The paper discusses implementation of a research that is aimed at development of a simulation model which would allow analyzing different development strategies of the third generation university. Small countries’ universities have limits of growth. The problem can be solved with a new approach to university role. The third generation defines university as innovation generation, transfer and implementation center, while maintaining the traditional university functions. The 3G university activities change number of innovative companies in the country. With growth of the number of innovative companies, potential researches and innovation customers’ amount grow. With time the amount of conducted research and developed innovative products growth. Innovative products and technologies is the basis of university competitiveness in the 21st century. Universities must develop, accumulate, implement and get benefits from innovative products and technologies.