By Lindsey Fair, MBA, PhD, Vice President Marketing and Bayview Impact, Invest Ottawa

A shared future for place leadership

Around the world, post-secondary institutions (PSIs) and economic development agencies (EDAs) have long contributed to the prosperity and identity of their communities.

Universities and colleges bring research, innovation, talent, and cultural vibrancy. EDAs provide strategic vision, business intelligence, and investment attraction and growth. But as global conditions shift — economically, socially, and politically — there is a growing imperative to rethink how these two pillars work together.

This is not a story about misalignment or blame. Many PSIs have always seen themselves as economic contributors and regional anchors – and indeed, they have been so. But the challenges of our time are different in scale and complexity. They demand a more intentional, structured, and proactive partnership between PSIs and economic developers in new and diverse ways.

The moment we’re in: Shared pressures, shared possibilities

Across geographies, universities, and economic development organisations are contending with many of the same pressures:

Public funding constraints: “Public funding pressures are forcing tertiary education institutions to find new ways to generate income, while economic development organisations face increasing pressures to justify value amid fiscal constraints” (OECD, 2023).

Global talent competition: “The post-pandemic outlook for higher education is marked by increased international competition and volatility in student mobility” (Altbach & de Wit, 2020).

Housing access and affordability: Skyrocketing housing costs are affecting students, faculty, and the broader workforce. This is no longer just a student issue; it’s a regional economic risk.

Outdated infrastructure: Ageing campus assets — many of which double as community or visitor amenities — are struggling to keep pace with evolving needs.

Changing learner expectations: Today’s students expect flexible delivery, mental health support, and work-integrated learning experiences – not as add-ons but as table stakes (Hazelkorn, 2015).

Healthcare system impacts: As major employers, and cities within cities, PSIs are both contributors to and dependents of strained local health systems.

These issues are systemic, interconnected, and place-based. Addressing them requires cross-sector collaboration.

Anchors in action: How PSIs Are evolving

In response, many PSIs are reimagining their role not just as educators, but as civic partners and economic engines:

Revenue diversification: Institutions around the globe are exploring expansive donor campaigns, commercial partnerships, and land development to create financial resilience.

Innovation infrastructure: PSIs are investing in incubators, research parks, and entrepreneurship centres tied to regional strengths – ripe for EDA partnerships or at risk of duplicative competition (Nesta, 2018).

Community integration: From public art and green space to transportation and housing, institutions are considering how their footprint contributes to livable, inclusive communities (World Bank, 2021).

Place-branding contributions: “Stakeholder involvement is not a luxury—it is necessary for authentic place branding” (Kavaratzis & Ashworth, 2010).

Universities are becoming increasingly enmeshed in the governance and branding of the cities and neighbourhoods in which they are located (Fair, 2024). Their activities, investments, and reputations contribute directly to the meanings ascribed to place — and in turn, they are influenced by those meanings.

What economic developers can do differently

To fully realise the potential of PSI-EDA partnerships, economic developers can take several steps:

Involve PSIs early: Bring institutions into strategy conversations from the outset — especially around workforce, land use, innovation and investment attraction.

Align on narrative: Develop shared language and place-branding strategies that showcase educational, research, and quality-of-life strengths with one unifying voice (Anholt, 2009, Fair, 2022).

Map shared infrastructure goals: Collaborate more on transit, housing, digital infrastructure, and public spaces that serve both students and the broader community.

Partner on international outreach: Include PSIs in talent attraction and trade missions. Ask them to include EDAs on international student recruitment and partnership trips.

Connect regularly: Establish recurring joint planning forums to move beyond project-based co-ordination.

Broker cross-sector collaboration: EDAs are uniquely positioned to bridge PSI's and industry. By aligning these two pillars, EDAs can help deliver innovation outcomes no single actor can achieve alone - from launching applied R&D partnerships and research chairs to developing talent pipelines and experiential learning programs.

As the Brookings Institution notes: “Place-based strategies must knit together institutions—like universities and agencies—to be sustainable and resilient” (O’Neill et al., 2019).

Case in point: Smart farming, shared vision in Ottawa

A compelling example is unfolding in Ottawa, Canada, through Area X.O — an all-weather R&D complex operated by Invest Ottawa. One of its anchor initiatives, the smart farm, fosters deep collaboration between post-secondary institutions including the University of Ottawa, Carleton University, and Algonquin College, as well as industry players and government partners at every level.

Credit: Invest Ottawa

These collaborators are conducting applied research and testing agricultural robotics, autonomous equipment, and data-driven technologies that support regional innovation while giving students hands-on experience in cutting-edge sectors. Outcomes have included reductions in carbon emissions, improved crop yields, and more efficient resource use — delivering environmental, educational, and economic impact.

More broadly, Area X.O exemplifies how EDAs can broker multi-stakeholder innovation ecosystems. Over time, Invest Ottawa’s through Area X.O has evolved to address grand challenges across sectors: from smart mobility and clean energy to defence and security. Its agility and cross-sector partnerships enable it to align with shifting market priorities, global trends, and national strategies.

Take, for instance, Ottawa’s evolving vision as a National Defence Innovation Hub. Driven by public sector shifts, post-secondary pressures, and national priorities such as Canada’s NATO spending targets, this initiative illustrates how economic developers can help catalyse PSI–industry–government collaboration in new and urgent domains. Together, these efforts are attracting investment, strengthening talent pipelines, and in some cases redefining, at least in part, the civic and economic roles of regional institutions.

A call to co-create

PSIs and economic developers are natural allies. But in today’s environment, proximity and goodwill aren’t enough. What’s needed is a more structured approach to partnership — one that aligns missions, builds shared capacity, and recognises the interdependence of place-based institutions.

By inviting post-secondary partners into the heart of economic development strategy, EDAs can unlock new sources of innovation, talent, and long-term resilience. And by stepping confidently into their city-building role, PSIs can help lead regions through this era of transformation.

The future of place must be co-created. The future of universities and economic development agencies depend on it.

References

Altbach, P.G. and de Wit, H. (2020) ‘Post-pandemic outlook for higher education’, Journal of International Higher Education.

Anholt, S. (2009) Brand New Justice. Routledge.

Brookings Institution (2019)

O’Neill, K. et al. The New Localism: How Cities Can Thrive in the Age of Populism. Brookings.

Fair, L., 2022. Platform Placemaking Machines: Neighbourhood Place-Branding in Kingston Ontario (Doctoral dissertation, Queen's University (Canada)).

Fair, L. (2024) Universities as Urban Beacons. City of Brands.

Florida, R. (2002) The Rise of the Creative Class. Basic Books.

Glaeser, E.L. (2011) Triumph of the City. Penguin Press.

Hazelkorn, E. (2015) Ranking and the Reshaping of Higher Education. Palgrave Macmillan.

Kavaratzis, M. and Ashworth, G.J. (2010) ‘Back to basics’, Place Branding and Public Diplomacy, 6(4), pp. 35–45.

McKinsey Global Institute (2024) What’s the Future for Cities in the Post-pandemic World.

Nesta (2018) Innovation Districts: What, Why and Where.

OECD (2023) Public Funding of Tertiary Education: Trends and Policy Responses.

OECD Publishing. Universities UK (2020) The Civic University Commission Report.

World Bank (2021) Urban Anchor Institutions: Lessons and Practice.