THE THEORY OF ACADEMIC CAPITALISM. Ax ras rons or the twenty-first century there ofthe“ne loa ow. gor informatio socey eal for fe account ofthe eens beeen ‘higher education insiatons and society Our ans ofthese relations has led ur to develop theory of sademic pital which epi the process of allege and university integration nto the new economy. The theory dos nat {ee the proce inexorable it could be resisted of, more Hl, aeratve proces of integration could be dewoped. Nor doe the theory eth ui- ‘ety at being “orporatizl” or subverted by exer actor Instead the theory ofaeademic capt ee groups of acons—fcy, tdent amin- itary and academic rofesonale—a sing avareyof tate resources crete new cet of knowledge that ik higher elution nitions othe ‘ew conomy. These actor aus ste source tenable tril ogan- izations to emerge tat bring the corporate vector inside the university to drop new networks that intermediate between priate and public sector, and to expand manager eapacly wo supervise new Bows of eternal resources investment in resach infseructure forthe new economy. and ivestent a ‘nastractre to market instuons, products, and serves to students EX Pande managerial apa ian diced tard restructuring fly work ‘elowerintraconal cont (though aa oss general). The thor facade pitas moves beyond thinking ofthe tent conser to considering the invtton sb maker. When student choose colleges inittions advert edocation ata serie anda este Cleges {nd univente compete vigoruly to markt th nso to high-bity students abet etme high debt ode Stodent consumers choose equ private alleges and universes shat thy claste are ely to bring atu ‘on eational netnen and increasingly choose majors inked othe new ee etm city matin and a ny ane2 Academic Capitan end the New Ecmomy merece ne mma ‘entolled, their status shifts from consumers ood oa mats sen Ssongsconrpovam Soelareianeinenreremnte 4 surtion to te new economy and seine alumni and potential donors. Student a ce Seely ned mbar sme <0 hbk ha au of arch elt i Tea AB Un {ale te Marpity rojetw fnde yake Seg oa The Theory of Academic Capitan 3 De Ma Wein AN ine Ine: Naar anderen Deobor Rept TAMU Thos Catrog Ani nd Gyopeaton Delia Hoe TAMU Tins Colts (GSC> [cent evi nd Clon] evict ee backing Call DNA fit ex ‘raed your lay Yor wr erring mately CS, ‘Sen themmge are sppedty GSC va oBor™ prom cen GSC ters {one frp one moth the leper ad open, Anyone node OSC ern citer nine oy lig 46-SCLONES... Sand {reverie ety mil The ric Str seri Od 2S ‘Sch ppng Ener eit or ery due ane {Gps one weak pt mre pending on rage ado, hough he et Ute) Te pce or Eero 1 8195 ch png ‘Theanpanl iene for ends 8100 oJ wes 150 er Ee. {roc ohh ve bie much ie Te ot yur tne i Soedinhenil sev ron rade (Gee Sing an Clone 303) ‘Te compay (Gentine Clone] al wed tel te iden of In anc donor he ure of $55 millones nd cet rh oung ‘Spay and $35 ios a ABD ruc ela cores loa on Spring fer te Unt of Porn he mon ge Sept wer A pearl SBC aisha ney ‘Roker [at ienied ws Spering bore he CEO}, ere Mah West of eas ABM sd ie cer Marcy ssn Arig {oan ARM, the mone td My cl sample were Sonate ih he pet pupon of dain Mn (ger 0) ‘ea ABD ep whiter doing poe at il. The inferton u ‘ed or te dening poet ould be dt produc per backs we {eh wold peo Tea banter "Ke a Know Bow mck er ‘pom dependent on peg” thn anode Poe te Vewiy “Medcine Dparien sD. iy gine, profound enon ‘wf sd bere pect ARM ai Htng wa ati Teas Forde 3,7 job rin and ap of oe S64 rion nd port 3 mi Ain sate eters” er 200) Billonie John piling provided the impetus forthe Msp project. Spring made his money though the Universo Phoenis, for- ebthigher dation sjsen, Unser of Phoens ne became sada of age ‘epic ran by Sperling, the Apo Groap which slo inde the i for Profan Deelopment, The College fo ancl Panning Ise Cp aon, and Wetem Internationa! University, Ine (Apa Group 200). The ‘Apollo Group isan example ofthe trade a arcs characteristic ofthe new4 Academie apitalion andthe