The Dispatch
The Power of Proximity
How regional university clusters are reshaping research, innovation and local economies.
By Gauri Kohli
When institutions come together regionally, they are able to pool resources, share services, and engage in strategic discussions that enhance both their internal capacities and external responsiveness.
University clusters can play a significant role in strengthening local economies by serving as anchors of innovation ecosystems.
Universities are increasingly breaking out of their siloes. As the world around them changes rapidly, many are finding strength in collaboration — not just in research, but in how they support within their regions, respond to social needs and spark innovation. One of the most interesting shifts is the rise of university clusters - groups of institutions based near each other that choose to work together rather than compete. These partnerships are proving that when universities pool their ideas, talent and resources, they can achieve far more than they ever could on their own.
Whether it’s sharing labs or designing joint degrees, more and more universities are teaming up in ways that go beyond occasional partnerships. These clusters — often formed by neighbouring institutions — are finding smart ways to share resources, attract great people, and make a bigger impact in their regions. It’s a quiet shift taking place across many regions, redefining how we think about place and collaboration in academia.
Driving academic excellence
Geographic proximity among universities naturally fosters collaboration. According to experts at the University of New South Wales in Australia, approximately one-third of the world’s top 100 universities are located within 25 kilometres of another institution in the same elite group.
Cities like London and Hong Kong have four institutions each within 25km, with Cambridge/Boston and Paris having three universities each within the same distance. Munich, Beijing, Sydney and Seoul are some of the cities which have two universities each within this distance.
Universities situated in close proximity are frequently among each other’s leading research collaborators — notable examples include MIT and Harvard, Shanghai Jiao Tong University and Fudan University, as well as Imperial College London with both University College London and King’s College London.
Greg Wade, Head of Innovation Policy at Universities UK, highlights that when institutions come together regionally, they are able to pool resources, share services, and engage in strategic discussions that enhance both their internal capacities and external responsiveness. This collaborative alignment enables them to present a unified and organised front to local policymakers, bolstering their influence and impact on local communities.
A compelling example of such regional cooperation is Yorkshire Universities, a consortium that exemplifies how a collective framework can pave the way for meaningful engagement with local communities and economic actors. These initiatives are not merely administrative conveniences; they can represent a reimagining of the university's civic role, positioning institutions as co-creators of regional progress.
Universities are forming regional clusters or alliances to enhance their collective strength and competitiveness. According to Jamil Salmi, a global expert in tertiary education, these collaborations take various forms—ranging from government-led mergers in countries like France, the UK and Russia to cross-border alliances under initiatives such as the European Alliance project. These clusters enable member institutions to pool resources, share scientific infrastructure and jointly procure services, thereby achieving operational efficiencies and fostering synergies. By working together, universities can amplify their research capabilities, attract top talent and position themselves more effectively in both national and international contexts.
Clusters as engines of innovation and growth
University clusters can play a significant role in strengthening local economies by serving as anchors of innovation ecosystems.
As per a study titled “The Economic Impact of Universities: Evidence from Across the Globe” a few years ago, which evaluated universities in 1,500 regions across 78 countries since 1950, there is robust evidence that increases in university presence are positively associated with faster subsequent economic growth. “Doubling the number of universities is associated with over 4 percent higher GDP per capita in a region,” says the study by the National Bureau of Economic Research.
For example, the Midlands Mindforge initiative in the UK, backed by the Midlands Innovation university partnership, illustrates how combining academic expertise, infrastructure, and regional collaboration can attract investment and support the growth of early-stage technology businesses. Such initiatives often draw in high-tech firms, research-intensive startups, and venture capital interest, helping to generate employment and stimulate broader economic development, says Wade.
Midlands Innovation — a consortium that includes Loughborough University, the University of Birmingham, and the University of Warwick — launched Midlands Mindforge in 2023, aiming to invest in and support early-stage technology ventures in the region.
