This digest examines some of the literature on entrepreneurial arrangements within academic institutions--arrangements that often mirror the conflicted town/gown attitude between small cities and the institutions of higher education located within their limits. The main reason cited for the involvement of higher education institutions in commercial endeavors is decreasing financing for higher education, but the report notes Derek Bok's caution that efforts to turn university activities into revenue may change the institution's image and force it to sacrifice its most essential academic values. The report notes two studies of Australian universities where the success of the entrepreneurial arrangement led to status bifurcation within academic units. Also noted is a study conducted of a Canadian project to accelerate college entrepreneurship which resulted in the ideas of competition becoming more firmly embedded in the thinking of Canadian governmental and educational leaders. Other studies note the need for a balance between business demands and academic values and the concern that university-corporate ties may diminish the objectivity of university research. In summarizing a study of European entrepreneurial universities, the report notes that while entrepreneurial activity can increase institutional autonomy, diversify income, and reduce dependence on government, it may also lead to fragmentation of academic goals and institutional purpose. (Contains 7 references.) (JM)