economies Article Academic Research, Higher Education, and Peripheral Development: The Case of Israel Gad Degani 1,2, Dan Levanon 2 and Gregory Yom Din 1,* 1 Tel-Hai College, Upper Galilee 1220800, Israel; [email protected] 2 MIGAL—Galilee Research Institute, POB 831, Kiryat Shmona 1101602, Israel; [email protected] * Correspondence: [email protected] Abstract: The aims of this study are to identify possible socioeconomic impacts of MIGAL (Galilee Research Institute) and TH (Tel Hai Academic College) on the peripheral northeast’s development. We discuss the effects of academic research and institutions of higher education on mitigating differences between the center and the periphery of the country. MIGAL is a regional R&D center in the northeast peripheral region of Israel. An internationally recognized applied research institute, MIGAL specializes in biotechnology, computational sciences, plant sciences, precision agriculture, and environmental sciences, as well as food, nutrition, and health. Most of MIGAL’s researchers serve as the core faculty at TH. Despite the country’s small surface area, socioeconomic inequality in Israel is high by OECD standards, with wage differences between rich and poor regions reaching up to 400%. In this article, a new type of dataset for the study of the socioeconomic impact of academic research and higher education on peripheral development is proposed—the regional socioeconomic indices (SEIs). Data for MIGAL, TH, and the northeastern peripheral region were collected from the yearly reports of the two institutions and the Israel Central Bureau of Statistics. MIGAL was found to serve as a link between research, academic teaching, and socioeconomic development Citation: Degani, Gad, Dan Levanon, in the northeast periphery. Several variables related to this link and describing MIGAL–TH and and Gregory Yom Din. 2021. northeastern periphery development were analyzed over time: MIGAL’s budget, total number Academic Research, Higher of employees and number of employees with PhDs; number of TH graduate students; and the Education, and Peripheral socioeconomic index (SEI) of the northeastern periphery and its position on the Israeli list of regional Development: The Case of Israel. Economies 9: 121. https://doi.org/ SEIs. The signs and significance levels of most of the trends indicate a potential socioeconomic impact of 10.3390/economies9030121 academic research and higher education on peripheral development in the northeast of the country. Research budgets and the creation of jobs for academics living in the region are just a few examples of this impact. Academic Editor: Michele Meoli The results of the study are useful for academics and policymakers in improvement of the contribution of academic research and higher education to the country’s economic and innovation development. Received: 24 July 2021 Accepted: 18 August 2021 Keywords: regional development; periphery; socioeconomic index; academy; university Published: 27 August 2021 Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in 1. Introduction published maps and institutional affil- MIGAL (Galilee Research Institute Ltd., Kiryat Shmona, Israel, established in 1979) iations. is a regional R&D center of the Israeli Ministry of Science and Technology owned by the Galilee Development Company Ltd. An internationally recognized and multidisciplinary applied research institute, MIGAL specializes in biotechnology, computational sciences, plant sciences, precision agriculture, and environmental sciences, as well as food, nutrition, Copyright: © 2021 by the authors. and health. MIGAL employees include more than 90 PhDs and 190 researchers deployed Licensee MDPI, Basel, Switzerland. across 44 research groups and operating as an innovative research ecosystem that encour- This article is an open access article ages collaboration across scientific, industrial, agricultural, academic, and technological distributed under the terms and specializations (Levanon 2020) (Figure1). conditions of the Creative Commons Most of MIGAL’s researchers serve as the core academic and administrative staff Attribution (CC BY) license (https:// of the Faculty of Sciences and Technology at Tel Hai Academic College (TH). Many of creativecommons.org/licenses/by/ 4.0/). TH’s graduate students are supervised by MIGAL scientists and conduct their research in Economies 2021, 9, 121. https://doi.org/10.3390/economies9030121 https://www.mdpi.com/journal/economies Economies 2021, 9, x FOR PEER REVIEW 2 of 10 Economies 2021, 9, 121 2 of 9 Most of MIGAL’s researchers serve as the core academic and administrative staff of the Faculty of Sciences and Technology at Tel Hai Academic College (TH). Many of TH’s MIGAL’s laboratories.graduate Since students 1994, THare