The Campus Of The Future.(Special Report; THE NEW UNIVERSITY)(Arizona State University)

Byline: Stefan Theil; With Zvika Krieger in the U.A.E.With in the

To better compete, a few bold leaders are rethinking their schools from the ground up.

Michael Crow is overseeing one of the most radical redesigns in higher learning since the modern research university took shape in 19th-century Germany. Since taking over as president of Arizona State University in 2002, he's not only doubled the budget to more than $2 billion a year, hired dozens of world-class researchers and rapidly raised the academic profile of what used to be a mediocre school; he's also transforming the way Phoenix-based ASU sees itself--and helping reinvent the university for the global age.

For starters, that means running the school like a CEO, raising fresh capital, bringing in new corporate partners and restructuring dramatically. Crow has begun abolishing traditional departments, lumping pieces together into custom-built "transdisciplinary" institutes. The idea, which he first tested when building Columbia University's Earth Institute in the 1990s, is to promote innovation and real-world problem-solving by getting experts to rub shoulders and think outside their disciplines. Thus ASU's new College of Nursing doesn't just focus on bedside care, but has architects, policy experts and business professors working together on health-care innovation. Crow's ambitions even extend outside the academy: he hopes to boost his university's impact on the economic development of Arizona and the region. The brand-new School of Sustainability features professors from 35 disciplines studying urban development in Phoenix and across the Southwestern United States, bringing in expertise on subjects ranging from desert-water ecology to energy-saving building design.

It's all part of a fundamental rethinking of how universities should function in the 21st century, a process led by Crow and a small number of like-minded pioneers such as NYU's John Sexton and Olin College's Richard Miller. (Not shy about his ambitions, Crow calls his ASU model "The New American University.") Locked into an increasingly fierce global race for students, professors and resources, schools are realizing they need to distinguish themselves to survive. More and more, that means moving students away from specialized academic training and toward more integrated approaches to complex, real-life problems. It also means building on a process that began in the 1980s and '90s to help their schools play an ever more direct role in driving economic and technological progress in society at large.

In the old days, professors concentrated on teaching and their personal research. They didn't care much about what was going on in other departments, let alone outside the campus gates. "There was a wall between the university and society," says David Audretsch, who studies the economic impact of universities at Germany's Max Planck Institute. "Universities didn't play much of a role in the economy." Starting in the 1980s, however, schools like Stanford and MIT became epicenters of the emerging knowledge economy, creating new disciplines like biochemistry and molecular biology; fostering spin-offs and start-ups, and bolstering research budgets by partnering with industry--one of the reasons, says Audretsch, for America's consistently higher economic growth rate in the 1990s. In the sciences, engineering, medicine, business, and economics the barriers that had isolated the university from society came tumbling down.

Today it's become common for universities to help solve real-life problems and push economic growth. But a few are taking it to the next level. At Stanford, Roberta Katz, vice president for strategic planning, says her university's mission is to increase engagement by completing the breakdown of "segregated academic silos." Stanford has created dozens of new multidisciplinary centers and programs, changing not just curriculums but even the architecture of new buildings in order to promote teamwork and cross-fertilization. The new Bio-X bioscience center, for example, features joint labs, flexible layouts for quick reconfiguring, and lots of social spaces for group brainstorming. "Research in a purely academic vacuum was probably never sufficient," says Katz, "but particularly not in this day and age." Climate change, aging societies, global security--none of these issues, she says, can be addressed by working in the confines of traditional academic departments.