Abstract:

Purpose:
The purpose of this paper is to examine potential adaptation of the University, which is known for a firm, systematic, methodological application of intellect not only for understanding the natural world but also for understanding the cultural worlds invented by men, states. The creative university reaffirms the concept of innovation and creativity based on culture (now dislocated with the prevailing emphasis on scientific research and their corporative commercialization).

Methodology/Approach:
The processes, changes and reforms taking place in the EU should serve as guidance, encouragement and model for our adjustments and reforms that are needed in all segments of society, especially in the area of higher education and universities. Unfortunately, a Serbia has made little progress in the field of education. This applies to the symbolic reach of national educational policy as well. It is essential that national priorities in education, science and technological development be followed by constant increase of budget allocations. Intensifying international projects is one of the most important priorities in the forthcoming period. What also needs to be addressed in the future is further improvement of the educational and scientific research work quality.

Findings:
The Best Technology Innovation Competition (BTI) (http://www.inovacija.org/) is one of the ways by which the Faculty of Engineering (or Faculty of Technical Sciences), the University in Novi Sad, has started educational process of high-tech would-be and existing entrepreneurs in Serbia in order to change current entrepreneurial knowledge and innovative culture.
Research limitations/implications: Former and current development of universities in Serbia has not been (with honorable exceptions) based on principles and philosophy of sustainable development but on the contrary, that development has been characterized by its randomness, disorganization, “brain drain“, unfair competition, corruption, inefficient studying, domination of personal, group, party, “tycoon“ and other interests over social i.e. national interests. Social crisis (economic, ecological, political, moral, crisis of ideology, demographic, spiritual crises) have resulted and still result in crisis of the university.
That is why we need deep and comprehensive reforms of the entire society including universities. Firstly, institutions should be built through these reforms. There are two key institutions in society, and when it comes to university – market and state that must experience radical changes.

Originality/Value of paper:
The main lesson from the analysis presented in this work is the necessity of development as well as development of higher education and universities. Sustainable development should be the key determinant of the reform at universities in Serbia that is a condition not only for development but for its subsistence as well.
Strategic reasoning is therefore necessary when it comes to place, role, reforms and the development of universities and higher education development in the Republic of Serbia.

Keywords:

Innovation, entrepreneurial knowledge, educational policy.