supporting thousands of jobs and advancing research. These examples underscore the vital role of universities in strengthening local economies by aligning education with labour market demands.

List of references

Iammarino, S., & Marinelli, E. (2015). Education–Job (mis)match and interregional migration: Italian university graduates' transition to work. Regional Studies, 49(5), 866–882

Roberts, E. B., & Eesley, C. E. (2011). Entrepreneurial impact: The role of MIT. Foundations and Trends® in Entrepreneurship, 7(1–2), 1–149. https://doi.org/10.1561/0300000030

Modern universities now play a "third role," engaging in research and development, industry collaboration, and technology transfer to meet societal expectations and economic demands (Russell, 1993; Minshall, Druilhe, and Probert, 2004). In the USA, the effects of university-based knowledge or innovation are typically felt within a radius of about 75 miles from the university (Fritsch & Slavtchev, 2007). Stanford's ecosystem has created over 39,900 companies, collectively producing $2.7 trillion in annual revenue (Eesley & Miller, 2018). Stanford graduates have founded, built, or led thousands of businesses, including some of the world’s most recognised companies—Google, Nike, Cisco, Hewlett-Packard, Charles Schwab, Yahoo!, Gap, VMware, IDEO, Netflix, and Tesla. MIT alumni-founded companies generate $2 trillion in global revenue annually. Harvard supports over 1,500 startups, particularly in life sciences, through facilities like the Pagliuca Life Lab. Similarly, ETH Zurich has launched approximately 250 spin-offs over the past decade, with a notable increase in recent years. In 2023 alone, 43 spin-offs were established, particularly in artificial intelligence and biotechnology. In 2020, these spin-offs collectively raised over CHF 400 million (approximately USD 430 million) in venture capital With approximately 2,034 active U.S. patents and an average of 170 new patents issued annually, Caltech has fostered high-tech and biotech innovation through startups like Impinj. Tsinghua University drives innovation in AI and biotechnology through its Tsinghua x-lab incubator, supporting ventures like SenseTime, a global leader in AI.

In the current technological age, the value of university impact is often measured by the number of patents, licenses, and spin-out firms, which directly impacts a region's long-run economic development. Oxford University has spun out over 200 companies, raising £850 million in investments, particularly in biotechnology and AI. At the same time, Cambridge University’s commercialisation arm, Cambridge Enterprise, has created over 1,500 startups and holds over 1,000 patents. Universities like Princeton, Caltech, and Grenoble Alpes University each manage extensive patent portfolios, fuelling sectors from biotechnology to AI and supporting numerous startups that significantly impact their local economies and beyond. Breznitz (2014) emphasises that this success depends on the ability of the university to transfer knowledge into the public domain in conjunction with the ability of the region to absorb that information.

List of references

Breznitz, S. M. (2014). The fountain of knowledge: The role of universities in economic development. Stanford University Press.

Eesley, C. E., & Miller, W. F. (2018). Impact: Stanford University’s economic impact via innovation and entrepreneurship. Foundations and Trends in Entrepreneurship, 14(2), 130–278. https://doi.org/10.1561/0300000074

Fritsch, M., & Slavtchev, V. (2007). Universities and innovation in space. Industry and innovation, 14(2), 201-218.

The University of Oxford has fostered strong relationships with industries through initiatives such as the Oxford University Innovation, which facilitates the commercialisation of academic research, leading to sectors like pharmaceuticals and medical technologies. The Technical University of Munich has developed effective linkages with the automotive and engineering sectors by working with industry giants like BMW and Siemens to conduct cutting-edge research and drive innovation, directly impacting the Bavarian economy. ETH Zurich is a prominent example of a collaboration between universities and industries in Switzerland. The university is deeply involved in partnerships with companies like ABB and Swiss Re to advance robotics, sustainability, and biotechnology research. ETH Zurich’s emphasis on technology transfer and innovation has contributed to the city's economic growth, particularly in industries like engineering, IT, and pharmaceuticals. Grenoble has become a European centre for microelectronics and nanotechnology, mainly due to the collaboration between Grenoble Alpes University and local industries, including global corporations like STMicroelectronics  The city’s research parks and institutions have been key in fostering technological advancements and driving the regional economy.

