Globalization, university transformation and economic regeneration : A UK case study of public/private sector partnership

Pressures from globalization and the knowledge‐based economy are transforming the traditional role of universities. Universities are being targeted by policy makers because they are the largest “knowledge‐based” institutions in the regions. They have concluded that universities will aid economic regeneration if they disseminate their knowledge and expertise through industry linked partnerships. The paper argues that this is a rationally driven economic strategic plan which fails to acknowledge that the alliance process is a very high risk strategy at the level of implementation, with reports of as many as two thirds failing. The direct causal link between universities and economic regeneration is contentious. The paper calls for greater understanding of the complex partnership process by drawing on the strategic alliance literature on how to minimize risk. It critically analyses the case of a long established partnership between university‐industry‐government – the teaching company scheme. Important governance issues are identified followed by an analysis of the two stages in the process of partner selection and implementation. The process is promoted as an exemplar to inform the increasing number of public/private sector partnerships.