Abstract

People's Republic of China has been in the transitions stage from planned economy to market economy since 1978 when the government started economic reforms. Human resource developed by educational organizations is the essential condition for a country and its development. In the past, a university was be required to have the function of providing higher education to their students and the academic research function was be required as the second one. In recent years, university shall be required to have the third function, which is the contribution to society like a form of university-run enterprises. Special attention will be given to the way that these university-run enterprises are created, their industrial distribution, their contribution to the development of indigenous high-tech industries. This function has provided strong incentives and promoting economic development with the modern economic knowledge. The functions of university in economic development of China need policy support of promotion, macro planning, guide and harmonization from local and central governments. The further economic development by using the functions of university shall be required the mutual collaboration among university, industry, research institute, government and other organizations in the local area. The core of this task is that fulfilling close integration of education, science & technology, economy and politics.

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