Introduction

Abstract

Universities are in the focus of discussion about innovation-based economic growth in Germany, in the United States, and in other countries of the world. Historically, the university’s role in society comprised the functions of higher education and research, following Humboldt’s 19^th century ideal of combining learning and research in one single institution. More recently, universities have transformed their role and extended their mission to incorporate a more commercially oriented element, based on the successes of technology transfer at universities such as the Massachusetts Institute of Technology (“MIT”) and Stanford University. Etzkowitz describes this transformation as the “second academic revolution”, which requires universities to act more entrepreneurially and commercially, and serve society not only by educating students, but also by fostering research which can be developed into marketable products and technologies, thereby advancing the public good and economic wealth.

National education and science ministries, government departments, and agencies in almost all industrialized countries debate this issue. As examples for Germany, the United Kingdom, and the United States, see BMBF (2004b) p. II, HMT (2004) p. I, NSB (2004b) p. 1, respectively. The academic basis for this debate can be found with Arrow (1962), Dasgupta and David (1994), and Rosenberg and Nelson (1994).

See Etzkowitz (2002), pp. 10–11. Etzkowitz classifies the combination of education and science as “first academic revolution”, extending the function of medieval teaching institutions in Paris and Bologna, adding the innovative research component. Etzkowitz views the 19^th century universities of Göttingen and Gießen in Germany as role models of Humboldt’s idea.

See BankBoston (1997), p. 2. In the study “MIT: The Impact of Innovation” prepared by its Economics Department, BankBoston presents the results of a major study on the national economic impact of companies founded by MIT alumni. Among other findings, the study reveals that MIT graduates have founded 4,000 companies, creating 1.1 million jobs worldwide and generating annual sales of $232 billion. It was the first study demonstrating the key role that higher education and research play in the economic vitality of the U.S. See also Etzkowitz (2002), p. 20, and p. 102.

See Etzkowitz (2002), p. 12, and Etzkowitz and Webster (1998), p. 1. Also, see Gray (1999), p.1, as it relates to the development in the United Kingdom.