The development of entrepreneurial universities in Ukraine
Table of contents: The Kazakh-American Free University Academic Journal №4 - 2012
Romanovskii A., Ukrainian-American Humanitarian (Liberal Arts) Institute “Wisconsin International University (USA) Ukraine”, Ukraine
Romanovskaya Y., National Pedagogical University in honor of M. Dragomanov, Ukraine
The meaning of the term “entrepreneurial” lies in conscious effort
directed toward the construction and development of an organization, which
presupposes not only hard work but also a special approach to the task. Not
being afraid of taking risks when the outcome is unknown is one of the main
principles of this approach, and is also the key to success. An entrepreneurial
university actively looks for new opportunities and ways of accomplishing even
its major functions. Such a university attempts implementation of meaningful organizational
changes in order to create a better future. Entrepreneurial universities want
to be different from others and act according to their own rules. Earlier, the
term “entrepreneurial” and the term “innovative” were used interchangeably and
were considered as synonyms. The concept of an “innovative” university is more
attractive – it is gentler in comparison with an “entrepreneurial” university
and it lets viewing entrepreneurial activity of a university as a new type of
activity. The concept of an innovative university helps reducing and abolishing
that negative attitude which most of representatives of academia have toward entrepreneurs,
(they view them as aggressive business people who are profit-oriented only).
The entrepreneurial-innovative transformation of a higher education
establishment is not a one-time event and does not happen by chance or when one
entrepreneur ceases organizational power to rule over the organization (this
would be an exception to the rule). If this happens, such an individual
encounters enormous all-level opposition, which ultimately leads to the failure
of his endeavor.
The real transformation takes place when a group of people in every
university unit introduces innovative changes during a number of years, which
changes the structure and orientation of this educational establishment.
Collective entrepreneurial activity on the basic university levels is at the
heart of the transformation phenomena [2-4]. Project oriented universities are
also of great interest and are quite promising [1; 6].
Many higher educational establishments all over the world are
undergoing significant transformation with the aim of establishing themselves
as entrepreneurial universities. The causes of this transformation are as
follows: the cutback in state financial support, increasing competition in the
education market, diminishing of the state control over university activity,
the loss of competitiveness of numerous higher education establishments,
reduction in the number of prospective students and so on. Entrepreneurial
activity can significantly improve this situation, which is why discussing the
issue of the development of entrepreneurial universities is so important. It is
especially important in Ukraine, as Ukrainian higher education establishments
need to find ways to deal with the mentioned above factors, which are
especially pronounced in the country.
The aim of the paper. Entrepreneurship
may be an important part of the activity of any higher education establishment,
as it aims improvement of the financial state of the university, widening of
the spectrum of the services it provides, and formation of the corporate
entrepreneurial culture of the university. Recent research has shown impressive
results achieved by entrepreneurial universities abroad, such as improvement of
the quality of their research activity as well as of educational services that
they provide, improvement of the state of their financial affairs, sharp
increase in their competitiveness thanks to utilization of entrepreneurial
approach in their activity [2-5; 8].
The Triple Helix model of H. Etzkowitz is well known around the world
. However, in post-Soviet countries the impact of not only universities, but
also the establishment of the Academy of Sciences should be considered. It is
therefore important to develop a model that takes into consideration specific
features of these countries.
Research issues raised by the paper.
This paper analyses necessary conditions and peculiarities of implementation
and development of entrepreneurship in higher education establishments, as well
as establishes their mission and the main directions of their entrepreneurial
In the post-Soviet countries, a system of national and other types
of academies of sciences still exists. They consist of scientific-research
establishments – scientific-research institutes (including scientific academic
units – departments, laboratories, groups). Also, the state industrial
scientific-research and manufacturing units operate. Their task is to develop
prototypes and commercial production of the new technology. As a result the
most substantial part of the state budget financing of the research is
distributed between the academies of sciences and industry research and
production units (complexes). Higher education institutions receive a smaller
portion of the funding for scientific research and development activities
(R&D). It refers to basic and applied scientific research, scientific work
for the government (commercial, industrial) and other businesses.
In this respect, it is necessary to coordinate teaching and research
activities of higher education institutions, institutions of academies of
sciences and industrial research and production structures.
