economic development

let's say that flourishing research universities promote local economic development.

is that because universities serve as incubators for high-tech companies by fostering public-private business partnerships?

or because people spend a lot on universities, universities spend a lot on research, and universities provide educations?

one could spend $323m on tax exemptions for businesses located near universities, and $140m on advertising, and see how that works.

or one could spend on the universities and stuff. (no link)