AN EXPLORATORY ANALYSIS OF THE IMPACT OF PHILANTHROPIC INVESTMENTS ON THE DEVELOPMENT OF UNIVERSITY INNOVATION AND ENTREPRENEURIAL ECOSYSTEMS

In this study, we examine the impact of philanthropic investments on a university innovation and entrepreneurial ecosystem (UIEE) in a medium-sized urban region in Germany. Our study is set in an educational campus with substantial endowments (e.g., a university branch, colleges, an incubator, and a programming school) from a major philanthropic foundation. These investments exerted complex socioeconomic effects that are often overlooked or insufficiently monitored. We combine quantitative data on economic and innovation factors with qualitative data from interviews with local actors to grasp the complex and dynamic effects of such investments on the performance of a UIEE. Our findings show that philanthropic investments positively impact UIEE performance in terms of improved economic performance and an increase in innovative activity, but they can generate discrepancies within the established socioeconomic order. This complex dynamic demands a holistic approach when developing and managing such UIEEs. We conclude by identifying insights for further research and policy development, thus benefiting UIEE researchers, policymakers, philanthropists, and university administrators.