The main conclusions of this paper. According to this research,
necessary conditions of implementation of entrepreneurship in higher education
establishments are as follows:
1. Entrepreneurial mentality of people in a society (American
entrepreneurial society is a great example here).
2. Favorable national law that does not serve as an obstacle of
transformation of a university into an entrepreneurial university. The best
national law allows for great freedom and independence of higher education
establishments and does not limit initiatives of the establishments of higher
3. The level of independence of colleges and universities in the
system of national higher education, as well as their independence on the local
4. Ownership type and the will and desire of the leadership and
employees to take part in innovative entrepreneurial activity.
5. Existence of leaders who possess entrepreneurial qualities at
each level of the hierarchical structure of the establishment as well as
possession of such qualities by employees.
6. Existence of strong corporate entrepreneurial culture [2-4].
Formation of a strong team by the employees and leaders with entrepreneurial
The distinguishing feature of higher education establishments is
their academic content, which creates their main goal of creation and
dissemination of new knowledge in a society. This presupposes the following
mission that colleges and universities need to fulfill:
1. Educational: different forms, types and methods of education
(such as professional preparation of undergraduate and graduate students, life
2. Scientific and research activity: conducting fundamental research
and obtaining new results in all knowledge fields; new discoveries.
3. Scientific and technical activity: development of new types of
products, technologies and know-how.
4. Publishing: publishing of fundamental research as well as popular
scientific literature, text-books and periodicals, as well as development and
publication of high quality art and fiction literature.
5. Expert-patent and library activities: provision of expert
evaluations in all knowledge fields; activities in patents and copy rights
protection; library formation.
6. Information services, implementation of internet technologies and
provision of distance methods of information and education access; distance
7. Enlightenment: organization of various events (lectures,
seminars, presentations in classrooms and via mass media) with the goal of
popularization and spreading of knowledge and new discoveries in science and
technology, as well as health care education of population.
8. Leading of bringing-up processes: Students and employees of the
higher education establishment are taught patriotism and moral qualities via
their participation in charitable activities (organization of camps,
kindergartens for campus employees’ kids, help to the elderly and disable
people, orphanages, etc).
9. Athletic activities: students and employees of the higher
education establishment participate in athletic events of various kinds of
sports; necessary conditions are provided for the athletes’ participation in
local, regional, national and international competitions.
10. Health care (university health care centers and medical
departments in universities and colleges): provision of healthcare services to
students, faculty, employees and all community members.
11. Cultural: preservation of cultural artifacts; educating of
national cultural elites, development of arts; cultural student activity under
the supervision of faculty; theatre activities on campus, etc.
12. Socio-economic: increase of the level of intellectual level of
all community members as well as increase of the level of national scientific
and economic potential.
13. Entrepreneurial and production activities: helping people
develop economic way of thinking and entrepreneurial mentality; helping people
obtain necessary professional knowledge; improvement of social processes in
support of small and medium business, etc.
As to Ukraine in addition to the R&D entrepreneurial activities
the following activities also may be considered as entrepreneurial activities
of a university or another higher education establishment:
1. Student enrolment (local, national and international students).
2. External communication, including international communication.
This activity includes faculty search (national and international); membership
participation in professional groups and associations; international education.
3. Search for partners nationally and internationally.
4. Planning of such educational programs, which are in high demand
in the country and internationally.
5. Conducting research activity and its distribution for a fee.
Income generation via patents, royalty payments, new discoveries and know-how.
6. Planning and development of new forms of educational activities
(academic education, internship, etc), new forms of enterprises and new forms
7. Planning and organization of publishing activities.
8. Organization of conferences and faculty participation in these
9. Extracurricular activities.
10. Organization of community - useful events.
11. Receiving profit via renting out premises, providing services
and via the operation of campus.