Now Economy eonomy nthe ew economy knoe iar a mate to be ined snd erin fom any ugrteed ste poee, cp talented rd ava tade secre then lin the markt poi The Cake * of Phoenix eal here mechs oro nel pope Spring males heath ali bd nope priteuiverae ee bout" pect of thei operating exper fom de ad ne pac ‘iy Ie] he Univers of Poca has managed seat mode dee snd mate a profit wherever opertor-eed has Joe0 wih so peice {547 peng a Tack 197 pn Spiga ha ob entomaroe nr ae apes nat tars and optional ent ste and ae prtece yeas regulon by feral and sr sandy hefty autor et scretng soso") A ‘hough Seng chins thats operation has been se to makes pes ois ‘utp ssi is business, ie many te new com fend gen overnment iting resources rm pub eae faconso eecten functions sometimes dict en nde, or example Uncen lenses oat nde erably fehl Gre ul eport ote Many forsaken pip inporeient spooed facial ai programs under Tle V ofthe ihe Edsaton het eh ended. Ths fiancil programs generally cons of garnteed rsdn Joana des gts othe det) eer Sani al ele {0 udent a for proton Bete thc laden wee ce aby forte demglstion and esas sd programs Phas harvote os swindling on aden so pbc Sbserintpaaie ‘id colege ad ntery Barto ct cous In these oreo eae sod mare aces at frgrounded wee stead hema ‘iis it provide rpoundel Plc nd nonprofit or pat inion higher eduction we eae rechansms st Phoei-etended manoeil apc, purine ang opr and information technology cet pot eer. These pel ‘enters donot serv eens or ecko hey do ponte ae ‘st ex naw we oo be ran ie, which fen inne etme in natrcueointrte cogs sod net wih th nw conomy le Phen a end ope ‘atehigher ection insttatons hey on pub fnaing, penieg ‘expayer dls in prs of exer erences cmptions ean ae Phoenix uch nitations re lncenngy taeng ap whol oy ‘on or dere oon ther than serng steno abe "nor heen yr ol, Pia emptor nec ‘Bye inmahetand matte see ‘The Theory of eademic Capito 5 Seeing, tawing on bi pots from the Apllo Group ovided Texas ‘ABM Univesity TAMU) wit private grant (3.5m) fr ong Mey. ‘bathe a concn of cloning his bbted pt ara busines oppor S- rltancousy Speting put up venture capital ($5.5 milo) fora publicly ‘eaded busines Genetic Savings nd Che which depended on science hat sein progress ot TAMU, Four TAMU veterinary scence faculty became Spe [ng business partners trading their epee fo equity shares In Gent Sat- {ngs tnd Clone Athough ince om the newpaper scone whether “TAMU. san institution held an ext postion in Gents Sving and Clone, ‘TAMU sce obbied to have the sat of Tene change lave that Prevented sation fom holding eq shares in corporations based on fy ico ies (Schmid 200), Inthe Mlsypicy cae, we se faculty housed in publication nota sundergingcorpotatation baa sehing profs rom corporations ist ‘on not oly a acted on by corporations extra othe Ba cel ak to lobby sat leilatres inorder 'o change regulon 0 that lege and universes have mre opportunity engage in market and markt bey or Genel cllage and univers ivaement in enteprenei activity is ray as win-win. Faculty equity olin in corporations sed cate e- ‘each rscen arm incentive for profesor to move technology the macht Colleges nd universe re viewed as playing an important pat inst ec ‘nomic growth, contain to general prosper _Howeer the cy at TAMU were abe wo participate inthe Misyplcly jet ont becuse ftir previour educa and tinng, wich War esr ‘tre ubizlSpetingwoight ut TAMU eterna scientists fri project ‘ocr they ad sucerfly cloned several animal specs ican all named Send Chance, Much of thi ning reverch had been federally funded Ths the Misypicty prjec drew o tape ded steed educational and research alent. The poet als drew hen onthe hitimacy ‘Prorided by TAMU scent novice per owner ez thir pet ody ui $895-$1,395, depending on the pets state of decree “Alough the Mise proect was represented athe alu at of dog owner tying to replicate bisbeloved pt the ong technologies invced ate [partof muliilion daar animal model