Abstract

The emergent industrialisation of China and India has led to a fundamental rethink of policy in all Western industrialised nations and trading blocks including the UK and EU. This has led to the concept of a ‘knowledge economy’ (KE) in which the utilisation of knowledge capital will replace traditional methods of employment (a ‘brains versus braun’ market place). A large number of documents have now been published which set out measures to steer the UK and EU towards development of a KE. Universities are at the heart of this, not only in research and the development of ideas but also in training of the KE workforce (undergraduates).  However, funding of the KE by central government and greater industrial/governmental partnerships may have a serious impact on academic freedom with increased stakeholder interest, controlling not only the type of research which can be done at universities but also the curricula taught within universities.  This essay sets out to highlight how academic freedom may be eroded by the funding of a KE in the UK and argues that such erosion may lead to a stagnation of ideas which is counter-productive to its future development.

Key words: Higher education, university funding, knowledge transfer.