Over the years and almost unnoticed, the Norwegian University of Technology (NTNU) had transformed Trondheim, a city 500 kilometers from the Arctic Circle, into Norway's technological capital. As such, high-tech companies like Google, Yahoo, and FAST chose to establish their Norwegian research and development (R&D) base in this far-away part of Norway. In the knowledge economy, and especially in high-tech and creative industries, people no longer follow jobs--jobs follow people. Understanding this has led to the emergence of new and stronger links between the city and its university and helped build a regional innovation system that connects the university, public authorities, and business and industry. Close but often random and unconstructed links between higher education and local and regional competitiveness are not that unusual, as the Organisation for Economic Cooperation and Development's (OECD) study of higher education's role in local and regional economies shows. Regions can, with the help of their colleges and universities, play a key role not only in the development of national but also local and regional innovation systems. But much more needs to be done to take full advantage of higher education in regional and city development. It is becoming clear, for instance, that imitation and adaptation are no longer sufficient strategies in this kind of work. Unique advantages have to be constructed, and they have to be built on innovation. Universities and colleges can and should play a proactive role in providing the ideas and strategies to fuel that innovation. The OECD study does not provide any one-size-fits-all solutions. On the contrary, it stresses the importance of the regional context. But it also points to important general issues that universities, local and regional stakeholders, and governments at different levels should consider if they are to mobilise the full potential of higher education for economic development. Equally important, the study reveals barriers that prevent colleges and universities from becoming more regionally engaged. (Contains 4 resources.)