Furthermore, there are other activities that may be viewed as
entrepreneurial activities of a higher education establishment. They are as
• Contracting out certain services and doing contract research;
• Preparation and vending educational materials, such as textbooks;
• Providing expert opinion and conducting professional expert
evaluations (medical, judicial, patent, archeological, art, etc); educating
high level professionals (Master’s and Doctoral levels);
• Organization of different entertaining events both – nationally
• Pre-school and K-12 education;
• Organization of various cultural, athletic, education events by
the staff, faculty and students of the higher education establishment; renting
out the establishment’s facilities for such events conducted by other
• Prospective and current student services (internship, job search,
assistance to international students in terms of dealing with immigration
Promising potential entrepreneurial activities may be such
activities as foundation and operation of private colleges and universities,
private K-12 schools and kindergartens; experimental enterprise production
utilizing new scientific-technical discoveries of the higher education establishment;
private publishing houses; PR agencies; student cafeterias, internet-cafes,
Let us consider the experience of the US entrepreneurial university
model development and entrepreneurship in the UK higher education.
US Entrepreneurial University Model Development
The activities of continuous improvement of the US university represent an equally sustained effort of the teaching personnel and of the university
staff, as well as the students and the businessmen – the potential employers of
the university graduates. In this respect, the university actively supports the
participation in the educational process of the students, the course attendees
and their parents, on one side, as well as of the alumni and businessmen, on
the other side .
The quality of the educational services offered by the US university depends upon the quality of the people working at the university – faculty
members, students, researchers and administration. The evaluation of the
competences and abilities of all parties involved in the university’s
educational process (done by specialized bodies, large audience, media, etc.)
is important for development and strengthening of the university prestige. The
same importance is given to the evaluation of the study programs offered, the
curricula and the syllabi, the supplied material resources and other processes’
evaluation at university level.
The profile of students has changed significantly within the past
years and this transformation will take place further on. Today’s students have
access to an enormous information volume concerning the opportunities of
applying to university or post-university programs, as well as employment
opportunities throughout the studies period. Consequently, the US universities show continuous interest in making the students’ voice be heard and listened
and actively involving them in the university’s internal processes .
The universities in the US have made some changes regarding the relationship
between the faculty, the students and the business environment with the purpose
of further development and strengthening of university and business
co-operation. These changes were caused by the following factors:
• the increase in the number of candidates that wish to take
university studies, but whose educational background does not meet the
requirements of the academic level;
• the lack of selective and differentiated admission criteria,
depending on the nature of the study program, the specificity of the study
domain, the candidates’ profile, etc.;
• diversifying the students’ requests concerning the quality and
efficiency of the teaching and learning process;
• some students’ incapacity to better coordinate the time split
between course attendance, fulfillment of university tasks, working part-time,
and, moreover, involvement in academic evaluation processes;
• some students’ choice of adopting the strategy that allows them to
obtain, in the shortest time span, a university degree so as to apply for a
• increase of the number of students that break off their studies in
order to integrate in the manpower field;
• employing students with limited material resources and,
consequently, reducing the study time;
• limited knowledge regarding educational processes within the
university, as well as regarding the functioning of the institution in general;
• lack of enthusiasm regarding active involvement and taking
responsibilities for processes within the university;
• increase in students’ freedom of movement from one educational
process to another, etc. .
and UK Higher Education
It is globally accepted that entrepreneurship is greatly influencing
the structure and competitiveness of western economies. Taking into consideration
the US experience and positive results of supporting and development of
entrepreneurship in higher education, the European Union and the UK government are paying great attention to this issue.
It has been proved that entrepreneurship in its business
understanding is closely connected and associated with the development and
growth of economics, small businesses and helps to solve employment problems.
In future society personal, business, community and social entrepreneurial
behavior and organizations will be the most important. This view is very
popular in the US, especially in leading foundations. The concepts of ‘Intellectual
Entrepreneurship’ and of the ‘citizen scholar’ present a visionary challenge to
the higher education sector . The wide understanding of entrepreneurship has
major implications for the way in which education in general and higher
education in particular prepares individuals for the life in the real
non-stable world of uncertainty, complexity, opportunity and challenge. Drawing
down from this analysis the visionary challenges to the higher education sector
include those of: “creating” its own autonomy in acceptance of the notion that
less and less of its funding will come from the state; acceptance of the “idea”
of a university embracing relevance and integration of knowledge and sharing
with, and learning from, the wider community; internal re-organization to
provide a stronger steer to entrepreneurial endeavor while building on the
natural autonomy of individual academics. Externally there would need to be:
wider engagement with the stakeholder community as apart of an organizational
learning strategy; recognition that the creation of science parks, incubators,
technology transfer offices, patent protection arrangements are not as important
as opening up and integrating into the university activity-based relationships
with the relevant stakeholders in both a formal and informal institutional
manner. This in turn would mean: encouragement of a wider range of
interdisciplinary activity and degrees and creation of related centers; wider
recognition of responsibility for the personal development of students and
staff, career and lifelong learning experiences; the recruitment of entrepreneurial
staff and entrepreneurial leaders as change agents including the opening up of
academic posts to a wider constituency via adjunct and visiting appointments;
the building of rewards systems well beyond the current research, publication
and teaching criteria; and overall, ensuring that the concept of
entrepreneurship education is embedded in the faculties, owned by key staff and
integrated into the curriculum .
