Knowledge-based development as the key element of the country's 20- year National Vision as well as the fourth Development Plan requires National innovation system (NIS) to facilitate innovations in both macro and micro social levels. The NIS system emerges as functions based on Entrepreneur University as the third generation university to succeed. Therefore, alongside education and research, undergoing big changes of traditional universities and accepting economical development, brings about the conductivity of technological innovations especially in high tech environments. This, in turn, strengthens the NIS foundations providing a proper platform for knowledge-based development. This has many positive and successful examples worldwide regardless of culture or boundaries. The paper deals with different aspects of this subject.