Salmi points to the Berlin University Alliance as a benchmark model. Comprising Humboldt University, Free University Berlin, Technical University of Berlin, and Charité Hospital, this cluster has catalysed transformative research and strengthened knowledge transfer across sectors. Their collaboration has produced significant societal benefits, including joint recruitment processes and an expanded outreach into Berlin’s socio-economic challenges. The synergy among these institutions has elevated the academic and practical impact of their work far beyond what any of them could have achieved independently.
Similarly, in Australia, the Melbourne Biomedical Precinct and the Monash Technology Precinct illustrate the pivotal role that top-tier research institutions play in attracting industry clusters. Vicki Thomson, Chief Executive of the Group of Eight (Go8), underscores that in the Australian context, it is the academic excellence of universities that drives the formation of these industry-focused clusters. These precincts, home to institutions like the University of Melbourne and Monash University, are not only hubs for cutting-edge research but also engines of job creation and innovation. With thousands of professionals employed and numerous startups emerging from these ecosystems, the impact of such clusters is both profound and measurable.
“Within Australia’s metropolitan centres, universities- particularly Go8 members - have very large scale in their education and research operations that would represent the scale of a ‘cluster’ of universities in other countries. All Go8 members fare well on the global university rankings for their academic excellence,” Thomson tells QS Insights Magazine.
“Given our scale and excellence, the important question in the Australian context is not so much how university clusters drive academic excellence but rather how university research excellence drives clusters of industry and other research bodies.”
What drives these precincts and attracts international industry R&D efforts is the world class researchers that industry can access nowhere else. Consequently, these precincts are also the perfect environment for startup and spinoff companies launched by Go8 universities. The combination of these factors means that precincts are significant economic drivers in an Australian context.
Challenges of recognition in rankings
Despite the growing importance of university clusters, global rankings often struggle to recognise their value adequately. Wade notes that rankings are inherently competitive and may not be structured to reward collaboration. This is echoed by Salmi, who observes that while rankings have influenced national excellence initiatives, they often overlook the nuances of regional partnerships.
Yet, the absence of formal recognition does not diminish the effectiveness of university clusters. Unranked institutions within clusters can thrive by tapping into shared infrastructure and academic networks, often producing research outputs that rival those of better-known standalone institutions. The collective impact of a well-functioning cluster can thus uplift the academic standing and operational efficiency of all its members, regardless of individual rankings.
Policy and strategic drivers
For university clusters to thrive sustainably,Wade highlights the necessity of senior-level commitment and targeted policy support. Initiatives like the UK’s Strength in Places Fund demonstrate how dedicated funding can catalyse inter-university collaboration. Salmi further emphasises the need for long-term governmental support rather than short-term funding cycles, citing the success of multi-phase excellence initiatives in countries like Germany, China and South Korea.
Equally important is the cultural foundation of collaboration: a willingness among institutions to engage, listen and compromise, adds Wade. These soft skills, while difficult to measure, are vital in building trust and sustaining partnerships over time.
Virtual vs. physical clusters
With the rise of digital platforms and virtual collaboration, one might wonder whether geographic proximity will continue to matter. However, both Salmi and Wade argue that while virtual tools can enhance collaboration, physical proximity still offers unparalleled opportunities for informal interaction and spontaneous idea exchange – elements that are crucial for innovation.
In the UK, the trend towards regional devolution is increasing the importance of place-based strategies. Clusters are becoming more sophisticated in how they align with local economic priorities and sectoral strengths. In Australia, despite the vast geography and concentration of universities in metropolitan areas, clusters are forming around shared missions and research goals, often anchored by a single university with strong industry ties.
A blueprint for the future
University clusters are not a fleeting trend. They represent a strategic evolution in higher education that aligns institutional goals with regional needs, global challenges, and academic ambitions. As we look toward the future, the success of these clusters will hinge on sustained investment, visionary leadership, and a continued emphasis on collaboration over competition.
In a world facing complex challenges – from climate change to public health – no single university can solve these issues alone. Through collaboration, universities can better confront and help solve these global challenges