ae. Designer animal sch {rile in which npc univer raercer hae inerted uma genes — tue eapecilly led fr deze esearch nd Sometimes com more han $200 fora beeing pie Geet Savings & Cone, working on more comes cts ‘nd dogs had" py to ue oter companies patented doniag techniques” scoring 10 Chiles Long, the general anager, "we ope to change he process signa tha we woulda be bound by othe stents and wed6 Academic Capitation and the New Economy have our on. hat someone le might ens. Tha the poston ys ant to et youre int et tert py” (Monro 2002, “Although the Msp project wed private andi baton axpye funded veeazch in biotechnology. While mos taxpayers ae way 10 puchate cloning services, they already purchase meine based on patented ‘lines and research animals, auch as oncomoase developed at Harvard and ‘marketed by Dupont for the sd of cancer. Tapsjere py for the fel research that profesor perform in universe, thy ete sobsiie the ‘arprations tht partes wih univers to dewlop technologies based on federal research, ad they pay agin when they purshate vais high-priced Pharmaceaiale ‘The TAMU researchers succes cloned at named CC (Carbon Copy but nt dog. wich ie more epradaciely comple. Although CC was ene seally deni to the calc cat rm which ar one, CC loked lke + stipe abby rather than calling Pt owes who sought at eas fc ‘ides if eternal ile Sperling—who wanted doge no ats et alone cts that wee not cabo opie ithe bi fading fom TAMU ahough he ‘ontnued to find Gene Savings and Clone. Although TAMU researchers tere not euceln loning Mim they til eld et in Genet Saving {Tad lone, They were not hastened bythe inability to mee thei sponsor' fl Inted they ave trned oder cloning in hopes of producing bcks ‘dh biggr aes forthe Texas hating industry” bigger back forthe bang many ean fy = TAMU fenctioned ae ate-sbsdied enteprenets ‘whois ie parsing with Genetic Sevings and Clone. Although they wee not abl clone Misty kept thr postions and thei sre, and ‘moved on 0 another enteprenel projec. ‘Our ahs ofthe Msp projec highlights a number of themes ee ‘ant thisbook Among them are the growth of market and makes: ‘iin the sence and engaering capture poten, and the recent egrestivecommecilzation of instruction, a pracied by Univesity of Phoenix and as captured by coprighting in public and privat higher bc tion Market and mae sees aren longer ond tobe sence and engineering they permet the higher learning Fey andinstoten ae ‘not merely acted on by external organizations such as corporations tnd te stat they are also actors who form boundary spaning ogeization and nt- works to latprate with he new economy. Although the rhetoric aurounding ‘eneptneutl fay nd insttational activity ilights the dose conace tion tothe mare the state plays an important olen subsiding the emer Ing academe capitalist knowledge earning regime, Projectile Missy, The Theory of eademic Caption 7 sich depend hel on the workof previous acomplishd, satan ince even though entepreneuri funds py forthe iamedite restr trl ie questions about opportunity ae Doe the sien of Tea OF ‘he United States want thee tex dollars to support ay work conpotatons or ‘enrepreneuts choos to J, or would hey rather se publ fun for research “ppl corporate ventures with mare socially edering pO sch at fighting AIDS or eating cidren more fein? The Misplicy projet rates uetions abou the emt of the academy engeement withthe new ‘conomy; we explore these questons in this book. Toh remainder of thi chapter, we review the 1990 scholarship on higher dation ind esearch, noting what dtingsihetou ook fom previ i- rare, We then plato the way in which on book buds on andi ferent {fom Academic Capitals: Pati Police and he Entepenesral University (1997) Following ths ri Iteratre review, we present theory of academe ‘pitas that explains th proses which cals abd universities are i> ‘eping with he ww economy stig fom ube god knorledgeering Tegime tan scale capt knovelexaing reine We concode