ABSTRACT
The previous chapter pointed out that an important characteristic of the Nordic model has been the combination of collective risk sharing and the international openness of the business sector. The sustainability of welfare and inclusion relies upon a globally competitive national economy providing state incomes from taxes. In the Nordic model, there is a positive feedback loop between welfare and competitiveness. At the same time, small nations with open economies like the Nordic countries have to analyze what global changes mean to them. Peripheral areas within these countries have to adapt to the challenges of globalization by developing regional/peripheral innovation systems and competence building. This chapter focuses on educational institutions and their role in industrial development, especially in peripheral regions. Analyzing eight different higher education institutes (HEI), ranging from small university colleges to large national universities, in different types of regions within five Nordic countries, Lindqvist et al. (2012) found considerable differences in their strategies and roles regarding regional development. This demonstrates that while HEIs have an impact on regional development in all types of regions, their exact role in relation to this varies, and therefore specific measures have to be adapted in relation to the different regional conditions.
