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Capitalism Lab

University Research and the Effects of Education

Sponsoring a university to research a particular industry raises the city’s competitiveness rating in that industry — and competitiveness is what decides whether a city makes goods or imports them.

Sponsoring a university research project in a chosen industry

Reading the competitiveness report

A city’s ratings across industries are on the Industries page of the Cities report.

The Industries page of the Cities report, listing competitiveness ratings by industry

Figure What it tells you
City competitiveness rating The higher it is, the more people are employed in that local industry. A weak rating means the city must import large volumes, which costs manufacturing jobs.
Global competitiveness rating The benchmark. Once the city’s rating exceeds it, the city can export to the world market.
Volume of export Exports only begin above the global rating. Strong exports lift city employment considerably.

What research actually does

It creates jobs, and jobs attract people

Research raises competitiveness, competitiveness raises exports, and local businesses hire more people to meet the demand. Unemployment falls, job openings multiply, and people migrate to the city.

None of this is immediate. Nothing happens until the city’s competitiveness passes the global average — which can take months or years. The effect only becomes obvious once many product classes are well clear of that average.

It improves what the city makes

Where an industry’s city competitiveness rating is above zero, every product made in that city within that industry gets a bonus to Production Quality. It appears as City Quality Bonus on a manufacturing unit.

A manufacturing unit showing its City Quality Bonus

With the Digital Age DLC, it improves talent

University research in specific fields of technology raises both the skill and the supply of talent specializing in that area.

The effects of education

Click any education-related civic building to see the education levels of a city’s people.

A high school showing the education levels of the city's population

Those levels affect two things.

How fast competitiveness grows

A better educated population raises a city’s competitiveness in an industry more quickly.

More about City Competitiveness

On that page, scroll to the Industries section for the detail on city competitiveness.

The skill of civic building staff

Staff skill level comes from two inputs: the education levels of the city’s people and the staff training budget for that building.

A civic building showing its staff skill level and training budget

How the education factor is calculated

It is the average of two percentages:

  1. the share of the city’s population with a high school education
  2. the share with a university education