EXPECTATIONS FOR THE UNIVERSITY IN THE KNOWLEDGE-BASED ECONOMY

As there is an increasing perception of the importance of knowledge cr eation and distribution for economic prosperity, what kind of role sho uld universities play? Which public policies are more effective in pro moting this role? These are the fundamental questions this article add resses. The objective is to understand the expectations for the univer sities in developed countries under a public policy perspective. More specifically, we discuss public policies that can promote, and those t hat can hinder, a positive and cumulative role of universities in the knowledge-based economies. The article systematizes the economic relev ance of knowledge using recent advancements in the so-called new growt h theories. Some empirical manifestations of the increasing importance of knowledge are analyzed. We briefly discuss the mission of the univ ersity as it is almost universally perceived today. Universities have been viewed as producers of new codified knowledge through research an d as providers of human capital through high level education. The evol utionary trend of these functions, in which the university's research importance to promote the learning ability of graduates has been enhan ced, is discussed within the context of the knowledge-based societies. The analysis is presented in terms of the impact that public policy, and especially public finding, may have in fostering or hindering the positive contribution of universities for economic prosperity. The fun damental criterion, we argue, is the preservation of the institutional integrity of the university. (C) 1998 Elsevier Science Inc.