This study examines the development of university-industry partnerships in the rapidly developing post-soviet economy of Kazakhstan. Kazakhstan has undertaken a significant wave of higher education reforms and a key goal is to align the work of universities to better serve the local and national economy.  A strategy for achieving this has been the development of university/industry partnerships and a principle mechanism for advancing these partnerships has been the creation of boards of trustees.  This paper draws on a larger study of governance reforms in Kazakhstan, conducted jointly by researchers at Nazarbayev University and the University of Pennsylvania. We explore the concept of partnerships, provide examples of university-industry partnerships from campuses in different regions of Kazakhstan, and explain the benefits and challenges of these activities in the context of this developing economy.

Organizational theory points to several key aspects of effective partnerships, which includes their forms (or how they are structured),the necessity of establishing reciprocal and mutually beneficial arrangements, especially the alignment of goals, and the profound influence of organizational culture (Eckel & Hartley, 2008).

The forms of partnerships (Barringer & Harrison, 2000; Bailey & McNally Koney, 2000) and their particular configuration are influenced by a variety of factors including: 1) the resources each partner has to contribute, 2) the influence of existing organizational and/or governmental mandates regarding the formal structure, and 3) the contribution or effort that each partner is willing to invest in its development.  The partnerships involving universities range from technological and research parks, technology transfer offices, incubators, to  internship opportunities, and scholarships (Powers et al., 1988).

Effective partnerships are mutually beneficial.  Organizational theory points to numerous benefits of partnerships and explains some of the key reasons for their development (Gulati & Singh, 1998). They can extend capabilities (or help partners take on tasks that they otherwise could not), improve the delivery of services, and allow partners to invest in new initiatives with lesser risk (Bailey & McNally Koney, 2000; Gulati & Singh, 1998; Hagadoorn, 1993).  Alliances promote the development of new ideas by bringing people with different perspectives together.  Such idea generation can enable partners to “leapfrog” into whole new areas activities (Gulati & Singh, 1998; Hagadoorn, 1993).  In short, partners learn from one another. Finally, together, partners can also better monitor the changing environment and identify emerging opportunities and risks (Gulati & Singh, 1998; Hagadoorn, 1993).

The particular interests and needs of each partner are distinct.  It is therefore important for partners to ensure that their goals are aligned (Eckel & Hartley, 2008). Effective partnerships recognize the inherent tensions that exist because of their disparate interests and engage in ongoing dialogue about their desired aims. They also tend to be built on personal relationships and ongoing face-to-face interactions rather than relying solely on set policies and procedures.

Organizational culture is “the deeply embedded patterns of organizational behavior and the shared values, assumptions, beliefs, or ideologies that members have about their organization or its work” (Peterson & Spencer, 1991, p. 142) that reflect the key assumptions, understandings and rules that govern daily behavior (Deal & Kennedy, 1982).  At its deepest level, culture consists of the underlying assumptions (often implicit and unstated) that guide behaviors (Schein, 1992).  A clear lesson from literature on partnerships is that effective ones succeed because they are built on mutual understanding and trust, are dedicated to honoring one another, and are thereby able to accomplish something that they could not otherwise do on their own (Borys & Jemison, 1989). 

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