Does academic research affect local growth? Empirical evidence based on Swedish data, Regional Studies. The hypothesis that research activities do not merely affect the growth rate within the municipality hosting the university or university college but spill over to neighbouring municipalities is tested using data covering the Swedish municipalities between 1990 and 2010. Research activities are measured as the number of dissertations and the number of papers published in academic journals with peer-review system. The results suggest academic institutions by their presence and 'production' of human capital and new knowledge through research affect the regional growth pattern in both the municipality where the academic institution is located and the growth pattern of neighbouring municipalities.