Adopting an entrepreneurial approach in universities

Abstract Universities have an intellectual and social purpose. Their role is to foster creativity and responsiveness to change. Creativity is required for there to be innovation, where innovation is the commercialisation of ideas and change to existing systems, products and services in more than a marginal or incremental manner. The real test of an innovation lies in its success in the market place. Innovation is a specific function of entrepreneurship. Entrepreneurial organisations value and nurture innovation because this is the key to ensuring adaptability. Therefore, it is argued that universities need to adopt an entrepreneurial approach if they are to fulfill their mission and role in society. The paper outlines the principal features of the organisational innovations required of universities and the implications of adopting an entrepreneurial approach for university leadership and governance. Some examples of the strategic options for innovation in teaching and research are described.