Features and Practices of the US Entrepreneurial University Model
The US model of an entrepreneurial university, that the majority of
the universities all over the world try to use, is characterized by a clear
orientation towards its internal and external clients’ demands, including those
of the business environment. This model is interconnected and interdependent
with wide development and strengthening of partnerships with all partners, who
prove to be interested in the university’s educational process, academic and
research results. The entrepreneurial type of university is greatly interested
in the quality and the result of its activities, as well as in achievement
outcomes obtained both from a scientific-research or technological
investigations and from the employability and labor market.
Therefore, the business environment in the US is deeply involved in and collaborating with the academic environment regarding the content of
the study plans, methods of teaching and passing newly acquired knowledge, as
well as the competences that students must have acquired at graduation. There
is a stated interest, declared by both parties, in correctly identifying the
problems today’s society is dealing with, but also in identifying its requirements,
and a clear wish to take the necessary steps in order to correct the deficiencies
and non-conformities is manifested, so that both parties get the desired
The practices that the US model of entrepreneurial university is
pursuing are concerned with the following: university’s clients; leadership
system; strategic planning; process management; human resource management; and
performances evaluation. The paper  further addresses these practices.
1) Special attention is given to the university’s clients. In the US
business educational system, a student is looked at from several points of
view: as beneficiary of the information and knowledge that the teacher passes;
as a partner or an active participant in the teaching and learning process; as
well as a shareholder of the university directly involved in the material
support of the academic environment, with all the subsequent rights and responsibilities.
The current reform of the university educational system in the USA awards the
rightful importance to the continuous improvement of the system of communication
and passing the information and new knowledge to the students, to the development
of correct evaluation of students’ performance systems, to the improvement of
the students’ financial support system, but also to the extension of the internationalization
effort and increase of the students’ mobility.
It is possible to group all university clients in two main
• internal clients – students, teaching staff, administration
• external clients – potential employers, students’ parents, alumni,
the university community, and the business community.
Because evaluation of client satisfaction represents a permanent
activity of the university and a way to evaluate its performances, annually (or
half-yearly) a series of data from clients is collected, both through direct
research, and through indirect research – polls, interviews, focus group,
parent meetings, meetings with business environment representatives, etc. This
data is then analyzed and transformed into information and knowledge, valuable
for the participants in the educational process that can further insure reaching
the planned objectives and the continuous improvement of performances. For
instance, as a result of the analysis of data regarding student satisfaction
concerning the courses offered, some of the decisions taken and implemented are
aimed at: redesigning the curriculum, revising the syllabi, promoting the
teaching staff, distributing the budgetary funds, etc.
2) As far as the leadership system is concerned, various work
committees debating specific issues are organized within universities, such as:
The Strategic Planning Committee, The Promotion and Title Committee, The
Curriculum Planning Committee, etc. Among permanent members of these committees
there are students, graduates and business environment representatives,
together with the teaching staff and the administration personnel.
3) In elaborating the annual strategic plans, a series of specific
stages are taken into account, such as: defining the mission, the vision and
key values the university promotes; establishing the objectives and
prioritizing them; identifying the action plans to reach the objectives;
identifying and allocating the necessary resources, granting responsibilities
to the human resources; identifying the evaluation and progress tracking
methods; disseminating results by placing them at the disposal of the
4) Across the universities in the US, special attention is awarded
to the process management, respectively to:
• identifying key processes that add value to the university’s
products and services, such as curriculum planning, planning and revising the
courses’ content, programming and supplying the courses, student assistance,
• identifying support processes that do not contribute directly
through adding value, but support the key processes, such as student
counseling, selecting and evaluating teaching staff’s performance, attracting
A third category of processes kept under control within the US universities is represented by the process referring to the relationship with external
partners and clients of the university, processes such as: recruiting students,
acquiring equipment, developing efficient infrastructure, etc.