Several factors make University-industry collaborations more likely to occur in some universities than others. The disciplines emphasised play a key role, with technological universities like MIT or the Politecnico of Milan and Turin leading innovation and industry partnerships. The academic culture of a university also matters, as institutions may prioritise different goals. For instance, in developed countries, entrepreneurial universities focus on market-oriented, short-term problem-solving within the industry. In contrast, in developing countries, developmental universities emphasise social and economic development rather than profit-making, maintaining autonomy while engaging with various societal groups. The university leadership also influences the extent of collaboration, with proactive strategies favouring partnerships. A university's development strategy is crucial, as seen in Finland, where research is aligned with regional needs, as in universities like Oulu and Eastern Finland. Lastly, the environment around the university—such as a thriving industrial sector or science parks like Research Triangle Park or Cambridge—facilitates stronger industry linkages. These factors shape how universities engage with industry and contribute to regional and national growth.

Some authors argue that universities with strong scientific bases should focus on forming a few high-quality partnerships with firms that can absorb and spread knowledge. For example, in Chile, research supports this hypothesis, with firms with more substantial knowledge bases showing a higher likelihood of engaging with universities and forming more selective and valuable partnerships (Iammarino & Marinelli, 2015). This was not the case in Italy, where even firms with weaker knowledge bases engaged in U-I linkages, leading to less productive outcomes, with informal collaborations often leading to dead ends, especially in clusters with weak firms. Following this reasoning, in developing countries, "weaker" universities should receive support to enhance their internal scientific capabilities rather than being pressured to act primarily as problem-solvers for industry.

Universities play a crucial role in shaping public policy by fostering evidence-based decision-making and engaging with national and local governments. Below are examples of the University of Oxford, Stanford University, the University of Tokyo, Tsinghua University, the University of Toronto, and the Technical University of Munich. These exemplify this impact through various initiatives that bridge academic research with policymaking. From advancing sustainable transportation and AI governance to advising on economic reform and disaster management, these universities contribute to policy innovation through interdisciplinary collaborations and strategic partnerships.

Oxford supports evidence-based policymaking via the Oxford Policy Engagement Network (OPEN) and Local Policy Lab, facilitating knowledge exchange and partnerships with policymakers. The recent projects of the Local Policy Lab initiative—a collaboration between Oxford University, Oxford Brookes University, and the County Council—ranged from promoting health through community gardening at NHS sites to mapping green space quality and decarbonising schools. A recent OPEN Seed Fund grant was awarded for collaborating with Oxfordshire policymakers to explore the viability of electric car clubs in rural areas by establishing 'park and charge' stations and trialling electric vehicle sharing. The trial's results will help policymakers assess whether electric car clubs can meet broader goals like reducing emissions, promoting social inclusion, and supporting sustainable transportation in smaller communities.

Stanford's Office of Government Affairs acts as a key liaison between the university and all levels of government on issues closely related to the university's core priorities: research, education, and healthcare. Stanford researchers maintain a strong collaborative relationship with government entities, exemplified recently by their involvement in the Joint California Summit on Generative AI, co-sponsored by the Stanford Institute for Human-Centred Artificial Intelligence, where California Governor Gavin Newsom and academic leaders convened to discuss the impact of AI technology. Stanford researchers were among the first recipients of the National AI Research Resource pilot program, a landmark federal initiative to enhance AI research infrastructure.

The University of Tokyo plays a central role in shaping public policy in Japan, primarily through its Policy Alternatives Research Institute (integrated with the Institute of Future Initiatives) and Graduate School of Public Policy. Faculty members frequently advise the Japanese government on significant issues such as climate change, economic reform, disaster management, and urban development. The University of Tokyo policy research has been instrumental in developing Japan’s national innovation strategies and guiding the government’s response to natural disasters, such as the 2011 earthquake and tsunami. Tsinghua University guides significant national policies in technology development, environmental sustainability, and urban planning. Faculty from Tsinghua University plays a critical role in shaping China’s Five-Year Plans, contributing to sections that define the country’s economic and development priorities, such as clean energy advancements and innovative city initiatives.

