Abstract:Argues for changes in the traditional way of viewing economic growth and questions the role that contemporary institutions, specifically universities, play in this process. Shows, empirically, the increasing importance that knowledge is assuming in economic activity in developed countries. Outlines a new conceptual approach to economic growth, in which the accumulation of knowledge acts as the fundamental driving force. Describes new economic growth theories, laying out principal concepts relevant to an analysis of the present-day role of the universities. Examines the role of the university in the context of knowledge-based economies. Concludes that while the role of the university is of renewed importance, its institutional integrity must be preserved through a strengthening of its ability to create and disseminate knowledge.Keywords: economic growth; knowledge-based economies; universities; institutional integrity; research and development; threats and opportunities -February 1998 -*Pedro C onceiyao is a Fulbright Scholar doctoral candidate al the LB J School o f Public A ffairs at T he U niversity o f Texas at Austin, and a visiting scholar at IC2 Institute. H e is on leave from Instituto Superior T ecnico in Lisbon, Portugal, where he is a lecturer. fM anuel V. H eitor is deputy president at Instituto S uperior T ecnico in Lisbon, Portugal.
IC²
O N T H E R O L E O F T H E U N IV E R S IT Y IN T H E K N O W L E D G E E C O N O M Y PED R O C O N C E ig
A B S T R A C TThe wealth and well-being of individuals, organisations and nations is increasingly based on the creation, dissemination, and use of knowledge. This fact is reflected in the trend in developed economies towards increasing investment in advanced technology, research and development, education, and culture. Given this situation, concepts such as learning ability, creativity and sustained flexibility gain greater importance as guiding principles for the conduct of individuals, institutions, nations and regions. It is thus legitimate to argue for changes in the traditional way of viewing economic growth and to question the role that contemporary institutions play in this process. It is against this background that this paper outlines a new conceptual approach to economic growth, in which the accumulation of knowledge acts as the fundamental driving force behind this process. The role of the university is then examined in the context of the knowledgebased economies, and it is posited that, although the functions that society commonly attributes to the university are beginning to be shared among a wide range of institutions, the university is faced with demands that require a strengthening of its ability to create and disseminate knowledge.The paper begins by describing a series of empirical indicators that demonstrate the increasing importance of knowledge in developed economies. The main concepts behind the new theories of economic growth are then presented, which seek to include knowledge as a fundamental factor in understanding the proces...