**Damaris Cruz-Amarán <sup>1</sup> , Maribel Guerrero 2,3,\* and Alma Delia Hernández-Ruiz <sup>4</sup>**


Received: 18 February 2020; Accepted: 21 March 2020; Published: 24 March 2020

**Abstract:** Since the 1990s, the socialist higher education system has faced several reforms oriented to satisfy social, economic, and technological demands. However, little is known about the transformation process of the socialist university system over the past two decades. This study provides a better understanding of the entrepreneurial and innovative transition of universities located in socialist economies. By adopting mixed theoretical approaches, we proposed a conceptual model to understand the social, the innovative, and the entrepreneurial transformation of socialist universities. We revised and tested this model in the context of Cuban universities by implementing a prospective case study approach. Our findings show insights about the transition towards a business model innovation within Cuban universities. The determinants have been state regulations, the closing of the complete cycle from teaching to the commercialization of results, and the creation of hybrid structures to manage knowledge. Consequently, the university is facing managerial challenges related to its ability to explore and exploit its activities to generate social, innovative and economic outcomes. Our results provide practical implications for the university managers and actors involved in the transformation process of Cuban universities.

**Keywords:** higher education system; social entrepreneurship; entrepreneurial universities; business model innovation; innovation ecosystem; socialist economies; Cuba