The University of Toronto’s Urban Policy Lab partners with government agencies to address housing, transportation, and infrastructure issues. Notable projects include the Who Does What paper series with the Institute on Municipal Finance and Governance, which examines municipal roles in Canadian urban policy, and the Canadian Urban Policy Observatory proposal to centralise city data. Additional initiatives include the Canadian Municipal Barometer annual survey, the Council Scorecard for civic education, and the City Hall Task Force to improve Toronto’s City Council governance. The Technical University of Munich’s Think Tank provides policy recommendations for crises like COVID-19. The university also promotes public transport over cars through transport planning, establishing tangential transport connections and public transport routes.

Universities build trust-based partnerships with local governments, positioning themselves as key actors in addressing pressing urban development challenges. By leveraging research expertise and financial resources, universities contribute to urban transportation, housing, and sustainability policies. The partnerships of universities with municipal governments exemplify how universities play a strategic role in shaping urban policy and fostering sustainable urban development.

MIT collaborates with local governments on urban planning issues such as transportation, housing, and sustainability, shaping zoning and land-use policies. For example, MIT’s Senseable City Lab works with municipalities to develop data-driven solutions for urban mobility challenges. The lab has influenced transportation policies by providing insights into traffic management, ridesharing, autonomous vehicle deployment, and infrastructure planning. MIT has also partnered with the Massachusetts Department of Transportation on congestion pricing studies and the future of urban mobility.

Harvard University works with the City of Cambridge and Boston on sustainable development, transportation, and affordable housing initiatives, ensuring the university's involvement aligns with broader urban policy goals. Through nearly 180 unique projects, the university has contributed to financing over 7,000 affordable housing units in Boston and Cambridge. Since 2000, Harvard has invested $20 million in its revolving loan program, the Harvard Local Housing Collaborative, to increase affordable housing in these areas.

For decades, Princeton University has voluntarily contributed to the Municipality of Princeton. In January 2024, the University announced contributions of $50 million over five years to the municipality and community organisations, including supporting property tax relief for eligible low—and middle-income residents. The anticipated contributions include a total of $28.2 million over five years in unrestricted funding to the municipality and an additional $11.35 million to support specific projects related to mass transit, infrastructure repairs and improvements, acquisition of emergency equipment, costs related to fire department personnel, construction of municipal facilities, and emergency housing.

Universities can actively engage with local communities and stakeholders through various initiatives aimed at fostering collaboration and public involvement. Oxford University promotes public engagement through exhibitions, outreach programs, and educational activities, leveraging resources like the Botanic Garden, Museums, and the Oxford Research Centre in the Humanities to connect with the community. Stanford University facilitates community partnerships through its Office of Community Engagement, which collaborates with external groups to address shared challenges, and through development offices that engage alumni, parents, and friends in supporting the university’s mission. Harvard University collaborates with over 140 local nonprofits. It works closely with state agencies on public health, education, and sustainability projects, exemplified by initiatives like Project Teach and partnerships addressing food insecurity through Food for Free.

Many universities partner with local schools and organisations to improve STEM education.  Caltech’s Community Science Academy, Imperial College Outreach program and ETH Youth Academy aim to promote STEM engagement in local schools, encouraging participation from young students and underrepresented groups and providing public lectures that foster community involvement. MIT contributes to the local community through STEM education for underserved students, the Public Service Center, and the CoLab, focusing on volunteerism and urban development projects in underserved areas. Tsinghua University supports financial literacy programs for Beijing residents, while Peking University Medical School and community health programs offer medical care and services.

Cambridge University collaborates with local communities across diverse areas by promoting educational opportunities, supporting career growth through apprenticeships, leading healthcare initiatives like the Cambridge Children’s Hospital, enhancing patient care and outcomes via health partnerships and research programs, engaging the public culturally through art events and festivals, and fostering placemaking through accessible transportation services and annual events that celebrate the University’s heritage. Princeton University’s commitment to community engagement, rooted in its mission of “service to the nation and humanity,” is realized through programs like the Pace Center for Civic Engagement, which instils a culture of meaningful service from students' first days on campus, as well as opportunities such as Community Action and the Novogratz Bridge Year Program for local and global service. The university further supports community needs through the Program for Community-Engaged Scholarship, which connects students with nonprofits, offers paid internships through PICS and LENS, fosters faculty and alumni involvement in initiatives like AlumniCorps, and hosts the Tiger Challenge, where students and community partners collaborate to address societal issues.