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The essentiality of the universities’ roles in enhancing economies and transforming societies is a global mantra. However, when it comes to wealthy and oil-dependent states such as Texas in the United States and Qatar in the Middle East, the impact of universities on sustainable economic development is questionable. This article discusses the transformational efforts within engineering colleges at two public universities in Texas and in Qatar to support their states’ visions in moving toward innovative and knowledge-based economies. The study examined the innovation capacity building of both institutions through measuring the transformational leadership styles in engineering colleges and its impact on the faculty’s innovative production of technical articles, patents, and sustainable development-related courses. The cultural impact of the two contexts on the leader–follower relationship was addressed in the discussion using Hofstede’s cultural dimension framework. The results showed that leaders in both colleges possess a transformational leadership style, albeit lower than the norm. This study disclosed that, in the high-power distance contexts, the idealized image of the leader contributed positively toward higher satisfaction of the followers with their leaders and current governance systems, while acknowledgment and rewards were the sources of satisfaction in low-power distance societies. Followers in a low uncertainty avoidance, individualistic, and short-term-oriented context achieved higher technical production. Both public universities expressed the need for government involvement in supporting the culture of innovation.
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