The research in the educational field demonstrates the fact that,
nowadays, the learning process – as main tool of knowledge supply which
develops the students’ real competences – is topping the teaching process as
subject of interest that has represented until recently the favorite subject in
the paradigm of the educational process. Adopting new strategies of teaching
and learning that would lead to wider student responsibility concerning
acquiring competences truly requested on the labor market, but also the
evaluation of one’s own achievements and professional evolution has gained more
5) Human resources management represents yet another interest focus
point of the leadership of American universities oriented towards quality,
concerning: planning and describing the working system – description of jobs,
performance recognition and reward, human resource planning, etc.; identifying
the necessity of professional improvement – education, training, qualification,
improvement, etc.; and identifying the requests concerning the insurance of the
entire personnel’s welfare and satisfaction.
6) Few results that the American universities oriented towards
quality and excellences obtained are presented below:
• Results concerning the students’ performance and satisfaction
evaluation, such as: degree of graduation, student satisfaction level regarding
the assistance, with the resources they benefited by, with the educational
programs offered, student satisfaction concerning the acquired competences,
• Results concerning the human resource performance, such as: number
of publications in specialized magazines with reviews, participation of
teaching staff in editorial groups or in the activity of different work
committees set up at institutional level, supplying community services, etc.
• Results concerning the financial results, such as: number and
nature of grants earned through competition, number of research contracts,
number of personal contributions on internal and external level, volume of
funds attracted from the alumni etc.
• Results concerning the market performance, such as: positioning of
educational programs at local, national and international level.
• Results concerning the university’s global efficiency, such as:
student profile, bachelor degree grade, salary received upon employment, etc.
As far as Ukraine, secondary school students study for 11 years, not
12 as in other countries. Therefore, they come to study in universities usually
at 17 years of age. The average age of graduates of undergraduate programs are
usually 21-22 years. It is too early to start a meaningful life-long career.
Also the big problem is the exodus of young people of college age to
study in the European Union and other economically developed countries.
Universal Module System of Entrepreneurial University
We offer such module architectures of entrepreneurial universities:
Research entrepreneurial university, which has in its structure:
training colleges (or faculties), which include departments and academic
laboratories; research institutes (RI) or research complexes (RC), which
include scientific-research laboratories and departments or branches; supplementary
modules and production and technological modules (Fig. 1).
Innovation entrepreneurial project-oriented university of research
type, which has in its structure: academic programs; scientific-research
projects; supplementary projects and production and technological projects
The architecture of the entrepreneurial universities modules of the
following types is as follows:
1) Board of Founders / Board of Directors or the President / Rector
of the University: marked as .
management modules – Academic Council of the university (with sections of basic
directions of the university), Scientific Councils, Council of Entrepreneurs,
Professional Association of Faculty and Academic Staff, Students and other
Community Advisory Councils.
These modules are marked as .
3) Academic module (academic structural unit) – the Department
(Chair). Let us mark it as.
4) Research and
Development (R&D) Module (a research structural unit) – Scientific Research
Laboratory (SRL). These modules are marked as ..
5) Supplementary modules (structural units) to support academic
activities (training programs) and scientific research (research projects) –
Academic Department, the Research Department (with Postgraduate and Doctorate
Departments), Experimental Workshops (engineering, technical, repairing,
metalwork and mechanical), libraries, various foundations with patent funds of
academic and scientific-technical production, computer centers and complexes,
systems of Internet and Intranet support, dining rooms (cafeteria), sports
facilities, medical centers, health camps, construction and renovate services,
analytical accounting and fundraising departments.
We will mark them as .
6). Production and technological modules (structural units, or
departments) – experimental production facilities (which develop the results of
research into experimental models with further development and introduction
into specialized industrial production), educational and experimental-industrial
economy (agriculture, forestry, livestock, fishing, etc.), clinics, hospitals,
business firms (companies) and other institutions belonging to the universities.
