TOWARDS AN ENTREPRENUERAL UNIVERSITY: THE ECONOMIC AND SOCIAL DEVELOPMENT EQUATION OF A UNIVERSITY IN ECONOMICS LIFE

COMPARISON WITH THE DEVELOPMENT OF AN ENTREPRENUERAL UNIVERSITY BY MARIBEL GUERRERO AND DAVID 2010

INTRODUCTION:

Entrepreneurial University was a term introduced by Etzkowitz in 1983 to describe the importance of institutions in regional economic development but later this term got associated with universities when the policymakers and academics realized that these institutions have a third mission which is beyond teaching and research. Third mission was given priority because economic development is considered to be an essential role that universities should play and its the main reason that universities are becoming enterprising culture. One important concept regarding the role of universities in economic development is through the practice of commercialization of scientific research through patent licensing or by creating knowledge based enterprises. The role of universities in economic development is recognized as entrepreneurial university concept. The concept of Creative destruction was declared as an essential fact about capitalism by Schumpeter and explained that how new methods continuously change the previous ones for example mode of production changed from manual to mechanical, the production of steel changed coal fired furnaces to arc melting process and on campus academia was replaced by the virtual university by the use of online technology. Creative destruction is also referred as a paradoxical term because it puts two opposing ideas to form a new meaning, describing that capitalism cannot be in equilibrium and there is a need of continuous change .Growth comes from change and entrepreneur is the agent who brings change. This concept was considered to be the most fascinating one because it focused on the essence of economics which is dynamic economics .He also explained that a leadership of a new man brings the idea of new methods and new institutions in the society. In contrast, the article we chose says that an entrepreneurial society refers to places where knowledge-based entrepreneurship has emerged as a driving force for economic growth, employment creation and competitiveness. However, the article goes on to say that no empirical study has highlighted the interrelations among environmental and internal factors that conditioned the development of entrepreneurial universities with the teaching, research and entrepreneurial missions that they need to achieve. This paper aims to contribute to a better understanding of these interrelations identifying the most critical factors that conditioned these missions and to this end brings a proposal model to measure this phenomenon empirically in the light of the Institutional Economics and the Resource-Based View.

Entrepreneurial Universities Universities have another pressure which is to play a role in the competitiveness of national economies via the commercialized of the research. Pressure of globalization and a drive for change have created the need for a new type of university. There is also a need to prepare students to a life of uncertainty and discontinuity, global mobility along with cultural change and fluid organization structures. For this purpose every university must develop entrepreneurial capabilities in students. This situation initiates some questions that Are universities entrepreneurial? How can they be entrepreneurial? After all the actual nature of a university is not to be a profit seeking institution? The other articles take on entrepreneurial universities is that the entrepreneurial university plays an important role as both a knowledge-producer and a disseminating institution. In this sense, an entrepreneurial university could be defined as a survivor of competitive environments with a common strategy oriented to being the best in all its activities (e.g., having good finances, selecting good students and teachers, producing quality research) and tries to be more productive and creative in establishing links between education and research.

Reviewing literature and observing environment Many of the researchers have observed that universities have taken an important place beyond the function of imparting knowledge. Nowadays they are becoming entrepreneurial universities thereby promoting public as well as regional development. Take the example for China. Today it is widely recognized as the Elephant economy. Why? Because its more powerful and solid. It has seized the opportunities from the investors to come explore markets and give incentives. And now Chinese have become a threat to some and for others it serves as an advantage. What China did was it opened up its controlled market economy to economy promoting entrepreneurship. But only this was not the end, they recognized that there was a dire need that

entrepreneurs have to be supported. However needing an enterprising culture suitable enough to grow was also necessary. So to bring an ecosystem of entrepreneurship they realized they had to go back to their intuitions where all disciplines intersected. And today china is very successful. It has university being recognized as the leading university for PhD in entrepreneurship. Over the years immense importance and emphasis has been placed on entrepreneurship and this is how growth has emerged from China. Our article supports this assertion by establishing that entrepreneurial universities additionally need to become entrepreneurial organizations; intuitively, the mentality inside their universities started to change over the last 5 years (since 2000). However, universities are complex organizations comprising a number of overlapping and nested communities of practice (Finlay 2004) and the economic benet of universities for the local area is not highly visible. In this respect, Feldman and Desrochers (2003) found that it might be attributed to the lack of incentives and encouragement for commercial activity that might have potentially beneted the local area. The article states that their members need to become potential entrepreneurs; and their interaction with the environment needs to follow an entrepreneurial pattern. As a consequence, the outcomes of an entrepreneurial university are linked with its missions; teaching, research, and entrepreneurial activities. Finally, the criteria to measure the outcomes of these universities are supported by the new university missions. Therefore the University has been experimenting with several cultural, educational, institutional and legislative challenges (Guerrero 2010) and special emphasis has been placed on not only producing entrepreneurs but also imparting it globally.

