Paper describes the procedure for developing academic programs which are properly aligned to the requirements of the knowledge-based economy. The paper also addresses the continuous quality improvement (CQI) process with the CQI loop closing on the program level and the course level. This process is needed to make continuous adjustments to an academic program, so that the program is always aligned to the constantly-changing needs of the economy. Paper also discusses the system of mutual dependency between the academic program and external partnership like local industry, secondary schools, local government, local community, regional business incubator center, other educational institutions, alumni and industrial advisory council. The ongoing collaboration with external partners allows the program to prosper and grow.
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