The Role of Universities in Knowledge-Based Economy

Abstract

In today’s open and competitive global economy, knowledge and innovation become major drivers for growth and economic development. Advanced economies have transformed their foundation from tangible based formation toward intangible, knowledge-based systems. Therefore, necessity for transformation of educational system and universities to meet requirements essential for sustaining the path with new economic paradigm became top priority in most of countries strategies worldwide. Universities should be important contributors to national or regional economic planning; therefore they need to be able to define innovation potential of their region, to recognize their particular strengths, and the relation of those strengths not only to regional innovation processes but also to regional social and cultural priorities. This paper will show that in order to ensure progress continuity in educational system, which directly supports modernization and expansion of a knowledge-based economy and society, certain changes need to occur in planning and managing universities.