Universities today are increasingly being viewed in terms of serving the purpose of economic development. This paper postulates that their chief purpose is to advance knowledge and that in doing so they effectuate regional economic growth and development through processes specified in the endogenous economic growth model. To achieve this purpose and to contribute optimally to regional economic growth and development arguably requires coherent educational policies. The central proposition is that to formulate coherent educational policies for endogenous regional economic development requires placement of a theory of the advancement of knowledge at the center of related policy deliberations. An evolutionary systems theoretic framework is proposed, and some implications for educational policy are elucidated. (Contains 9 endnotes.)