hassupervised been an by independent MIGAL scientists academic and institutionconduct their that research in offers Bachelor andMIGAL’s graduate laboratories. degrees in Since the faculties1994, TH ofhas Social been Sciencesan independent and Humanities academic andinstitution that Science and Technology.offers Bachelor TH pioneered and graduate the integration degrees in of the practical, faculties hands-on of Social experience Sciences and into Humanities college studies, providingand Science students and Technology. with valuable TH pioneered skills and the knowledge integration of and practical, invigorating hands-on experi- the local economyence with into youthful college studies, energy providing and ideas students that challenge with valuable thinking skills and and serve knowledge to and in- vigorating the local economy with youthful energy and ideas that challenge thinking and formulate innovative approaches to science, engineering, design, and analysis (Levanon serve to formulate innovative approaches to science, engineering, design, and analysis 2020; Tel-Hai College 2021) (Figure1). (Levanon 2020; Tel-Hai College 2021) (Figure 1). Figure 1. MIGAL’s goalsFigure upon 1. itsMIGAL’s establishment goals upon in 1979. its establishment in 1979. In this article, weIn discussthis article, the we possible discuss impact the possible of academic impact researchof academic and research education and education institutions on mitigatinginstitutions differences on mitigating between differences the center between and peripherythe center ofand the periphery country. of We the country. We study the case of MIGAL and TH, located in a peripheral region in northeastern Israel, study the case of MIGAL and TH, located in a peripheral region in northeastern Israel, and and the channels of potential influence of MIGAL–TH on regional development. the channels of potential influence of MIGAL–TH on regional development. We explore We explore this potential impact quantitatively using data on regional development in this potential impact quantitatively using data on regional development in Israel from the Israel from the establishment of MIGAL and TH until today. establishment of MIGAL and TH until today. Currently, most low-productivity sectors with low-quality and low-wage jobs are lo- Currently, most low-productivity sectors with low-quality and low-wage jobs are lo- cated in the peripheral regions of Israel. Despite the Encouragement of Capital Invest- cated in the peripheralments regionsLaw, the of country’s Israel. Despite small surface the Encouragement area, and the availability of Capital of Investments investment grants for Law, the country’sthe smallperiphery, surface socioeconomic area, and theinequality availability in Israel of is investment high by OECD grants standards. for the periphery, socioeconomicThe difference inequality in in monthly Israel is wage high between by OECD the standards. rich and poor regions can reach up to The difference400% in (Machlica monthly 2020). wage The between center the of the rich northeastern and poor regions Galilee region can reach of Israel, up to the focus of 400% (Machlica 2020this article,). The is center the town of the of Kiryat northeastern Shmona. Galilee MIGAL region and TH of are Israel, located the focusnear this of peripheral this article, is thetown, town where, of Kiryat historically, Shmona. education MIGAL andand THemployment are located opportunities near this peripheral have been low, simi- town, where, historically,lar to other education “development” and employment towns establishe opportunitiesd to support have the been absorption low, similar of new immi- to other “development”grants (Tel towns Hai Innovati establishedon Center to support Team 2020). the absorption of new immigrants (Tel Hai Innovation CenterThe problem Team 2020of developing). peripheral regions through university–industry–govern- The problemment of developing relations has peripheral been studied regions widely through in the university–industry–government published research. In many studies, it is relations has been studied widely in the published research. In many studies, it is accepted that multinational enterprises, small firms, and households develop within their own ecosystem, similar to natural processes and in particular on geographic principles. The term “cross-industry ecosystem” is relevant in view of the interdisciplinary nature of modern innovations and knowledge in light of inter-sectoral collaboration (Tolstykh et al. 2021). Economies 2021, 9, 121 3 of 9 The question is even more pertinent today, in a modern social environment character- ized by the processes of innovation and migration. In the present empirical research, the significant features of this approach