University-owned enterprises as entry point to the knowledge economy in China

The paper discusses the development of the third mission of Chinese universities. The main approaches and challenges of two universities, Tsinghua University and Beihang University, are examined to elucidate the third mission of Chinese research universities in a knowledge-based economy. The paper examines the present profit-seeking behavior of research universities and argues that while it is essential to support the development of some élite university-run S&T enterprises and to promote the commercialization of the research results during the transformation of the Chinese economy, the government must counteract the negative consequences and prevent the universities from losing their public service identity. Copyright , Beech Tree Publishing.