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The current debate aims to reconceptualize the changing role and missions of the university in today’s knowledge economy and investigate how universities’ knowledge resources can benefit urban development and inform the direction of changes in universities. However, there is a lack of empirical studies exploring how governance networks and the institutional conditions of universities in specific contexts can support, limit and/or incentivize the integration of academic activities into societal development. There is a discussion of the various and paradoxical components of university transformation (institutional and physical), affecting their societal contribution, which conceptualizes a holistic and integrated approach towards governance that previously has not been fully investigated. This paper will examine the co-location case of university campuses in Trondheim to explore the implications of a multilevel governance network for achieving the goals of sustainable and knowledge-based urban development. This paper suggests that engineering effective governance is challenging and that factors related to the culture of the institution and their connecting strategies, government priorities, and temporal factors have a great influence on universities’ contribution to their societies. While investigating governance in this topic requires political, cultural, and periodic review, focusing on the interactions of governance multi-layers, this paper concludes that governments’ control functions or some moderate hierarchical coordination is necessary to avoid the failure of university governance and unbalanced societal contributions.

Introduction Global outsourcing of production in the information technology (IT) industry has become integral to contemporary globalisation. Unlike other more`invisible' sectors such as finance or banking, the dispersal of IT production and related services to countries like India and China has received more than its fair share of media attention. It is in fact a very real example of globally integrated production and service provision made possible by the rapid developments in communication technology. Information technology', as understood in this paper, is the production of software applications, embedded software, software customisation, and IT enabled services (ITES) provision. The`IT firms' referred to are of two typesösoftware and ITES. Software firms include all firms that undertake production of programming applications for end users or carry out production of applications or parts of applications on contract to other firms. ITES firms are those firms that provide services enabled by communication technology for labour-intensive back office operations. These operations may involve direct contact, as in the case of call centres and customer services, or may relate to back office functions for airline bookings, medical transcription, and so forth. In the case of India multinational IT firms took advantage of the skilled labour available from various public sector industries, universities, and research organisations, and established offshore production centres in the late 1980s. From an initial interest shown by large multinational firms such as Texas Instruments and Hewlett Packard there emerged a growth and agglomeration dynamic, which has now led to location of

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