Abstract
The importance of the contribution of universities to economic development has been widely acknowledged, citing the role of education and research. We propose that the contribution of universities goes much beyond the one provided by these activities. The hidden dimension of the university's role in promoting growth is associated with the institutional characteristics of the university. This paper presents anecdotal evidence that, we argue, shows that "learning-by-living" in universities has contributed to economic development. We describe traditional perspectives on the impact of universities on growth, and discuss recent advances that shed light on the importance of learning-by-living. Finally, we derive policy, university management, and theoretical implications. An important result is that the institutional integrity of the university must be preserved.