Abstract
<ns3:p>Background The concept of the entrepreneurial university has become increasingly important in the global transition toward knowledge-based economies. Universities are no longer viewed solely as institutions for teaching and academic research; they are also expected to contribute to innovation, technology transfer, and economic development through collaboration with industry and commercialization of research outputs. This paper examines the emergence and development of the entrepreneurial university model within Azerbaijan’s higher education system and evaluates its potential role in supporting national economic diversification. Methods The study employs a qualitative and comparative analytical approach based on policy documents, institutional reports, and international literature on entrepreneurial universities. It analyzes the current structure of Azerbaijani higher education institutions, existing innovation policies, and mechanisms for university–industry collaboration. International experiences and best practices are also reviewed to identify gaps and opportunities relevant to Azerbaijan’s context. Results The findings indicate that Azerbaijani universities remain largely education-oriented and have limited research and innovation capacity. Cooperation between universities and the private sector is weak, while technology transfer mechanisms, patent commercialization, and faculty entrepreneurship are underdeveloped. Major obstacles include insufficient funding for scientific research, weak institutional support for innovation, limited incentives for academic entrepreneurship, and low industry demand for university-generated knowledge. At the same time, recent initiatives such as innovation agencies, technology parks, startup incubators, and reforms in higher education policy demonstrate growing recognition of the importance of entrepreneurial universities. Conclusions The paper concludes that Azerbaijan has significant potential to develop entrepreneurial universities capable of contributing to a knowledge-driven economy. Achieving this transformation requires strengthening research infrastructure, improving intellectual property management systems, expanding public–private partnerships, and encouraging collaboration with the Azerbaijani scientific diaspora. Adapting international best practices to local realities can help universities become active centers of innovation and sustainable economic development.</ns3:p>