Let us mark them as.
7) Entrepreneurial module (group of entrepreneurs): let us mark it
8) Entrepreneurial Council of Founders / Board of Directors or the President / Rector
of the University (with the entrepreneurial vision, entrepreneurial features
and entrepreneurial character) will be marked as.
9) All modules have
a direct inter-connection to each other and with all of them simultaneously
through the information channels that are further marked as lines and
communication centers (marked as dots ).
Fig.1. Research entrepreneurial university
Fig.2. Innovation entrepreneurial
project-oriented university of research type
Using the above elements, we can build the module structure of any
university (higher educational institution), research institution,
scientific-industrial organization or industrial complex. All of these types of
organizations more or less perform educational, research, design and production
Combining academic modules (academic structural units) – departments
of the college or faculty, and research and development (R&D) modules (a
research structural units) – scientific research laboratory (SRL) in scientific
research institutes (SRI) or scientific research centers (SRC), support
services and manufacturing and technological units we can provide such
universal modular architecture (structure) of modern research (teaching and
research) entrepreneurial university (Fig. 1).
Utilizing A. Groudzinski’s project-oriented professional University
idea  let us propose a universal modular program-project architecture
(structure) of a modern entrepreneurial research university, which includes
educational programs, research and other projects (Fig. 2).
Indeed entrepreneurial universities are characterized by including
the following main factors:
1. Top management (owners, Board of Directors, President, Chief
Executive Officer) with entrepreneurial vision and preferably with business
2. The group of core entrepreneurs that
• generate entrepreneurial ideas;
• participate in the development of entrepreneurial projects;
• have unlimited degree of freedom in their creative entrepreneurial
• rely on the support of the team.
3. Availability of staff with high professional qualifications will
act out in life innovative entrepreneurial programs in market conditions.
4. Integrated entrepreneurial culture where each employee (or the
vast majority of team members) share the views of entrepreneurial leadership
and really support entrepreneurial policies and programs of the organization,
conscientiously work and feel responsible for the results.
5. The existence of the liberal values, democratic views, freedom,
high moral and ethical standards, honesty, openness, transparency, behavior and
conduct any and all team members ("top-down").
6. Using of innovative teaching methods, new educational and
vocational programs, a variety of courses and disciplines, interdisciplinary
and multi-disciplinary approaches to learning, advanced equipment, advanced
techniques and technologies, training of different educational levels, maximum
involvement of students (graduates, doctoral students) to research and
7. The existence of friendly environment for entrepreneurship,
private small and medium business, of real support of the society and
government of the entrepreneurial activity and projects.
It should be noted that the “triple Helix” model of innovative
development proposed by H. Etzkowitz proved its viability and efficiency in
developed countries and is now widely used in the Russian Federation, Brazil, PR of China and others countries. This model is appropriate for use in conditions
Experience of the U.S. and other economically developed countries
shows significant progress and achievement of entrepreneurial universities and
colleges. The contribution of entrepreneurial universities into science,
technology and economic development of their regions and countries as a whole
are quite significant. The result of entrepreneurial activity of the leading
universities is their high ranking and competitiveness in the market of educational
and scientific services. Entrepreneurial universities are self-sufficient, perform
important research and engineering development, implement new technologies, and
promote cultural and spiritual development of both their students and faculty,
and residents of the region. Fruitful and intelligent cooperation of entrepreneurial
universities with business supported by the government provides the highest
efficiency of their independent and mutually beneficial activities.
Globalization and internationalization processes, reduction of state
funding, as well as commercialization of the field of higher education – all
these factors lead to inevitable transformation of colleges and universities
into entrepreneurial educational business structures, entrepreneurial
universities. The problem of surviving of Ukrainian higher education establishments
in the difficult post-world crisis conditions strongly demands introduction of
effective entrepreneurship in the field of higher education. Positive
experience of such transformation in the leading world countries as well as in
several national colleges and universities provides evidence for effectiveness
of this approach. This approach may be a great way of helping Ukrainian
universities and colleges become self-relying financially independent and
highly competitive educational organizations.
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Table of contents: The Kazakh-American Free University Academic Journal №4 - 2012