Purpose: This paper aims to explain the rapid emergence of corporate universities on the basis of fundamental developments presently shaping the economy and society on a world-wide scale. Design/methodology/approach: Four key forms of innovation are identified and combined with the corporate university concept. The paper explains why corporate universities are emerging world-wide as strategic weapons in the competitive battle among companies, countries and international economic power blocs. Findings: Companies endorsing the importance of knowledge innovation cannot get around the corporate university concept as part of their strategy. Three major corporate university types are identified and linked to their strategic role as the driving force of knowledge innovation. Originality/value: Helps to explain why corporate universities have evolved as an answer to the challenge of competing in a knowledge-driven economy. (Contains 2 tables.)