The role of universities in economic development

Historical development of the university in different socio-economic conditions is discussed in order to determine the role of this institution in modern society. Functions of the university in pre-industrial, industrial and post-industrial societies have been studied on the basis of descriptive analysis. Sophistication of scientific and educational activities of the university depends on changes in productive forces and production relations in society. At every step of the university's development the role of intelligence grows, knowledge serves as the main productive force and demand for the results of intellectual activity increases. Features of the university in different socio-economic conditions are shown. In modern conditions a higher education institution becomes an independent economic entity, industrialization of education takes place. Commercialization becomes another feature of the university in post-industrial society. The university begins to pursue commercial objectives, consequently there is an urgent need for competent management and organization of sale of products of higher education institutions, which include professionals, knowledge, developments. Development of the university's entrepreneurial activity is a prerequisite for its effective functioning, which entails changes in the university's tasks. The university tends to stimulate entrepreneurial activities of its departments and employees by means of creation of innovation infrastructure, dependence of employees' wages on the volume of extra-budgetary funds raised due to business activities, development of entrepreneurial culture. As an economic entity the university must function effectively under risk and dynamic demand conditions, respond to changes in preferences of its potential consumers in a flexible way. This can be achieved by forging close cooperation with industry and innovation infrastructure elements.