with ln overview ofthe ok’ content “Moe Academic Capitalism andthe Higher Education and ‘Research Literature In the 19905, 4 substan! Meratue om how to change higher edation merge Lee and Frew Wie Moves Hard Times: retin and Manes ing Rese Clee end Universes 1996), and Teneys The Responsive Oi evi: esracaring for High Performance (199) and Budng he Responsive Campus: Creating High Perfrmance Colleges and Universi (199). The ‘premio underying this work that cogs and universes are dificaltto “ngs and tha watever changes take ae are rey located onthe mais ‘ofareatively unchanging core Forte mos part theatre deal with un ergot education. ‘ithe xe ine terre develope around the research fonction andre search univers thas bigher education a undergoing a grat dal of ‘hang For example, kona Webster and Hee (198,71) lk ofa" ‘ond [cadets] revolton tht vais the easton of esearch nto prod ‘ct andl new ener” However, the scholarly work that das with ee ee sheer epee hs8 Aeatemie Capitan the New Eemomy tere foes oy om patents aed vesious for of wnieitpindsey- goverment partes It doesnot addres college and university ommod. ‘ation and eommerclzton of «wide range af eoprrightableecstional roduc and services often ied toward degra orice edie Student mare For example, Gees (1988), when peaking tthe univers ‘embrace of commercial endeavor” dung the 1980s refers o research act ties Amir focus on eee eevident in cique of industry universcy connections, whether hy aroha indy sinsome sens ling ove the ‘cade as des Sle sing theory Tier The Corporate Takeover of ‘Academia (1995), oF hat universes ae too eager tose ext corporations, does Bowen Universi Buin armen Asser 1994 Fler 197), ‘In contrast our ook looks at undergraduate and reserch/gaduteevce- tion an at copyrights and trademarks as well as patents ocsingon genes. tion of exeral resource from market activites tat turn on the sling of products process, and services, We esgiicant changes occuring across ‘esearch gduate and underradate education an in profesional shoals as ‘well asin cence and engineering Weconceptalie these changes as a shit ffom a poblic good knowedgeeaaing regime to an academbe epltait knowledgelnring eine. The changes we dics encompass insrton as wel ae reece admiiartive and aes acy and tend ar ich to student consumption at ident leaning ‘second point tht singe our work rom tht foes our ates ion to newoas f actor that ink unre teach ter to corporis, do various ate agencies Mot ofthe erate on change in higher o- tion foe om indvduloranizations. Dramatic case di, sch hose ‘by Clark (1970198) tel tore about orginal wansformations in the ‘ure and pracics of individual colleges ad unverites exploring > ‘mpl how campus develop entrepreneurial clue. The ogaiation hat ‘been the focus of recat wok tht pects curl contingent spect e- sf change Reza and Behl 2002) Howeve the large environment and paral he orginal networks of wich mot organizations are apart ‘emai ately unexamined, Rather than py feng on individual organizations he erature often sntropomorphise the onion a sopgetd bythe tes of ome of the ‘okt on npiationa change dae ni the Yering college the "re sponsiv university Sch metaphors convey 2 ven that the organizations bounded sndisasiagle entity, Thereeent afer lkis"the" orpaniatin with ‘The Theory of eademic Capitation 9 easy defined boundaries. Terese am coniertion of sans and {ous within he orgaieation or oftheir maple connections with aioe: {his and groupe outed he orpaniation "The prealing models for analysing higher edacaon organizations are ‘grounded ina resumption dt higher education is ditine rom the sate od from the market. In comparative scholarship. scholars workout of wine tel (Clark 193) that eatporizer tems terms ofthe influence ofthe Ste, the mare, ad the academic pofeion o higher education oraz ‘Sons In tui of governance in US. higher edoction, scholars explore di ‘mension of subst nd procedural atonany fom the ate