The development of applied-practice or professional doctorates has implications for the roles of not only academics and students but also the commercial drivers in the knowledge economy. The changes suggest that it is in the common good for developing economies, as well as benefiting both private economic and social capital. Universities worldwide are now offering doctoral degrees that relate more closely to the field of practice. The changing role of doctorates reflects the aim of universities to become more relevant, both economically and socially, yet this may not be in line with the objectives of the state. A principal-agent theory is used as the lens to explore the challenges faced in developing practice-based doctorates in Georgia, where governance is currently externalised and centralised and where the only doctorates recognised are academic. This form of external control may contribute to delay in adopting professional doctorates and any changes may challenge the entire system.