Historical background America America is the hub of some of the best entrepreneurs in the world. Most of the entrepreneurs in America are self-made and are generous enough to pay back the same society the person they are today. These people believe that their success would not have been possible without their

society. America is the pioneer for the emergence of entrepreneur universities. The generous people who wanted to pay back to the society were allowed to set up schools and universities. U.K Universities of U.K made science and technology their foremost priority, focusing on innovation. These universities came into being after comparing themselves with the standards of universities in America and Europe Brazil From the last three decades the Brazilian universities have been using incubation method in almost all the functions of development, training, forming high tech firms, establishing consulting firms, and transferring high tech knowledge to low tech firms, this helps to form job creation, address issues on poverty and community development. Blue sky universities Universities today raise funds from the licensing of technology sale of equity. They can also raise funds and new businesses with the help of government apart from just spreading knowledge and education in society European context In 1998 Clark introduced entrepreneurial university with features such as risk taking, energy, and heightened aspiration. Our article takes a research based view rather than an analysis of the phenomenons history by taking into account the internal and external factors responsible for the need of entrepreneurial education. An entrepreneurial university requires entrepreneurial organizational structures to create a connection between teaching, research and administration functions and that help to generate a shared vision where a university is more than just the sum of warring departments. Another organizational element is managerial self-governance that embraces internal management structures, decision-making and leadership roles.

Entrepreneurial policy Entrepreneurship is more relevant and linked to the economic growth. It contributes to enterprising culture and entrepreneurship. Researchers want to know the importance of policy that can be used by the institutions for long run prosperity, and why the entrepreneurship plays an important role in capitalism; all this gave birth to the importance of entrepreneurship policy than to SME policy. Most nations have now acquired the entrepreneurship policy .it is about creating an environment for the entrepreneurs.

What they need to teach is the entrepreneurship education. As Donald Kuratko said, people not the institutions create economic wealth. This is infact the rediscovery of business as enterprise and as such it is as dynamic and productive and the creator of wealth as the individual behind the enterprise. This article established a framework that the ultimate goal of the universities is to produce people with skill who are capable of creative destruction, economic wealth and social justice. It also says that university is a business model prepared to take on the challenge of marketing in a highly competitive environment. Now there are different types of entrepreneurship present which includes indigenous entrepreneurship, Female entrepreneurship and entrepreneurial marketing strategy. The writer of this article believes that the field of entrepreneurship has the potential to change the world and we need to change the education policy to induct entrepreneurship as the central theme of education. Our article takes the same stance in policy making: An entrepreneurial university requires managers, with personal characteristics of leadership, in professionalized full-time posts, to fulfil its mission. In addition, academics are a critical human resource for the development of educational quality and generation of innovation in research. In this context, the managers and academics are the actors involved in the internal transformation of traditional universities. These resources allow an expanded developmental periphery, in other words, crossing the old boundaries between the university and the external world through infrastructure to satisfy social demands. Teaching entrepreneurship: the important role of entrepreneurial universities: Considering the importance of the role of entrepreneurship as an academic subject the important thing is to consider that what should be appropriate topics to be taught to the students learning entrepreneurship .The instructors should primarily focus on developing creativity and critical thinking among the learners before they start aiming to teach them the actual subject. It secures the presumption of motivation and ability of the student to develop entrepreneurial knowledge in them. The significant combination to turn a student into an entrepreneur would be knowledge, skill and confidence building. All such efforts should be initiated at the earlier state of students education. Another barrier in considering entrepreneurship as a full time subject is most of the educational authorities who fear to lose control be excepting it. On the other hand the universities are criticized on the relevance of their study programs and research projects as the skill base of the economy is changing and a lot of people claim that disciplinary basis of universities is becoming irrelevant. In comparison, our article takes the research data to assimilate findings such as in the higher education context, several rankings are produced annually to measure the quality of each

university. Most of them use indicators associated with the universitys resources and outcomes or research productivity index. However, the rankings and indices have several limitations associated with their interpretation; the indicators used that only measure the traditional perspectives; and the validity and reliability of data sources. Our article cements its findings by giving an analogical example: several years ago, the apparition of a successful academic entrepreneur produced some negative reactions in the community. Then, the university culture was considered a barrier to the entrepreneurial process. Nowadays, the university culture is changing slowly and the academic entrepreneur would be considered such a role model who can impact positively in the university community. Our article concludes with the finding that the entrepreneurial opportunities are associated with the generation and the exploitation of knowledge considered such a key factor of production in this economy. As a result of these challenges, the phenomenon of entrepreneurial universities has emerged with a common strategy focused on being entrepreneurial at all university levels.