balding on ‘Benda (1971) casi work The academe discourse tends topes the ‘ate in ee wns, Adee manager sek osu higher eda (ton enespcnes ae arter and separate fromthe sate” and clover and con- ecedo "he market” "When the Lteatre doe look beyond “the” oxanization (Gihbons et a 1994 Council on Compettvenes 1996 Saks 1997; Brasco 19974, 1976, Feldman ea. 20028), focesom how universities interact with corporations ‘tise eqn tte agencies Hone, tislteatre sil es ners Corporations and the sate at having rately dear boundaries, and forthe nos prt does not ok t etworks(For an exception, se Powel 1990) Een howit, Webtr, and Healey (199), who ofr a biog “tp ei” model in which the strand ae the entwined rations of tnivesity-Andsty- overment ol tthe sande separate and distinc although they fre {pound universes and indunty and background the sta. Tn contrat to erates ators on "he" orpanizatin ox on research lations between unvcites and ns construed as separate organizational spheres we look t networks of atorhat oss boundaries meng universes Zed calles busine and nonprofit orgeizations and state) Ta moh ofthe iterature theatres ofthe organization are euated with ‘the lteress ofits manages or instance, ayo hang genera thoght to bean organization leader who inte and spparts he new deel ‘ment By contra, we focuron a wider ange of sademic cor, examining ‘hangs inthe ead profesion andthe suctueof fly eoymet a+ vel son the emergence of groups of ether profesional ivalre incom 2. Sar and anon an con hp cma sy mit con hc ay adorei sein oe pe40 Academic Capiam and the New Bconomy ‘modihing nd commerciiing intellect products «Presently we te sk emis becoming ineesingly managed professionals (Rhoades 198), who sue governed by central administrators and nonicly mane profeion, ts Rhoades 198; Rcades and Sporn 202), ng rm echnclogy ans fer and che infomation offers to wnivesiy storeys, who ae incesogy ‘our players inthe acide enterprize. Jn our em the asendance oft cade capital towering eine rele se rethink the tality and dominance a he academic profesion. ‘The Scope and Analytical Rocu of Academic Capitaiom and the [New Ezonomy AcalecCaitatim and the New Econo dif ot only rm the ete ‘ure on higher education and research al fers rom it predeeso, A demic Capitation (1997). An importa difference between the Boks i ‘hee bane focus in tems of eoetrie and nitions. Acad Cap ‘ai (1997) examined public enchants in four counties a tals, Cama, te United States, and the United Kingdom In this books we onrentate onthe United Stes and on the nono higher education nl {ution the US. ate, pubic and rive esearch universes cm manly colegen* We ofr a filer and more fcised pcre of cade cap {alsin he ned tts that encompass the vce nttationa sting a ‘which mart and mukeie practices are pursed ‘expanding theistintional sop of or sy we bares expanded ou aly interests, Academe Capital (1997) conenreted on techology ‘taser. In this book, we flow through on and update the ex nai of aenting and ecology taser In adton, we ae sented com smecilzation of stration, ecatinal materi ad sofwaeloursewate ‘a elaton to change in copyright pois nally and at he ination level Coprieht reeset an aren of mash and markt actives by nt ‘ations, cul and tudents that touches much reader range of plats and {et peo catenin re ed Ra ded ‘enh so Ran roy nen eal, enc eon np Mr rth mt pe Syed a edn rpc ftp con kh eprprotm ‘sing no vn ernie se op hae ea ‘Sind tne any bat tse The Theory of Academic Capitation 11 layers than des pte it iaves the commodiestion of higher edict ton not jt in coon els in research universe but in vial all fide and asooms nll typeof inition Forename we conse the Inelecaalpeopert ole fess prestigious instatonsidudig unin: laed one (ee Rhoades 1990), which ares the ownership, commerciale. tion, nde of educational meters produced in comment colleges and ‘compreenrve martes and docorl degre rating universes Much the pic pd scallion nthe resi of