This paper focuses on the multi-sectoral regional growth partnerships established as part of the new Swedish regional policy. It asks the question whether participation in these partnerships marks a closer involvement on the part of universities in the processes of regional governance. This paper argues that at least part of the explanation for this active role in the regional growth partnerships lies in the growing mutual dependency relationship between the university and its region. The significance placed on innovation, knowledge creation, human resource development and social capital in achieving regional growth and development accord the universities/higher education institutions a significant role in their regions. Thus there is a strong belief on the part of other actors (as well as on part of universities/higher education institutions themselves) in the ability of universities/higher education institutions to promote growth in their regions. Further, changes in higher education legislation during the 1990s which, whilst giving universities more autonomy over their internal affairs, placed greater responsibility on them to work with their communities (in particular industry and business). It is suggested here that these developments, coupled with the increasing importance of external financing, have encouraged the universities to participate in the regional partnerships/growth agreements for their respective regions.