Knowledge-based Economy and Protecting the Institutional Integrity of University

In agriculture economy, land , labor and natural resources and in the industrial economy capital, machinery and management are key factors that effect production and life standards, but knowledge-based economy have new perspective on the causes of long-rang economic growth. In knowledge - based economy, science, technology, innovation and entrepreneurship are major factors of economic growth.
In this economy, knowledge is most important capital and economy growth rooted in accumulated knowledge. Because accumulated knowledge is origin of technology, innovation and entrepreneurship. Therefore, the institutions of production and dissemination of knowledge including universities play central role in knowledge based economy. In this paper, knowledge-based economy, typology of knowledge and challenges and roles of university in knowledge-based economy is described.
This paper concludes that because of central role of accumulated knowledge in knowledge based economy and the key role of university in production of software and netware knowledge and interaction of these knowledge with hardware, we must Protect Institutional integrity of university if we want to enhance the knowledge - based economy.