The Changing Role of the University

Abstract

This paper examines the transformation of universities within the context of the knowledge-based economy. We review the evolution of universities in the current era of globalisation, which defines the early 21st century. The emerging university structure emphasises education for the rule of law and its harmonious integration. This transformation also raises questions about the organization of science. We demonstrate that one key institutional framework that enables knowledge to become a driving force is the strengthening of universities' ties with their respective regions. In the second part of the analysis, we explore the regional characteristics of higher education in Hungary. A notable feature is that a majority of students (52%) originate from Budapest. The training structure exhibits further regional distinctions: while the capital is dominated by economic and technical education, rural areas focus more on technical, pedagogical, health, and agricultural training. Beyond training specifics, we analyse the collaboration between universities and enterprises, dual training programs, and the role of universities in regional R&D output. Our findings indicate that university R&D activities are predominantly related to healthcare rather than road vehicle manufacturing, suggesting a potential pivot point for the innovation strategy in domestic higher education. Additionally, we conclude that business models and business innovation exert a greater influence on R&D expenditure than technical investments. The third part of the paper investigates the efficacy of higher education institutions in Budapest and other counties in attracting applicants and retaining graduates. There is a marked disparity in attractiveness favouring Budapest. However, quantifying Budapest's success in retaining graduates is challenging due to the uncertain tracking of young professionals working abroad. Notably, the University of Nyíregyháza and the University of Miskolc exhibit significant retention rates, likely due to their integration into the regional business environments. In terms of study fields, economics and IT demonstrate the strongest retention.