New Functions of Universities in Connection with Knowledge, Innovation and Economic Development

The purpose of this study is to conceive the potential effects of universities on economic development that can be connected to input and output. The socio-economic environment of universities is analyzed. A quick review of the third generation and fourth generation development follows. In addition to education, research and utilization of knowledge, proactive, future-oriented economic development is also a goal regarding “Fourth Generation” universities. The indirect purpose of our study was to make the basis of a further research, thus the analysis of “Fourth Generation” universities – the confirmation or the denial of their existence – can be continued. As we emphasized in our study, the naming and topic of “Fourth Generation (Quadruple Helix)” universities cannot be considered scientifically proven unless mainly focus on the academic element of the Triple Helix model. As in this case the university can necessarily be a dominant actor regarding local economic development. It is true that the “leaps” between the first-second, and second-third generations are more dominant. However we are sure the discussion of fourth generation universities can advance our concepts and thinking in connection with university-oriented economic development, especially in less developed countries. As a result the connection between universities and industry strengthens, so there is an opportunity of the local utilization of knowledge created in universities, which increases the competitiveness of enterprises. We presented the diamond model of modern universities and introduced a virtual university model consisting of success factors that basically affect the competitiveness of the given region.