The knowledge economy and the higher education system are facing the challenges of both market and innovation. Appropriate responses to these challenges are being developed not only in universities and research institutions but also in many businesses, which motivates universities and businesses to look for new institutional forms of innovation and educational innovation. To meet changing needs and challenges, universities are increasingly transforming into “entrepreneurial universities”. As a result, the purpose of this paper is to understand the formation and development of corporate universities, as well as the characteristics of entrepreneurial universities, using a qualitative approach and an extensive literature review. Furthermore, this study clarifies the necessity and challenges of entrepreneurial universities in the context of developing countries in knowledge economies.